Notes to the consolidated financial statements

39. Finance leases

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Group as a lessee
In case of leases transferring substantially all the risks and rewards incidental to ownership of the leased assets (finance leases) onto the Group, the leased assets (fixed assets) are recognized in the consolidated statement of financial position in correspondence with lease liabilities and lease payments are recognized in the consolidated profit or loss.
At the inception of the lease, the said fixed assets were recognized in the statement of financial position in amounts equal to the present value of the minimum lease payments determined at the inception of the lease.
Finance leases presented by the Group in this note concern mainly computer hardware. Under the finance lease agreement for computer hardware and the general terms and conditions of the lease, substantially all the risks and rewards are transferred onto the lessee. Additionally, the Group entered into an agreement with the option to purchase the hardware at a price corresponding to its market value, considering the fact that the nature of the leased assets is so unique that only the Group can use them without major modifications.
Future minimum lease payments under the said agreements and the present value of the minimum net lease payments as at 31 December 2013 and 31 December 2012:

	Balance as at 31 December 2013		Balance as at 31 December 2012 (restated)
	Minimum payments	Present value of payments	Minimum payments	Present value of payments
	PLN ‘000	PLN ‘000	PLN ‘000	PLN ‘000
Up to 1 year	311	306	619	601
From 1 to 5 years	0	0	312	288
Total minimum lease payments	311	306	931	889
Less financial expenses	(5)	0	(42)	0
Present value of minimum lease payments, including:	306	306	889	889
Short-term	306	306	601	601
Long-term	0	0	288	288