1.3 Impact of new and amended standards and interpretations

in PLN millions, unless otherwise stated

Up to the date of publication of these consolidated financial statements, the aforementioned amendments to the standards were adopted for use by the European Union. In the Group’s opinion, the amendments to the standards will be applicable to the Group’s activities in the scope of future economic operations, transactions or other events, towards which the amendments to the standards will be applicable.

In particular, the application of amendments to IAS 16 on proceeds prior to the intended use of an item of property, plant and equipment will result in a change in the Group’s accounting policy in this regard. In accordance with the current policy, the Group decreased expenditures by the amount of revenues achieved before an item of property, plant and equipment was brought into use, which incidentally took place during shaft sinking. Pursuant to the amendments, revenues from sales of products manufactured while an asset is brought to the desired location and condition (e.g. test production), together with associated costs, should be recognised in profit or loss for the period. Transitional provisions on the implementation of these amendments are applied retrospectively to items of property, plant and equipment brought into use on or after the beginning of the earliest presented period. The Group applied amendments to IAS 16 from 1 January 2022.  With respect to the application of transitional provisions, the Group did not identify significant items of property, plant and equipment that would be subject to adjustments on or after 1 January 2021.