SEPARATE FINANCIAL STATEMENTS OF
GIEŁDA PAPIERÓW WARTOŚCIOWYCH W WARSZAWIE S.A.
FOR THE YEAR ENDED 31 DECEMBER 2020
2020
19
1
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
TABLE OF CONTENTS
SEPARATE STATEMENT OF FINANCIAL POSITION .......................................................................... 3
SEPARATE STATEMENT OF COMPREHENSIVE INCOME .................................................................... 5
SEPARATE STATEMENT OF CASH FLOWS ........................................................................................ 6
SEPARATE STATEMENT OF CHANGES IN EQUITY ............................................................................ 8
NOTES TO THE SEPARATE FINANCIAL STATEMENTS ....................................................................... 9
1. General information, basis of preparation of the financial statements, accounting policies ........................9
1.1. Legal status .................................................................................................................................................... 9
1.2. Scope of operations of the Exchange ............................................................................................................ 9
1.3. Approval of the financial statements ............................................................................................................. 9
1.4. Statement of compliance ............................................................................................................................... 9
1.5. New standards and interpretations ............................................................................................................... 9
1.5.1. Standards and interpretations adopted by the European Union ............................................... 9
1.5.2. Standards and interpretations awaiting adoption by the European Union ............................. 10
1.6. Accounting policy and other information .................................................................................................... 10
1.6.1. Functional and presentation currency ..................................................................................... 10
1.6.2. Basis of preparation ................................................................................................................. 10
1.6.3. Estimates and judgments ......................................................................................................... 10
1.6.4. Selected accounting policies .................................................................................................... 10
1.6.5. Evaluation of balances presented in foreign currencies .......................................................... 10
1.6.6. Segment reporting ................................................................................................................... 11
1.7. Impact of the SARS-CoV-2 pandemic ........................................................................................................... 11
2. Financial risk management .......................................................................................................................12
2.1. Financial risk factors .................................................................................................................................... 12
2.2. Market risk ................................................................................................................................................... 12
2.2.1. Cash flow and fair value interest risk ....................................................................................... 12
2.2.2. Foreign exchange risk ............................................................................................................... 13
2.2.3. Price risk ................................................................................................................................... 14
2.3. Credit risk ..................................................................................................................................................... 14
2.4. Liquidity risk ................................................................................................................................................. 15
2.5. Capital management .................................................................................................................................... 16
3. Notes to the statement of financial position .............................................................................................17
3.1. Property, plant and equipment ................................................................................................................... 17
3.2. Intangible assets .......................................................................................................................................... 19
3.3. Investment in subsidiaries ........................................................................................................................... 21
3.4. Investment in associates and joint ventures ............................................................................................... 22
3.5. Leases ........................................................................................................................................................... 22
3.5.1. Qualitative and quantitative information about lease transactions – Exchange as a lessee ... 23
3.5.2. Qualitative and quantitative information about lease transactions – Exchange as a lessor ... 24
3.5.3. Selected judgments and estimates related to leases ............................................................... 25
3.5.4. Right-to-use assets ................................................................................................................... 26
3.5.5. Lease liabilities ......................................................................................................................... 27
3.5.6. Sublease receivables ................................................................................................................ 28
3.6. Financial assets ............................................................................................................................................ 29
3.6.1. Classification and measurement of financial assets ................................................................. 29
3.6.2. Impairment of financial assets ................................................................................................. 30
3.6.3. Financial assets measured at fair value through other comprehensive income...................... 31
3.6.4. Trade receivables and other receivables ................................................................................. 32
3.6.5. Financial assets measured at amortised cost ........................................................................... 34
3.6.6. Cash and cash equivalents ....................................................................................................... 35
3.7. Contract assets and contract liabilities ........................................................................................................ 36
3.8. (Non-current) prepayments ......................................................................................................................... 36
3.9. Other non-current assets ............................................................................................................................. 37
3.10. Equity ........................................................................................................................................................... 37
2
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
3.10.1. Share capital ............................................................................................................................. 37
3.10.2. Other reserves .......................................................................................................................... 38
3.10.3. Retained earnings .................................................................................................................... 38
3.10.4. Dividend ................................................................................................................................... 38
3.10.5. Earnings per share .................................................................................................................... 39
3.11. Bond issue liabilities ..................................................................................................................................... 39
3.12. Employee benefits payable .......................................................................................................................... 40
3.12.1. Retirement benefits ................................................................................................................. 41
3.12.2. Other employee benefits ......................................................................................................... 41
3.13. Accruals and deferred income ..................................................................................................................... 42
3.14. Other liabilities ............................................................................................................................................. 43
3.15. Trade payables ............................................................................................................................................. 43
3.16. Deferred income tax .................................................................................................................................... 44
4. Notes to the statement of comprehensive income ....................................................................................45
4.1. Sales revenue ............................................................................................................................................... 45
4.2. Operating expenses ..................................................................................................................................... 47
4.2.1. Salaries and other employee costs........................................................................................... 47
4.2.2. External service charges ........................................................................................................... 48
4.3. Other income ............................................................................................................................................... 49
4.4. Other expenses ............................................................................................................................................ 49
4.5. Financial income .......................................................................................................................................... 49
4.6. Financial expenses ....................................................................................................................................... 50
4.7. Income tax ................................................................................................................................................... 50
5. Note to the statement of cash flows..........................................................................................................51
6. Other notes ...............................................................................................................................................52
6.1. Financial instruments ................................................................................................................................... 52
6.2. Grants .......................................................................................................................................................... 53
6.3. Related party transactions ........................................................................................................................... 54
6.3.1. Information about transactions with the State Treasury and entities which are related parties
of the State Treasury ................................................................................................................ 54
6.3.2. Transactions with subsidiaries ................................................................................................. 55
6.3.3. Transactions with associates and joint ventures ..................................................................... 56
6.3.4. Other transactions ................................................................................................................... 57
6.4. Information on remuneration and benefits of the key management personnel ........................................ 58
6.5. Contracted investments ............................................................................................................................... 58
6.6. Contingent liabilities .................................................................................................................................... 59
6.7. Changes of presentation in the statement of comprehensive income and the statement of cash flows ... 59
6.8. Events after the balance sheet date ............................................................................................................ 59
3
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
SEPARATE STATEMENT OF FINANCIAL POSITION
The attached Notes are an integral part of these Financial Statements.
2020
2019
Non-current assets: 431,127 435,342
P roperty, plant and equipment 3.1. 9 2 ,0 9 0 9 5 ,4 1 6
Right-of-us e as s ets 3.5.4. 1 1 ,5 3 8 1 4 ,3 2 9
I ntangible as s ets 3.2. 5 3 ,3 0 6 4 9 ,8 2 9
I nves tment in s ubs idiaries and joint ventures 3.4. 1 1 ,6 5 2 1 1 ,6 5 2
I nves tment in s ubs idiaries 3.3. 2 5 6 ,5 8 5 2 5 5 ,8 8 5
Subleas e rec eivables 3.5.6. 4 ,0 9 6 6 ,3 6 3
3.6.3.
1 1 5 1 2 0
P repayments 1 ,7 4 5 1 ,7 4 8
Current assets: 439,521 357,422
I nventories 1 0 4 7
C orporate inc ome tax rec eivable - 4 ,1 3 2
T rade rec eivables and other rec eivables 3.6.4. 4 7 ,4 1 7 3 0 ,1 2 8
Subleas e rec eivables 3.5.6. 2 ,4 7 2 2 ,3 0 2
C ontrac t as s ets 3.7. 7 6 4 9 4 0
Financ ial as s ets meas ured at amortis ed c os t 3.6.5. 2 4 9 ,9 8 5 2 6 7 ,6 8 7
O ther c urrent as s ets 3.9. - 4 ,2 2 2
C as h and cas h equivalents 3.6.6. 1 3 8 ,8 7 3 4 7 ,9 6 4
TOTAL ASSETS 870,648 792,764
Note
As at 31 December
4
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
SEPARATE STATEMENT OF FINANCIAL POSITION (CONTINUED)
The attached Notes are an integral part of these Financial Statements.
2020 2019
Equity: 547,749 479,843
Share c apital 3.10.1. 6 3 ,8 6 5 6 3 ,8 6 5
O ther res erves 3.10.2. (2 2 7 ) (1 8 7 )
Retained earnings 3.10.3. 4 8 4 ,1 1 1 4 1 6 ,1 6 5
Non-current liabilities: 274,024 275,299
Liabilities on bonds is s ue 3.11. 2 4 4 ,7 3 9 2 4 4 ,3 5 0
E mployee benefits payable 3.12. 7 8 1 6 8 2
Leas e liabilities 3.5.6. 1 0 ,9 5 2 1 5 ,8 2 6
C ontrac t liabilities 3.7. 1 ,1 7 0 5 7 2
A c c ruals and deferred inc ome 3.13. 7 ,4 9 5 8 0 9
Deferred tax liability 3.16. 1 ,8 2 5 4 ,7 0 5
O ther liabilities 3.14. 7 ,0 6 2 8 ,3 5 5
Current liabilities: 48,875 37,622
Liabilities on bonds is s ue 3.11. 1 ,1 6 7 1 ,9 3 2
T rade payables 3.15. 7 ,3 3 8 7 ,9 7 0
E mployee benefits payable 3.12. 1 4 ,7 2 5 1 0 ,5 7 9
Leas e liabilities 3.5.6. 5,2 5 9 5 ,0 2 4
C I T payable 6 ,4 7 4 -
C ontrac t liabilities 3.7. 2 ,6 3 4 1 ,3 9 0
A c c ruals and deferred inc ome 3.13. 2 ,2 0 5 2 3 1
P rovis ions for other liabilities and other c harges - 9 5
O ther liabilities 3.14. 9 ,0 7 3 1 0 ,4 0 1
TOTAL EQUITY AND LIABILITIES 870,648 792,764
Note
As at 31 December
5
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
SEPARATE STATEMENT OF COMPREHENSIVE INCOME
The attached Notes are an integral part of these Financial Statements.
2020
2019
(restated)
Sales revenue 4.1. 2 5 6 ,1 3 3 1 8 3 ,5 9 9
O perating expens es 4.2. (1 3 4 ,6 0 9 ) (1 1 9 ,3 1 7 )
I mpairment (los s ) on rec eivables 3.6.4. 1 1 8 (7 5 6 )
O ther inc ome 4.3. 1 ,3 8 3 1 ,2 7 7
O ther expens es 4.4. (8 ,0 2 0 ) (3 ,3 1 5 )
Operating profit 115,005 61,488
Financ ial inc ome, inc luding: 4.5. 8 5 ,6 7 5 7 6 ,2 0 6
I nterest income under the effective interest rate method 4.5. 2,676 5,239
Financ ial expens es (9 ,5 3 9 ) (1 0 ,9 1 5 )
Profit before tax 191,141 126,779
I nc ome tax 4.7. (2 2 ,4 6 1 ) (1 1 ,6 5 6 )
Profit for the period 168,680 115,123
Gains /(Los s es) on valuation of financial as s ets meas ured at fair
value through other comprehens ive income
3.10.2. (4) 15
Actuarial gains /(los s es) on provis ions for employee benefits after
termination
3.10.2. (36) (60)
T otal items that will not be rec las s ified to profit or los s 3.10.2. (4 0 ) (4 5 )
Total other comprehensive income af ter tax (40) (45)
Total comprehensive income 168,640 115,078
Basic/Diluted earnings per share (PLN) 3.10.5. 4.02 2.74
Note
Year ended 31 December
4.6., 6.7.
6
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
SEPARATE STATEMENT OF CASH FLOWS
The attached Notes are an integral part of these Financial Statements.
2020
2019
(restated)
Total net cash flows from operating activities 119,411 66,852
Net profit of the period 168,680 115,123
Adjustments: (28,878) (29,612)
I nc ome tax 4.7. 2 2 ,4 6 1 1 1 ,6 5 6
Deprec iation and amortis ation 5. 2 3 ,7 3 7 2 3 ,4 4 7
Dividend (inc ome) 4.5. (8 0 ,7 6 6 ) (7 0 ,9 5 1 )
(Gains ) on financ ial as s ets meas ured at amortis ed c os t 3.6.5. (2 ,1 0 1 ) (4 ,2 3 8 )
I nteres t on bonds 3.11. 6 ,5 3 5 7 ,2 6 9
O ther adjus tments 5. 6 ,6 7 5 2 ,1 7 6
C hange of as s ets and liabilities : (5 ,4 1 9 ) 1 ,0 2 9
I nventories 37 17
Trade receivables and other receivables 3.6.4. (13,369) (5,429)
Trade payables 3.15. (632) 3,472
Contract as s ets 3.7. 176 75
Contract liabilities 3.7. 1,842 1,951
Non-current prepayments 3.8. 3 722
Accruals and deferred income 3.13. - 1,040
Employee benefits payable 3.12. 4,245 1,571
Other liabilities (excluding contracted investments and dividend
payable)
3.14. 3,667 (1,163)
Provis ions for liabilities and other charges (95) 27
Other non-current liabilities (1,293) (1,254)
Advances for income tax received from related parties in TG 4.7. 4,719 11,771
Income tax (paid)/refunded 4.7. (25,110) (30,430)
Year ended 31 December
Note
7
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
SEPARATE STATEMENT OF CASH FLOWS (CONTINUED)
The attached Notes are an integral part of these Financial Statements.
2020
2019
(restated)
Total cash flows from investing activities: 75,408 104,475
In: 901,212 795,160
Sale of property, plant and equipment and intangible as s ets 1 7
Dividends rec eived 4.5. 8 0 ,7 6 6 7 0 ,9 5 1
Sale of financ ial as s ets meas ured at amortis ed c os t 8 1 4 ,5 7 2 7 1 7 ,2 8 1
I nteres t on financ ial as s ets meas ured at amortis ed cos t 3.6.5. 3 ,2 7 8 4 ,3 9 7
Subleas e payments (interes t) 4.5., 3.5.6. 2 7 0 2 9 3
Subleas e payments (princ ipal) 3.5.6. 2 ,3 2 5 2 ,1 3 1
Repayment of a loan granted to a related party 6.3.3. - 1 0 0
Out: (825,804) (690,685)
P urc has e of property, plant and equipment and advanc es for property,
plant and equipment
(1 0 ,7 4 8 ) (6 ,3 7 0 )
P urc has e of intangible as s ets and advanc es for intangible as s ets (1 5 ,2 2 6 ) (4 ,1 7 7 )
P urc has e of financ ial as s ets meas ured at amortis ed c os t (7 9 8 ,0 4 7 ) (6 7 5 ,0 3 8 )
Loan granted to a related party 6.3.3. (5 0 0 ) (1 0 0 )
I nves tment in a related party 3.3. (1 ,2 8 3 ) (5 ,0 0 0 )
Total cash flows from financing activities: (104,397) (145,066)
In: 9,821 1,072
Grants rec eived 6.2. 9 ,8 2 1 1 ,0 7 2
Out: (114,218) (146,138)
Dividend paid 3.10.4. (1 0 0 ,7 1 6 ) (1 3 3 ,4 4 9 )
I nteres t paid on bonds 3.11. (7 ,3 0 0 ) (7 ,2 7 5 )
Grants repaid (5 0 6 ) -
Leas e payments (interes t) 4.6., 3.5.5. (6 0 3 ) (6 9 7 )
Leas e payments (princ ipal) 3.5.5. (5 ,0 9 3 ) (4 ,7 1 7 )
Net (decrease)/increase in cash and cash equivalents 90,421 26,261
I mpact of fx rates on cas h balance in currencies 488 (264)
Cash and cash equivalents - opening balance 3.6.6. 47,964 21,967
Cash and cash equivalents - closing balance 3.6.6. 138,873 47,964
Year ended 31 December
8
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
SEPARATE STATEMENT OF CHANGES IN EQUITY
The attached Notes are an integral part of these Financial Statements.
Share capital Other reserves
Retained
earnings
As at 1 January 2020 63,865 (187) 416,165 479,843
Dividend - - (1 0 0 ,7 3 3 ) (100,733)
Transactions with owners recognised directly in equity - - (100,733) (100,733)
N et profit for 2 0 2 0 - - 1 6 8 ,6 8 0 168,680
O ther comprehens ive inc ome - (4 0 ) - (40)
Total comprehensive income for 2020 - (40) 168,680 168,640
As at 31 December 2020 63,865 (227) 484,111 547,749
Total equity
Share capital Other reserves
Retained
earnings
As at 1 January 2019 63,865 (142) 434,514 498,237
Dividend - - (1 3 3 ,4 7 1 ) (133,471)
Transactions with owners recognised directly in equity - - (133,471) (133,471)
N et profit for 2 0 1 9 - - 1 1 5 ,1 2 3 115,123
O ther comprehens ive inc ome - (4 5 ) - (45)
Total comprehensive income for 2019 - (45) 115,123 115,078
As at 31 December 2019 63,865 (187) 416,165 479,843
Total equity
9
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
NOTES TO THE SEPARATE FINANCIAL STATEMENTS
1. GENERAL INFORMATION, BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS, ACCOUNTING
POLICIES
1.1. LEGAL STATUS
Giełda Papierów Wartościowych w Warszawie Spółka Akcyjna (“the Warsaw Stock Exchange”, “the Exchange”, “GPW” or “the
Company”) with its registered office in Warsaw, ul. Książęca 4 was established by Notarial Deed on 12 April 1991 and
registered in the Commercial Court in Warsaw on 25 April 1991 (entry no. KRS 0000082312, Tax Identification Number 526-
025-09-72, Regon 012021984). The Exchange has been listed on GPW’s Main Market since 9 November 2010.
1.2. SCOPE OF OPERATIONS OF THE EXCHANGE
The core activities of the Exchange include organising exchange trading in financial instruments and activities related to such
trading. At the same time, the Exchange organises an alternative trading system and pursues activities in education,
promotion and information concerning the capital market.
The Company operates the following markets:
GPW Main Market: trade in equities, other equity-related financial instruments and other cash markets
instruments as well as derivatives;
NewConnect: trade in equities and other equity-related financial instruments of small and medium-sized
enterprises;
Catalyst: trade in corporate, municipal, co-operative, Treasury, and mortgage bonds operated by the Exchange
and BondSpot S.A. (“BondSpot”).
1.3. APPROVAL OF THE FINANCIAL STATEMENTS
The separate financial statements were authorised for issuance by the Management Board of the Exchange on 9 March 2021.
1.4. STATEMENT OF COMPLIANCE
These financial statements have been prepared in accordance with the International Financial Reporting Standards (“IFRS
1
”)
as adopted by the European Union.
The following new standards and amendments of existing standards adopted by the European Union are effective for the
financial statements of the Exchange for the financial year started on 1 January 2020:
Update to references of the IFRS Conceptual Framework,
Amendments to IFRS 3 Business Combinations – definition of a business,
Amendments to IAS 1 Presentation of Financial Statements and IAS 8 Accounting Policies, Changes in Accounting
Estimates and Errors – Definition of material,
Amendments to IFRS 9 Financial Instruments, IAS 39 Financial Instruments: Recognition and Measurement, and
IFRS 7 Financial Instruments: Disclosures - Interest Rate Benchmark Reform.
