SEPARATE FINANCIAL STATEMENTS
OF GA PW W WARSZAWIE S.A.
FOR THE YEAR ENDED 31 DECEMBER 2021
1
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a 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 .......................................................... 11
1.6.6. Segment reporting ................................................................................................................... 11
1.7. Impact of the SARS-CoV-2 pandemic ........................................................................................................... 11
1.8. Analysis of the impact of climate change on the activity of the GPW ......................................................... 12
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 rate risk ................................................................................ 12
2.2.2. Foreign exchange risk ............................................................................................................... 13
2.2.3. Price risk ................................................................................................................................... 15
2.3. Credit risk ..................................................................................................................................................... 15
2.4. Liquidity risk ................................................................................................................................................. 16
2.5. Capital management .................................................................................................................................... 17
3. Notes to the statement of financial position .............................................................................................17
3.1. Property, plant and equipment ................................................................................................................... 17
3.2. Intangible assets .......................................................................................................................................... 19
3.3. Investment property .................................................................................................................................... 22
3.4. Investment in subsidiaries ........................................................................................................................... 22
3.5. Investment in associates and joint ventures ............................................................................................... 24
3.6. Leases ........................................................................................................................................................... 25
3.6.1. Qualitative and quantitative information about lease transactions Exchange as a lessee ... 26
3.6.2. Qualitative and quantitative information about lease transactions Exchange as a lessor ... 26
3.6.3. Selected judgments and estimates related to leases ............................................................... 27
3.6.4. Right-to-use assets ................................................................................................................... 28
3.6.5. Lease liabilities ......................................................................................................................... 29
3.6.6. Sublease receivables ................................................................................................................ 31
3.7. Financial assets ............................................................................................................................................ 32
3.7.1. Classification and measurement of financial assets ................................................................. 32
3.7.2. Impairment of financial assets ................................................................................................. 32
3.7.3. Financial assets measured at fair value through other comprehensive income...................... 33
2
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
3.7.4. Trade receivables and other receivables ................................................................................. 34
3.7.5. Financial assets measured at amortised cost ........................................................................... 37
3.7.6. Cash and cash equivalents ....................................................................................................... 39
3.8. Contract assets and contract liabilities ........................................................................................................ 40
3.9. (Non-current) prepayments ......................................................................................................................... 40
3.10. Equity ........................................................................................................................................................... 41
3.10.1. Share capital ............................................................................................................................. 41
3.10.2. Other reserves .......................................................................................................................... 41
3.10.3. Retained earnings .................................................................................................................... 42
3.10.4. Dividend ................................................................................................................................... 42
3.10.5. Earnings per share .................................................................................................................... 43
3.11. Bond issue liabilities ..................................................................................................................................... 43
3.12. Employee benefits payable .......................................................................................................................... 44
3.12.1. Retirement benefits ................................................................................................................. 45
3.12.2. Other employee benefits ......................................................................................................... 46
3.13. Accruals and deferred income ..................................................................................................................... 46
3.14. Other liabilities ............................................................................................................................................. 47
3.15. Trade payables ............................................................................................................................................. 47
3.16. Deferred income tax .................................................................................................................................... 48
3.17. Phantom shares ........................................................................................................................................... 49
4. Notes to the statement of comprehensive income ....................................................................................50
4.1. Sales revenue ............................................................................................................................................... 50
4.2. Operating expenses ..................................................................................................................................... 52
4.2.1. Salaries and other employee costs........................................................................................... 52
4.2.2. External service charges ........................................................................................................... 53
4.3. Other income ............................................................................................................................................... 54
4.4. Other expenses ............................................................................................................................................ 54
4.5. Financial income .......................................................................................................................................... 55
4.6. Financial expenses ....................................................................................................................................... 55
4.7. Income tax ................................................................................................................................................... 56
5. Note to the statement of cash flows..........................................................................................................57
6. Other notes ...............................................................................................................................................58
6.1. Financial instruments ................................................................................................................................... 58
6.2. Grants .......................................................................................................................................................... 58
6.3. Related party transactions ........................................................................................................................... 60
6.3.1. Information about transactions with the State Treasury and entities which
are related parties of the State Treasury ................................................................................. 60
6.3.2. Transactions with subsidiaries ................................................................................................. 60
6.3.3. Transactions with associates and joint ventures ..................................................................... 62
6.3.4. Other transactions ................................................................................................................... 64
6.4. Information on remuneration and benefits of the key management personnel ........................................ 64
6.5. Contracted investments ............................................................................................................................... 65
6.6. Contingent liabilities .................................................................................................................................... 65
6.7. Corrections of errors .................................................................................................................................... 65
6.7.1. Fees for introduction of shares to trading ............................................................................... 65
6.7.2. Right of perpetual usufruct of land .......................................................................................... 65
6.7.3. Investment property ................................................................................................................ 66
6.8. Events after the balance sheet date ............................................................................................................ 68
3
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
SEPARATE STATEMENT OF FINANCIAL POSITION
As at 31 December
Note
2021
2020
(restated*)
2019
(restated*)
Non-current assets:
442,961
434,418
438,702
Property, plant and equipment
3.1.
77,709
83,526
86,517
Right-of-use assets
3.6.4.
5,040
7,491
10,090
Intangible assets
3.2.
72,630
59,198
55,802
Investment property
3.3.
8,277
8,564
8,899
Investment in associates and joint ventures
3.5.
11,652
11,652
11,652
Investment in subsidiaries
3.4.
260,633
256,585
255,885
Sublease receivables
3.6.6.
1,803
4,096
6,363
Deferred tax asset
3.16.
3,199
1,446
1,626
Financial assets measured at fair value through other comprehensive
income
3.7.3.
123
115
120
Prepayments
3.9.
1,895
1,745
1,748
Current assets:
509,033
439,521
357,421
Inventories
8
10
46
Corporate income tax receivable
-
-
4,132
Trade receivables and other receivables
3.7.4.
40,909
47,417
30,128
Sublease receivables
3.6.6.
2,347
2,472
2,302
Contract assets
3.8.
2
764
940
Financial assets measured at amortised cost
3.7.5.
296,306
249,985
267,687
Other current assets
-
-
4,222
Cash and cash equivalents
3.7.6.
169,461
138,873
47,964
TOTAL ASSETS
951,994
873,939
796,123
*Data for the comparative period have been restated. See Note 6.7.
The attached Notes are an integral part of these Financial Statements.
4
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
SEPARATE STATEMENT OF FINANCIAL POSITION (CONTINUED)
Note
As at 31 December
2021
2020
(restated*)
2019
(restated*)
Equity:
611,392
541,711
472,975
Share capital
3.10.1.
63,865
63,865
63,865
Other reserves
3.10.2.
(41)
(227)
(187)
Retained earnings
3.10.3.
547,568
478,073
409,297
Non-current liabilities:
38,079
281,401
283,451
Liabilities on bonds issue
3.11.
-
244,739
244,350
Employee benefits payable
3.12.
1,280
781
682
Lease liabilities
3.6.5.
4,211
9,147
13,956
Contract liabilities
3.8.
7,003
6,776
7,005
Accruals and deferred income
3.13.
