Changes in
accounting policies

Amendments to standards and interpretations which have come into force and have been applied by the Group since 1 January 2011

Standard/ interpretation Introduction date Application date Approved by the European Union Description of changes
Amendments to IAS 24 ‘Related party disclosure’ November 2009 Financial year starting on or after 1 January 2011 Yes

The amendments introduce simplifications within requirements that refer to the disclosure of information by the entities related to state institutions and precise the definition of the related party.

These changes have no significant influence on the level of disclosures in the financial statements of the Group. Appropriate disclosures of the transactions of the Bank as a government related entity are included in Note 44 ‘Transactions with the State Treasury and related entities’.

Amendments to IAS 32 ‘Classification of rights issues’ October 2009 Financial year starting on or after 1 February 2010 Yes

The amendments relate to rights issue accounting (rights issues, options, warrants) denominated in the currency different from the functional currency of the issuer. According to the amendments, if some conditions are met, it is required to disclose rights issue as equity regardless of the currency that the settlement price is set at.

These changes do not apply to the Group due to the fact that the Group does not issue rights issues, options, warrants denominated in the currency different from the functional currency of the issuer.

Amendments to IFRS 1 ‘First-time Adoption of IFRS’ January 2010 Financial year starting on or after 1 July 2010 Yes

The amendments introduce additional exemptions for first-time adopters regarding disclosures required by amendments to IFRS 7 issued in March 2009 regarding fair value valuation and liquidity risk.

These changes do not apply to the Group due to the fact that the Group presents financial statements in accordance with IFRS from 2005.

IFRIC 19 ‘Extinguishing Financial Liabilities with Equity Instruments’ November 2009 Financial year starting on or after 1 July 2010 Yes

This IFRIC clarifies the accounting principles when an entity renegotiates the terms of its debt with the result that the liability is extinguished through the debtor issuing its own equity instruments to the creditor. This IFRIC requires the equity instrument to be measured at fair value and a gain or loss to be recognised in the profit and loss account based on the fair value of the equity instruments compared to the carrying amount of the debt.

This information does not apply to the financial statements of the Group due to lack of such transactions in 2011 and 2010.

Amendments to IFRIC 14 ‘Prepayments of a Minimum Funding Requirement’

November 2009 Financial year starting on or after 1 January 2011 Yes


This interpretation provides guidelines on how to disclose earlier prepayments of a minimum funding requirement as an asset of a paying entity.

This information does not apply to the financial statements of the Group due to lack of such transactions in 2011 and 2010.

Amendments to IFRS 2010
(amendments to 7 standards)
May 2010 Most amendments are effective for financial years starting on 1 January 2011 Yes

The amendments comprise changes related to the presentation, disclosure and valuation. They also include terminology and editing changes.

The amendments to IFRS 2010 included: IFRS 7. In the scope of the valuation of non-controlling interests and contingent consideration, IAS 1 concerning an entity's choice as to the presentation of the analysis of other comprehensive income (in the statement of changes in equity or in the explanatory notes to the financial statements).

These improvements do not have a material effect on the financial statements of the Group. The relevant disclosures in respect of IFRS 7 are presented in Note 54 ‘Risk Management in the Group’. Amendments to IFRS 3 did not apply to the transactions concluded in the years 2011 and 2010. Additionally, the Bank applies the solution of presenting an analysis of other comprehensive income in the statement of changes in equity.

New standards and interpretations and amendments to existing standards and interpretations, which have been published, but are not yet effective nor applied by the Bank

The International Accounting Standards Board and the International Financial Reporting Interpretations Committee have issued the following standards and amendments to existing standards, which are not yet effective:

Standard/ interpretation Introduction date Application date Approved by the European Union Description of potential changes
Amendments to IFRS 1 ‘Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters’ December 2010 Financial year starting on or after 1 July 2011 No The amendment regarding severe hyperinflation creates an additional exemption when an entity that has been subject to severe hyperinflation resumes presenting or presents for the first time, financial statements in accordance with IFRS. The exemption allows an entity to elect to measure certain assets and liabilities at fair value, and to use that fair value as the deemed cost in the opening IFRS statement of financial position.
The IASB has also amended IFRS 1 to eliminate references to fixed dates for one exception and one exemption, both dealing with financial assets and liabilities. The first change requires first-time adopters to apply the derecognition requirements of IFRS prospectively from the date of transition, rather than from 1 January 2004. The second amendment relates to financial assets or liabilities where the fair value is established through valuation techniques due to no active market and allows the guidance to be applied prospectively from the date of transition to IFRS rather than from 25 October 2002 or 1 January 2004. This means that a first-time adopter may not need to determine the fair value of certain financial assets and liabilities at initial recognition for periods prior to the date of transition. IFRS 9 has also been amended to reflect these changes.
These changes do not apply to the Group due to the fact that the Group presents financial statements in accordance with IFRS from 2005.