Those IFRS amendments had no significant impact on data presented in these Financial Statements.
The key accounting policies applied in the preparation of these financial statements are presented below. These policies were
continuously followed in all presented periods, unless indicated otherwise.
1.5. NEW STANDARDS AND INTERPRETATIONS
The Exchange did not use the option of early application of new standards and interpretations already published and adopted
by the European Union or planned for adoption in the near future which will take effect after the balance sheet date.
1.5.1. STANDARDS AND INTERPRETATIONS ADOPTED BY THE EUROPEAN UNION
The following amendments already adopted by the European Union will take effect for periods starting after 1 January 2021:
Amendments to IFRS 4 Insurance Contracts – extension of the temporary exemption from applying IFRS 9 Financial
Instruments,
1
International Accounting Standards, International Financial Reporting Standards and related interpretations announced as regulations of
the European Comission.
10
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
Amendments to IFRS 9 Financial Instruments, IAS 39 Financial Instruments: Recognition and Measurement, and
IFRS 7 Financial Instruments: Disclosures - Interest Rate Benchmark Reform Phase 2,
Amendments to IFRS 16 Leases providing lessees with an exemption from treating COVID-19-related rent
concessions as lease modifications and accounting adjustments to lease liabilities and right-to-use assets (1 June
2020).
1.5.2. STANDARDS AND INTERPRETATIONS AWAITING ADOPTION BY THE EUROPEAN UNION
IFRS adopted by the European Union are not significantly different from the regulations approved by the International
Accounting Standards Board (IASB) with the exception of the following Standards, Interpretations and Amendments that are
not yet effective in the EU as at the date of these financial statements.
The following Standards and Interpretations (not yet effective) do not apply to the Exchange or are not expected to have
material impact on the financial statements of the Company.
Standard
Effective date (IASB)
Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets – onerous
contracts – cost of fulfilling obligations
1 January 2022
Amendments to IAS 16 Property, Plant and Equipment – pre-commissioning revenue
1 January 2022
Amendments to IFRS 3 Business Combinations – references to the IFRS Conceptual Framework
1 January 2022
Annual Improvements 2018-2020
1 January 2022
Amendments to IAS 1 Presentation of Financial Statements – Classification of liabilities as
current or non-current
1 January 2023
IFRS 17 Insurance Contracts, including Amendments to IFRS 17
1 January 2023
The Exchange plans to adopt these Amendments, as applicable to its business, when they become effective.
1.6. ACCOUNTING POLICY AND OTHER INFORMATION
1.6.1. FUNCTIONAL AND PRESENTATION CURRENCY
These separate financial statements are presented in the Polish zloty (PLN), which is the functional currency of the Exchange,
and all values are presented in thousands of Polish zlotys (PLN’000) unless stated otherwise
1.6.2. BASIS OF PREPARATION
The financial statements have been prepared on the historical cost basis except for financial assets measured at fair value.
The financial statements have been prepared on the going concern basis.
1.6.3. ESTIMATES AND JUDGMENTS
The preparation of financial statements in accordance with the IFRS requires making certain critical accounting estimates. It
also requires the Exchange’s Management Board to use its judgment in the application of the Exchange’s accounting policy.
Estimates and judgments are subject to on-going verification. Estimates and judgments adopted for the purpose of preparing
the separate financial statements are based on historical experience, analyses and predictions of future events, which to the
best knowledge of the Management Board of the Exchange are believed to be reasonable in the given situation.
Details of judgments and estimations are presented and highlighted in the Notes to these financial statements.
1.6.4. SELECTED ACCOUNTING POLICIES
Selected accounting policies are presented in the Notes to these financial statements.
The Exchange presents a separate statement of profit or loss and other comprehensive income.
1.6.5. EVALUATION OF BALANCES PRESENTED IN FOREIGN CURRENCIES
Transactions presented in foreign currencies are booked at the transaction date at the following foreign exchange rate:
the rate actually applied at such date, depending on the nature of the transaction – for sale or purchase of foreign
currencies or payment of receivables or payables;
the average rate published for the currency by the National Bank of Poland at the day preceding such date – for
other operations.
11
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
As at the balance sheet date:
monetary items presented in foreign currencies are converted with the closing foreign exchange (FX) rates;
non-monetary items presented in foreign currencies valued at historical cost are converted at the FX rate prevailing
at the transaction date;
non-monetary items presented in foreign currencies at fair value are converted at the FX rate prevailing at the day
of determining the fair value.
Foreign exchange gains and losses resulting from settlements of transactions in foreign currencies and from the conversions
of monetary assets and liabilities denominated in foreign currencies are disclosed as profit / loss of the current period.
1.6.6. SEGMENT REPORTING
Information about business segments is presented only in the consolidated financial statements of the Warsaw Stock
Exchange Group (“the GPW Group” or “the Group”).
1.7. IMPACT OF THE SARS-COV-2 PANDEMIC
The outbreak of the SARS-CoV-2 pandemic in March 2020 was an unprecedented event which had a significant impact on
the activity of the Company. Revenue from the markets operated by GPW is strongly dependent on economic conditions in
Poland and globally. Factors such as business restrictions, support schemes and tax credits, and especially growing
uncertainty on the financial markets, strongly impacted volatility on the capital markets and consequently the turnover value
and the capitalisation of companies on the GPW Main Market. As a result, GPW’s revenue increased substantially and the
financial results improved in 2020 year on year.
Uncertainty relating to the pandemic
According to recommendations issued by ESMA and the International Accounting Standards Committee, in connection with
the outbreak of the pandemic and the ensuing uncertainty, the Exchange reviewed its judgments and estimates and other
accounting policy assumptions as at 31 December 2020.
Judgments and estimates as well as other assumptions used in the application of the Company’s accounting policy was
reviewed as at 31 December 2020. In particular, the following issues were considered:
The key assumptions of the impairment tests of goodwill of the Company’s subsidiaries were reviewed. The review
identified no need for impairment allowances as at 31 December 2020 r.
No need was identified to change any of the estimates concerning the useful life and the depreciation rate of
property, plant and equipment and intangible assets.
The judgments used in the valuation of lease liabilities were not modified. The Exchange Management Board decided
that the term of leases used in the valuation of lease liabilities under lease agreements with no fixed term (5 years,
i.e., by the end of 2023) is an adequate representation of the most probable term of leases taking into account all
facts and circumstances in connection with the outbreak of the pandemic. An analysis of sensitivity to the key
variables (change of the term of leases and change of the lessee’s incremental borrowing rate) is presented in Note
3.4.3. Moreover, the Exchange neither received nor granted rent reliefs, nor changed significantly the scope of lease
agreements in 2020.
The impact of the pandemic on the accounting treatment of financial instruments under IFRS 9 was reviewed. In
the opinion of the Exchange Management Board, the existing classification of financial assets and the assessment
of the business model of holding financial assets are adequate and there is no indication that they should be
modified.
The Exchange carried out an in-depth analysis of the regularity of payment of trade receivables due from Exchange
Members, issuers, and data vendors and modified its assumptions used in the valuation of expected credit loss of
trade receivables. No significant adverse impact was identified of the economic slow-down on the regular payment
of receivables due from counterparties of the Company as at 31 December 2020.
The estimation of the fair value of held financial instruments measured at fair value was reviewed. In view of the
low liquidity of equity instruments received in 2020 in a conversion of debt from a debtor of the Exchange, the
instruments were fully impaired at PLN 0,9 million.
Going concern
The Exchange Management Board considered whether the outbreak of the pandemic and its impact affected the Company’s
ability to continue as a going concern. As at 31 December 2020, the GPW held PLN 389 million in cash and cash equivalents
and short-term financial assets including bank deposits and guaranteed corporate bonds; in the opinion of the Exchange
Management Board, those financial resources are sufficient to conclude that the Exchange’s short-term and mid-term liquidity
risk is low. As at 31 December 2020, the GPW identified no significant uncertainty about events or circumstances which could
raise serious doubt as to the ability of the Exchange members to continue as a going concern.
12
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
In summary, in the opinion of the Exchange Management Board, barring significant change in the GPW Group’s environment,
the SARS-CoV-2 pandemic poses no threat to continued operation of the Company in the foreseeable future.
Risks arising from the pandemic
The Exchange Management Board monitor the epidemiological situation in Poland and globally on an on-going basis and
analyse its impact on the position of the GPW. In view of the new economic situation in Poland, the Exchange identified a
number of operational and financial risks including periodic HR shortages, interruption of vendors’ services, restricted activity
of market makers, the risk that operating processes may be slowed down, the psychological impact of long-term isolation,
and the risk of shrinking ability and willingness of the Exchange’s clients to pay amounts due on time.
In the opinion of the Exchange Management Board, such operational and financial risks resulting from the pandemic are
considered to be moderate. For detailed information about the risks, including a description of measures taken to mitigate
the identified risks and a detailed presentation of the impact of the pandemic on the financial position of the Company and
the Group, see the Management Board Report on the activity of the parent entity and the Group of Giełda Papierów
Wartościowych w Warszawie S.A., Note 2.8.
2. FINANCIAL RISK MANAGEMENT
2.1. FINANCIAL RISK FACTORS
The Exchange is exposed to the following financial risks:
market risk:
cash flow and fair value interest rate risk,
currency risk,
price risk,
credit risk,
liquidity risk.
The Exchange’s overall risk management programme focuses on the unpredictability of financial markets and seeks to
minimise any potential adverse effects on the Exchange’s financial performance. The Management Board of the Exchange is
responsible for financial risk management. The Exchange has dedicated departments responsible for ensuring its liquidity
(including foreign currency liquidity), debt collection and timely payment of liabilities (particularly tax liabilities).
2.2. MARKET RISK
2.2.1. CASH FLOW AND FAIR VALUE INTEREST RISK
The Exchange is moderately exposed to interest rate risk.
The Exchange invests free cash in bank deposits, corporate bonds, Treasury bonds, certificates of deposit, and other
instruments where the interest rate is fixed, negotiated and determined when contracted at levels close to market rates at
contracting. If market rates rise, the Exchange will earn higher interest income; if market rates fall, the Exchange will earn
lower interest income.
The Exchange is an issuer of series C bonds at fixed interest rates as well as series D and E bonds at floating interest rates
based on WIBOR 6M. In the case of an increase in interest rates, the Exchange will be obligated to pay out interest coupons
on series D and E bonds with a higher value; in the case of a decrease in interest rates, the value of those coupons will be
lower (which has a direct impact on financial expenses of the Exchange).
Based on an analysis of the sensitivity of the profit before tax of the Exchange to market interest rates, the table below
presents the impact of a change in the rate by 0.5 percentage point on financial income/costs (assuming no other changes).
An 0.5 pps interest rate increase will result in the opposite change of financial income/expenses as presented above.
The table below presents financial assets and liabilities by maturity. Financial assets and liabilities not presented in the table
below bear no interest.
2020 2019
Financial inc ome (1 ,6 9 7 ) (1 ,4 3 1 )
Financial expens es 8 4 0 8 5 2
Impact of an 0.5 pps interest rate decrease on items of the statement
of comprehensive incoke in year ended 31 December
13
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
2.2.2. FOREIGN EXCHANGE RISK
The Company is exposed to moderate foreign exchange risk. The Company earns income in PLN and EUR. The Exchange
pays costs mainly in PLN and also in EUR, USD and GBP. To minimise FX risk, the Company uses natural hedging, i.e., it
covers the current cost denominated in EUR with cash deposited in a currency account, raised from clients who pay their
debt in EUR. The Exchange used no derivatives to manage FX risk in 2020 and in 2019.
Based on a sensitivity analysis, as at 31 December 2020, a 10% change in the average exchange rate of PLN assuming no
other changes would result in moderate change in the profit before tax, as presented in the table below.
An 10% FX rate decrease will result in the opposite change of profit before tax as presented above.
< 1 M 1-3 M > 3 M Total
Total non-current - - - - - -
C orporate bonds - - 8 9 ,9 7 7 89,977 - 89,977
Bank depos its 11 3 ,0 0 2 16 0 ,00 8 273,010 - 273,010
C urrent ac c ounts (other) - 2 5 ,8 6 8 - 25,868 - 25,868
Total current - 138,870 249,985 388,855 - 388,855
Total financial assets - 138,870 249,985 388,855 - 388,855
Floating-rate bonds in is s ue - - - - 11 9 ,9 2 9 119,929
Total non-current - - - - 119,929 119,929
Floating-rate bonds in is s ue - - 4 8 5 485 - 485
Total current - - 485 485 - 485
Total financial liabilities - - 485 485 119,929 120,414
As at 31 December 2020
Maturity up to 1 year
1-5 Y
Total
< 1 M 1-3 M > 3 M Total
C orporate bonds - - 8 9 ,9 5 8 89,958 - 89,958
Bank depos its - - 1 7 7 ,7 2 9 177,729 - 177,729
C urrent ac c ounts (other) 4 7 ,8 4 0 - - 47,840 - 47,840
Total current 47,840 - 267,687 315,527 - 315,527
Total financial assets 47,840 - 267,687 315,527 - 315,527
Floating-rate bonds in is s ue - - - - 11 9 ,79 4 119,794
Total non-current - - - - 119,794 119,794
Floating-rate bonds in is s ue - - 1 ,2 5 0 1,250 - 1,250
Total current - - 1,250 1,250 - 1,250
Total financial liabilities - - 1,250 1,250 119,794 121,044
As at 31 December 2019
Maturity up to 1 year
1-5 Y
Total
2020 2019
E U R 1 ,8 4 6 3 ,3 2 9
U SD 3 3 1
GP B 1 2 5
Total impact on profit before tax 1,881 3,355
Impact of a 10% FX rate increase on profit before tax in year
ended 31 December
14
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
2.2.3. PRICE RISK
Given the nature of its business, the Exchange is not exposed to any mass commodity price risk.
The Exchange is minimally exposed to price risk of held equities measured at fair value. The value of such investments was
not significant as at 31 December 2020 and as at 31 December 2019 (see Note 3.6.3).
2.3. CREDIT RISK
Credit risk is defined as a risk of occurrence of losses due to the Exchange’s counterparty’s default of payments or as a risk
of decrease in economic value of amounts due as a result of deterioration of a counterparty’s ability to pay due amounts.
Credit risk connected with trade receivables is mitigated by the Exchange Management Board by performing assessment of
counterparties’ credibility. In the opinion of the Exchange Management Board, there is no material concentration of credit
risk of trade receivables within the Company.
Resolutions of the Exchange Management Board set payment dates that differ depending on groups of counterparties. The
payment dates amount to 21 days for most counterparties, however, for data vendors, they are most often 45 days.
PLN EUR USD GBP
Total carrying
amount in PLN
Financ ial as s ets meas ured at amortis ed
c os t
2 4 9 ,9 8 5 - - - 249,985
T rade rec eivables (net) 2 5 ,1 3 9 9 ,3 4 1 - - 34,480
O ther rec eivables * 1 ,5 0 2 - - - 1,502
Subleas e rec eivables 4 ,4 9 5 2 ,0 7 3 - - 6,568
C as h and c as h equivalents 1 2 6 ,7 2 1 1 2 ,1 5 2 - - 138,873
Total assets
407,842 23,566 - - 431,408
Bonds in is s ue 2 4 5 ,9 0 6 - - - 245,906
T rade payables 6 ,6 7 9 6 3 0 1 7 1 2 7,338
Leas e liabilities 1 3 ,4 9 6 2 ,3 9 9 3 1 6 - 16,211
O ther liabilities * * 1 2 ,7 3 6 - - - 12,736
Total liabilities 278,817 3,029 333 12 282,191
Net FX position
129,025 20,537 (333) (12) 149,217
* net of prepayments and receivables from other taxes
** net of VAT payable and other taxes payable
As at 31 December 2020
(converted to PLN at the FX rate of the balance-s heet date)
PLN EUR USD GBP
Total carrying
amount in PLN
Financ ial as s ets meas ured at amortis ed
c os t
2 6 7 ,6 8 7 - - - 267,687
T rade rec eivables (net) 1 2 ,1 8 8 1 0 ,0 1 7 - - 22,205
O ther rec eivables * 1 ,8 0 6 7 - 5 1,818
Subleas e rec eivables 6 ,0 8 0 2 ,5 8 5 - - 8,665
C as h and c as h equivalents 2 1 ,5 3 0 2 6 ,4 3 4 - - 47,964
Total assets
309,291 39,043 - 5 348,339
Bonds in is s ue 2 4 6 ,2 8 2 - - - 246,282
T rade payables 7 ,4 8 2 2 7 6 1 4 1 9 8 7,970
Leas e liabilities 2 0 ,0 8 2 7 6 8 - - 20,850
O ther liabilities * * 1 4 ,6 9 3 2 ,1 2 9 - - 16,822
Total liabilities 288,539 3,173 14 198 291,924
Net FX position
20,752 35,870 (14) (193) 56,415
As at 31 December 2019
(converted to PLN at the FX rate of the balance-s heet date)
* net of prepayments and receivables from other taxes
** net of VAT payable and other taxes payable
15
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
The credibility of counterparties is verified in accordance with internal regulations and good practice of the capital market as
applicable to issuers of securities and Exchange Members. In the verification, the Exchange reviews in detail the application
documents including financial statements, copies of entries in the National Court Register, and notifications of the Polish
Financial Supervision Authority.
The maximum exposure of the Exchange to credit risk is reflected in the carrying amount of trade receivables, bank deposits,
corporate bonds, certificates of deposit, and other securities. By decision of the Exchange Management Board, the Exchange’s
investment portfolio comprises only securities guaranteed by the State Treasury or issued (guaranteed) by institutions with
a stable market position and high rating (rated above Baa2 by Moody’s). In this way, exposure to the risk of potential loss
is mitigated. In addition, credit risk is managed by the Exchange by diversifying banks in which free cash is deposited.
The table below presents the Exchange’s exposure to credit risk.
2.4. LIQUIDITY RISK
An analysis of the Exchange’s financial position and assets shows that the Exchange is not materially exposed to liquidity
risk.
An analysis of the structure of the Exchange’s assets shows a stable and rising share and value of liquid assets in total assets
and, thus, a good liquidity position of the Exchange.
An analysis of the structure of liabilities shows a share of equity in the financing of the operations of the Exchange in
excess of 50%.
To mitigate liquidity risk, the Exchange Management Board monitors, on an on-going basis, forecasts of liquid assets on the
basis of maturities of assets, due dates of payables, and other projected cash flows.