16,293
7,495
809
Deferred tax liability
3.16.
-
1,825
4,705
Other liabilities
3.14.
9,292
10,638
11,944
Current liabilities:
302,523
50,827
39,697
Liabilities on bonds issue
3.11.
246,278
1,167
1,932
Trade payables
3.15.
7,679
7,338
7,970
Employee benefits payable
3.12.
21,818
14,725
10,579
Lease liabilities
3.6.5.
5,250
5,192
4,959
CIT payable
6,167
6,474
-
Contract liabilities
3.8.
4,859
4,638
3,515
Accruals and deferred income
3.13.
2,843
2,205
231
Provisions for other liabilities and other charges
-
-
95
Other liabilities
3.14.
7,629
9,088
10,416
TOTAL EQUITY AND LIABILITIES
951,994
873,939
796,123
*Data for the comparative period have been restated. See Note 6.7.
The attached Notes are an integral part of these Financial Statements.
5
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
SEPARATE STATEMENT OF COMPREHENSIVE INCOME
Note
Year ended 31 December
2021
2020 (restated*)
Sales revenue
4.1.
253,021
256,003
Operating expenses
4.2.
(156,805)
(134,113)
Gains on reversed impairment of receivables
3.7.4.
1,066
118
Other income
4.3.
1,581
2,461
Other expenses
4.4.
(3,323)
(8,404)
Operating profit
95,540
116,065
Financial income, incl.:
4.5.
102,889
85,675
Interest income under the effective interest rate method
4.5.
1,105
2,676
Financial expenses
4.6., 6.7.
(7,309)
(9,589)
Profit before tax
191,120
192,151
Income tax
4.7.
(16,695)
(22,641)
Profit for the period
174,425
169,510
Gains/(Losses) on valuation of financial assets measured at fair value
through other comprehensive income, net
3.10.2.
5
(4)
Actuarial gains/(losses) on provisions for employee benefits after
termination, net
3.10.2.
181
(36)
Total items that will not be reclassified to profit or loss
3.10.2.
186
(40)
Total other comprehensive income after tax
186
(40)
Total comprehensive income
174,611
169,470
Basic / Diluted earnings per share (PLN)
3.10.5.
4.16
4.04
*Data for the comparative period have been restated. See Note 6.7.
The attached Notes are an integral part of these Financial Statements.
6
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
SEPARATE STATEMENT OF CASH FLOWS
Note
Year ended 31 December
2021
2020 (restated*)
Total net cash flows from operating activities
119,493
119,411
Net profit of the period
174,425
169,510
Adjustments:
(39,493)
(29,708)
Income tax
4.7.
16,695
22,641
Depreciation and amortisation
5.
23,605
23,625
Impairment
3.7.5.
141
-
Dividend (income)
4.5.
(101,762)
(80,766)
(Gains) on financial assets measured at amortised cost
3.7.5.
(859)
(2,101)
Interest on the bond issue
3.11.
5,440
6,535
Other adjustments
5.
(1,838)
6,725
Change of assets and liabilities:
19,085
(6,367)
Inventories
2
37
Trade receivables and other receivables
3.7.4.
1,377
(13,369)
Trade payables
3.15.
341
(632)
Contract assets
3.8.
762
176
Contract liabilities
3.7.
448
894
Non-current prepayments
3.9.
(150)
3
Accruals and deferred income
3.13.
10,691
-
Employee benefits payable
3.12.
7,592
4,245
Other liabilities (excluding contracted investments and dividend
payable)
3.14.
(633)
3,667
Provisions for liabilities and other charges
-
(95)
Other non-current liabilities
(1,345)
(1,293)
Income tax advances received from related parties (Tax
Group)
4.7.
14,392
4,719
Income tax (paid)/refunded
4.7.
(29,831)
(25,110)
*Data for the comparative period have been restated. See Note 6.7.
0.00
0.00
The attached Notes are an integral part of these Financial Statements.
7
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
SEPARATE STATEMENT OF CASH FLOWS (CONTINUED)
Note
Year ended 31 December
2021
2020 (restated*)
Total cash flows from investing activities:
21,949
75,408
In:
1,110,744
901,212
Sale of property, plant and equipment and intangible assets
-
1
Dividends received
4.5.
101,762
80,766
Sale of financial assets measured at amortised cost
1,005,672
814,572
Interest on financial assets measured at amortised cost
3.7.5.
595
3,278
Sublease payments (interest)
4.5., 3.6.6.
167
270
Sublease payments (principal)
3.6.6.
2,548
2,325
Out:
(1,088,795)
(825,804)
Purchase of property, plant and equipment and advances for
property, plant and equipment
(9,275)
(10,748)
Purchase of intangible assets and advances for intangible assets
(23,205)
(15,226)
Purchase of financial assets measured at amortised cost
(960,869)
(798,047)
Loan granted to a related party
6.3.2.
(91,310)
(500)
Purchase of shares of a related party
3.4.
(4,048)
(1,283)
Other
(88)
-
Total cash flows from financing activities:
(110,701)
(104,397)
In:
9,928
9,821
Grants received
6.2.
9,928
9,821
Out:
(120,629)
(114,218)
Dividend paid
3.10.4.
(105,179)
(100,716)
Interest paid on bonds
3.11.
(5,452)
(7,300)
Repaid advance grant
(4,215)
(506)
Lease payments (interest)
4.6., 3.6.5.
(376)
(603)
Lease payments (principal)
3.6.5.
(5,407)
(5,093)
Net increase in cash and cash equivalents
30,741
90,422
Impact of fx rates on cash balance in currencies
(153)
488
Cash and cash equivalents - opening balance
3.7.6.
138,873
47,964
Cash and cash equivalents - closing balance
3.7.6.
169,461
138,873
*Data for the comparative period have been restated. See Note 6.7.
0.00
-1.00
The attached Notes are an integral part of these Financial Statements.
8
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
SEPARATE STATEMENT OF CHANGES IN EQUITY
Equity
Total equity
Share capital
Other
reserves
Retained
earnings
As at 1 January 2021 (restated)*
63,865
(227)
478,073
541,711
Dividends
-
-
(104,930)
(104,930)
Transactions with owners recognised directly in equity
-
-
(104,930)
(104,930)
Net profit for 2021
-
-
174,425
174,425
Other comprehensive income
-
186
-
186
Comprehensive income for 2020
-
186
174,425
174,611
As at 31 December 2021
63,865
(41)
547,568
611,392
*Data for the comparative period have been restated. See Note 6.7.
Equity
Total equity
Share capital
Other
reserves
Retained
earnings
As at 1 January 2020 (reported)
63,865
(187)
416,165
479,843
Adjustments:
-
-
(6,868)
(6,868)
As at 1 January 2020 (restated)*
63,865
(187)
409,297
472,975
Dividends
-
-
(100,733)
(100,733)
Transactions with owners recognised directly in equity
-
-
(100,733)
(100,733)
Net profit for 2020
-
-
169,510
169,510
Other comprehensive income
-
(40)
-
(40)
Comprehensive income for 2020
-
(40)
169,510
169,470
As at 31 December 2020 (restated)*
63,865
(227)
478,073
541,711
*Data for the comparative period have been restated. See Note 6.7.
