Financial results

Notes to the consolidated financial statements

Download note 25 in XLS

25. Investments in financial assets

 

“Shares” include the fair value of shares in Visa Europe Limited (”Visa Europe”). In December 2015 Visa Europe informed the Bank that the potential impact of settling the acquisition of Visa Europe by Visa Inc. allocated to the Bank will reach EUR 3,511,000, including EUR 2,614,000 of cash and EUR 897,000 of preference shares convertible to shares in Visa Inc. The amounts in question may be adjusted by transaction costs and other adjustments resulting from possible appeals filed by members of Visa Europe regarding adjustments of amounts awarded due to transaction settlement. Moreover, deferred earnout payments to Visa Europe members after 16 quarters of the transaction close have been assumed in the deal. Earnout is awarded to members meeting qualification criteria for payments in cash and shares who will not have discontinued their membership in Visa for 4 years of the transaction date. As at 31 December 2015 the deferred earnout amount allocated to the Bank was not determined.

Based on the information the Bank remeasured shares in Visa Europe to their fair value, with the fair value assumed in the amount of cash allocated to the Bank as a result of the transaction settlement and the value of shares awarded including a 6% discount, i.e. EUR 3,457,000 (PLN 14,733,000). The measurement was recognized in “Revaluation reserve”. As the deferred earnout allocated to the Bank was not determined at the end of the reporting period, the Bank did not account for this amount in the measurement of shares in Visa Europe.

 


Investment assets available for sale – by maturity

 

Investment financial assets held to maturity – by maturity

 

Reclassification of securities

In 2010 and in 2014, following the intended use change, the Group reclassified securities from available for sale to held to maturity, in accordance with classification criteria described in IAS 39.

The face value, the carrying amount and the fair value of reclassified securities as at 31 December 2015 and 31 December 2014 have been presented in detail in the table below.

 

 

Figures which would have been recognized in income statement and other comprehensive income if the reclassification had not been carried out

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Figures recognized in income statement and other comprehensive income following the reclassificatio

 


Following the review of the impact of the reclassified securities on profit or loss and other comprehensive income, discussed in this note, the Group restated the amounts presented in this note and disclosed in the consolidated financial statements for the year ended 31 December 2014.