2020 2019
T rade rec eivables (net) 3 4 ,4 8 0 2 2 ,2 0 5
O ther rec eivables * 1 ,5 0 2 1 ,8 1 8
C as h and cas h equivalents 1 3 8 ,8 7 3 4 7 ,9 6 4
Financ ial as s ets meas ured at amortis ed cos t 2 4 9 ,9 8 5 2 6 7 ,6 8 7
Total exposure to credit risk
424,840 339,674
* net of prepayments and receivables from other taxes
As at 31 December
amount
% of total
assets
amount
% of total
assets
C as h and c as h equivalents 1 3 8 ,8 7 3 1 6 .0% 4 7 ,9 6 4 6 .0%
Financ ial as s ets meas ured at amortis ed c os t 2 4 9 ,9 8 5 2 8 .7 % 2 6 7 ,6 8 7 3 3 .8%
A s s ets other than c as h and cas h equivalents and financ ial
as s ets meas ured at amortis ed c os t
4 8 1 ,7 9 0 5 5 .3 % 4 7 7 ,1 1 3 6 0 .2%
Total assets 870,648 100.0% 792,764 100.0%
As at
31 December 2020
As at
31 December 2019
amount
% of total
equity and
liabilities
amount
% of total
equity and
liabilities
E quity 5 4 7 7 4 9 62 ,9 % 4 7 9 8 4 3 6 0 ,5%
Liabilities 3 2 2 8 9 9 3 7 ,1% 3 1 2 9 2 1 3 9 ,5 %
Total equity and liabilities 870 648 100,0% 792 764 100,0%
As at
31 December 2020
As at
31 December 2019
16
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
2.5. CAPITAL MANAGEMENT
It is the objective of the Company’s effective capital management to ensure that the Exchange and the subsidiaries may
continue as a going concern while providing optimum benefits to all stakeholders. It is a priority of the Exchange Management
Board when deciding about the structure of financing and the dividend policy of the GPW that any investments carry low risk
while generating possibly optimal returns for the shareholders and stable and safe returns for the bondholders. Any decisions
of the Management Boards in that regard have a long-term horizon and are geared at creating long-term value for the
Exchange and the Polish capital market. As regulated market operators, the Exchange and BondSpot are required under the
Act on Trading in Financial Instruments to maintain own capital as a minimum equal to PLN 10 million.
In pursuit of those objectives, as at 31 December 2020 and as at 31 December 2019, the GPW used external capital (interest-
bearing liabilities) including bonds in issue (see Note 3.11.) and leases (Note 3.5.5). According to its internal capital
management policy and dividend policy, the Exchange annually pays a dividend to the shareholders. It is the intention of
the GPW Management Board to recommend to the General Meeting to pay a dividend depending on the profitability and
financial capacity of GPW but no less than 60% of the consolidated net profit of the GPW Group for a financial year attributable
> 1M 1-3 M 3-6 M 6-12 M 1-5 Y > 5 Y Total
T rade rec eivables (net) 31 ,23 4 3 ,2 4 6 - - - - 34,480
O ther rec eivables * 1 ,5 0 2 - - - - - 1,502
Subleas e rec eivables 2 ,2 8 7 2 ,0 8 2 2 ,0 5 5 1 4 4 - - 6,568
Financ ial as s ets meas ured at amortis ed
c os t
- 17 9 ,98 2 7 0 ,00 3 - - - 249,985
C as h and c as h equivalents 1 3 8 ,8 7 3 - - - - - 138,873
Total assets 173,896 185,310 72,058 144 - - 431,408
Bonds in iss ue 6 2 0 - 9 4 1 - - 2 4 4 ,34 5 245,906
T rade payables 6 ,5 7 6 7 6 2 - - - - 7,338
Leas e liabilities 4 3 9 9 8 1 1 ,2 9 5 2 ,55 1 9 ,3 4 9 1 ,5 9 6 16,211
O ther liabilities * * 5 ,6 7 4 - - - 7 ,0 6 2 - 12,736
Total liabilities 13,309 1,743 2,236 2,551 16,411 245,941 282,191
Liquidity surplus/(gap) 160,587 183,567 69,822 (2,407) (16,411) (245,941) 149,217
As at 31 December 2020
* net of prepayments and receivables from other taxes
** net of VAT payable and other taxes payable
> 1M 1-3 M 3-6 M 6-12 M 1-5 Y > 5 Y Total
T rade rec eivables (net) 18 ,2 5 6 2 ,6 8 0 1 ,2 6 9 - - - 22,205
O ther rec eivables * 1 ,8 1 8 - - - - - 1,818
Subleas e rec eivables 1 8 9 3 8 0 5 7 3 1,1 6 0 6 ,3 6 2 - 8,664
Financ ial as s ets meas ured at amortis ed
c os t
2 0 5 ,6 5 8 - 62 ,0 2 9 - - - 267,687
C as h and c as h equivalents 47 ,96 4 - - - - - 47,964
Total assets 273,885 3,060 63,871 1,160 6,362 - 348,338
Bonds in is s ue 1,3 8 0 - 9 4 1 - 2 4 3 ,9 6 1 - 246,282
T rade payables 7 ,4 8 6 4 8 4 - - - - 7,970
Leas es (IFRS 16 ) 4 0 3 9 2 8 1 ,2 2 3 2,47 5 1 4 ,2 2 5 1 ,5 9 6 20,850
O ther liabilities * * 8 ,4 5 0 1 7 - - 6 ,8 5 9 1 ,4 9 6 16,822
Total liabilities 17,719 1,429 2,164 2,475 265,045 3,092 291,924
Liquidity surplus/(gap) 256,166 1,631 61,707 (1,315) (258,683) (3,092) 56,414
As at 31 December 2019
* net of prepayments and receivables from other taxes
** net of VAT payable and other taxes payable
17
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
to the shareholders of GPW, adjusted for the share of profit of associates. For more information about dividends paid in 2020
and 2019, see Note 3.10.4.
The Exchange Management Board optimise the capital structure and monitor the achievement of goals using Alternative
Performance Measures calculated according to the Guidelines of the European Securities and Markets Authority (“ESMA”).
The table below presents the indicators used by the GPW to monitor capital management performance. The table presents
the indicators achieved by the Company in 2020 and in 2019 as well as their optimum thresholds which the Exchange does
not intend to cross (thanks to effective capital management by the Exchange Management Board).
3. NOTES TO THE STATEMENT OF FINANCIAL POSITION
3.1. PROPERTY, PLANT AND EQUIPMENT
Selected accounting policies
Property, plant and equipment are disclosed at the cost of purchase or production, expansion or modernisation, net of
accumulated depreciation and impairment losses. Purchase cost includes the cost of purchase, expansion and/or
modernisation. Depreciation is calculated for property, plant and equipment items over their estimated useful life, taking
into account their residual value and using the straight-line depreciation method.
The depreciation method, the depreciation rate and the residual value are subject to regular verification by the Exchange.
Any changes resulting from the verification are recorded as a change in accounting estimates, prospectively.
Land is not subject to depreciation.
Property, plant and equipment under construction or development is not depreciated until complete.
A component of property, plant and equipment is derecognised when sold or when economic benefits from its use or disposal
are no longer expected. Gains and losses on disposal/liquidation of property, plant and equipment are determined as the
difference between the proceeds (if any) and the net book value of property, plant and equipment and included in the profit
or loss of the period as other income or other expenses.
31 December 2020 31 December 2019
Debt and financing ratios:
N et debt/EBI T DA * (0 .3 ) 0 .5 poniżej 3
Debt to equity* * 4 7 .9% 5 5 .7% poniżej 10 0 %
Liquidity ratios:
C urrent liquidity* * * 9 .0 9 .5 powyżej 1,5
C overage of interes t on bonds * * * * 2 1 .2 1 1 .7 powyżej 4
*** Current liquidity = current assets / current liabilities (as at balance-sheet date)
**** Coverage of interest on bonds = EBITDA / interest on bonds
** Debt to equity = interest-bearing liabilities / equity (as at balance-sheet date)
As at / Year ended
Optimum
* Net debt = interest-bearing liabilities - liquid assets (as at balance-sheet date)
EBITDA = operating profit + depreciation and amortisation (in the last 12 months)
Categories of property, plant and equipment Depreciation period
Buildings 40 Y
Leas ehold improvements 10 Y
V ehic les 5 Y
C omputer hardware 3-5 Y
O ther fixed as s ets 5-1 0 Y
18
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
Selected judgments and estimates
The Exchange determines the estimated economic useful life and depreciation rates for property, plant and equipment. These
estimates are based on the anticipated periods for using the individual groups of assets. The adopted economic useful life
may undergo considerable changes as a result of new technological solutions appearing on the market, plans of the
Management Board of the Exchange or intensive use.
Vehicles and machinery include mainly IT hardware: servers, computers and network devices.
As at 31 December 2020, 14% of office space, car park space and other space owned by the Exchange in the Centrum
Giełdowe building was under operating leases where the Exchange was the lessor (see: Note 3.5.2). The fixed assets under
the leases (recognised in the statement of financial position as at 31 December 2020) stood at PLN 10,261 thousand. As at
31 December 2019, 15% of such space was under leases and the fixed assets under the leases stood at PLN 11,420 thousand.
Selected accounting policies
At each balance sheet date, the Exchange reviews non-financial assets to determine whether there are indicators of
impairment except for inventories and deferred tax assets.
If such indicators are identified, the recoverable amount of an asset is estimated (as the higher of: fair value less selling
costs or value in use). Value in use corresponds to the discounted value of the future economic benefits which would be
generated by an asset.
Land and
buildings
Vehicles and
machinery
Furniture,
fittings and
equipment
Property, plant
and equipment
under
construction
Total
Net carrying amount - opening balance 76,131 14,286 297 4,702 95,416
A dditions 3 4 8 5 ,7 7 4 9 5 1 ,3 9 2 7,609
Dis pos als - (2 3 ) (6 ) - (29)
Deprec iation charge* (3 ,1 8 5 ) (7 ,5 4 9 ) (1 7 2 ) - (10,906)
Net carrying amount - closing balance 73,294 12,488 214 6,094 92,090
As at 31 December 2020 :
Gros s c arrying amount 1 2 7 ,5 1 1 8 9 ,1 5 6 3 ,4 4 6 6 ,0 9 4 226,207
Deprec iation (5 4 ,2 1 8 ) (7 6 ,6 6 8 ) (3 ,2 3 2 ) - (134,118)
Net carrying amount 73,294 12,488 214 6,094 92,090
Year ended 31 December 2020
* Depreciation of PLN 390 thousand is capitalised to intangible assets under construction (licences).
Land and
buildings
Vehicles and
machinery
Furniture,
fittings and
equipment
Property, plant
and equipment
under
construction
Total
Net carrying amount - opening balance 77,943 14,844 368 3,207 96,362
A dditions 1 ,3 8 2 6 ,3 2 3 2 9 2 1 ,4 9 5 9,492
Dis pos als (3 4 ) - (1 ) - (35)
Deprec iation charge* (3 ,1 6 0 ) (6 ,8 8 1 ) (3 6 2 ) - (10,403)
Net carrying amount - closing balance 76,131 14,286 297 4,702 95,416
As at 31 December 2019 :
Gros s c arrying amount 1 2 7 ,1 6 3 8 3 ,8 3 6 3 ,7 2 0 4 ,7 0 2 219,421
Deprec iation (5 1 ,0 3 2 ) (6 9 ,5 5 0 ) (3 ,4 2 3 ) - (124,005)
Net carrying amount 76,131 14,286 297 4,702 95,416
Year ended 31 December 2019
* Depreciation of PLN 148 thousand is capitalised to intangible assets under construction (licences).
19
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
At the end of every reporting period, the Exchange checks for conditions indicating that the impairment losses recognised in
previous reporting periods may be redundant or excessive. In that case, impairment losses are reversed in whole or in part
and the asset value is disclosed net of the impairment losses (but including depreciation).
Impairment losses are recognised in other expenses and reversed in other income.
The Exchange recognised no impairment of property, plant and equipment in 2020 and in 2019.
3.2. INTANGIBLE ASSETS
Selected accounting policies
Intangible assets include goodwill and other intangible assets as well as development.
Other intangible assets (licences, copyright, and know-how) are disclosed at cost of purchase or production net of
accumulated amortisation and impairment losses.
Internally generated intangible assets are classified as research (recognised in expenses) or development (recognised in
intangible assets). Development is disclosed at cost of production which includes all directly attributable costs necessary to
create, produce and prepare the asset to be capable of operating in the manner intended by the Management Board of the
Exchange. Direct costs include the cost of services used for production; depreciation of selected property, plant and
equipment (IT hardware) used directly to produce the asset; and the cost of employee benefits directly attributable to the
production of the asset. Such costs are capitalised when the costs and the related intangible asset meet the criteria of IAS
38.
Amortisation is calculated for other intangible assets over their estimated useful life using the straight-line amortisation
method. The amortisation method and the amortisation rate are subject to regular verification by the Exchange. Any changes
resulting from the verification are recorded as a change in accounting estimates, prospectively.
A component of intangible assets is derecognised when sold or when economic benefits from its use or disposal are no longer
expected. Gains and losses on disposal/liquidation of intangible assets are determined as the difference between the net
proceeds (if any) and the book value of intangible assets and included in the profit or loss of the period as other income or
other expenses.
The Exchange performs an annual test of impairment of intangible assets which are not yet available for use by comparing
the carrying value and the recoverable amount. For impairment testing purposes, intangible assets which are not yet
available for use are allocated to cash generating units which are expected to benefit from the transaction responsible for
the creation of the assets.
If the carrying value of an asset (or a cash generating unit) is higher than its recoverable value, impairment is recognised
and the asset value is written down to recoverable value. Impairment losses are charged to the profit or loss of the period
as other income or other expenses.
Selected judgments and estimates
The Exchange determines the estimated economic useful life and amortisation rates for other intangible assets. These
estimates are based on the anticipated periods for using the individual groups of assets. The adopted economic useful life
may undergo considerable changes as a result of new technological solutions appearing on the market, plans of the
Management Board of the Exchange or intensive use. The estimated useful life of intangible assets is 5 years. Useful life is
determined on an individual basis for intangible assets related to the trading system UTP, which has an estimated useful life
is 12 years.
20
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
In 2020 and 2019 the Exchange did not make significant expenditures for research recognised in the period as expenses in
the statement of comprehensive income. Development includes expenditure for internally generated intangible assets, mainly
expenditure in projects co-financed with grants described in Note 6.2.
Universal Trading Platform (“UTP”)
The UTP trading system represents the biggest intangible asset in the category “Licences”. The UTP trading system licence
was commissioned on 15 April 2013. The useful life of the UTP trading system was determined at 12 years (until 31 March
2025). The net value of the UTP trading system was PLN 32,976 thousand as at 31 December 2020 (PLN 40,735 thousand
as at 31 December 2019).
The Exchange recognised no impairment of intangible assets as at 31 December 2020 and as at 31 December 2019.
Licences Copyrights Goodwill Total
Net carrying amount - opening balance 49 304 525 - 49 829
A dditions 1 3 2 9 8 5 5 - 13 353
C apitalis ed deprec iation 4 3 6 - - 436
Deprec iation charge* (1 0 0 8 2 ) (2 3 0 ) - (10 312)
Net carrying amount - closing balance 52 956 350 - 53 306
As at 31 December 2020 :
Gros s c arrying amount 1 9 4 0 8 5 4 8 3 0 7 9 4 6 206 861
I mpairment - - (7 9 4 6 ) (7 946)
Deprec iation (1 4 1 1 2 9 ) (4 4 8 0 ) - (145 609)
Net carrying amount 52 956 350 - 53 306
Year ended 31 December 2020
* Amortisation of PLN 46 thousand is capitalised to intangible assets under construction (licences).
Licences Copyrights Goodwill Total
Net carrying amount - opening balance 55 759 679 - 56 439
A dditions 3 4 5 2 1 2 2 - 3 574
C apitalis ed deprec iation 1 5 2 - - 152
Deprec iation charge* (1 0 0 5 9 ) (2 7 6 ) - (10 335)
Net carrying amount - closing balance 49 304 525 - 49 829
As at 31 December 2019 :
Gros s c arrying amount 1 8 0 3 5 1 4 7 7 5 7 9 4 6 193 072
I mpairment - - (7 9 4 6 ) (7 946)
Deprec iation (1 3 1 0 4 7 ) (4 2 5 0 ) - (135 297)
Net carrying amount 49 304 525 - 49 829
Year ended 31 December 2019
* Amortisation of PLN 4 thousand is capitalised to intangible assets under construction (licences).
21
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
3.3. INVESTMENT IN SUBSIDIARIES
Selected accounting policies
The Exchange recognises investment in subsidiaries at cost less impairment losses.
The Exchange held investments in the following subsidiaries as at 31 December 2020 and as at 31 December 2019:
Towarowa Giełda Energii S.A. (“TGE”), the parent entity of the Towarowa Giełda Energii S.A. Group (“TGE Group”),
BondSpot S.A. (“BondSpot”),
GPW Benchmark S.A. (“GPWB”),
GPW Ventures ASI S.A. (“GPWV”), the parent entity of the GPW Ventures ASI S.A. Group (“GPWV Group”),
GPW Tech S.A. (“GPWT”).
GPWT was established in 2019. The Exchange is its sole shareholder. The share capital of GPWT at PLN 1 million as at 31
December 2019 was fully paid with GPW’s own resources. On 21 December 2020, the Extraordinary General Meeting of GPW
Tech S.A. passed a resolution increasing the share capital of GPWT with an issue of series B shares in a private subscription
excluding the subscription rights of existing shareholders, resulting in an issue of 700,000 series B ordinary bearer shares
with a nominal value of PLN 1 per share. The issue price was PLN 1 per share. The Exchange took up shares in a total amount
of PLN 0.7 million. The GPWT share capital increase was not registered in the National Court Register by the end of 2020
and the share capital of GPWT stood at PLN 1 million as at 31 December 2020.
The Exchange increased GPWB’s capital by PLN 1 million in 2019, from PLN 1,909 thousand to PLN 2,909 thousand.
GPWV was established in 2019. The Exchange is its sole shareholder. The share capital of GPWV stood at PLN 3 million as
at 31 December 2019 and as at 31 December 2020 fully paid with GPW’s own resources.
As at 31 December 2020, the Exchange identified indications of impairment of the investment in GPWT and GPWV (negative
financial results of both companies). However, an impairment test of the investment in GPWT and GPWV identified no need
for impairment allowances. The Exchange Management Board identified no key assumptions which, in the event of a
reasonably expected change, would result in impairment.
The Exchange identified no indications of impairment of other subsidiaries as at 31 December 2020. Impairment tests were
carried out for cash generating units corresponding to the subsidiaries which represent goodwill (in particular, TGE and
BondSpot) recognised in the consolidated financial statements of the GPW Group. The test identified no impairment as at 31
December 2020. The test framework is described in Note 3.2 to the Consolidated Financial Statements of the GPW Group for
2020.