The attached Notes are an integral part of these Financial Statements.
9
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a 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
registered in the Commercial Court in Warsaw on 25 April 1991 (entry no. KRS 0000082312, Tax Identification Number 526-
025-09-
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
1.3. APPROVAL OF THE FINANCIAL STATEMENTS
The financial statements were authorised for issuance by the Management Board of the Exchange on 15 March 2022.
1.4. STATEMENT OF COMPLIANCE
These financial statements have been prepared in accordance with the International Financial Report
1
)
as adopted by the European Union.
The following new standards and amendments of existing standards adopted by the European Union are in force for the
financial statements of the Exchange for the financial year started on 1 January 2021:
Amendments to IFRS 4 Insurance Contracts Extension of the temporary exemption from applying IFRS 9,
Amendments to IFRS 16 Leases COVID-19-related rent concessions,
Amendments to IFRS 9 Financial Instruments, IAS 39 Financial Instruments: Recognition and Measurement, IFRS
7 Financial Instruments: Disclosures, IFRS 4 Insurance Contracts, and IFRS 16 Leases - Interest Rate Benchmark
Reform Phase 2.
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 2022:
Amendments to IAS 16 Property, Plant and Equipment proceeds from selling items before an asset is available
for use,
1
International Accounting Standards, International Financial Reporting Standards and related interpretations published in regulations of the
European Commission
10
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets onerous contracts cost of
fulfilling a contract,
Amendments to IAS 3 Business Combinations reference to the conceptual framework,
Annual Improvements 2018-2020 provide clarification and additional guidance on recognition and measurement.
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 1 Presentation of Financial Statements presentation of liabilities as
current or non-current.
1 January 2023
Amendments to IAS 1 Presentation of Financial Statements and IASB Guidelines on accounting
policy disclosures in practice materiality of accounting policies.
1 January 2023
IFRS 17 Insurance Contracts the standard replaces the existing regulations on insurance
contracts (IFRS 4).
1 January 2023
Amendments to IAS 8 Accounting Policies changes in accounting estimates and correction of
errors definition of estimates.
1 January 2023
Amendments to IAS 12 Income Tax mandatory recognition of deferred tax on transactions,
i.e., leases.
1 January 2023
Amendments to IFRS 17 Insurance Contracts initial application of IFRS 17 and IFRS 9
Comparative information.
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
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 separate financial statements in accordance with the IFRS requires making certain critical accounting
ts judgment in the application of the Ex
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 single statement of profit or loss and other comprehensive income.
11
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
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.
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
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 significantly affected the
business of the Exchange. Revenues from the markets operated by GPW are strongly linked to the economic situation in
Poland and globally. Factors such as business restrictions, aid programmes and tax incentives, and above all increased
uncertainty on the financial markets had a significant impact on the volatility of the capital markets, which impacted the
value of turnover and the capitalisation of companies on the GPW Main Market. That resulted in a significant increase in the
revenues of GPW and an improvement in the financial performance of the Exchange in 2020 compared to 2019. The high
level of performance was maintained in 2021.
Uncertainty caused by the outbreak of a pandemic
The Exchange reviewed the judgements and estimates made and other assumptions used in its accounting policies as at 31
December 2021:
the key assumptions of the impairment tests of investment in subsidiaries were analysed. No need was identified
to recognise impairment losses on investment in subsidiaries as at 31 December 2021 (Note 3.2.);
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)
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. A sensitivity analysis of the key variables (i.e., change in term of
and its subsidiaries did not receive or grant any rent concessions or materially change the scope of their leases in
2021;
the impact of the pandemic on the accounting for financial instruments under IFRS 9 was considered. In the opinion
of the Exchange Management Board, the current classification of financial assets and assessment of the business
model for holding financial assets is correct and there are no indications that their recognition should change or that
impairment should be recognised;
an in-depth analysis of the regularity of payment of trade receivables was carried out and the assumptions used in
the valuation of expected credit loss of trade receivables were updated. No significant adverse impact was identified
of the economic slow-down on the regular payment of receivables due from counterparties of the Exchange as at
31 December 2021.
Going concern
The Exchange Management Board also considered whether the outbreak of the pandemic and its impact affected the ability
of the Exchange to continue as a going concern. As at 31 December 2021, the Exchange held PLN 169,461 thousand of cash
and cash equivalents and short-term financial assets in the form of bank deposits and guaranteed corporate bonds. These
represent sufficient financial resources to conclude that the Exchanges liquidity risk in the short and medium term is low.
12
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
As at 31 December 2021, the Exchange did not identify any material uncertainties relating to events or circumstances that
would cast significant doubt on its ability to continue as a going concern.
Risks associated with the outbreak of the pandemic
The Exchange Management Board monitors the epidemiological situation in Poland and globally on an on-going basis and
analyses its impact on the position of the Exchange. In view of the new economic situation in Poland, the Exchange identified
a number of operational and financial
activity of market makers, slow-down of operational processes, the psychological impact of long isolation, and shrinking
pay debt when due.
In the opinion of the Exchange Management Board, those operational and financial risks associated with the outbreak of the
pandemic are considered moderate. Details of risks, together with a description of actions taken to mitigate the identified
risks and a detailed discussion of the impact of the pandemic on the financial position of the Company are presented in the
1.8. ANALYSIS OF THE IMPACT OF CLIMATE CHANGE ON THE ACTIVITY OF THE GPW
The European Securities and Markets Authority (ESMA) has identified climate-related issues as one of its priorities in its
annual public position setting out the European common supervisory priorities for the 2021 annual financial reports.
Accordingly, the Exchange has analysed the impact of climate change on the Separate Financial Statements and concluded
that climate change has no impact on the carrying amount of the assets and liabilities presented as at 31 December 2021.
In particular, the impact of climate change on the estimates and judgements, including the impairment assessment of cash-
generating units, was considered. As a result of the analysis, no update for the useful lives of property, plant and equipment
and intangible assets was identified as necessary.
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.
minimise any potential adverse effect
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 RATE RISK
The Exchange is moderately exposed to interest rate risk.
The Exchange invests free cash in bank deposits, corporate bonds, Treasury bonds, 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). In the case of fixed rate bonds, the Exchange is
exposed to the risk of foregoing potential benefits associated with a decrease in interest rates while at the same time being
protected in the event that interest rates rise above the level specified in the terms of issue.
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).
13
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
Impact of an 0.5 pps interest rate decrease on items of the statement of comprehensive
income
Year ended 31 December
2021
2020
Financial income
(2,132)
(1,697)
Financial expenses
840
840
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.