Amendments to IFRS 7 ‘Transfers of Financial Assets’
October 2010 Financial year starting on or after 1 July 2011 Yes The amendments require additional disclosures in respect of risk exposures arising from transferred financial assets. The amendment includes a requirement to disclose by class of asset the nature, carrying amount and a description of the risks and rewards of financial assets that have been transferred to another party, yet remaining in the entity's balance sheet. Disclosures are also required to enable to understand the amount of any associated liabilities, and the relationship between the certain financial assets and associated liabilities. Where financial assets have been derecognised, but the entity is still exposed to certain risks and rewards associated with the transferred asset, additional disclosure is required to enable the effects of those risks to be understood.
These changes will be applicable to the financial statements of the Group for 2012 and will require the Group’s broader disclosures, however it is estimated that Group’s scale of changes would not be significant.
Amendments to IAS 12 ‘Recovery of Underlying Assets’
December 2010 Financial year starting on or after 1 January 2012 No The amendments relate to measuring deferred tax liabilities and deferred tax assets relating to investment property measured using the fair value model in IAS 40, Investment Property and introduce a rebuttable presumption that an investment property is recovered entirely through sale. This presumption is rebutted if the investment property is held within a business model whose objective is to consume substantially all of the economic benefits embodied in the investment property over time, rather than through sale. SIC-21, ‘Income Taxes – Recovery of Revalued Non-Depreciable Assets’, which addresses similar issues involving non-depreciable assets measured using the revaluation model in IAS 16, ‘Property, Plant and Equipment’, was incorporated into IAS 12 after excluding from its scope guidance on investment properties measured at fair value.
The above changes will possibly apply for the first time to the financial statements of the Group for the year 2013, provided that they are adopted by the European Union. As of today, due to a lack of such transactions in the Group, it is estimated that the above amendments shall not apply to the financial statements of the Group.
Amendments to IAS 1 ‘Presentation of Financial Statements’ June 2011 Financial year starting on or after 1 July 2012 No The amendments require entities to separate items presented in other comprehensive income into two groups, based on whether or not they may be reclassified to profit or loss in the future. Additionally, the title of statement of comprehensive income has changed to ‘statement of profit or loss and other comprehensive income’.
The above changes will apply for the first time to the financial statements of the Group for the year 2012, provided that they are adopted by the European Union. Moreover the above change has a presentation character and will not have material impact on the Group’s disclosures.
Amended IAS 19 ‘Employee Benefits’ June 2011 Financial year starting on or after 1 January 2013 No The amendments introduce new requirements for the recognition and measurement of defined benefit pension expense and termination benefits, and to the disclosures for all employee benefits.
The above changes will apply for the first time to the financial statements of the Group for the year 2013, provided that they are adopted by the European Union. As of today, it is estimated that the amendments will not have material impact on the Group.
Amendments to IAS 32 ‘Offsetting Financial Assets and Financial Liabilities’ December 2011 Financial year starting on or after 1 January 2014 No The amendments introduce application guidance to IAS 32 to address inconsistencies identified in applying some of the offsetting criteria. This includes i.a. clarifying the meaning of ‘currently has a legally enforceable right of set-off’ and that some gross settlement systems may be considered equivalent to net settlement.
The above changes will possibly apply for the first time to the financial statements of the Group for the year 2014, provided that they are adopted by the European Union. The above additional explanations do not seem to have material impact on the Group.

Amendments to IFRS 7 ‘Disclosures — Offsetting Financial Assets and Financial Liabilities’
December 2011 Financial year starting on or after 1 January 2013 No

The amendments introduce an obligation of new disclosures that will enable users of an entity’s financial statements to evaluate the effect or potential effect of netting arrangements, including rights of set-off.

The above changes will possibly apply for the first time to the financial statements of the Group for the year 2013, provided that they are adopted by the European Union.
These changes will have a presentation character and will require from the Group additional disclosures if it will be applicable for the events from 2013.