TGE BondSpot GPWB GPWT* GPWV Total
V alue at cos t
2 1 4 ,5 8 2 3 4 ,3 9 4 2 ,9 0 9 1 ,7 0 0 3 ,0 0 0 256,585
Carrying amount
214,582 34,394 2,909 1,700 3,000 256,585
N umber of shares
1,4 5 0 ,00 0 9,6 9 8 ,12 3 5 8 ,0 0 0 1,00 0 ,00 0 3,0 0 0 ,00 0 n/d
% of s hare c apital
1 0 0 .0 0 9 6 .9 8 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 n/d
% of votes 1 0 0 .0 0 9 6 .9 8 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 n/d
As at 31 December 2020
TGE BondSpot GPWB GPWT GPWV Total
V alue at cos t
2 1 4 ,5 8 2 3 4 ,3 9 4 2 ,9 0 9 1 ,0 0 0 3 ,0 0 0 255,885
Carrying amount
214,582 34,394 2,909 1,000 3,000 255,885
N umber of shares
1,4 5 0 ,00 0 9,6 9 8 ,12 3 5 8 ,0 0 0 1,00 0 ,00 0 3,0 0 0 ,00 0 n/d
% of s hare c apital
1 0 0 .0 0 9 6 .9 8 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 n/d
% of votes 1 0 0 .0 0 9 6 .9 8 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0 n/d
As at 31 December 2019
22
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
3.4. INVESTMENT IN ASSOCIATES AND JOINT VENTURES
Selected accounting policies
The Exchange recognises investment in associates and joint ventures at cost less impairment losses.
The Exchange held interest in the following associates and joint ventures as at 31 December 2020 and as at 31 December
2019:
Krajowy Depozyt Papierów Wartościowych S.A. (“KDPW”, the parent entity of the KDPW Group),
Centrum Giełdowe S.A. (“CG”),
Polska Agencja Ratingowa S.A. (“PAR”).
Investment in PAR
The Exchange held 35.86% of PAR as at 31 December 2020 and 33.33% as at 31 December 2019.
In H1 2020, GPW took up 1,100,000 series C shares of PAR with a nominal value of PLN 0.53 per share and a total nominal
value of PLN 583 thousand in exchange for a cash contribution of PLN 0.53 per share, i.e., PLN 583 thousand in total. As at
30 June 2020, the Group recognised impairment of the investment in PAR at PLN 583 thousand, which was recognised in
the statement of comprehensive income under financial expenses. The impairment was recognised due to uncertainty in
connection with the postponed launch of PAR’s planned business activity. As a result, the value of the investment in PAR was
equal to 0 in the Group’s statement of financial position as at 31 December 2020 and as at 31 December 2019.
3.5. LEASES
Selected accounting policies
As a lessee, under IFRS 16, the Exchange recognises as leases all contracts under which the right to use an asset is
transferred for a given term in exchange for a fee. According to allowed simplifications, the Exchange does not apply lease
accounting to:
short-term lease contracts;
leases of low-value underlying assets (“low-value leases”).
Such lease payments are recognised as costs on a straight-line basis in the financial result.
PAR CG KDPW Total
V alue at c os t
4 ,6 8 3 4 ,6 5 2 7 ,0 0 0 16,335
I mpairment
(4 ,6 8 3 ) - - (4,683)
Carrying amount
- 4,652 7,000 11,652
N umber of shares
5 ,2 0 0 ,0 0 0 4 6 ,5 0 6 7 ,0 0 0 n/d
% of share c apital
3 5 .8 6 % 2 4 .7 9 % 3 3 .3 3 % n/d
% of votes 3 5 .8 6 % 2 4 .7 9 % 3 3 .3 3 % n/d
As at 31 December 2020
PAR CG KDPW Total
V alue at c os t
4 ,1 0 0 4 ,6 5 2 7 ,0 0 0 15,752
I mpairment
(4 ,1 0 0 ) - - (4,100)
Carrying amount
- 4,652 7,000 11,652
N umber of shares
4 ,1 0 0 ,0 0 0 4 6 ,5 0 6 7 ,0 0 0 n/d
% of share c apital
3 3 .3 3 % 2 4 .7 9 % 3 3 .3 3 % n/d
% of votes 3 3 .3 3 % 2 4 .7 9 % 3 3 .3 3 % n/d
As at 31 December 2019
23
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
Low-value leases include mainly leases of: computers, coffee machines, office furniture. For low-value leases, the Exchange
selects the recognition method individually for each contract, i.e., without defining a global threshold below which leases are
considered low-value.
Short-term leases are leases up to 12 months.
For each lease contract, the Exchange defines the lease term as an uncancellable period including:
periods when the lessee is reasonably certain to exercise an option to extend the lease; and
periods when the lessee is reasonably certain not to exercise an option to terminate the lease.
As a lessor, the Exchange recognises lease contracts as an operating lease or a finance lease.
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an
underlying asset to the lessee. A lease is classified as an operating lease if it does not transfer substantially all the risks and
rewards incidental to ownership of an underlying asset to the lessee.
Lease payments from operating leases are recognised as income on either a straight-line basis or another systemic basis.
Income from office space leases is recognised in the amount of monthly rent. Any costs, including depreciation charges,
incurred to earn the lease income are recognised in the financial result.
At the commencement date, assets held under a finance lease are recognised in the statement of financial position and
presented as a lease/sublease receivable at an amount equal to the net investment in the lease.
Interest income on leases is recognised in the term of the lease to reflect a fixed periodic interest rate on the net investment
in the lease made by the Exchange in the finance lease; the Exchange applies the effective interest rate method.
Sublease contracts are contracts where the underlying asset is re-leased by the Exchange (“intermediate lessor”) to a third
party and the lease (“head lease”) between the head lessor and the Company remains in effect. Sublease contracts are
classified as an operating lease or a finance lease.
The policy applicable to the head lease applies accordingly to finance sublease contracts, i.e., as an intermediate lessor, the
Exchange derecognises the net value and the depreciation of the subleased assets from right-to-use assets in the statement
of financial position and from depreciation in the statement of comprehensive income, accordingly.
3.5.1. QUALITATIVE AND QUANTITATIVE INFORMATION ABOUT LEASE TRANSACTIONS – EXCHANGE AS A LESSEE
The Exchange is a lessee of the following groups of assets:
office space and car park space in the Centrum Giełdowe building, ul. Książęca 4, Warsaw, and office space in Łódź
and Bełchatów;
perpetual usufruct of land occupied by the Centrum Giełdowe building;
colocation space (back-up office, racks, server rooms and maintenance rooms);
passenger cars.
Each lease contract is negotiated on an individual basis and contains a broad range of terms and conditions. The terms and
conditions with a significant impact on the value of lease liabilities include:
no fixed term of most lease contracts for space in Centrum Giełdowe (with a termination notice of several months);
for colocation services: contracts with a fixed term (several years) which automatically extend upon expiry as a
contract with no fixed term with a termination notice of several months;
three-year passenger car leases (after the term of the lease, the user has the option to buy the car; if the option is
not exercised, the car is returned to the lessor).
The Exchange’s leases contain no covenants; however, right-to-use assets cannot be used as loan collateral. They provide
for no material variable lease payments which would depend on an index or a rate, the Exchange’s revenue, a reference
interest rate, or which would change to reflect changes to market rents.
In the opinion of the Exchange Management Board, the Company is not exposed to material risk of future cash outflows in
respect of variable lease payments, residual value guarantee or leases not yet commenced. Given the nature of the lease
contracts for space in Centrum Giełdowe (no fixed term) and colocation, if the expected lease period changes, the liability
will be restated accordingly and future cash outflows will increase.
Depreciation charges on right-to-use assets (net of depreciation of subleased assets), increases in right-to-use assets, and
the carrying amount of right-to-use assets by category are presented in the table in Note 3.5.4.
24
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
Cash outflows under leases, excluding short-term leases and low-value leases, are presented net in the statement of cash
flows as lease payments (interest) and lease payments (principal).
Cash outflows under short-term leases and low-value leases are a cost of the leases recognised in the statement of
comprehensive income and presented in the table below.
The Exchange was not a lessor of assets for a term shorter than 12 months (short-term lease) in 2020 and in 2019.
The Exchange incurred no variable lease costs in 2020 and in 2019 that would not be included in the value of lease liabilities.
3.5.2. QUALITATIVE AND QUANTITATIVE INFORMATION ABOUT LEASE TRANSACTIONS – EXCHANGE AS A LESSOR
The activity of the Exchange as a lessor and sublessor is not the Company’s core business. As the parent entity of the GPW
Group, the Exchange operates as the Group’s procurement centre, including office space, colocation space, and passenger
cars. Revenue from operating leases and (finance) subleases covers the Exchange’s operating expenses related to the leases.
It is not the intention of the Company to finance its core business with profits earned as a lessor. Consequently, the activity
of the Exchange as a provider of leases should be considered in a broader context, as an activity supporting the Group.
Where the Exchange leases proprietary space to third parties, such lease contracts are classified as operating leases.
Where the Exchange subleases leased space to third parties, such lease contracts are classified in accordance with the head
lease (the Exchange is an intermediate lessor). Consequently, the Exchange recognises sublease receivables and reduces
right-to-use assets under the head lease accordingly (recognised under IFRS 16).
As at 31 December 2020, the Exchange was:
the lessor (operating leases) of office space and car park space to GPW Group members and third parties;
the sublessor of office space and car park space to GPW Group members and third parties;
the sublessor of colocation space to GPW Group members;
the sublessor of passenger cars to GPW Group members.
The Exchange’s operating leases and subleases contain no covenants and right-to-use assets cannot be used as loan
collateral by the lessee. The leases provide for no material variable lease payments which would depend on an index or a
rate, revenue, a reference interest rate, or which would change to reflect changes to market rents.
In the opinion of the Exchange Management Board, the Company as a lessor and sublessor is not exposed to risk of future
cash outflows in respect of variable lease payments, residual value guarantee or leases not yet commenced. Given the nature
of the lease contracts for space in Centrum Giełdowe (no fixed term) and colocation, if the expected lease period changes,
sublease receivables (and the head lease liability) will be restated accordingly and future cash inflows will increase.
The Exchange was not a lessor of assets for periods shorter than 12 months (short-term leases) in 2020 and in 2019.
Cash inflows under subleases are presented net in the statement of cash flows as sublease payments (interest) and sublease
payments (principal).
Cash inflows under operating leases is equal to revenue from operating leases presented in the table below.
The Exchange earned no revenue in 2020 and in 2019 relating to variable lease payments that would not be included in
sales revenue (operating leases) or in sublease receivables.
The table below presents lease payments due by due date and a reconciliation of sublease payments and the net lease
position.
2020 2019
Deprec iation of right-to-us e as s ets 3.5.4. 2 ,9 5 6 2 ,8 6 1
I nteres t on leas e liabilities 4.6. 6 0 3 6 9 7
Los s es /(Gains ) on terminated leas es (3 8 ) 1 5
Leas e c ontrac ts revaluation 1 8 2 (2 5 )
Low-value leas es 1 4 8 8
Total lease cost in the statement of comprehensive income 3,717 3,636
Note
Year ended 31 December
25
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
3.5.3. SELECTED JUDGMENTS AND ESTIMATES RELATED TO LEASES
Lease liabilities and right-to-use assets are calculated using professional judgment including:
determination of the period of lease;
determination of the marginal borrowing rate;
determination whether property owned by GPW is not (in part) an investment property.
For leases signed by the Exchange with no fixed term, the Exchange estimates the most likely period of the lease taking into
account all facts and circumstances which provide an economic incentive to continue the lease. Afterwards, the Exchange
uses judgment to determine if it is reasonably certain that the Exchange will continue the lease on the occurrence of any
event or change of circumstances affecting the judgment.
The Exchange Management Board determined the term of leases using judgment as follows:
five-year term of lease of additional office space occupied by the Exchange in the Centrum Giełdowe building;
23-year term of lease of land occupied by the Centrum Giełdowe building (equal to the depreciation period of
premises and parts of the building in Centrum Giełdowe, owned by the Exchange).
The table below presents the impact of change of the term of lease of additional office space and land by 2 years.
2020 2019
I nters t on subleas es 4.5. 2 7 0 2 9 3
Subleas e revaluation 1 6 0 (2 5 )
Low-value subleas es 1 4 2 3
I nc ome from operating leas es 1 ,5 5 1 1 ,6 0 3
Total lease income (reduction of expenses) in the statement of
comprehensive income
1,995 1,894
Note
Year ended 31 December
Subleases
Operating
leases
Total Subleases
Operating
leases
Total
> 1Y 2 ,28 7 2 ,72 0 5 ,00 7 2 ,53 8 2 ,02 6 4 ,56 4
in Y2 2 ,35 8 2 ,72 0 5 ,07 8 2 ,53 8 2 ,02 6 4 ,56 4
in Y3 2 ,05 5 2 ,72 0 4 ,77 5 2 ,27 6 2 ,01 4 4 ,29 0
in Y4 144 2 ,20 6 2 ,35 0 1 ,81 5 1 ,70 2 3 ,51 7
in Y5 - - - 10 - 10
Total 6,844 10,366 17,210 9,177 7,768 16,945
Lease fees due by due date
as at 31 December 2020
as at 31 December 2019
Assuming the
term of lease is 2
years shorter
Assuming the
term of lease is 2
years longer
Assuming the
term of lease is 2
years shorter
Assuming the
term of lease is 2
years longer
I mpac t on the value of leas e liabilities (5 ,0 1 3 ) 4 ,7 2 7 (6 ,4 7 2 ) 6 ,1 0 2
I mpac t on the value of subleas e payables (1 ,1 9 2 ) 1 ,1 2 4 (2 ,4 0 5 ) 2 ,2 6 7
I mpac t on operating expenses (deprec iation) (1 1 8 ) 8 8 (9 6 ) 9 2
I mpac t on subleas e interes t inc ome (3 4 ) 3 3 (7 0 ) 6 5
I mpac t on leas e interes t expens e (1 4 5 ) 1 3 7 (1 8 7 ) 1 7 6
As at/Year ended 31 December
2020
2019
26
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
The Exchange Management Board determined the lease rate using judgment of the interest rate that the Exchange would
have to pay to borrow, for a similar term and against similar collateral, funds necessary to buy the asset used under the
lease contract. In the opinion of the Management Board, the interest rate on the bonds issued by the Exchange is a reasonable
reflection of that rate.
In the opinion of the Management Board, the part of the Centrum Giełdowe building under operating leases does not fulfil
the criteria of investment property. The reason why the Exchange owns the property is not its expectation that the market
value of the property will increase or that the Exchange will earn revenue from rent.
3.5.4. RIGHT-TO-USE ASSETS
Selected accounting policies
The Exchange initially measures right-to-use assets at cost, including:
the initial valuation of the lease liability,
any lease payments paid at or before the commencement date less any lease incentives received,
any initial direct costs incurred by the lessee, and an estimate of any costs to be incurred by the lessee in
dismantling and removing the underlying asset, or restoring the site on which it is located, or restoring the
underlying asset to the condition required by the terms and conditions of the lease.
After the commencement date of the lease, the Exchange measures right-to-use assets applying a cost model, i.e., at cost
less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liability. Right-to-
use assets are depreciated on a straight-line basis over the lease term.
For subleases, the head lease asset is derecognised in right-to-use assets in the statement of financial position and its
depreciation is derecognised in depreciation in the statement of comprehensive income.
Right-to-use assets are presented in a separate line of the statement of financial position. The Exchange groups such assets
by class of underlying asset and discloses the classes in the Notes. The main classes of underlying assets used under the
right to use include office space and other premises, perpetual usufruct of land and colocation space.
The table below presents changes to right-to-use assets by category, net of subleased assets.
Assuming the
lessee's
incremental
borrowing rate is
1 pp lower
Assuming the
lessee's
incremental
borrowing rate is
1 pp higher
Assuming the
lessee's
incremental
borrowing rate is
1 pp lower
Assuming the
lessee's
incremental
borrowing rate is
1 pp higher
I mpac t on the value of leas e liabilities 3 3 9 (3 1 0 ) 6 1 4 (5 7 2 )
I mpac t on the value of subleas e payables 4 4 (1 5 ) 1 5 1 (1 4 6 )
I mpac t on operating expens es (deprec iation) 9 6 (9 1 ) 1 1 6 (1 1 8 )
I mpac t on subleas e interes t inc ome 2 6 (2 5 ) 7 1 (6 8 )
I mpac t on leas e interes t expens e 1 3 3 (1 2 6 ) 2 1 4 (2 0 1 )
As at/Year ended 31 December
2020
2019
27
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
3.5.5. LEASE LIABILITIES
Selected accounting policies
The Exchange measures lease liabilities at the commencement date of the lease at the present value of the lease payments
outstanding at that date. Lease payments are discounted at the interest rate implicit in the lease. If the Company cannot
easily determine the interest rate implicit in the lease, it applies its marginal borrowing rate. The marginal borrowing rate of
the Exchange is equal to the interest rate that the Exchange would have to pay to borrow, for a similar term and against
similar collateral, funds necessary to buy an asset of a similar value as the asset used under the lease contract.
For the purposes of initial measurement of lease liabilities, the Exchange determines lease payments including:
fixed lease payments and variable lease payments depending on an index or rate;
amounts which the Exchange is expected to pay under a residual value guarantee;
the exercise price of an option to purchase the asset that the Exchange is reasonably certain to exercise;
payments for terminating the lease if the Exchange may exercise an option to terminate the lease according to the
terms and conditions of the lease.
After the commencement date of the lease, the Exchange measures lease liabilities by:
calculating interest on the lease liability,
reducing the carrying amount to reflect the lease payments made,
remeasuring the carrying amount of the liability to reflect any reassessment or lease modifications.
As a result, each lease payment is allocated between lease liabilities (presented in a separate item of the statement of
financial position, broken down by current and non-current items) and interest cost of leases (recognised in financial
expenses in the statement of comprehensive income).
The table below presents changes to lease liabilities by category.
Of f ice space
and other
premises
Perpetual
usufruct of
land
Vehicles
Colocation
space
Total
Net carrying amount - opening balance 2 345 4 240 313 7 432 14 330
N ew leas es 2 0 5 - 6 1 - 266
N ew s ubleas es (5 2 3 ) - (6 1 ) - (584)
T erminated subleas es - - - 6 3 63
Rec las s ific ation and other adjus tments 4 2 0 1 (1 ) (1 ) 419
Deprec iation (6 9 2 ) (1 9 3 ) (2 0 0 ) (1 8 7 0 ) (2 955)
Net carrying amount - closing balance 1 755 4 047 111 5 624 11 538
Year ended 31 December 2020
Of fice space
and other
premises
Perpetual
usuf ruct of land
Vehicles
Colocation
space
Total
Net carrying amount - opening balance 2 711 4 433 587 9 290 17 021
N ew leas es 3 2 4 - 9 3 2 - 1 256
N ew s ubleas es (1 9 0 9 ) - (1 0 0 7 ) - (2 916)
T erminated s ubleas es 1 8 2 9 - - - 1 829
Rec las s ific ation and other adjus tments - - - - -
Deprec iation (6 1 0 ) (1 9 3 ) (2 0 0 ) (1 8 5 8 ) (2 861)
Net carrying amount - closing balance 2 345 4 240 312 7 432 14 330
Year ended 31 December 2019
28
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
An analysis of lease liabilities by due date is presented in Note 2.4.