As at 31 December 2021
Maturity up to 1 year
1-5 Y
Total
1-3 M
> 3M
Total
Corporate bonds
14,995
150,271
165,266
-
165,266
Bank deposits
141,038
55,048
196,086
-
196,086
Loans granted
-
91,128
91,128
-
91,128
Current accounts (other)
13,530
-
13,530
-
13,530
Total current
169,563
296,447
466,010
-
466,010
Total financial assets
169,563
296,447
466,010
-
466,010
Bonds issued
-
246,468
246,468
-
246,468
Total current
-
246,468
246,468
-
246,468
Total financial liabilities
-
246,468
246,468
-
246,468
As at 31 December 2020
Maturity up to 1 year
1-5 Y
Total
1-3 M
> 3M
Total
Corporate bonds
-
89,977
89,977
-
89,977
Bank deposits
113,002
160,008
273,010
-
273,010
Current accounts (other)
25,868
-
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
Bonds issued
-
-
-
244,929
244,929
Total non-current
-
-
-
244,929
244,929
Bonds issued
-
1,551
1,551
-
1,551
Total current
-
1,551
1,551
-
1,551
Total financial liabilities
-
1,551
1,551
244,929
246,480
2.2.2. FOREIGN EXCHANGE RISK
The Exchange 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 2021 and in 2010.
14
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
Based on a sensitivity analysis, as at 31 December 2021, 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.
Impact of a 10% FX rate increase on profit before tax
Year ended 31 December
2021
2020
EUR
943
1,846
USD
2
33
GPB
-
1
Total impact on profit before
tax
945
1,881
An 10% FX rate decrease will result in the opposite change of profit before tax as presented above.
As at 31 December 2021
(converted to PLN at FX rate as at the balance-sheet date)
PLN
EUR
USD
Total carrying amount
in PLN
Financial assets measured at amortised cost
296,306
-
-
296,306
Trade receivables (net)
16,114
6,814
-
22,928
Other receivables*
9,983
-
-
9,983
Sublease receivables
2,752
1,398
-
4,150
Cash and cash equivalents
165,717
3,744
-
169,461
Total assets
490,872
11,956
-
502,828
Bonds in issue
246,278
-
-
246,278
Trade payables
7,484
179
16
7,679
Lease liabilities
8,507
954
-
9,461
Loans
-
-
-
-
Other liabilities**
14,227
-
-
14,227
Total liabilities
276,496
1,133
16
277,645
Net FX position
214,376
10,823
(16)
225,183
* 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 FX rate as at the balance-sheet date)
PLN
EUR
USD
Total carrying amount
in PLN
Financial assets measured at amortised cost
249,985
-
-
249,985
Trade receivables (net)
25,139
9,341
-
34,480
Other receivables*
1,502
-
-
1,501
Sublease receivables
4,495
2,073
-
6,568
Cash and cash equivalents
126,721
12,152
-
138,873
Total assets
407,842
23,566
-
431,407
Bonds in issue
245,906
-
-
245,906
Trade payables
6,679
630
17
7,338
15
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
As at 31 December 2020
(converted to PLN at FX rate as at the balance-sheet date)
PLN
EUR
USD
Total carrying amount
in PLN
Lease liabilities
11,624
2,399
316
14,339
Other liabilities**
16,312
-
-
16,326
Total liabilities
280,521
3,029
333
283,909
Net FX position
127,321
20,537
(333)
147,498
* net of prepayments and receivables from other taxes
** net of VAT payable and other taxes payable
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 2021 and as at 31 December 2010 (see Note 3.7.3).
2.3. CREDIT RISK
k
of s.
Credit risk connected with trade receivables is mitigated by the Exchange Management Board by performing assessment of
edibility. 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.
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 Bo
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 rds &
Poors, Polska Agencja Ratingowa, EuroRating). In addition, credit risk is managed by the Exchange by diversifying banks in
which free cash is deposited. In this way, exposure to the risk of expected credit loss is mitigated.
The table below
As at 31 December
2021
2020
Trade receivables (net)
22,928
34,480
Other receivables*
9,983
1,501
Cash and cash equivalents
169,461
138,873
Contract assets
2
764
Sublease receivable
4,150
6,568
Financial assets measured at amortised cost
296,306
249,985
Total exposure of the Company to credit risk
502,830
432,171
* net of prepayments and receivables from other taxes
16
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
2.4. LIQUIDITY RISK
An
risk.
An analysis of the s
thus, a good liquidity position of the Exchange.
As at 31 December 2021
As at 31 December 2020
amount
% of total
assets
amount
% of total
assets
Cash and cash equivalents
169,461
17.8%
138,873
15.9%
Financial assets measured at amortised cost
296,306
31.1%
249,985
28.6%
Assets other than cash and cash equivalents and financial assets
measured at amortised cost
486,227
51.1%
485,081
55.5%
Total assets
951,994
100.0%
873,939
100.0%
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%:
As at 31 December 2021
As at 31 December 2020
amount
% of total
liabilities
amount
% of total
liabilities
Equity
611,392
64.2%
541,711
62.0%
Liabilities
340,602
35.8%
332,228
38.0%
Total equity and liabilities
951,994
100.0%
873,939
100.0%
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.
As at 31 December 2021
> 1M
1-3 M
3-6 M
6-12 M
1-5 Y
> 5Y
Total
Trade receivables (gross value)
11,180
14,631
-
-
-
-
25,811
Other receivables*
9,983
-
-
-
-
-
9,983
Sublease receivables
227
445
596
1,171
1,827
-
4,266
Financial assets measured at amortised
cost
50,154
55,099
65,092
127,011
-
-
297,356
Cash and cash equivalents
169,611
-
-
-
-
-
169,611
Total assets
241,155
70,175
65,688
128,182
1,827
-
507,027
Bonds in issue
120,649
1,988
-
127,000
-
-
249,637
Trade payables
3,484
1,471
-
-
-
-
4,955
Lease liabilities
479
950
1,350
2,680
4,269
-
9,728
Other liabilities**
3,604
-
-
-
7,062
3,561
14,227
Total liabilities
128,216
4,409
1,350
129,680
11,331
3,561
278,547
Liquidity surplus/(gap)
112,939
65,766
64,338
(1,498)
(9,504)
(3,561)
228,480
* net of prepayments and receivables from other taxes
** net of VAT payable and other taxes payable
17
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
As at 31 December 2020
> 1M
1-3 M
3-6 M
6-12 M
1-5 Y
> 5Y
Total
Trade receivables (gross value)
35,606
3,246
-
-
-
-
38,852
Other receivables*
1,502
-
-
-
-
-
1,502
Sublease receivables
206
412
618
1,235
3,983
-
6,454
Financial assets measured at amortised
cost
-
180,013
70,017
-
-
-
250,030
Cash and cash equivalents
138,876
-
-
-
-
-
138,876
Total assets
176,110
183,671
70,635
1,235
3,983
-
435,714
Bonds in issue
720
1,988
720
2,000
249,637
-
255,065
Trade payables
6,576
762
-
-
-
-
7,338
Leases (IFRS 16)
471
1,059
1,403
2,737
9,886
2,013
17,569
Other liabilities**
5,674
-
-
-
10,652
-
16,326
Total liabilities
13,441
3,809
2,123
4,737
270,175
2,013
296,298
Liquidity surplus/(gap)
154,005
179,862
68,512
(3,502)
(266,192)
(2,013)
139,416
* net of prepayments and receivables from other taxes
** net of VAT payable and other taxes payable
2.5. CAPITAL MANAGEMENT
The objective of the Exchange when managing capital is to safeguard its ability to continue as a going concern and provide
optimal benefits to all stakeholders. The priority of the Exchange Management Board when making decisions about the
structure of finak while obtaining the best
possible rate of return for the shareholders and a stable and reliable rate of return for the bondholders. Decisions taken by
the Management Board in this respect have a long-term horizon and are aimed at long-term building of value of the Exchange
and the Polish capital market. In addition, as an entity operating a regulated market, the Exchange is required by the Act on
Trading in Financial Instruments to maintain a minimum level of equity equal to PLN 10 million.
