Notes to the consolidated financial statements
5.2. Professional judgment
The following issues of the accounting principles (policy) were largely influenced by the accounting estimates and the professional judgment of the management:
Impairment of financial assets
The Group assesses whether there is any objective indication of impairment of a financial asset or a group of financial assets. Indications of impairment are events or groups of events that took place after the initial recognition of an asset or a group of assets and could have adverse effect on the expected future cash flows of the financial asset or group of financial assets. Impairment loss is estimated at the moment of recognition of indications of impairment.
More information on impairment of financial assets has been presented in Notes 5.5.7, 13, 20 and 23.
Deferred tax asset
The Group recognizes the deferred tax asset based on the assumption that it will generate tax profit sufficient to apply the asset. Deterioration of future tax performance could make the assumption groundless.
Details on deferred tax assets have been presented in Note 16.
Classification of leases
The Group classifies leases to operating and finance leases based on the attribution of risks and benefits from the object of lease to the lessor or the lessee. The assessment is based on the economic substance of each transaction. Lease agreements have been presented in detail in Notes 37 and 38.
Annual Report 2014 - Bank Pocztowy
Corporate Governance
- Corporate governance: principles and scope of application
- Control system in the process of preparing financial statements
- Entity authorized to audit financial statements
- Shareholding structure and share capital
- Key information regarding Poczta Polska S.A.
- Cooperation with Poczta Polska S.A.
- Investor relations
- By-laws amending principles
- Activities of the corporate bodies of the Bank