3.5.6. SUBLEASE RECEIVABLES
Selected accounting policies
The Exchange measures sublease receivables in the same way as it measures lease liabilities, i.e., at the commencement
date of the lease at the present value of the lease payments outstanding at that date. Lease payments are discounted at the
interest rate implicit in the lease. If the Exchange cannot easily determine the interest rate implicit in the lease, it applies its
marginal borrowing rate.
The table below presents changes to sublease receivables by category.
Of f ice space
and other
premises
Perpetual
usufruct of land
Vehicles
Colocation
space
Total
Net carrying amount - opening balance 7,829 1,934 1,095 9,992 20,850
N ew leas es 2 0 5 - 6 1 - 266
I nteres t on leas e liabilities 2 4 4 5 5 4 3 2 6 1 603
Leas e liabilities paid in the period (equal to
leas ing fees )
(2 ,3 4 1 ) (1 1 9 ) (5 8 7 ) (2 ,6 5 1 ) (5,698)
Remeas urement of leas e liabilities 1 8 2 - - - 182
Rec las s ific ation and other adjus tments 6 - - - 6
Net carrying amount - closing balance, including: 6,125 1,870 612 7,602 16,211
non-current 3,876 1,805 128 5,142 10,952
current 2,249 65 484 2,460 5,259
Year ended 31 December 2020
Of f ice space
and other
premises
Perpetual
usufruct of land
Vehicles
Colocation
space
Total
Net carrying amount - opening balance 9,441 1,995 587 12,312 24,335
N ew leas es 3 2 4 - 9 3 2 - 1,256
I nteres t on leas e liabilities 2 5 7 5 7 5 3 3 3 0 697
Leas e liabilities paid in the period (equal to leas ing
fees )
(2 ,1 6 8 ) (1 1 8 ) (4 7 7 ) (2 ,6 5 0 ) (5,413)
Remeas urement of leas e liabilities (2 5 ) - - - (25)
Net carrying amount - closing balance, including: 7,829 1,934 1,095 9,992 20,850
non-current 5,791 1,870 562 7,603 15,826
current 2,038 64 533 2,389 5,024
Year ended 31 December 2019
29
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
3.6. FINANCIAL ASSETS
3.6.1. CLASSIFICATION AND MEASUREMENT OF FINANCIAL ASSETS
Selected accounting policies
The Exchange’s financial assets are classified into the following categories:
financial assets measured at amortised cost:
cash and cash equivalents,
trade receivables,
receivables from loans granted,
other receivables,
other financial assets (including bank deposits and held-to-maturity corporate bonds and certificates of
deposit);
financial assets measured at fair value through profit or loss;
Of f ice space
and other
premises
Vehicles
Colocation
space
Total
Net carrying amount - opening balance 5,438 775 2,452 8,665
N ew s ubleas es 6 2 3 6 1 - 684
T erminated subleas es (4 1 2 ) - (6 4 ) (476)
I nteres t on s ubleas e rec eivables 1 7 5 3 2 6 3 270
Subleas e rec eivables paid in the period (equal to leas ing fees ) (1 ,5 9 1 ) (3 7 3 ) (6 3 7 ) (2,601)
Remeas urement of s ubleas e rec eivables 1 6 0 - - 160
Rec las s ific ation and other adjus tments (1 3 5 ) - - (135)
Net carrying amount - closing balance, including: 4,258 495 1,814 6,568
non-current 2,741 128 1,227 4,096
current 1,517 367 587 2,472
Year ended 31 December 2020
Of f ice space
and other
premises
Vehicles
Colocation
space
Total
Net carrying amount - opening balance 6,730 - 3,022 9,752
N ew s ubleas es 1 ,9 0 9 1 ,0 0 6 - 2,915
T erminated subleas es (1 ,8 3 0 ) - - (1,830)
I nteres t on s ubleas e rec eivables 1 7 9 3 3 8 1 293
Subleas e rec eivables paid in the period (equal to leas ing fees ) (1 ,5 0 9 ) (2 6 4 ) (6 5 1 ) (2,424)
Remeas urement of s ubleas e rec eivables (2 5 ) - - (25)
Rec las s ific ation and other adjus tments (1 7 ) - - (17)
Net carrying amount - closing balance, including: 5,437 775 2,452 8,665
non-current 4,052 445 1,866 6,363
current 1,385 330 586 2,302
Year ended 31 December 2019
30
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
financial assets measured at fair value through other comprehensive income.
Cash and cash equivalents are presented in a dedicated item of the statement of financial position. Trade receivables and
other receivables are presented in trade receivables and other receivables in the statement of financial position. Receivables
from loans granted and other financial assets are presented in financial assets measured at amortised cost in the statement
of financial position.
The assets are classified into those categories on initial recognition. Classification depends on:
the business model of asset portfolio management; and
the contractual terms of the financial asset.
Financial assets are derecognised when the right to receive cash flows from such assets expire or are transferred and the
Exchange transfers substantially all the risks and rewards incidental to ownership of the assets.
Financial assets measured at amortised cost are presented in Notes 3.6.4, 3.6.5, 3.6.6.
Financial assets measured at fair value through other comprehensive income are presented in Note 3.6.3.
The Exchange held no financial assets measured at fair value through profit or loss as at 31 December 2020 and as at 31
December 2019.
3.6.2. IMPAIRMENT OF FINANCIAL ASSETS
Selected accounting policies
At each balance sheet date, the Exchange recognises impairment (expected credit loss) of financial assets. If there has been
a significant increase in credit risk of a financial asset since initial recognition, the Exchange recognises expected credit loss
of the financial asset as an allowance equal to lifetime expected credit losses; otherwise, the financial asset will attract a
loss allowance equal to 12-month expected credit loss.
The Exchange’s impairment allowance for financial assets measured at amortised cost (other than trade receivables) is equal
to the 12-month expected credit loss in view of the low credit risk of such financial instruments. The Exchange considers
cash and cash equivalents, other receivables and other financial assets measured at amortised cost to carry low credit risk
because it only accepts entities, including banks and financial institutions, of a high rating and stable market position, i.e.,
rated above Baa2 by Moody’s.
The Exchange measures expected credit loss of financial instruments taking into account:
an unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes;
the time value of money;
reasonable and supportable information that is available without undue cost or effort at the reporting date about
past events, current conditions and forecasts of future economic conditions.
The Exchange applies a simplified approach to trade receivables and contract assets. Impairment allowances for trade
receivables are recognised as equal to lifetime expected credit loss according to a provision matrix. The Exchange’s trade
receivables have no significant financing component.
As at the end of each reporting year, to estimate expected credit loss on trade receivables, the Exchange performs a statistical
analysis of trade receivables by category of clients (Exchange Members, Issuers, other clients) based on historical collection
of debt from counterparties.
In the next step, the Exchange performs a portfolio analysis and calculates for each category of clients a provision matrix by
age group. The allowance for debt which is not overdue as at the balance sheet date for a group of clients in a time bracket
is equal to the value of trade receivables at the balance sheet date times the client’s probability of default.
The expected credit loss (or released allowance) required to adjust the expected credit loss allowance as at the reporting
date to the amount that should be recognised is presented in the statement of comprehensive income as gains or losses on
impairment.
The expected credit loss allowance for financial assets classified as financial assets measured at amortised cost is shown as
a reduction of the gross carrying amount of the financial asset in the statement of financial position.
The expected credit loss allowance for financial assets classified as financial assets measured at fair value through other
comprehensive income is shown in other comprehensive income; it does not reduce the carrying amount of the financial
asset.
31
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
3.6.3. FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME
Selected accounting policies
Financial assets measured at fair value through other comprehensive income include:
Equity securities which the Company irrevocably elects to recognise as such on initial recognition.
Debt securities where contractual cash flows are solely payments of principal and interest and the objective of the
Company’s business model is achieved both by collecting contractual cash flows and by selling financial assets.
Financial assets measured at fair value through other comprehensive income comprise shares in entities over which the
Exchange does not exercise control or exert significant influence. They are disclosed as non-current assets unless the
Exchange intends to sell them within 12 months after the balance sheet date.
Financial assets measured at fair value through other comprehensive income are initially recognised at fair value plus directly
attributable transaction costs. After initial recognition, they are measured at fair value and any effect of change in the fair
value (other than impairment losses and FX differences) is recognised in other comprehensive income and presented in
equity as reserves. On derecognition, the cumulative profit or loss recognised in equity is taken to retained earnings after
tax.
Innex
The Exchange acquired a stake in the Ukrainian Stock Exchange Innex in July 2008. Impairment of the entire investment
was recognised in 2008. The Exchange Management Board identified no indications of release of the full impairment of the
investment in Innex as at 31 December 2020.
Bucharest Stock Exchange (“BVB”)
The Exchange acquired a stake in Sibex in 2010. SIBEX merged with BVB at 1 January 2018. Following the merger, the
Exchange holds 5,232 BVB shares at a par value of RON 10 per share. BVB is listed on the Bucharest Stock Exchange.
Innex BVB Razem
3 ,8 2 0 1 ,3 4 3 5,163
- (2 1 7 ) (217)
(3 ,8 2 0 ) (1 ,0 1 1 ) (4,831)
- 115 115
As at 31 December 2020
V alue at c os t
Remeas urement
I mpairment
Carrying amount
Innex BVB Razem
3 ,8 2 0 1 ,3 4 3 5,163
- (2 1 2 ) (212)
(3 ,8 2 0 ) (1 ,0 1 1 ) (4,831)
- 120 120
As at 31 December 2019
Carrying amount
V alue at cos t
Remeas urement
I mpairment
32
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
Fair value hierarchy
Selected accounting policies
The Exchange classifies the valuation at fair value on the basis of a fair value hierarchy which reflects the significance of
valuation input data. The fair value hierarchy includes the following levels:
(unadjusted) trading prices on active markets for identical assets or liabilities (level 1);
input data other than trading prices at level 1, which can be identified or observed for an asset or liability, directly
(as prices) or indirectly (calculations based on prices) (level 2); and
input data for an asset or liability not based on observable market data (non-observable data) (level 3).
The fair value of BVB as at 31 December 2020 and as at 31 December 2019 was recognised at the share price (level 1 of
the fair value hierarchy).
3.6.4. TRADE RECEIVABLES AND OTHER RECEIVABLES
Selected accounting policies
Trade receivables are receivables from clients of the Exchange held to payment. At initial recognition, trade receivables are
measured at fair value, which is the nominal value of issued invoices. At the balance sheet date, trade receivables are
measured at amortised cost net of impairment. Trade receivables payable in less than 12 months (from initial recognition)
are measured at nominal value and not discounted.
Other receivables include mainly (current) prepayments. Prepayments are recorded when expenditures incurred relate to
future reporting periods. Prepayments are recognised in the statement of comprehensive income over the lifetime of the
relevant contract. Receivables which are not financial assets are presented at the amount due at the balance sheet date.
Non-current prepayments are presented as prepayments in non-current assets in the statement of financial position.
Following the implementation of IFRS 16 on 1 January 2019, all past, current and future payments relating to perpetual
usufruct of land are included in the valuation of right-to-use assets and liabilities.
In the opinion of the Exchange Management Board, in view of the short due date of trade receivables, the carrying value of
those receivables is similar to their fair value.
2020 2019
3 8 ,8 5 2 2 6 ,7 9 2
(4 ,3 7 2 ) (4 ,5 8 7 )
34,480 22,205
4 ,1 0 9 3 ,9 8 5
7 ,3 2 7 2 ,1 1 9
Subleas e rec eivables 2 5 8 3 7 2
1 ,2 4 4 1 ,4 4 6
12,938 7,922
47,417 30,128
O ther rec eivables
Total trade receivables and other receivables
As at 31 December
Gros s trade rec eivables
I mpairment allowanc es for trade rec eivables
C I T rec eivable from T G subs idiaries
Total trade receivables
Total other receivables
C urrent prepayments
33
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
Trade receivables which are neither overdue nor impaired include mainly trade receivables from Exchange Members (banks
and brokerage houses) and receivables from issuers of securities as well as receivables for other services.
As at 31 December 2020, trade receivables at PLN 12,714 thousand (31 December 2019 – PLN 12,345 thousand) were
overdue, including overdue receivables from debtors under insolvency or creditor arrangement proceedings at 645 thousand
and other overdue receivables at PLN 12,069 thousand as at 31 December 2020 (31 December 2019 – PLN 1,281 thousand
and PLN 11,064 thousand, respectively).
As at 31 December 2020, trade receivables at PLN 4,115 thousand (31 December 2019 – PLN 4,650 thousand) were overdue
and impaired.
Receivables from Exchange Members include receivables from Polish and foreign banks and brokerage houses, whose risk
ratings are presented in the table below. Due to the fact that the Exchange does not have its own credit rating system,
external credit ratings were used. If a single debtor had no credit rating, the rating of the parent entity of the debtor was
used.
Receivables from issuers include fees due from companies listed on GPW.
Trade receivables from other clients include mainly fees for information services.
The Exchange has no collateral on receivables.
None of the Exchange’s trade receivables were subject to renegotiation of the amount as at 31 December 2020.
2020 2019
26,138 14,447
1 to 30 days overdue 3,582 3,885
31 to 61 days overdue 2,897 885
61 to 90 days overdue 744 1,748
91 to 180 days overdue 1,376 1,267
8,599 7,785
4,115 4,560
38,852 26,792
Total gross trade receivables
As at 31 December
Receivables which are neither overdue nor impaired
Total overdue receivables (no impairment)
Impaired and overdue receivables
2020 2019
2 1 ,5 2 3 9 ,5 5 5
I s s uers *
3 5 7 1 ,1 7 7
O ther*
4 ,2 5 8 3 ,7 1 5
Total gross trade receivables not overdue 26,138 14,447
E xc hange Members
As at 31 December
* Receivables from debtors who are at the s ame time Exchange Members and I s s uers or Exchange Members and Data Vendors (other
clients ) are pres ented under receivables from Exchange Members.
2020 2019
Aa
2 ,4 2 4 5 5
A
1 1 ,2 9 3 6 ,5 9 1
Baa
3 ,8 9 1 3 0 9
B oraz BB
2 ,3 4 7 6 1 8
Bez ratingu
1 ,5 6 8 1 ,9 8 2
21,523 9,555
Total trade receivables from Exchange Members
As at 31 December
34
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
Selected judgments and estimates
The calculation of impairment of receivables under IFRS 9 requires judgments necessary to define methodologies, models,
the classification of clients, and other input data.
The Exchange’s trade receivables have no significant financing component. Consequently, impairment as at 31 December
2020 was determined according to lifetime expected credit losses. Based on historical data, the Exchange performed a
statistical analysis of the probability of payment of overdue trade receivables by receivables portfolio.
The estimated default ratios for clients whose debt is overdue for less than 180 days are as follows:
Exchange Members – from 0.27% to 7.24%,
issuers of securities listed on markets operated by the Exchange – from 1.25% to 24.41%,
other clients (including data vendors) – from 0.58% to 5.40%.
The Company concluded that the default ratios estimated on the basis of historical data represent the probability of default
of trade receivables in the future and consequently the ratios were not adjusted.
Change in impairment allowances for trade receivables in 2020 was PLN 216 thousand (decrease of allowances), of which
PLN 118 thousand was recognised in the statement of comprehensive income in 2020 as gains on reversed impairment of
receivables and PLN 8 thousand was written off as uncollectible.
Change in impairment allowances for trade receivables in 2019 was PLN 29 thousand (decrease of allowances), of which PLN
756 thousand was recognised in the statement of comprehensive income in 2019 as losses on impairment of receivables and
the difference, i.e., PLN 722 thousand, were receivables written off in previous years. Of PLN 756 thousand recognised as
losses on impairment of receivables, PLN 34 thousand were receivables not written off previously and PLN 721 thousand
related to the expected credit loss model and the provision matrix.
The impairment of trade receivables was determined according to the expected loss concept using a provision matrix
described in Note 3.6.2.
The table below presents trade receivables by geographic segment.
3.6.5. FINANCIAL ASSETS MEASURED AT AMORTISED COST
Selected accounting policies
Financial assets measured at amortised cost include: cash and cash equivalents, trade receivables, receivables from loans
granted, other financial assets, and other receivables (see Note 3.6.1). Cash and cash equivalents, trade receivables and
other receivables are presented in dedicated items of the statement of financial position (Notes 3.6.4, 3.6.6). Financial assets
measured at amortised cost in the statement of financial position include other financial assets and receivables from loans
granted. Other financial assets include mainly bank deposits, certificates of deposit and corporate bonds with initial maturities
exceeding 3 months (from purchase/contracting).
2020 2019
Opening balance 4,587 4,616
(2 0 7 ) 7 2 2
(8 ) (7 5 1 )
Closing balance 4,372 4,587
As at 31 December
Rec eivables written off during the period as unc ollec tible
C hange of allowanc e balances
2020 2019
Domes tic rec eivables 1 8 ,8 2 3 1 1 ,4 1 6
Foreign rec eivables 2 0 ,0 2 9 1 5 ,3 7 6
Total gross trade receivables 38,852 26,792
As at 31 December
35
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
Interest on financial assets classified as financial assets measured at amortised cost is measured using the effective interest
rate method and recognised in the profit or loss of the period as part of financial income or financial cost.
3.6.6. CASH AND CASH EQUIVALENTS
Selected accounting policies
Cash and cash equivalents are financial assets measured at amortised cost. Cash and cash equivalents include on-demand
bank deposits, other short-term investments with original maturities up to 3 months (from contracting), which are highly
liquid and easily convertible to known amounts of cash and which are subject to an insignificant risk of change in fair value.
Cash deposited in a VAT account is classified as cash equivalents as it can be used to pay tax liabilities and can also be
transferred to other current accounts (upon application to the Tax Office).
Cash and cash equivalents include current accounts and short-term bank deposits (up to 3 months). The carrying value of
short-term bank deposits and current accounts is close to the fair value in view of their short maturity. The average maturity
of bank deposits included in cash and cash equivalents was 3 days 2020 (2 days in 2019).
At the commencement of the development projects: New Trading System, GPW Data and GPW Private Market (see Note
6.2), the Exchange opened dedicated banks accounts for each of those projects. The total balance in those accounts was
2020 2019
8 9 9 7 7 8 9 9 5 8
1 6 0 0 0 8 1 7 7 7 2 9
Loans granted - -
249 985 267 687
249 985 267 687
Bank depos its
As at 31 December
Total financial assets measured at amortised cost (over 3 months)
C orporate bonds
Total current
Interest received Interest accrued
Total recognised in
financial income
C orporate bonds 1 ,4 2 8 (4 5 7 ) 971
Banks depos it 1 ,8 5 0 (7 2 0 ) 1,130
Total revenue from assets measured at amortised cost (over 3
months)
3,278 (1,177) 2,101
Year ended 31 December 2020
Interest received Interest accrued
Total recognised in
financial income
C orporate bonds 57 9 2 3 8 817
C ertificates of depos it 3 3 3 (1 5 8 ) 175
Banks depos it 3 ,4 8 5 (2 3 9 ) 3,246
Total revenue from assets measured at amortised cost (over 3
months)
4,397 (159) 4,238
Year ended 31 December 2019
2020 2019
C urrent ac c ounts (other) 2 5 ,8 6 8 4 7 ,8 4 0
V A T c urrent ac c ounts (s plit payment) 3 1 2 4
Bank depos its 1 1 3 ,0 0 2 -
138,873 47,964
Total cash and cash equivalents
As at 31 December
36
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
PLN 4,111 thousand as at 31 December 2020 (PLN 627 thousand as at 31 December 2019). Cash in such accounts is
classified as restricted cash.