To achieve those objectives, as at 31 December 2021 and as at 31 December 2020, the Exchange used third-party capital
(interest-bearing liabilities) in the form of bonds issued (see Note 3.11) and leases (Note 3.6). In addition, in accordance
with its internal capital management and dividend policy, the Exchange pays an annual dividend to shareholders. It is the
intention of the GPW Management Board to recommend to the General Meeting dividend payments in line with the profitability
and financial capacity of GPW, not less than 60% of the consolidated net profit of the GPW Group for the financial year
attributable to shareholders of GPW adjusted for the share of profit of associates. In accordance with the strategy #GPW2022,
the Exchange will pay each year a dividend higher by at least PLN 0.1 per share than the dividend per share paid in the
previous year. Details of the dividend payments in 2021 and 2020 are presented in note 3.10.4.
The Exchange Management Board optimises the structure of capital and monitors performance against targets using
Alternative Performance Measures calculated according to the Guidelines of the European Securities and Markets Authority
The measures used by the Company to monitor its capital management performance are presented in Note 6.1
Warszawie S.A.
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.
18
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
Categories of property, plant and equipment
Depreciation period
Buildings
40 years
Leasehold improvements
10 years
Vehicles and machinery
5 years
Computer hardware
3-5 years
Other fixed assets
5-10 years
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.
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.
Starting with Q1 2021, the Exchange presents capital expenditure (development work) separately from property, plant and
equipment. Comparable data have been restated for the sake of comparability in this Note.
The Company has reclassified part of a building owned by GPW and leased to one of its subsidiaries from
Year ended 31 December 2021
Land and
buildings
Vehicles and
machinery
Furniture,
fittings and
equipment
Property,
plant and
equipment
under
construction
Total
Net carrying amount - opening balance
(restated)*
64,730
12,488
214
6,094
83,526
Additions
2,072
6,240
258
-
8,570
Reclassification and other adjustments
(17)
-
-
-
(17)
Disposals
(169)
(1)
(1)
(3,709)
(3,880)
Depreciation charge**
(2,822)
(7,367)
(301)
-
(10,490)
Net carrying amount - closing balance
63,794
11,360
170
2,385
77,709
As at 31 December 2021
Gross carrying amount
113,887
80,804
3,611
2,385
200,687
Written off
(50,093)
(69,444)
(3,441)
-
(122,978)
Net carrying amount
63,794
11,360
170
2,385
77,709
*Data for the comparative period have been restated. See Note 6.7.
**Depreciation of PLN 501 thousand is capitalised to intangible assets (development work)
19
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
As at 31 December 2020
Land and
buildings
Vehicles and
machinery
Furniture,
fittings and
equipment
Property,
plant and
equipment
under
construction
Total
As at 1 January 2020 (previously reported)
76,131
14,286
297
4,702
95,416
Adjustments
(8,899)
-
-
-
(8,899)
Net carrying amount - opening balance
(restated)*
67,232
14,286
297
4,702
86,517
Additions
299
5,774
95
1,392
7,560
Disposals
-
(23)
(6)
-
(29)
Depreciation charge**
(2,801)
(7,549)
(172)
-
(10,522)
Net carrying amount - closing balance
(restated)*
64,730
12,488
214
6,094
83,526
As at 31 December 2020
Gross carrying amount
112,104
89,156
3,446
6,094
210,800
Written off
(47,374)
(76,668)
(3,232)
-
(127,274)
Net carrying amount
64,730
12,488
214
6,094
83,526
*Data for the comparative period have been restated. See Note 6.7.
**Depreciation of PLN 390 thousand is capitalised to intangible assets (development work)
There were no significant contracted investments in property, plant and equipment as at 31 December 2021. Contracted
investments in property, plant and equipment amounted to PLN 928 thousand as at 31 December 2020 and concerned
investments in IT hardware.
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.
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 2021 and in 2020.
3.2. INTANGIBLE ASSETS
Selected accounting policies
Intangible assets include goodwill, other intangible assets, and development work.
Other intangible assets (licences and copyright) are disclosed at cost of purchase or production net of accumulated
amortisation and impairment losses.
Intangible assets developed in-house are classified as research (recognised as an expense) or development work (recognised
as an intangible asset). Development work is recognised at cost, 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
20
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
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 amount 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 amount 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.
Year ended 31 December 2021
Licences
Copyrights
Goodwill
Development
work
Perpetual
usufruct of
land
Total
Net carrying amount - opening balance
(restated)*
37,911
350
-
15,045
5,892
59,198
Additions
4,054
290
-
18,989
-
23,333
Capitalised depreciation
-
-
-
638
-
638
Depreciation charge**
(10,248)
(210)
-
-
(81)
(10,539)
Net carrying amount - closing balance
31,717
430
-
34,672
5,811
72,630
As at 31 December 2021
Gross carrying amount
183,093
5,119
7,946
34,672
6,054
236,884
Impairment
-
-
(7,946)
-
-
(7,946)
Written off
(151,376)
(4,689)
-
-
(243)
(156,308)
Net carrying amount
31,717
430
-
34,672
5,811
72,630
*Data for the comparative period have been restated. See Note 6.7.
**Depreciation of PLN 137 thousand is capitalised to intangible assets (development work)
21
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
As at 31 December 2020
Licences
Copyrights
Goodwill
Development
work
Perpetual
usufruct of
land
Total
As at 1 January 2020 (previously
reported)
46,809
525
-
2,495
-
49,829
Adjustments
-
-
-
-
5,973
5,973
Net carrying amount - opening balance
(restated)*
46,809
525
-
2,495
5,973
55,802
Additions
1,184
55
-
12,114
-
13,353
Capitalised depreciation
-
-
-
436
-
436
Depreciation charge**
(10,082)
(230)
-
-
(81)
(10,393)
Net carrying amount - closing balance
(restated)*
37,911
350
-
15,045
5,892
59,198
As at 31 December 2020
Gross carrying amount
179,040
4,830
7,946
15,045
6,054
212,915
Impairment
-
-
(7,946)
-
-
(7,946)
Written off
(141,129)
(4,480)
-
-
(162)
(145,771)
Net carrying amount
37,911
350
-
15,045
5,892
59,198
*Data for the comparative period have been restated. See Note 6.7.
**Depreciation of PLN 46 thousand is capitalised to intangible assets (development work)
Starting with Q1 2021, the Company presents capital expenditure (development work) within intangible assets. Comparable
data have been restated for the sake of comparability in this Note.
The Company has reclassified its share in the right of perpetual usu-to-
In 2021, the cost of research recognised in the statement of comprehensive income amounted to PLN 3,257 thousand and
remained stable year on year (PLN 3,257 thousand in 2020). Development work is expenditure on intangible assets generated
in-house, comprising mainly expenditure on projects with grants described in Note 6.2.