IFRS 9, ‘Financial Instruments Part 1: Classification and Measurement’ November 2009, in October 2010 supplemented with the problem of classification and measurement of financial liabilities, in December 2011 changed the effective date Financial year starting on or after 1 January 2015 No The standard introduces the model allowing only two categories of the financial assets classification: those to be measured subsequently at fair value, and those to be measured subsequently at amortised cost. The classification is to be made at initial recognition and it depends on the entity’s business model for managing its financial instruments and the contractual cash flow characteristics of the instrument.
Most of the requirements in IAS 39 for classification and measurement of financial liabilities were carried forward unchanged to IFRS 9. The key change is that an entity will be required to present the effects of changes in own credit risk of financial liabilities designated at fair value through profit or loss in other comprehensive income.
The above changes will apply for the first time to the financial statements of the Group for the year 2015, provided that they are adopted by the European Union. The European Union makes commencing work on the adaptation conditional upon the IASB issuing a version of IFRS 9 which includes Section 2 ‘Impairment’ and Section 3 ‘Hedge Accounting’, which as of today are in the draft phase.
The effect of IFRS 9 on the adopted accounting policies has not yet been evaluated. In 2012, an analysis is to be performed in respect of the gap arising from the new classification and valuation of financial assets and liabilities within the scope of part 1 of IFRS 9.
IFRS 10 ‘Consolidated Financial Statements’ May 2011 Financial year starting on or after 1 January 2013 No The new standard replaces all of the guidance on control and consolidation in IAS 27 ‘Consolidated and separate financial statements’ and in the interpretation SIC-12 ‘Consolidation - special purpose entities’. IFRS 10 changes the definition of control so that the same criteria are applied to all entities to determine control. This definition is supported by extensive application guidance.
The above changes will possibly apply for the first time to the financial statements of the Group for the year 2013, provided that they are adopted by the European Union.
Based on preliminary analyses, the new standard does not seem to have a significant influence on the Group.
IFRS 11 ‘Joint Arrangements’ May 2011 Financial year starting on or after 1 January 2013 No The new standard replaces IAS 31 ‘Interests in Joint Ventures’ and the interpretation SIC-13 ‘Jointly Controlled Entities — Non-Monetary Contributions by Ventures’. Changes in the definitions have reduced the number of types of joint arrangements to two: joint operations and joint ventures. At the same time, the existing policy choice of proportionate consolidation for jointly controlled entities has been eliminated. Equity method is mandatory for all participants in joint ventures.
The above changes will possibly apply for the first time to the financial statements of the Group for the year 2013, provided that they are adopted by the European Union. In the case of the Group it is estimated, that the scope of changes will not be material.
IFRS 12 ‘Disclosure of Interest in Other Entities’ May 2011 Financial year starting on or after 1 January 2013 No The new standard applies to entities that have an interest in a subsidiary, a joint ventures, an associate or an unconsolidated structured entity. The standard replaces the disclosure requirements currently found in IAS 28 ‘Investments in associates’. IFRS 12 requires entities to disclose information that helps financial statement readers to evaluate the nature, risks and financial effects associated with the entity’s interests in subsidiaries, associates, joint ventures and unconsolidated structured entities. To meet these objectives, the new standard requires disclosures in a number of areas, including significant judgments and assumptions made in determining whether an entity controls, jointly controls, or significantly influences its interests in other entities, extended disclosures on share of non-controlling interests in group activities and cash flows, summarised financial information of subsidiaries with material non-controlling interests, and detailed disclosures of interests in unconsolidated structured entities.
The above changes will apply for the first time to the financial statements of the Group for the year 2013, provided that they are adopted by the European Union. The changes applied will require additional disclosures to the Group’s financial statements, but it is estimated that due to the current wide range of disclosures about the Group’s entities in case of the Group the additional scope of disclosures will not be material.
IFRS 13 ‘Fair Value Measurement’ May 2011 Financial year starting on or after 1 January 2013 No The new standard aims to improve consistency and reduce complexity by providing a revised definition of fair value, and a single source of fair value measurement and disclosure requirements.
The above changes will apply for the first time to the financial statements of the Group for the year 2013, provided that they are adopted by the European Union.
As of today it is estimated that due to the character of the new IFRS the scope of changes will not be material.
Revised IAS 27 ‘Separate Financial Statements’ May 2011 Financial year starting on or after 1 January 2013 No MSR 27 został zmieniony w związku z opublikowaniem MSSF 10 „Skonsolidowane sprawozdania finansowe”. IAS 27 was changed in connection with the publication of IFRS 10 ‘Consolidated Financial Statements’. The objective of revised IAS 27 is to prescribe the accounting and disclosure requirements for investments in subsidiaries, joint ventures and associates when an entity prepares separate financial statements. The guidance on control and consolidated financial statements was replaced by IFRS 10.
The above changes will apply for the first time to the financial statements of the Bank for the year 2013, provided that they are adopted by the European Union.
It is estimated that the additional scope of disclosures, due to the current wide range of disclosures about the Group’s entities will not be material.
Revised IAS 28 ‘Investments in Associates and Joint Ventures’ May 2011 Financial year starting on or after 1 January 2013 No The amendment of IAS 28 resulted from the IASB’s project on joint ventures. The Board decided to incorporate the accounting for joint ventures using the equity method into IAS 28 because this method is applicable to both joint ventures and associates. With this exception, other guidance remained unchanged.
The above changes will possibly apply for the first time to the financial statements of the Group for the year 2013, provided that they are adopted by the European Union.
According to the accounting policies subsidiaries and associates are recognised using equity method.
IFRIC 20 ‘Stripping Costs in the Production Phase of a Surface Mine’ October 2011 Financial year starting on or after 1 January 2013 No The interpretation clarifies that costs from the stripping activity are accounted for expenses of the current production in accordance with the principles of IAS 2, ‘Inventories’, to the extent that benefits from the stripping activity are realised in the form of inventory produced. To the extent the stripping activity leads to the benefits representing improved access to ore, the entity should recognise these costs as a ‘stripping activity asset’ within non-current assets, subject to certain criteria of interpretation being met.
In accordance with the range of activity of the Bank, IFRIC 20 does not apply.

The Management Board does not expect the introduction of the above-mentioned standards and interpretations to have a significant influence on the accounting policies applied by the Group with the exception of IFRS 9 (an influence of IFRS 9 on accounting principles applied by the Group have not been assessed yet). The Group intends to apply them in the periods indicated in the relevant standards and interpretations (without early adoption), provided that they are adopted by the EU.