Cash in VAT accounts is also restricted cash due to regulatory restrictions on the availability of cash in such accounts for
current payments.
3.7. CONTRACT ASSETS AND CONTRACT LIABILITIES
Selected accounting policies
Contract assets are a right to payment for services already transferred by the Exchange to a customer.
Contract liabilities are an obligation of the Exchange to provide a service to a customer in exchange for payment already
received by the Exchange or due at the balance sheet date.
Contract assets include mainly information services. Other revenue classified as contract assets stood at PLN 764 thousand
as at 31 December 2020 and PLN 940 thousand as at 31 December 2019.
Contract liabilities include annual and quarterly fees paid by market participants as well as fees for introduction of debt
instruments into trading.
3.8. (NON-CURRENT) PREPAYMENTS
Selected accounting policies
Non-current prepayments present amounts paid relating to future periods which are recognised over time.
Following the implementation of IFRS 16, as of 1 January 2019, all historical, current and future payments relating to the
right to perpetual usufruct of land are included in the measurement of right-of-use assets and liabilities (see a description of
the accounting policy concerning the recognition of leases, Note 3.5).
2020 2019
Lis ting 1,170 5 7 2
T otal financ ial market 1 ,1 7 0 5 7 2
Total non-current 1,170 572
Trading 2,174 1,115
Lis ting 388 192
I nformation s ervices and
revenue from the calculation of reference rates
- 5
T otal financ ial market 2 ,5 6 2 1 ,3 1 2
O ther revenue 7 2 7 8
Total current 2,634 1,390
Total contract liabilities 3,804 1,962
As at 31 December
2020 2019
IT hardware servic e s upport 1 ,7 4 0 1 ,7 3 7
O ther 5 1 1
1,745 1,748
As at 31 December
Total non-current prepayments
37
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
3.9. OTHER NON-CURRENT ASSETS
Other non-current assets stood at PLN 4,222 thousand as at 31 December 2019 representing payments to the UTP vendor.
Following an analysis, in the opinion of the Exchange Management Board, there were indications of impairment of those
assets as at 31 December 2020.
Consequently, the amount was charged to other expenses. As a result, other non-current assets stood at PLN 0
as at 31 December 2020.
3.10. EQUITY
Selected accounting policies
The equity of the Exchange comprises:
share capital disclosed at par, adjusted for hyperinflation;
other reserves, including the revaluation reserve;
retained earnings, comprised of:
retained earnings from prior years (comprised of supplementary capital and other reserves formed from
prior year profits); and
profit of the current period.
3.10.1. SHARE CAPITAL
As at 31 December 2020 and as at 31 December 2019, the share capital of the Exchange stood at PLN 41,972 thousand and
was divided into 41,972,000 shares with a nominal value of PLN 1 per share including series A shares and series B shares.
The Company’s shares were fully paid up. Series A shares are preferred registered shares which may be exchanged into
bearer shares and become series B ordinary shares on exchange. Each series A share gives 2 votes. Series B shares are
bearer shares. Each series B share gives 1 vote.
The share capital from before 1996 was restated using the general price index. The restatement of the share capital for
inflation was PLN 21,893 thousand as at 31 December 2020 and as at 31 December 2019.
As required by the Exchange’s Articles of Association, reserve capital is earmarked for covering losses that may arise in the
operations of the Exchange and for supplementing the share capital or for payment of dividends. Reserve capital should not
be lower than one-third of the share capital. Transfers from distributed profit to reserve capital may not be lower than 10%
of the profit. Transfers may be discontinued when reserve capital equals one-third of the share capital. One-third of reserve
capital may only be used to cover losses reported in financial statements.
Reserves are maintained by the Exchange to ensure the ability of financing investments and other expenses connected with
the operations of the Exchange. Reserves can be used towards share capital or payment of dividends.
share capital total vote
State T reas ury 1 4 ,6 8 8 ,4 7 0 3 5 .0 0 % 5 1 .7 7 %
Banks 4 9 ,0 0 0 0 .12 % 0 .18 %
Brokers 3 5 ,0 0 0 0.08 % 0 .12 %
Total registered shares 14,772,470 35.20% 52.07%
Bearer shares 27,199,530 64.80% 47.93%
Total 41,972,000 100.00% 100.00%
As at 31 December 2020 and as at 31 December 2019
Value at par
%
38
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
3.10.2. OTHER RESERVES
3.10.3. RETAINED EARNINGS
3.10.4. DIVIDEND
On 22 June 2020, the Annual General Meeting of the Exchange passed a resolution to distribute the Company’s profit for
2019, including a dividend payment of PLN 100,733 thousand. The dividend per share was PLN 2.40. The dividend record
date was 28 July 2020. The dividend was paid on 11 August 2020. The dividend due to the State Treasury was PLN 35,252
thousand.
On 17 June 2019, the Annual General Meeting of the Exchange passed a resolution concerning the distribution of the
Company’s profit earned in 2018, including the allocation of PLN 133,471 thousand to the payment of dividend. The dividend
was PLN 3.18 per share. The dividend record date was set at 19 July 2019. The dividend was paid out on 2 August 2019.
The dividend paid to the State Treasury was PLN 46,709 thousand.
As at
1 January
2020
Revaluation
As at
31 December
2020
Revaluation (2 ) (5 ) (7)
Deferred tax 1 1 2
Total capital from revaluation of f inancial assets measured at f air
value through other comprehensive income
(1) (4) (5)
Revaluation (2 3 0 ) (4 4 ) (274)
Deferred tax 4 4 8 52
Total capital from actuarial gains/losses (186) (36) (222)
Total other reserves (187) (40) (227)
Reserve
capital
Other
reserves
Retained
earnings
Profit f or the
period
Total retained
earnings
As at 1 January 2020 37,021 297,539 (33,517) 115,123 416,165
Dis tribution of the net profit for the year ended
3 1 Dec ember 20 1 9
- 1 4 ,3 9 0 1 0 0 ,7 3 3 (11 5 ,1 2 3 ) -
Dividend - - (10 0 ,7 3 3 ) - (100,733)
N et profit for the year ended 31 Dec ember 2 0 2 0 - - - 1 6 8 ,6 8 0 168,680
As at 31 December 2020 37,021 311,929 (33,517) 168,680 484,111
Reserve
capital
Other
reserves
Retained
earnings
Profit f or the
period
Total retained
earnings
As at 1 January 2019 37,021 279,081 (33,517) 151,929 434,514
Dis tribution of the net profit for the year ended
3 1 Dec ember 20 1 8
- 1 8 ,4 5 8 1 3 3 ,4 7 1 (15 1 ,92 9 ) -
Dividend - - (13 3 ,4 7 1 ) - (133,471)
N et profit for the year ended 31 Dec ember 2 0 1 9 - - - 1 1 5 ,1 2 3 115,123
As at 31 December 2019 37,021 297,539 (33,517) 115,123 416,165
39
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
3.10.5. EARNINGS PER SHARE
There are no dilutive instruments in the Company.
3.11. BOND ISSUE LIABILITIES
Selected accounting policies
Liabilities under bond issues, as well as trade payables and lease liabilities, are financial liabilities.
Financial liabilities at the balance sheet date are valued at amortised cost. The valuation is based on cost at which the liability
was initially recognised less the repayment of the nominal value, adjusted for the cumulative amount of the discounted
difference between the initial value and the maturity value. For instruments at floating interest rates, in relation to the next
agreed re-pricing date (on which the interest rate is determined), it is calculated using the effective interest rate method.
The effective interest rate is the internal rate of return (IRR) of the liability, which is used for discounting future cash flows
of the financial instrument to present value.
2020 2019
1 6 8 ,6 8 0 1 1 5 ,1 2 3
4 1 ,9 7 2 4 1 ,9 7 2
Basic/diluted earnings per share (in PLN) 4.02 2.74
Year ended 31 December
N et profit for the period
Weighted average number of ordinary shares (in thous ands )
2020 2019
Series C bonds 1 2 4 ,8 1 0 1 2 4 ,5 5 6
Series D and E bonds 1 1 9 ,9 2 9 1 1 9 ,7 9 4
Total non-current 244,739 244,350
Series C bonds 6 8 3 6 8 3
Series D and E bonds 4 8 5 1 ,2 5 0
Total current 1,167 1,932
Total liabilities under bond issue 245,906 246,282
As at 31 December
Opening
balance
Interest
accrued
Interest paid Cost incurred Cost settled
Closing
balance
P rinc ipal 244,929 - - - - 244,929
I nteres t 2,316 6 ,5 3 5 (7 ,3 0 0 ) - - 1,551
C os t of is s uanc e (962) - - (3 ) 3 9 1 (574)
Total liabilities under bond issue 246,283 6,535 (7,300) (3) 391 245,906
For the year ended 31 December 2020
40
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
The table below presents the key parameters of bonds in issue.
The table below presents the fair value of bonds in issue.
3.12. EMPLOYEE BENEFITS PAYABLE
Selected accounting policies
Employee benefits payable include retirement benefits and other benefits, including provisions for annual awards and
bonuses and provisions for benefits after termination.
The present value of retirement benefits payable is determined as at the balance sheet date by an independent actuarial
advisor. The calculated benefits payable are equal to discounted future payments taking into account employee rotation as
at the balance sheet date. Demographic and employee rotation data are based on historical figures. Actuarial gains and
losses on employee benefits after termination are included in other comprehensive income.
The Exchange sets up provisions for annual awards and bonuses in order to assign costs to the periods to which they relate.
Provisions are estimated according to the best knowledge of the Exchange Management Board concerning probable bonuses
to be paid based on the framework of the incentive scheme.
Opening
balance
Interest
accrued
Interest paid Cost incurred Cost settled
Closing
balance
P rinc ipal 244 929 - - - - 244 929
I nteres t 2 322 7 2 6 9 (7 2 7 5 ) - - 2 316
C os t of is s uance (1 352) - - (2 ) 3 9 2 (962)
Total liabilities under bond issue 245 899 7 269 (7 275) (2) 392 246 282
For the year ended 31 December 2019
Issue date Maturity date
Total value at
par
Currency Interest rate Coupon
Series C bonds 0 6 .10 .20 1 5 0 6 .1 0 .20 2 2 1 2 5 ,0 0 0 P LN 3 .19 % 6M
Series D bonds 0 2 .01 .20 1 7 3 1 .01 .20 2 2 6 0 ,0 0 0 P LN WIBO R 6M + 0,95% 6M
Series E bonds 1 8 .01 .20 1 7 3 1 .0 1 .20 2 2 6 0 ,0 0 0 P LN WIBO R 6 M + 0,95 % 6M
2020 2019
Fair value of series C bonds 1 3 0 ,4 4 0 1 2 8 ,2 6 5
Fair value of series D and E bonds 1 2 1 ,1 4 7 1 2 2 ,4 7 0
Total fair value of bonds in issue 251,587 250,735
As at 31 December
2020 2019
Retirement benefits 3.12.1 7 8 1 6 4 6
O ther employee benefits 3.12.2 - 3 6
Non-current 781 682
Retirement benefits 3.12.1 6 6 4 3
O ther employee benefits 3.12.2 1 4 ,6 5 9 1 0 ,5 3 6
Current 14,725 10,579
Total benefits in the statement of financial position 15,506 11,261
As at 31 December
Note
41
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
3.12.1. RETIREMENT BENEFITS
Provisions for retirement benefits are recorded by the Group according to valuation as at the balance sheet date provided
by an independent actuarial advisor.
3.12.2. OTHER EMPLOYEE BENEFITS
2020 2019
T otal benefits in operating expens es 1 1 4 7 8
T otal benefits in other comprehens ive inc ome 4 4 7 4
Total benef its in the statement of comprehensive income 158 152
As at 31 December
2020 2019
Retirement benef its - opening balance
689 567
C urrent s ervic e c os t
1 0 0 6 3
I nteres t cos t
1 4 1 5
A c tuarial los s es /(gains) shown in other comprehens ive inc ome
due to c hange of:
4 4 7 4
- financial as s umptions 84 39
- demographic as s umptions (27) -
- other as s umptions (13) 35
Total change shown in comprehensive income 158 152
Benefits paid - (30)
Retirement benef its - closing balance 847 689
As at 31 December
2020 2019
Dis c ount rate 1 .2% 2 .1%
E xpec ted average annual inc reas e of the bas e of provis ions for retirement
benefits
3 .5% 3 .5%
I nflation p.a. 2 .5% 2 .5%
Weighted average employee mobility 6.5% 6 .2%
As at 31 December
Opening
balance
Set up Used Reclassified Released
Closing
balance
A nnual and dis c retionary bonus es
9 ,0 1 5 1 1 ,8 2 9 (8 ,7 6 3 ) 1 1 - 12,092
U nus ed holiday leave
1 ,4 6 5 2 ,1 6 5 (1 ,3 0 6 ) - - 2,324
O vertime
5 7 2 4 4 (5 7 ) - - 244
Total current 10,536 14,238 (10,126) 11 - 14,660
A nnual and dis c retionary bonus es
3 6 - (2 5 ) (1 1 ) - -
Total non-current 36 - (25) (11) - -
Total other employee benef its
payable
10,573 14,238 (10,151) - - 14,660
Year ended 31 December 2020
42
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
3.13. ACCRUALS AND DEFERRED INCOME
Selected accounting policies
Accruals and deferred income include grants received and other payments.
Grants relating to assets are presented in the statement of financial position as deferred income (under accruals and deferred
income) and recognised in the statement of comprehensive income (under other income) systematically through the useful
life of the assets concerned by the grant.
Grants received are described in Note 6.2.
Opening
balance
Set up Used Reclassified Released
Closing
balance
A nnual and dis c retionary bonus es
7 ,5 7 5 7 ,2 5 6 (5 ,4 5 8 ) 5 0 (4 0 8 ) 9,015
U nus ed holiday leave
1 ,4 5 0 1 ,3 5 1 - - (1 ,3 3 6 ) 1,465
O vertime
1 2 5 7 - - (1 2 ) 57
Total current 9,037 8,664 (5,458) 50 (1,756) 10,536
A nnual and dis c retionary bonus es
8 6 - - (5 0 ) - 36
Total non-current 86 - - (50) - 36
Total other employee benef its
payable
9,123 8,664 (5,458) - (1,756) 10,573
Year ended 31 December 2020
2020 2019
N ew T rading P latform P rojec t 6,3 7 7 8 0 9
GP W Data P rojec t 9 1 0 -
P rivate M arket 2 0 8 -
Total non-current deferred income from grants 7,495 809
N ew T rading P latform P rojec t 1,5 3 8 2 3 1
GP W Data P rojec t 5 8 0 -
P rivate M arket 8 7 -
Total current deferred income from grants 2,205 231
Total accruals and deferred income 9,700 1,040
As at 31 December
43
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
3.14. OTHER LIABILITIES
As a co-founder of the Polish National Foundation established by 17 State-owned companies in 2016 (“PFN”), the Exchange
is required to contribute annual payments towards the statutory mission of PFN, totalling 11 payments from the
establishment of the Foundation. Payments to PFN are donations and the liability of GPW to make all payments to PFN
according to the founding deed of the Foundation arose when GPW joined the Foundation and signed its founding deed in
2016. The liability was charged to expenses in 2016 and is recognised over time. The liability of the Exchange to PFN was
PLN 8,355 thousand as at 31 December 2020 (PLN 9,610 thousand as at 31 December 2019).
3.15. TRADE PAYABLES
Selected accounting policies
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from
suppliers. Trade payables are classified as current liabilities if payment is due within one year (or in the normal operating
cycle of the business if longer). Otherwise, they are presented as non-current liabilities.
Trade payables, as well as liabilities under bond issues and lease liabilities, are financial liabilities. Financial liabilities at the
balance sheet date are valued at amortised cost.
In the opinion of the Exchange Management Board, due to the short due dates of trade payables, the carrying value of trade
payables is similar to the fair value.
2020 2019
7 ,0 6 2 8 ,3 5 5
Total non-current 7,062 8,355
2 4 9 2 3 2
6 6 1 2 2 6
2 ,7 3 8 1 ,7 0 8
1 ,5 6 0 6 ,5 7 2
1 ,2 9 3 1 ,2 5 5
2 ,5 7 2 4 0 8
Total current 9,073 10,401
Total other liabilities 16,135 18,756
As at 31 December
Dividend payable
Liabilities to the P olis h National Foundation
V A T payable
Liabilities in res pec t of other taxes
C ontrac ted inves tments
O ther liabilities
Liabilities to the P olis h National Foundation
2020 2019
P ayables to as s oc iates 6.3.3. 6 8 3 2 9
P ayables to s ubs idiaries 6.3.2. 7 1 0 8 5
P ayables to other entities , ac c ruals and deferred inc ome 6 ,5 6 0 7 ,5 5 6
7,338 7,970
Total trade payables
As at 31 December
Note
44
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
3.16. DEFERRED INCOME TAX
Selected accounting policies
Deferred tax is calculated using the liability method as tax payable or reimbursable in the future in respect of differences
between carrying amounts of assets and liabilities and the corresponding tax amounts.
The deferred tax liabilities are recorded in the full amount and are not subject to discounting.
Deferred tax assets are recognised to the extent that it is probable that future taxable income will be available against which
the temporary differences could be utilised. Deferred tax assets are reviewed at the balance sheet date; if expected future
tax gains or positive temporary differences are insufficient to realise an asset in whole or in part, it is written off.
Deferred tax assets and liabilities can be offset when the Exchange has an enforceable right to offset current income tax
receivables and liabilities and when the deferred tax assets and liabilities relate to income tax imposed on the same taxpayer
by the same tax authorities.
The Company does not recognise deferred tax liabilities and assets for differences between the tax amount and the carrying
amount of investments in subsidiaries and associates if the Company is able to control the timing of the reversal of temporary
differences (for deferred tax liabilities) and it is probable that such differences will not reverse in the foreseeable future.