The UTP tra
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 25,217 thousand as at 31 December 2021 (PLN 32,976 thousand
as at 31 December 2020).
No impairment of intangible assets was recognised in the year ended 31 December 2021 and 31 December 2020.
Impairment testing of intangible assets
Due to the nature of its business, the Company does not identify individual assets as cash-generating units that are largely
independent of other assets or a group of assets. Therefore, for the purposes of testing intangible assets, the recoverable
amount was determined at the level of the cash-generating unit to which the asset belongs. As at 31 December 2021, the
tests for impairment of the cash-generating unit did not identify the need to recognise impairment losses.
The main assumption-generating unit as at 31 December 2021:
increase in revenues and expenses related to operations, planned capital expenditure and implementation of
strategic projects;
weighted average cost of capital of 7.66%,
growth rate after 2026 equal to 2%.
22
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
3.3. INVESTMENT PROPERTY
Selected accounting policies
The Exchange recognises investment property in accordance with a model based on the cost of acquisition or production.
As a result of a
Street owned by GPW and leased to a GPW Group company was classified as investment property. The fair value of the
investment property was estimated at PLN 12,413 thousand as at 31 December 2021.
Changes in the carrying amount of the investment property as at 31 December 2021 and as at 31 December 2020 were as
follows:
As at 31 December
2021
2020
Net carrying amount - opening balance
8,564
8,899
Depreciation
(380)
(384)
Additions
105
49
Disposals
(12)
-
Net carrying amount - closing balance
8,277
8,564
3.4. 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 2021 and as at 31 December 2020:
BondSpot
The share capital of GPW Benchmark S.A. was increased by PLN 2,000 thousand on 28 April 2021. The company issued
40,000 series F ordinary registered shares with a nominal value and issue price of PLN 50 per share. All shares were taken
up by GPW.
On 21 December 2020, the Extraordinary General Meeting of GPW Tech S.A. passed a resolution to increase the share
capital of GPWT. Under the resolution, the company issued 700,000 series B ordinary registered shares with a nominal value
and issue price of PLN 1 per share. All shares were taken up by GPW for a total amount of PLN 0.7 million. On 16 June 2021,
the Extraordinary General Meeting of GPW Tech S.A. passed a resolution to increase the share capital of GPWT by PLN 2
million. The company issued 2 million shares with a nominal value and issue price of PLN 1 per share. All shares were taken
up by GPW. Both share capital increases were registered in the National Court Register in 2021. As a result of the increases,
the share capital of GPWT was PLN 3.7 million as at 31 December 2021.
As at 31 December 2021, the Exchange identified indicators of impairment for investments in:
- BondSpot S.A,
- GPW Tech S.A.,
- GPW Ventures S.A.
23
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
As indications of impairment were identified, impairment tests were carried out for the investments. However, the tests did
not indicate a need for write-downs. The key assumptions for the tests are described below. As at 31 December 2021, no
indicators of impairment were identified for the investments in the other subsidiaries, i.e., TGE and GPWB.
Impairment test of investment in BondSpot S.A.
In 2020, the key factor impacting the financial position of the company was the situation on the Treasury bond market.
Treasury bond yields were falling sharply for the greater part of 2020, i.e., from the outbreak of the SARS-CoV-2 pandemic.
The initial withdrawal of capital from bond funds combined with actions taken by the NBP to offset the market changes led
at the turn of 2020 and 2021 to a change in the trend in the prices/yields of Polish Treasury bonds. 10-year bond yields
were rising steadily from the beginning of 2021, in line with rising yields of government bonds in foreign markets. The
increased volatility was underpinned by rising inflation expectations and investor sentiment in the market from the beginning
of 2021. Inflationary pressure, supported by rising fuel prices on global markets, proved to be a significant factor supporting
the increase in yields of Polish Treasury securities. As a direct result of those factors, turnover on the Treasury BondSpot
Poland market increased and so did the revenues of BondSpot S.A.
The goodwill impairment test based on a DCF valuation of the company was prepared on the basis of the forecast results of
BondSpot in the years 2022-2026. The main assumptions of the test performed as at 31 December 2021:
average annual revenue growth in the period 2022-2026 of 16.6%,
average annual growth in expenses in the period 2022-2026 of 4.5%,
weighted average cost of capital of 7.66%,
growth rate after 2026 equal to 2%.
The test showed that despite the update of the forecast, the recoverable amount of BondSpot S.A. determined using the
financial position as at 31 December 2021 amounting to PLN 34.4 million. Therefore, the investment in BondSpot S.A. was
not found to be impaired as at 31 December 2021. The impairment test analysis indicates that a 1.1 percentage point
decrease in the average annual revenue growth rate or a 1.5 percentage point increase in the weighted average cost of
capital or a 1.9 percentage point decrease in the growth rate after 2026 will result in the carrying amount being equal to
recoverable amount of the shares.
Impairment test of investment in GPW Tech S.A.
Due to the delay in the commencement of full operations at GPW Tech, indications of an impairment test of the investment
were identified as at 31 December 2021. The impairment test of the investment based on a DCF valuation of the company
was prepared on the basis of the projected results of GPW Tech S.A. in 2022-2026.
The main assumptions of the test performed as at 31 December 2021:
average annual revenue growth in the period 2022-2026 of 63.4%,
average annual growth in expenses in the period 2022-2026 of 26%,
weighted average cost of capital of 15.96%,
growth rate after 2026 equal to 2%.
The test showed that the recoverable amount of GPW Tech determined using the DCF method is higher than the value of the
cial position as at 31 December 2021
amounting to PLN 3.7 million. Therefore, the investment in GPW Tech S.A. was not found to be impaired as at 31 December
2021. The impairment test analysis indicates that a 2.0% decrease in the average annual revenue growth rate or a 1.2
percentage point increase in the weighted average cost of capital or a 1.2 percentage point decrease in the growth rate after
2026 will result in the carrying amount being equal to recoverable amount of the shares.
Impairment test of investment in GPW Ventures S.A.
Due to the delay in the signing of the agreement with KOWR, indications of an impairment test of the investment were
identified as at 31 December 2021. The impairment test of the investment based on a DCF valuation of the company was
prepared on the basis of the projected results of GPW Ventures S.A. in 2022-2026.
The main assumptions of the test performed as at 31 December 2021:
average annual revenue growth in the period 2022-2026 of 45.6%,
average annual growth in expenses in the period 2022-2026 of 8.5%,
weighted average cost of capital of 18.9%,
growth rate after 2026 equal to 2%.
24
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
The test showed that the recoverable amount of GPW Ventures determined using the DCF method is higher than the value
of the shares in GPW Venture
2021 amounting to PLN 3 million. Therefore, the investment in GPW Ventures S.A. was not found to be impaired as
at 31 December 2021. The impairment test analysis indicates that a 1.6 percentage point decrease in the average annual
revenue growth rate or a 1.9 percentage point increase in the weighted average cost of capital or a 3.0 percentage point
decrease in the growth rate after 2026 will result in the carrying amount being equal to recoverable amount of the shares.
