Our results

Investments in entities accounted for under the equity method

Accounting policy applied

Investments in selected subsidiaries, associates and joint ventures are accounted for under the equity method. In accordance with the equity method, investments are initially recognized in the consolidated statement of financial position at cost, and then included in the portion of the profit / loss corresponding to the Group, or in the valued entity’s other comprehensive income. If the Group’s share in the losses of an investments accounted for under the equity method exceeds the value of its shares of the entity (including long-term interests which essentially constitute a portion of the net value of the investment in the entity), the Group ceases to recognize its shares in the subsequent losses of the valued entity. Subsequent losses are recognized only up to the value of the Group’s legal or customary liabilities or payments made on behalf of the entity accounted for under the equity method.

The excess of the costs of acquisition over the Group’s share in the net value of the identifiable assets, liabilities and contingent liabilities of the entity accounted for under the equity method as at the acquisition date is recognized as goodwill, constituting a component of the investment’s carrying amount. The excess of the Group’s share in the net value of the identifiable assets, liabilities and contingent liabilities over the costs of the acquisition after another verification is recognized directly in the profit or loss. If necessary, the carrying amount of the investment (subject to goodwill) is tested for impairment in accordance with IAS 36 “Impairment of Assets” as if it were a single asset item, by comparing its recoverable amount (higher of the two: value in use or fair value less costs to sell) with its carrying amount. Impairment losses are included in the carrying amount of the investment. Losses are reversed in accordance with IAS 36 at an amount that corresponds to the increase in the investment’s recoverable amount. If an entity belonging to the Group performs transactions with a given entity accounted for under the equity method, then the profits and losses arising out of those transactions are recognized in the Group’s consolidated financial statements only with regard to the shares of this entity that are unrelated to the Group.

Detailed information on the entities accounted for under the equity method

Data in ths. PLN

Name of the entity accounted for under the equity methodPercent of shares heldbythe GroupCarrying amount
 As at 31/12/2017(audited)As at 31/12/2016(audited)As at 31/12/2017(audited) As at 31/12/2016(restated*)
COSCO Shipping Lines (POLAND) Sp. z o.o.20.0%20.0%483 763
Pol - Rail S.r.l50.0%50.0%8,437 8,088
Terminale Przeładunkowe Sławków - Medyka Sp. z o.o.50.0%50.0%18,885 20,983
Transgaz S.A.64.0%64.0%6,362 6,897
Trade Trans Finance Sp. z o.o.100.0%100.0%7,935 7,830
Rentrans Cargo Sp. z o.o.29.3%29.3%7,889 8,477
PPHU „Ukpol” Sp. z o.o.100,0%100,0%- -
PKP CARGO CONNECT GmbH100.0%100.0%465 -
AWT Rail SK a. s.100.0%80.0%3,154 5,181
Total 53,610 58,219

(*) restatement of comparable data is described in Note 4 to the Consolidated Financial Statements.

Investments in entities accounted for under the equity method

Data in ths. PLN

 Year ended 31/12/2017 (audited)Year ended 31/12/2016 (restated*)
Balance at the beginning of the reporting period58,21957,240
Share in the profit of entities measured by the equity method8063,461
Change in equity arising from dividend payment(4,930)(2,663)
Inclusion of subsidiary to investments accounted for under the equity method111-
Exchange differences resulting from translation of financial statements of foreign entities(596)181
Balance at the end of the reporting period53,61058,219

(*) restatement of comparable data is described in Note 4 to the Consolidated Financial Statements.

Presented below is a summary of financial data of entities accounted for under the equity method:

Data in ths. PLN

 As at 31/12/2017 (audited)As at 31/12/2016 (audited)
Non-current assets40,31938,961
Current assets130,423106,032
Total assets170,742144,993
Long-term liabilities3,0751,711
Short-term liabilities62,18435,897
Total liabilities65,25937,608
Net assets (1)105,483107,385
Group’s shares in the net assets of the entities accounted for under the equity method53,61058,219
Total revenue286,962162,921
Net result for the financial year4,7855,898
Group’s shares in the result of the entities accounted for under the equity method8063,461
Group’s shares in the comprehensive income of the entities accounted for under the equity method8063,461

(1) Data calculated as the total of the net assets of all of the entities accounted for under the equity method.