(Asset)/
Liability
Deferred tax
asset
Deferred tax
liability
Differenc e between ac c ounting
and tax value of property, plant
and equipment and intangible
as s ets
9,264 (1 ,4 8 0 ) - 7,784 - 7 ,7 8 5
I mpairment los s on inves tment in
other entities
(958) - (1 ) (959) 9 5 9 -
E mployee benefits (2,172) (7 8 5 ) (8 ) (2,965) 2 ,9 6 6 -
C os t es timates (598) 2 7 - (571) 5 7 1 -
Deferred inc ome (145) (1 6 5 ) - (310) 3 1 0 -
I mpairment los s on trade
rec eivables
(629) (9 7 ) - (726) 7 2 5 -
I nteres t and c os ts of bond is s ue (258) 7 2 - (186) 2 9 5 1 0 9
O ther 201 (4 4 2 ) - (241) 4 1 3 1 6 9
Total deferred tax (asset)/liability 4,705 (2,870) (9) 1,825 6,239 8,063
Deferred tax (asset)/liability
(Credited)/
Debited in
profit
(Credited)/
Debited in
other
comprehensive
income
As at 31 December 2020
As at
1 January
2020
45
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
4. NOTES TO THE STATEMENT OF COMPREHENSIVE INCOME
4.1. SALES REVENUE
Selected accounting policies
Sales revenue is recognised at transaction price when (or as) the entity transfers control of services to a customer. All
bundled services that can be separated under the contract with the customer are recognised separately. Any discounts and
rebates of the transaction price are allocated to individual components of bundled services. Depending on whether certain
criteria are met, revenue is recognised:
over time, in a manner that depicts the entity’s performance; or
at a point in time, when control of the services is transferred to the customer.
The Exchange analyses potential collectability of debt when entering into a contract. If, at the time of entering into a contract,
the entity is not likely to receive the amount due for future performance of a commitment, no revenue is recognised until
the doubt about the collectability of debt is clarified.
Sales revenue consists of three main business lines: revenue from the financial market, revenue from the commodity market,
and other (sales) revenue.
Revenue from the financial market consists of:
Revenue from trading: revenue from Exchange Members, i.e., trading fees which depend on the type of traded
instruments, the value of transactions, the number of executed orders and the volume of trade. In addition to
trading fees, the Exchange charges flat-rate fees for access to and use of its IT system.
Revenue from issuers: fees for the listing of securities, fees for admission to trading, as well as other fees.
Revenue from information services: real-time stock exchange data and statistical and historical data in the
form of subscriptions, electronic publications, calculation of indices, as well as other stock exchange index licenses
and calculations. The sale of stock exchange information is based on separate agreements signed with exchange
data vendors and Exchange Members.
Revenue from the commodity market includes mainly revenue from information services, i.e., commodity market data
based on separate agreements signed with exchange data vendors, Exchange Members and other organisations, mainly
financial institutions.
Other sales revenue includes administrative, accounting, HR, IT services for members of the GPW Group, lease of
passenger cars, lease and maintenance of office space, training.
(Asset)/
Liability
Deferred tax
asset
Deferred tax
liability
Differenc e between ac c ounting
and tax value of property, plant
and equipment and intangible
as s ets
10,327 (1 ,0 6 3 ) - 9,264 - 9 ,2 6 4
I mpairment los s on inves tment in
other entities
(1,054) 1 0 1 (5 ) (958) 9 5 8 -
E mployee benefits (1,857) (3 0 2 ) (1 3 ) (2,172) 2 ,1 7 2 -
C os t es timates (263) (3 3 5 ) - (598) 5 9 8 -
Deferred inc ome - (1 4 5 ) - (145) 1 4 5 -
I mpairment los s on trade
rec eivables
(592) (3 7 ) - (629) 6 2 9 -
I nteres t and c os ts of bond is s ue (185) (7 3 ) - (258) 4 4 1 1 8 3
O ther 468 (2 6 7 ) - 201 1 6 2 1 7
Total deferred tax (asset)/liability 6,846 (2,122) (18) 4,705 4,960 9,663
(Credited)/
Debited in
profit
(Credited)/
Debited in
other
comprehensive
income
As at 31 December 2019
Deferred tax (asset)/liability
As at
1 January
2019
46
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
Selected judgments and estimates
The Company grants rebates to Exchange Members under the Exchange’s Technology Development Support Programme. To
be eligible for rebates, Exchange Members must invest in additional technological capacity including among others IT system
and IT infrastructure upgrades or the development of new functionalities relating to brokerage services. Rebates are awarded
to Exchange Members by the Exchange Management Board on the basis of documentation of expenses up to an individual
limit set for the Exchange Member in the Programme.
As at 31 December 2020, the Exchange Management Board estimated that all Exchange Members participating in the
Programme will use up the entire awarded limit.
The table below presents sales revenue by business line.
2020 2019
242,849 172,348
175,561 107,837
151,042 87,449
15,376 10,611
7,488 8,834
439 443
1,216 500
19,309 18,784
16,563 17,049
2,746 1,735
47,979 45,727
44,685 41,852
3,294 3,875
Commodity market: 947 685
947 685
Other revenue 12,337 10,566
256,133 183,599
Real-time data and revenue from the calculation of reference rates
Equities and equity-related ins truments
Derivatives
Other fees paid by market participants
Debt ins truments
Other cas h ins truments
Lis ting fees
Fees for admis s ion and introduction and other fees
His torical and statis tical data and indices
Year ended 31 December
Financial market:
Trading:
Listing:
Inf ormation services and revenue from the calculation of ref erence rates:
Inforation services
Total sales revenue
2020 % share 2019 % share
Revenue from foreign cus tomers 1 0 7 ,0 4 2 4 1 .8 % 9 0 ,6 8 8
4 9 .39 %
Revenue from loc al c us tomers 1 4 9 ,0 9 1 5 8 .2% 9 2 ,9 1 1
5 0 .61 %
Total sales revenue 256,133 100.0% 183,599 100%
Year ended 31 December
47
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
4.2. OPERATING EXPENSES
Selected accounting policies
Expenses are a probable decrease of economic benefits in the reporting period, whose amount is reliably determined, that
reduces the value of assets or increases liabilities and provisions, which will reduce equity or increase negative equity, other
than due to withdrawal of funds by shareholders or owners.
Operating expenses include salaries and the cost of maintenance of the IT infrastructure of the trading system, as well as
advisory costs, the cost of capital market and commodity market education, promotion and information.
The Exchange records expenses by type.
4.2.1. SALARIES AND OTHER EMPLOYEE COSTS
Selected accounting policies
Liabilities in respect of current employee benefits (i.e., remuneration, social security charges, paid holidays, sick leaves,
etc.) are charged to costs in the period when benefits are paid.
Furthermore, the Exchange has an incentive scheme, according to which employees have the right to an annual bonus
(dependent on the sales profit and the implementation of bonus targets and linked to the employee’s individual appraisal).
The Exchange sets up provisions for bonuses in order to assign costs to the periods to which they relate. Provisions are
estimated according to the best knowledge of the Exchange Management Board concerning probable bonuses to be paid
based on the framework of the incentive scheme.
The Exchange pays contributions to the Employee Pension Scheme (defined contributions scheme). Employees join the
scheme voluntarily. After payment of the contributions, the Exchange has no further obligations to make payments to the
Employee Pension Scheme. These contributions are charged to costs of employee benefits as they are incurred.
Under the applicable legislation, the Exchange is required to charge and pay contributions towards employees’ pension
benefits. Such benefits are a state scheme which is a defined contributions scheme. According to the Labour Code, employees
have the right to receive a severance pay upon reaching retirement age. Retirement severance pay is paid on a one-off basis
at the time of retirement. Paid retirement benefits are recognised as an expense of the period in which they are paid.
2020 2019
2 3 ,7 3 7 2 3 ,4 4 7
(436) (152)
4 3 ,2 3 0 3 6 ,6 4 9
1 3 ,8 0 9 1 0 ,8 0 4
4 ,2 4 3 3 ,9 0 5
8 ,5 6 9 4 ,8 0 0
7,362 3,578
3 7 ,5 4 7 3 5 ,2 7 6
3 ,4 7 4 4 ,4 3 4
134,609 119,317
Note
Year ended 31 December
Total operating expenses
Deprec iation and amortis ation
including: capitalis ed depreciation and amortis ation charges
Salaries
O ther employee c os ts
Rent and other maintenanc e fees
Fees and c harges :
including fees paid to PFSA
E xternal s ervic e charges
O ther operating expens es
3.1, 3.2, 3.5.4.
48
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
Remuneration of the key management personnel is described in Note 6.4.
4.2.2. EXTERNAL SERVICE CHARGES
2020 2019
2 6 ,5 0 0 2 7 ,8 5 7
9 ,8 3 1 5 ,8 2 8
1 1 4 7 7
4 2 -
1 8 5 -
1 ,4 1 7 4 3 2
38,089 34,194
5,142 2,455
43,230 36,649
O ther (inc luding: unus ed holiday leave, overtime)
N on-c ompetition
Gros s remuneration
A nnual and dis c retionary bonus es
Retirement s everanc e pay
Total employee costs
Total payroll
Reorganis ation s everanc e pay
Supplementary payroll
Year ended 31 December
2020 2019
6 ,7 4 4 5 ,5 4 0
2 ,1 8 5 1 ,3 4 7
4 ,8 8 1 3 ,9 1 7
13,809 10,804
Total other employee costs
Soc ial s ec urity cos ts (ZU S)
E mployee P ens ion P lan (P P E )
Year ended 31 December
O ther benefits (inc luding medic al servic es , lunc h subs idies , sports , ins urance,
etc .)
2020 2019
12,058 10,463
3,500 3,523
439 247
1 5 ,9 9 7 1 4 ,2 3 3
3 ,6 4 2 3 ,2 8 6
2 8 8 2 3 2
4 0 9 1
3 ,3 0 2 3 ,8 8 4
1 ,2 4 7 1 ,3 2 1
2 ,6 3 3 4 ,6 0 1
7 ,0 8 5 5 ,6 4 3
6 9 7 6 9 7
2 5 5 4
8 8 1 0 3
2 7 1 2 6 9
2 ,2 3 1 8 6 2
37,547 35,276
M ail fees
Leas e, rental and maintenanc e of vehic les
T rans lation
Bank fees
M arket liquidity s upport
Software modification
Data trans mis s ion lines
Year ended 31 December
I T infras tructure maintenance
Total external service charges
T otal IT c os t
T otal offic e s pac e and offic e equipment maintenanc e
O ther
T rans portation servic es
P romotion, educ ation, market development
A dvis ory (inc luding legal, bus ines s c ons ulting, audit)
I nformation servic es
T raining
49
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
4.3. OTHER INCOME
4.4. OTHER EXPENSES
In 2020, the Exchange made donations to:
Fighting the coronavirus (donations for the Sanitary and Epidemiological Stations in Radom and Siedlce, hospitals
across Poland, the Public Health Care Institution in Siedlce) – PLN 1,683 thousand, including PLN 680 thousand of
the Exchange’s profit on trade in Allegro shares on the first day of trading (12 October 2020);
Polish National Foundation – PLN 1,500 thousand (recognised in expenses in 2016, see Note 3.14),
GPW Foundation – PLN 1,350 thousand,
In 2019, the Exchange made donations to:
Polish National Foundation – PLN 1,500 thousand (recognised in expenses in 2016),
GPW Foundation – PLN 2,737 thousand,
World Association of Home Army Soldiers – PLN 20 thousand.
4.5. FINANCIAL INCOME
Selected accounting policies
Interest income is recognised on a time-proportionate basis using the effective interest rate (IRR) method. Dividend income
is recognised at the moment of establishing the shareholders’ right to receive the payment.
2020 2019
655 32
372 923
318 306
37 9
1,383 1,277
Year ended 31 December
Total other income
A nnual c orrec tion of input V A T
M edic al s ervic es reinvoic ed to employees
Damages rec eived
Grants rec eived
2020 2019
3 ,1 3 5 2 ,7 5 7
2 8 2 8
- 1 7
4 ,2 2 2 8 7
6 3 5 4 2 6
8,020 3,315
* More information: Note 3.9.
Donations
Year ended 31 December
I mpairment of inves tments and abandoned inves tments *
O ther
Total other expenses
Los s on s ale of property, plant and equipment
Damages , penalties , fines
50
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
Details concerning received dividends from subsidiaries and associates are presented in Note 6.3.2. and 6.3.3.
4.6. FINANCIAL EXPENSES
Selected accounting policies
Financial expenses include costs and interest of bonds in issue, interest on loans and advances, and interest on tax liabilities.
Interest on bonds is determined using the effective interest rate method.
Presentation has changed in these financial statements because impairment loss on investments in other entities was
presented under gains on investments /(losses) on impairment of investments in other entities in the statement of
comprehensive income in 2019.
4.7. INCOME TAX
Selected accounting policies
Current income tax is calculated on the basis of net taxable income of the Exchange for a given financial year determined in
accordance with the binding tax regulations and using the tax rates provided in those regulations. Net taxable income (loss)
differs from accounting profit (loss) for the year due to:
costs which are not tax-deductible;
dividend income which is not taxable;
grants which are not taxable.
2020 2019
I ncome on financial as s ets presented as cas h and cas h equivalents 3.6.6. 305 708
I ncome on financial as s ets presented as financial as s ets meas ured at
amortis ed cos t
3.6.5. 2,101 4,238
I nteres t on s ubleas e receivables 3.5.6. 270 293
T otal revenues c alc ulated us ing the effec tive interes t rate method 2,6 7 6 5 ,2 3 9
Dividends 8 0 ,7 6 6 7 0 ,9 5 1
O ther financ ial inc ome 2 ,2 3 3 1 6
Total financial income 85,675 76,206
Note
Year ended 31 December
2020
2019
(res tated)
I nteres t on bonds , inc luding: 6,9 2 6 7 ,6 6 1
Accrued* (374) 386
Paid 7,300 7,275
I nteres t on leas e liabilities 6 0 3 6 9 7
I ntres t on tax payable - 4
5 8 3 2 ,1 7 3
1 ,4 2 7 3 8 0
Total financial expenses 9,539 10,915
* The negative amount of accrued interests is the res ult of changes in interest rates during the year.
Note
Year ended 31 December
O ther financ ial expens es
Los s on inves tment in other entities
51
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
As required by the Polish tax regulations, the corporate income tax rate applicable in 2020 and 2019 is 19%.
Tax Group (“TG”)
Selected accounting policies
The companies participating in TG are not treated individually but collectively as one corporate income taxpayer under the
Corporate Income Tax Act. Such taxpayer’s income is determined as the surplus of incomes of the companies participating
in TG over the sum of their losses.
While income taxes of the companies participating in TG are no longer paid individually, the companies are still required to
individually pay other taxes including VAT and local taxes.
On 25 November 2016, the Head of the First Mazovian Tax Office in Warsaw issued a decision registering TG for a period of
three tax years (from 1 December 2017 to 31 December 2019). The TG was comprised of the Exchange, TGE, BondSpot,
and GPWB.
On 24 December 2019, the Head of the First Mazovian Tax Office in Warsaw issued a decision extending TG for another tax
year, from 1 January to 31 December 2020. The Head issued a decision extending TG for another tax year, from 1 January
to 31 December 2021.
As the Company Representing TG, the Exchange is responsible for the calculation and payment of corporate income tax
advances of TG pursuant to the Corporate Income Tax Act. GPW’s receivables from associates participating in TG in respect
of income tax paid on their behalf were PLN 7,327 thousand as at 31 December 2020 (PLN 2,119 thousand as at 31 December
2019), presented under trade receivables and other receivables in the statement of financial position.
5. NOTE TO THE STATEMENT OF CASH FLOWS
Selected accounting policies
The statement of cash flows is prepared using the indirect method.
Received interest and dividend are recognised under investment activities. Paid dividend and interest (on bonds) are
recognised under financing activities.
2020 2019
C urrent inc ome tax 2 5 ,3 3 2 1 3 ,7 7 8
Deferred tax 3.16. (2 ,8 7 0 ) (2 ,1 2 2 )
Total income tax 22,461 11,656
Year ended 31 December
Note
2020 2019
1 9 1 ,1 4 1 1 2 6 ,7 7 9
19% 19%
36,317 24,088
(13,856) (12,432)
2 ,4 9 5 1 ,0 5 8
Dividend inc ome whic h is not taxable (1 5 ,3 4 6 ) (1 3 ,4 8 1 )
Grants whic h are not taxable (1 2 4 ) (9 )
(8 8 1 ) -
22,461 11,656
Year ended 31 December
O ther adjus tments
Tax effect of:
Income tax at the statutory tax rate
Total income tax
C os ts whic h are not tax-deduc tible
P rofit before inc ome tax
I nc ome tax rate
52
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
6. OTHER NOTES
6.1. FINANCIAL INSTRUMENTS
The impairment of equity instruments at PLN 0,9 million in 2020 included impairment of shares (presented as at 30
September 2020 as financial assets measured at fair value through profit or loss) received by the Exchange in exchange for
debt.
2020 2019
Deprec iation of property, plant and equipment* 3.1. 1 0 ,5 1 6 1 0 ,2 5 5
A mortis ation of intangible as s ets * * 3.2. 1 0 ,2 6 6 1 0 ,3 3 1
Deprec iation and amortis ation of right-to-us e as s ets 3.5.4. 2 ,9 5 5 2 ,8 6 1
Total depreciation and amortisation charges 23,737 23,447
Note
Year ended 31 December
* Depreciation includes depreciation charge capitalis ed to intangible as s ets at PLN 390 thous and (2019: PLN 148 thous and).
** Amortization includes amortization charge capitalis ed to intangible as s ets at PLN 46 thous and (2019: PLN 4 thous and).
2020 2019
(Gains )/los s es on s ale of property, plant and equipment and intangible
as s ets
2 8 2 8
(Gains )/los s es on FX differenc es (valuation of ac c ounts and depos its ) (4 8 8 ) 2 6 4
Subleas e interes t (inc ome) 4.5. (2 7 0 ) (2 9 3 )
Leas e interes t expens e 4.6. 6 0 3 6 9 7
Financ ial expense on the bond is s ue 3 8 9 3 9 0
Los s es on impairment of inves tments in other entities (P A R) 5 8 3 2 ,1 7 3
I mpairment of financ ial as s ets meas ured at fair value through other
c omprehens ive inc ome
9 2 0 -
I mpairment of other c urrent as s ets * 4 ,2 2 2 -
O ther 6 8 8 (1 ,0 8 7 )
Total other adjustments 6,675 2,176
*See Note 3.9.
Note
Year ended 31 December
Interest
received/paid
Interest
accrued,
revaluation
and cost of
bond issue
Impairment
loss
Total shown
in net profit
Total shown in
other
comprehensive
income
Total shown in
the statement of
comprehensive
income
T rade rec eivables (gros s ) - - 1 1 8 118 - 118
E quity ins truments - - (8 6 6 ) (866) (4 ) (870)
C orporate bonds 1 ,4 2 8 (4 5 7 ) - 971 - 971
Bank depos its 2 ,1 5 3 (7 1 8 ) - 1,435 - 1,435
Loans granted - - (5 0 7 ) (507) - (507)
Total financial instruments (assets) 3,581 (1,175) (1,255) 1,151 (4) 1,147
Bonds in is s ue (7 ,3 0 0 ) 3 7 4 - (6,926) - (6,926)
Total financial instruments (liabilities) (7,300) 374 - (7,426) - (7,426)
Total recognised in the statement of
comprehensive income
(3,719) (801) (1,255) (6,275) (4) (6,279)
Year ended 31 December 2020
53
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
6.2. GRANTS
Selected accounting policies
Government grants are assistance by government in the form of transfers of resources to an entity in return for past or
future compliance with certain conditions relating to the operating activities of the entity. Government refers to government,
government agencies and similar bodies whether local, national or international.