As at 31 December 2021
TGE
BondSpot
GPWB
GPWT
GPWV
Total
Value at cost
214,582
34,443
4,909
3,700
3,000
260,633
Carrying amount
214,582
34,443
4,909
3,700
3,000
260,633
Number of shares
1,450,000
9,698,123
98,000
3,700,000
3,000,000
n/d
% of share capital
100.00
97.23
100.00
100.00
100.00
n/d
% of votes
100.00
97.23
100.00
100.00
100.00
n/d
As at 31 December 2020
TGE
BondSpot
GPWB
GPWT
GPWV
Total
Value at cost
214,582
34,394
2,909
1,700
3,000
256,585
Carrying amount
214,582
34,394
2,909
1,700
3,000
256,585
Number of shares
1,450,000
9,698,123
58,000
1,000,000
3,000,000
n/d
% of share capital
100.00
96.98
100.00
100.00
100.00
n/d
% of votes
100.00
96.98
100.00
100.00
100.00
n/d
3.5. 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 2021 and as at 31 December
2020:
Polska Age
As at 31 December 2021
PAR
CG
KDPW
Total
Value at cost
4,683
4,652
7,000
16,335
Impairment
(4,683)
-
-
(4,683)
Carrying amount
-
4,652
7,000
11,652
Number of shares
5,200,000
46,506
7,000
n/d
% of share capital
35.86%
24.79%
33.33%
n/d
% of votes
35.86%
24.79%
33.33%
n/d
25
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
As at 31 December 2020
PAR
CG
KDPW
Total
Value at cost
4,683
4,652
7,000
16,335
Impairment
(4,683)
-
-
(4,683)
Carrying amount
-
4,652
7,000
11,652
Number of shares
5,200,000
46,506
7,000
n/d
% of share capital
35.86%
24.79%
33.33%
n/d
% of votes
35.86%
24.79%
33.33%
n/d
Investment in PAR
The Exchange held 35.86% of PAR as at 31 December 2021 and as at 31 December 2020.
Following impairment of the investment in PAR at PLN 583 thousand recognised as at 30 June 2020, the value of the
investment in PAR was equal to 0 in the statement of financial position as at 31 December 2021 and as at 31
December 2020.
3.6. 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--
Such lease payments are recognised as costs on a straight-line basis in the financial result.
Low-value leases include mainly leases of: computers, coffee machines, office furniture. It is assumed that low-value assets
are those assets whose unit value does not exceed PLN 20,000, which is approximately equivalent to USD 5,000.
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.
Sublease contracts are contracts where the underlying asset is re-lease
classified as an operating lease or a finance lease.
26
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
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.
3.6.1. 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 Cent
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:
(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).
-to-use assets cannot be used as loan collateral. They provide
for no material variable lea
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
on, 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 3.6.4.
Cash outflows under leases, excluding short-term leases and low-value leases, are presented 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 2021 and in 2020.
Year ended 31 December
2021
2020
Interest on subleases
167
270
Remeasurement of subleases
(10)
160
Low-value subleases
-
14
Income from operating leases
475
1,551
Total lease income (reduction of expenses) in the statement of comprehensive
income
632
1,995
The Exchange incurred no variable lease costs in 2021 and in 2020 that would not be included in the value of lease liabilities.
3.6.2. QUALITATIVE AND QUANTITATIVE INFORMATION ABOUT LEASE TRANSACTIONS EXCHANGE AS A LESSOR
entity of the GPW
carseases.
27
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
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 2021, 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.
-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 a downside
risk for future cash inflows 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 G
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 2021 and in 2020.
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 2021 and in 2020 relating to variable lease payments that would not be included in
sales revenue (operating leases) or in sublease receivables.
Lease fees due by due date
as at 31 December 2021
as at 31 December 2020
Subleases
Operating
leases
Total
Subleases
Operating
leases
Total
> 1Y
2,439
2,947
5,386
2,287
2,720
5,007
in Y2
1,823
2,469
4,292
2,358
2,720
5,078
in Y3
-
10
10
2,055
2,720
4,775
in Y4
-
-
-
144
2,206
2,350
Total
4,262
5,426
9,688
6,844
10,366
17,210
3.6.3. 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 incremental borrowing rate.
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-.
28
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
The table below presents the impact of change of the term of lease of additional office space and land by 2 years.
as at 31 December / Year ended 31 December
2021
2020
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
Impact on the value of lease liabilities
(4,857)
4,580
(5,013)
4,727
Low-value leases
(1,658)
1,157
(1,192)
1,124
Income from operating leases
(4,825)
4,408
(118)
88
Impact on sublease interest income
(60)
72
(34)
33
Impact on lease interest expense
(1,502)
426
(145)
137
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.
as at 31 December / Year ended 31 December
2021
2020
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
Impact on the value of lease liabilities
69
(67)
339
(310)
Low-value leases
24
(23)
44
(15)
Income from operating leases
209
(201)
96
(91)
Impact on sublease interest income
38
(38)
26
(25)
Impact on lease interest expense
97
(111)
133
(126)
3.6.4. 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.
29
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
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, cars and colocation space.
The table below presents changes to right-to-use assets by category, net of subleased assets.
As at 31 December 2021
Office space and
other premises
Vehicles and
machinery
Colocation space
Total
Right-of-use assets - as at the beginning of the
period (restated*)
1,755
112
5,624
7,491
New leases
488
216
662
1,366
New subleases
(488)
-
(233)
(721)
(404)
(1)
(395)
(800)
Terminated subleases
535
-
-
535
Reclassification and other adjustments
7
(6)
-
1
Depreciation
(717)
(162)
(1,955)
(2,834)
Net carrying amount - closing balance
1,178
159
3,704
5,040
Year ended 31 December 2020
Office space
and other
premises
Vehicles
Colocation
space
Total
Right-of-use assets - as at the beginning of the period
(restated*)
2,345
313
7,432
10,090
New leases
205
61
-
266
New subleases
(1,827)
(61)
-
(1,888)
Terminated leases
-
-
-
-
Terminated subleases
1,718
-
63
1,781
Reclassification and other adjustments
6
(1)
(1)
4
Depreciation
(692)
(200)
(1,870)
(2,762)
Net carrying amount - closing balance
1,755
112
5,624
7,491
*Data for the comparative period have been restated. See Note 6.7.
3.6.5. 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 incremental borrowing rate. The incremental 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 expects to be paid under a residual value guarantee;
the exercise price of an option to purchase the asset that the Exchange is reasonably certain to exercise;
30
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
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.
