10.13 Trade payables, other liabilities and provisions
Accounting policies
Short-term trade and other payables are reported at nominal amount payable.
The Group dereognises a financial liability when it is extinguished, that is when the obligation specified in the contracts is either discharged or cancelled or expires. When a debt instrument between the same parties is replaced by another instrument whose termss are substantially different, the Group treats such replacement as if the former financial liability was extinguished and recognises a new liability. Similarly, material modifications to the terms od a contract concerning an existing financial liability are presented as extinguishement of the former and recognition of a new fianancial liability. Any differences in the respective carrying amounts arising in onnection with the replacement are charged to profit or loss.
Other non-financial liabillities include in particular value added tax, excise duty and fuel charge liabillities to the tax authorities and liabillities under received prepayments, whitch are to mbe setteled by delivery of goods or tangible assets, or performance of services. Other non-financial liabillities are measured at nominal amounts payable.
Accrued expenses are recognised at probable amounts of current-period liabillities. The Group discloses accrued expenses and deffered income under other non-financial liabillities or, if they are realtedto employee benefits, under employee benefits obligations.
Provision of deficit in CO2 emissions allowances
CO2 emission allowances are presented by the Group in its financial statements in accordance with the net liabillity approach.
In accordance with this method, in the statement of financial position:
- CO2 emission allowances received free of charge are not presented,
- the provision to cover CO2 emission costs is estimated if there is a shortfall in CO2 emission allowances received free of charge in relation to actual emissions during the reporting period..
The Group monitors emissions from installations covered by the European Union Emissions Trading System/Scheme during the financial year and compares them with the emissions allowances granted free of charge under EU ETS. A provision for CO2 emissions is recognised when the cumulative emissions since the beginning of given year have exceed the limit of allowances free of charge for the year. The effect of the provivion on profit or loss is presented in cost of sales (taxes and charges).
When establishing the amount of the provision, the part of the shortage which can be covered by allowances purchased earlier is measured at the carrying amount of the allowances held, and for the part of the shortage remaining to be covered – at the current matket prices of the allowances on the day ending the reporting period.
| Note | Dec 31 2021 | Dec 31 2020 | |
|---|---|---|---|
| Non-current financial liabilities: | 19.6 | 19.3 | |
| Investment commitments | 6.8 | 7.1 | |
| Liabilities to Polish National Foundation | 9.2 | 11.3 | |
| Other | 3.6 | 0.9 | |
| Current financial liabilities: | 2,751.3 | 1,902.7 | |
| Trade payables | 2,360.1 | 1,636.0 | |
| including to related entities | 10.2 | 2.6 | 1.2 |
| Investment commitments | 137.3 | 150.1 | |
| Liabilities to insurers | 0.6 | 2.4 | |
| Settlements under joint operations (Norwegian fields) (1) | 131.6 | 92.4 | |
| Liabilities to Polish National Foundation | 2.5 | 2.5 | |
| Security deposit – ICE Futures | 86.6 | – | |
| Other | 32.6 | 19.3 | |
| Financial liabilities | 2,770.9 | 1,922.0 | |
| Non-current non-financial liabilities: | 1,428.1 | 1,401.2 | |
| Provisions | 10.13.1 | 1,375.3 | 1,377.1 |
| Grants | 10.13.2 | 52.4 | 23.8 |
| Other | 0.4 | 0.3 | |
| Current non-financial liabilities: | 2,171.6 | 2,161.4 | |
| Provisions | 10.13.1 | 211.0 | 179.2 |
| Value-added tax payable | 634.1 | 492.3 | |
| Excise duty and fuel charge payable | 885.0 | 939.8 | |
| Other liabilities to the state budget other than corporate income tax | 149.6 | 152.0 | |
| Grants | 10.13.2 | 22.2 | 22.1 |
| Prepaid deliveries | 8.3 | 5.5 | |
| Liabilities under the NAVIGATOR loyalty programe | 34.2 | 30.6 | |
| Provision for deficit in CO2 emission allowances | 11.2.2 | 37.9 | 142.0 |
| National Reduction Target Provision | 42.8 | 75.1 | |
| Provision for NIT emission charge | 61.5 | 62.6 | |
| Provision for RES emission charge | 43.0 | 17.4 | |
| Cost of services | 16.2 | 17.0 | |
| Other | 25.8 | 25.8 | |
| Non-financial liabilities | 3,599.7 | 3,562.6 | |
| Total | 6,370.6 | 5,484.6 | |
| including: | |||
| long-term portion | 1,447.7 | 1,420.5 | |
| current: | 4,922.9 | 4,064.1 | |
| trade receivables | 2,360.1 | 1,636.0 | |
| other | 2,562.8 | 2,428.1 |
Trade payables do not bear interest and are typically paid in 7-60 days. Other liabilities do not bear interest and their average payment period is one month. Amounts resulting from the difference between value added tax receivable and value added tax payable are paid to the relevant tax authorities on a monthly basis. Interest payable is usually settled on a monthly basis throughout the financial year.
For currency risk sensitivity analysis of trade and other payables, see Note 11.2.3.1.
For information on contractual maturities of trade and other payables, see Note 11.2.5.