A government grant is recognised when there is reasonable assurance that the Exchange will comply with any conditions
attached to the grant and the grant will be received.
Grants related to assets are government grants whose primary condition is that an entity qualifying for them should
purchase, construct or otherwise acquire long-term assets. Grants related to assets are presented in the statement of
financial position as deferred income and recognised in financial results (other income) systematically over the useful lifetime
of the assets concerned by the grant.
Grants relating to income are grants other than grants relating to assets and they are recognised in other income
systematically over the periods when the expenses covered by the grant are recognised.
Prepayments in respect of grants related to assets are presented in Note 3.13, income in respect of grants is presented in
Note 4.3, and contingent liabilities in respect of grants are presented in Note 6.6.
New Trading System
The New Trading System is a development project of a new trading platform which will in the future help to reduce transaction
costs and offer new functionalities and types of orders for Exchange Members, issuers and investors. The system will provide
superior reliability and security according to top technical parameters. The grant for the New Trading System project will be
PLN 30.3 million.).
GPW Data
The GPW Data project aims to develop an innovative Artificial Intelligence system supporting investment decisions of capital
market participants. The core of the system is a repository of a broad range of structured exchange data. Such information
will support investments on the capital market based on classical and innovative analysis models.
The subsidies under the GPW Data project will amount to PLN 4.2 million.
Agricultural Market
A consortium comprised of GPW, TGE and IRGiT signed an agreement with Krajowy Ośrodek Wsparcia Rolnictwa (National
Centre for Agricultural Support, KOWR) on 29 January 2019 concerning the Agricultural Market project which will launch an
electronic trading platform for certain agricultural commodities. As the consortium leader and the parent entity of the GPW
Group, the Exchange represented the consortium in relations with KOWR, handled financials and provided marketing support,
and received a fee from the other consortium members which covered its expenses. The project closed on 31 August 2020
Interest
received/paid
Interest
accrued,
revaluation
and cost of
bond issue
Impairment
loss
Total shown
in net profit
Total shown in
other
comprehensive
income
Total shown in
the statement of
comprehensive
income
T rade rec eivables (gros s ) - - (7 5 6 ) (756) - (756)
E quity ins truments - - - - 1 5 15
C orporate bonds 7 1 9 2 3 8 - 957 - 957
C ertific ates of depos it 3 3 3 1 5 8 - 491 - 491
Bank depos its 4 ,0 4 2 2 3 9 - 4,281 - 4,281
C urrent bank ac c ounts 1 1 - - 11 11
Total financial instruments (assets) 5,105 635 (756) 4,984 15 4,999
Bonds in is s ue (7 ,2 7 5 ) (3 8 6 ) - (7,661) - (7,661)
Loans - -
Total financial instruments (liabilities) (7,275) (386) - (7,661) - (7,661)
Total recognised in the statement of
comprehensive income
(2,170) 249 (756) (2,677) 15 (2,662)
Year ended 31 December 2019
54
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
according to plan. Since 1 September 2020, the platform is operated by TGE and IRGiT (without the participation of the
Exchange).
GPW Private Market
On 23 September 2020, acting as the leader of a consortium comprised of the Silesian University of Technology and
VRTechnology sp. z o.o., GPW signed a co-financing agreement with the National Centre for Research and Development for
the project “Development of an innovative blockchain platform”.
The objective of the project is to develop a platform for the issuance of tokens representing digital rights (digital assets).
The platform will also support trade in such assets. The subsidies under the GPW Private Market project will amount to PLN
8.5 million.
6.3. RELATED PARTY TRANSACTIONS
Selected accounting policies
Related parties of the Exchange include:
the subsidiaries,
the associates and joint ventures,
the State Treasury as the parent entity,
entities controlled and jointly controlled by the State Treasury and entities over which the State Treasury has
significant influence,
members of the key management personnel of the Exchange.
6.3.1. INFORMATION ABOUT TRANSACTIONS WITH THE STATE TREASURY AND ENTITIES WHICH ARE RELATED PARTIES OF THE
STATE TREASURY
Companies with a stake held by the State Treasury
The Exchange keeps no records which would clearly identify and aggregate transactions with all entities which are related
parties of the State Treasury.
Companies with a stake held by the State Treasury which are parties to transactions with the Exchange include issuers (from
which the Exchange charges introduction and listing fees) and Exchange Members (from which the Exchange charges fees
for access to trade on the exchange market, fees for access to the IT systems, and fees for trade in financial instruments).
All trade transactions with entities with a stake held by the State Treasury are concluded by the Exchange in the normal
course of business and are carried out on an arm’s length basis.
Polish Financial Supervision Authority (“PFSA”)
The PFSA Chairperson publishes the rates and the indicators necessary to calculate capital market supervision fees by 31
August of each calendar year. On that basis, the entities obliged to pay the fee calculate the final amount of the annual fee
due for the year and pay the fee by 30 September of the calendar year. The Regulation of the Minister of Finance of 17
September 2020 amending the regulation concerning other deadlines of certain reporting and disclosure obligations
postponed the due date of the 2020 fee to 30 November 2020.
Fees paid by the Exchange to PFSA stood at PLN 7,362 thousand in 2020 and PLN 3,578 thousand in 2019.
Tax Office
The Exchange is subject to taxation under Polish law and pays taxes to the State Treasury, which is a related party. The
rules and regulations applicable to the Exchange are the same as those applicable to other entities which are not related
parties of the State Treasury.
Details concerning income tax are presented in Note 4.7.
Polish National Foundation
Payments and transactions with the Polish National Foundation are described in Notes 3.14 and 4.4.
55
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
6.3.2. TRANSACTIONS WITH SUBSIDIARIES
Revenue of the Exchange from subsidiaries includes revenue from lease of office space (operating lease of proprietary space
and sublease), lease of passenger cars, maintenance of premises, cleaning services, security services, accounting services,
HR services, administrative services, IT services, and marketing services. Operating expenses paid by the Exchange to
subsidiaries mainly relate to purchase of information services which are distributed by GPW.
The table above does not include transactions in fixed assets. The Exchange purchased no fixed assets from Group members
in 2020. The Exchange purchased network equipment from TGE and IRGiT in 2019. Those transactions were worth PLN 1,586
thousand and PLN 353 thousand, respectively.
Receivables
Trade payables and
other liabilities
Sales revenue or
sublease interest
Operating expenses
(including: decrease of
depreciation and
amortisation due to
subleases)
TGE:
3,664 90 7,463 71
leas es 1,473 - 59 (585)
other 2,191 90 7,404 656
IRGiT: 3,197 - 2,106 (795)
leas es 2,500 - 115 (808)
other 697 - 1,991 13
BondSpot: 1,481 38 1,067 57
leas es 1,374 - 54 (573)
other 107 38 1,013 630
GPWB: 704 582 1,028 4,219
leas es 524 - 18 (200)
other 180 582 1,010 4,419
InfoEngine: 4 - 33 2
leas es - - - (4)
other 4 - 33 6
GPW Tech: 319 - 6 (64)
leas es 289 - 6 (64)
other 30 - -
GPW Ventures ASI: 103 - 4 (36)
leas es 92 - 4 (36)
other 11 - - -
Total
9,472 710 11,707 3,454
As at
31 December 2020
Year ended
31 December 2020
56
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
Receivables from subsidiaries were not written off as uncollectible or provided for in the year ended 31 December 2020 and
31 December 2019.
Dividend from subsidiaries
On 30 June 2020, the Annual General Meeting of TGE passed a resolution distributing the profit for 2019 and decided to
allocate PLN 75,066 thousand to a dividend payment. The entire dividend was paid to the Exchange on 11 August 2020.
On 28 June 2019, the Annual General Meeting of TGE passed a resolution distributing the profit for 2018 and decided to
allocate PLN 63,945 thousand to a dividend payment. The entire dividend was paid to the Exchange on 19 July 2019.
6.3.3. TRANSACTIONS WITH ASSOCIATES AND JOINT VENTURES
As owner and lessee of space in the Centrum Giełdowe building, the Exchange pays rent and maintenance charges for office
space, including joint property, to the building manager, Centrum Giełdowe S.A. Transactions with the KDPW Group included
fees for dividend payment services and joint organisation of integration events for the capital market community.
Transactions with PAR included office space lease and related fees.
Receivables
Trade payables and
other liabilities
Sales revenue or
sublease interest
Operating expenses
(including: decrease of
depreciation and
amortisation due to
subleases)
TGE: 3,625 212 6,745 592
leas es 2,039 - 555 (73)
other 1,586 212 6,190 664
IRGiT: 3,581 47 2,583 (100)
leas es 3,067 - 780 (105)
other 514 47 1,803 5
BondSpot: 2,222 75 1,637 510
leas es 2,061 - 577 (71)
other 161 75 1,060 581
GPWB: 1,025 474 780 2,615
leas es 706 - 135 (16)
other 320 474 645 2,632
InfoEngine: 73 - 53 (2)
leas es 68 - 17 (2)
other 5 - 37 0
GPW Tech: 163 - 17 (1)
leas es 141 - 5 (1)
other 22 - 11 -
Total
10,690 808 11,816 3,615
As at
31 December 2019
Year ended
31 December 2019
Receivables Liabilities
Sales revenue or
sublease interest
Operating expenses
KDPW Group: 3 - 22 56
other 3 - 22 56
Centrum Giełdowe: - 6,185 - 5,777
leas ing - 6,117 - 2,391
pozos tałe - 68 - 3,386
PAR: 86 - 86 6
leas es 81 - 63 6
other 5 - 23 -
Total
89 6,185 108 5,839
As at 31 December 2020
Year ended 31 December 2020
57
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
Receivables from associates and joint ventures were not written off as uncollectible or provided for in the year ended 31
December 2020 and 31 December 2019.
Dividend from associates
On 18 June 2020, the Annual General Meeting of CG decided to allocate a part of the 2019 profit equal to PLN 2,067 thousand
to a dividend payment. The dividend paid to GPW on 30 June 2020 was PLN 512 thousand. In 2019, CG paid dividend for
2018 at PLN 1,779 thousand, including PLN 441 thousand to GPW.
On 29 June 2020, the Annual General Meeting of KDPW decided to allocate a part of the 2019 profit equal to PLN 15,561
thousand to a dividend payment. The dividend paid to GPW on 10 August 2020 was PLN 5,187 thousand. In 2019, KDPW
paid dividend for 2018 at PLN 19,697 thousand, including PLN 6,566 thousand to GPW.
Loans and advances
In February 2020, the Exchange and Polski Fundusz Rozwoju S.A. signed a PLN 400 thousand loan agreement with PAR to
finance the borrower’s short-term liquidity gap. The amount of the loan was advanced in equal parts i.e. PLN 200 thousand
by each of the lenders. Under the agreement, PAR was required to pay the entire loan back to the lenders plus interest at
3.4% per annum on or before 30 June 2021.
In September 2020, the Exchange and PAR signed another PLN 600 thousand loan agreement to finance the borrower’s
short-term debt. The first loan tranche of PLN 300 thousand was paid on 28 September 2020. The second tranche of the
loan at PLN 300 thousand was paid on 1 March 2021 (see Note 6.8.). The loan bears interest at 1.8% p.a. and will be repaid
to the Exchange in a single payment on or before 30 June 2022.
As at 31 December 2020, the Exchange wrote down the loans granted to PAR with accrued interest at PLN 507 thousand. As
a result, the net balance of PAR’s loans from the Exchange was PLN 0 as at 31 December 2020.
6.3.4. OTHER TRANSACTIONS
Transactions with the key management personnel
The Exchange entered into no transactions with the key management personnel in 2019 and in 2020.
Książęca 4 Street Tenants Association
In 2020, the Exchange concluded transactions with the Książęca 4 Street Tenants Association of which it is a member. The
expenses amounted to PLN 4,160 thousand in 2020 and PLN 3,821 thousand in 2019. Moreover, when the Tenants
Association generates a surplus during a year, it is credited towards current maintenance fees, and where there is a shortage,
the Exchange is obliged to contribute an additional payment. The surplus payment amounted to PLN 13 thousand in 2020
and PLN 183 thousand in 2019.
GPW Foundation
In 2020, GPW donated PLN 1,179 thousand (in 2019 – PLN 2,737 thousand) to the GPW Foundation, received an income of
PLN 127 thousand (in 2019 – PLN 125 thousand) from the Foundation, and paid the Foundation’s costs of PLN 1 thousand
(in 2019 – PLN 3 thousand). As at 31 December 2020, the Exchange’s receivables from the GPW Foundation stood at PLN
62 thousand and its payables to the Foundation at PLN 143 thousand (as at 31 December 2019 – PLN 95 thousand and PLN
595 thousand, respectively).
Polish National Foundation
Payments and transactions with PFN are described in Notes 3.14 and 4.4.
Receivables Liabilities
Sales revenue or
sublease interest
Operating expenses
KDPW Group: 37 1 117 66
other 37 1 117 66
Centrum Giełdowe: - 7,845 - 3,477
leas ing - 7,516 - 2,254
pozos tałe - 328 - 1,223
PAR: 532 - 318 24
leas es 456 - 197 24
other 75 - 121 -
Total
569 7,846 434 3,567
As at 31 December 2019
Year ended 31 December 2019
58
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
6.4. INFORMATION ON REMUNERATION AND BENEFITS OF THE KEY MANAGEMENT PERSONNEL
Selected accounting policies
The key management personnel of the Exchange includes the Exchange Management Board and the Exchange Supervisory
Board.
The remuneration of the Exchange Management Board is subject to the limitations and requirements of the Act of 9 June
2016 on the terms of determining remuneration of managers of certain companies. According to the Act, the remuneration
of the Company’s management includes:
a fixed monthly base salary determined depending on the scale of the Company’s business, and
a variable part which is supplementary remuneration for the financial year depending on the performance of
management targets.
Depending on its appraisal of the performance of individual targets and the results of the Company, the Exchange Supervisory
Board may award a bonus to Management Board members in the amount not greater than 100% of the base salary of the
Management Board member in the previous financial year.
The table concerning remuneration of the key management personnel does not present social security contributions paid by
the employer.
The data presented in the table below are for all (current and former) members of the Exchange Management Board and the
Exchange Supervisory Board who were in office in 2020 and 2019, respectively.
As at 31 December 2020, not paid bonuses and variable remuneration of the key management personnel stood at PLN 1,944
thousand including bonuses for 2020. The cost was shown in the statement of comprehensive income for 2020.
As at 31 December 2019, not paid bonuses and variable remuneration of the key management personnel stood at PLN 3,282
thousand including bonuses for 2016-2019. The cost was shown in the statement of comprehensive income for 2016-2018.
6.5. CONTRACTED INVESTMENTS
Contracted investments in plant, property and equipment represented investments in the Centrum Giełdowe building as at
31 December 2020 and the acquisition of IT hardware for the New Trading System as at 31 December 2019.
Contracted investments in intangible assets included mainly the GRC system and the Indexator as at 31 December 2020 and
the GRC system, server time synchronisation software, and the new Indexator as at 31 December 2019.
2020 2019
1 ,7 2 8 2 ,0 0 2
1 ,7 8 0 1 ,6 9 4
1 4 4
3 5 2 1 3 6
1 8 5 -
4,059 3,836
550 525
4,609 4,361
Bonus - bonus bank
Total remuneration of the Exchange Management Board
Benefits after termination
Bas e s alary
V ariable pay
Remuneration of the Exchange Supervisory Board
Total remuneration of the key management personnel
O ther benefits
Year ended 31 December
2020 2019
C ontrac ted inves tments in property, plant and equipment 92 8 1 1 5
C ontrac ted inves tments in intangible ass ets 5 3 3 2 5 3
Total contracted investments 1,461 368
As at 31 December
59
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
6.6. CONTINGENT LIABILITIES
In connection with the implementation of the projects New Trading System, GPW Data and GPW Private Market, the Exchange
presented two own blank bills of exchange to NCBR securing obligations under the projects’ co-financing agreements.
According to the agreements and the bill-of-exchange declarations, NCBR may complete the bills of exchange with the
amount of provided co-financing which may be subject to refunding, together with interest accrued at the statutory rate of
overdue taxes from the date of transfer of the amount to the Exchange’s account to the day of repayment (separate for each
project). NCBR may also complete the bills of exchange with the payment date and insert a “no protest” clause. The bills of
exchange may be completed upon the fulfilment of conditions laid down in the co-financing agreement. Each of the bills of
exchange shall be returned to the Exchange or destroyed after the project sustainability period defined in the project co-
financing agreement.
6.7. CHANGES OF PRESENTATION IN THE STATEMENT OF COMPREHENSIVE INCOME AND THE STATEMENT OF CASH FLOWS
Presentation has changed in these financial statements because gains/(losses) on investments in other entities are presented
in financial income and financial expenses, respectively. The change affects the statement of comprehensive income and the
statement of cash flows. In 2019, PLN 2,173 thousand was moved from gains on investments/(losses) on impairment of
investments in other entities to financial expenses (see Note 4.6).
6.8. EVENTS AFTER THE BALANCE SHEET DATE
On 11 January 2021, the Exchange Management Board decided to reduce annual fees for the listing of shares of issuers
affected by the coronavirus pandemic. Eligible to apply for a reduction of the annual listing fee in 2021 were companies listed
on the GPW Main Market and NewConnect which met the following conditions:
decrease of income in January-September 2020 by more than 20% year on year;
market capitalisation below PLN 1 billion as at 31 December 2020;
timely publication of the Q3 2020 report;
submission of an application for the reduction of fees for the listing of shares in 2021, no later than 20 January
2021.
Annual listing fees for shares of companies whose income decreased by more than 20% but not more than 50% in January-
September 2020 were reduced by 50%. Listing fees charged to issuers whose income decreased by more 50% in January-
September 2020 were reduced by 90% in 2021.
A limited joint-stock company which is a subsidiary of GPW Ventures Asset Management Sp. z o.o. was registered in the
National Court Register on 28 January 2021.
On 26 February 2021, the Exchange Management Board acting on request of the State Treasury passed a resolution
amending the GPW shareholder register by deleting Miejski Dom Maklerski S.A. and entering the State Treasury represented
by the Minister of State Assets as the holder of 7,000 series A registered shares.
On 1 March 2021, PAR signed an agreement concerning the monitoring service for a portfolio of companies based on credit
scorings, which fulfilled the condition of payment of the second tranche of the loan referred to in Note 6.3.4. The Exchange
paid the second tranche of the loan to PAR at PLN 300 thousand on 1 March 2021.
60
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of Giełda Papierów Wartościowych w Warszawie S.A.
The separate financial statements are presented by the Management Board of the Warsaw Stock Exchange:
Marek Dietl – President of the Management Board ………………………………………
Piotr Borowski – Vice-President of the Management Board ………………………………………
Dariusz Kułakowski – Vice-President of the Management Board ………………………………………
Izabela Olszewska – Vice-President of the Management Board ………………………………………
Signature of the person responsible for keeping books of account:
Małgorzata Gola-Radwan, Chief Accountant ………………………………………
Warsaw, 9 March 2020