As at 31 December 2021
Office space
and other
premises
Vehicles and
machinery
Colocation
space
Total
Net carrying amount as at
1 January 2021 (restated*)
6,125
612
7,602
14,339
New leases
488
216
663
1,367
Terminated leases
(442)
(2)
(407)
(851)
Interest on lease liabilities
157
23
196
376
Lease liabilities paid in the period (equal to leasing fees)
(2,409)
(555)
(2,818)
(5,782)
Remeasurement of lease liabilities
8
-
-
8
Reclassification and other adjustments
2
2
-
4
Net carrying amount - closing balance, including:
3,929
296
5,236
9,461
non-current
1,654
47
2,511
4,211
current
2,275
249
2,725
5,250
Year ended 31 December 2020
Office space
and other
premises
Perpetual
usufruct of
land
Vehicles
Colocation
space
Total
Lease liabilities - opening balance (reported)
7,829
1,934
1,095
9,992
20,850
Corrections
-
(1,934)
-
(1,934)
Lease liabilities - opening balance (restated*)
7,829
-
1,095
9,992
18,916
New leases
205
-
61
-
266
Terminated leases
-
-
-
-
-
Interest on lease liabilities
244
-
43
261
548
Lease liabilities paid in the period (equal to leasing
fees)
(2,341)
-
(587)
(2,651)
(5,579)
Remeasurement of lease liabilities
182
-
-
-
182
Reclassification and other adjustments
6
-
-
-
6
Net carrying amount - closing balance,
including:
6,125
-
612
7,602
14,339
non-current
3,876
-
128
5,142
9,147
current
2,248
-
484
2,460
5,192
An analysis of lease liabilities by due date is presented in Note 2.4.
31
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
3.6.6. 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
incremental borrowing rate.
The table below presents changes to sublease receivables by category.
As at 31 December 2021
Office space and
other premises
Vehicles and
machinery
Colocation space
Total
Net carrying amount
as at 1 January 2021
4,258
495
1,814
6,568
New subleases
488
-
233
721
Terminated subleases
(585)
-
-
(585)
Interest on sublease receivables
103
16
48
167
Sublease receivables paid in the period (equal to leasing
fees)
(1,597)
(383)
(735)
(2,715)
Remeasurement of sublease receivables
(10)
-
-
(10)
Reclassification and other adjustments
3
-
1
4
Net carrying amount - closing balance, including:
2,660
128
1,362
4,150
non-current
1,154
9
640
1,803
current
1,506
119
722
2,347
Year ended 31 December 2020
Office space
and other
premises
Vehicles
Colocation
space
Total
Sublease receivables - opening balance
5,438
775
2,452
8,665
New subleases
623
61
-
684
Terminated subleases
(412)
-
(64)
(476)
Interest on sublease receivables
175
32
63
270
Sublease receivables paid in the period (equal to leasing
fees)
(1,591)
(373)
(637)
(2,601)
Remeasurement of sublease receivables
160
-
-
160
Reclassification and other adjustments
(135)
-
-
(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
32
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
3.7. FINANCIAL ASSETS
3.7.1. CLASSIFICATION AND MEASUREMENT OF FINANCIAL ASSETS
Selected accounting policies
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;
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 3.7.4, 3.7.5, 3.7.6.
Financial assets measured at fair value through other comprehensive income are presented in Note 3.7.3.
The Exchange held shares of IDM S.A. in bankruptcy by arrangement received from the debtor in exchange for receivables
and classified them as financial assets measured at fair value through profit or loss as at 31 December 2021 and as at 31
December 2020. The fair value of the shares was PLN 0 as at 31 December 2021 and as at 31 December 2020.
3.7.2. 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.
red 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 (rated
above , Polska Agencja Ratingowa, EuroRating).
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;
33
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
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 assesses expected credit loss for assets related to debt instruments measured at amortised cost regardless of
whether there is any indication of impairment. An allowance for expected credit loss is recognised on the basis of the issuer
estimated rating and the probability of loss and amount of loss attributed to the rating.
The Exchange applies a simplified approach to trade receivables and contract assets, where impairment allowances for trade
receivables are recognised as equal to lifetime expected credit loss according to a provision matrix. The E
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 credit loss ratio
based on 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 credit loss
ratio.
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.
3.7.3. 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
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 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. For debt instruments, accrued interest is recognised directly in the statement of profit and loss.
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 2021.
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.
34
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
As at 31 December 2021
Innex
BVB
Total
Value at cost
3,820
1,343
5,163
Impairment
(3,820)
(1,220)
(5,040)
Carrying amount
-
123
123
As at 31 December 2020
Innex
BVB
Total
Value at cost
3,820
1,343
5,163
Impairment
(3,820)
(1,228)
(5,048)
Carrying amount
-
115
115
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 2021 and as at 31 December 2020 was recognised at the share price (level 1 of
the fair value hierarchy). As there is no active market for Innex shares and the fair value of Innex shares cannot be reliably
determined, it was recognised at cost less impairment loss (level 3 in the fair value hierarchy).
3.7.4. 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 the transaction price under IFRS 15. 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.
35
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
As at 31 December
2021
2020
Gross trade receivables
25,811
38,852
Impairment allowances for trade receivables
(2,883)
(4,372)
Total trade receivables
22,928
34,480
Current prepayments
5,803
4,109
CIT receivable from subsidiaries in the Tax Group
2,196
7,327
Sublease receivables
244
258
Grants receivable
3,670
-
Other receivables
6,069
1,243
Total other receivables
17,981
12,937
Total trade receivables and other receivables
40,909
47,417
In the opinion of the Exchange Management Board, in view of the short due date of trade receivables, the carrying amount
of those receivables is similar to their fair value.
As at 31 December 2021
As at 31 December 2020
Gross trade
receivables
Impairment
allowances for
trade
receivables
Total trade
receivables
Gross
trade
receivables
Impairment
allowances
for trade
receivables
Total trade
receivables
Receivables which are not
overdue
19,960
(84)
19,876
26,000
(94)
25,906
1 to 30 days overdue
2,247
(27)
2,220
3,596
(38)
3,558
31 to 60 days overdue
281
(8)
272
2,952
(56)
2,896
61 to 90 days overdue
335
(16)
320
772
(28)
744
91 to 180 days overdue
265
(24)
240
1,487
(111)
1,376
More than 180 days overdue
2,724
(2,724)
-
4,045
(4,045)
-
Overdue receivables
5,851
(2,799)
3,052
12,852
(4,278)
8,574
Total
25,811
(2,883)
22,928
38,852
(4,372)
34,480
Trade receivables which are not overdue 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 2021, trade receivables at PLN 5,851 thousand (31 December 2020 PLN 12,852 thousand) were
overdue, including overdue receivables from debtors under insolvency or creditor arrangement proceedings at 743 thousand
and other overdue receivables at PLN 5,235 thousand as at 31 December 2021 (31 December 2020 PLN 645 thousand and
PLN 12,069 thousand, respectively).
36
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
As at 31 December
2021
2020
Exchange Members
14,727
21,581
Issuers*
204
361
Other*
5,029
4,058
Total gross trade receivables not overdue
19,960
26,000
*Receivables from debtors who are at the same time Exchange Members and Issuers or Exchange Members and Data Vendors (other clients)
are presented under receivables from Exchange Members.
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.
As at 31 December
2021
2020
Aa
1,309
2,424
A
7,681
11,293
Baa
390
3,891
Ba
20
-
B and BB
112
2,347
No rating
5,215
1,626
Total trade receivables from Exchange Members
14,727
21,581
The Exchange has no collateral on receivables.
1 and as at 31
December 2020.
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
2021 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. For receivables past
due more than 180 days, the expected credit loss is assumed to be 100% of the past due receivable. For receivables past
due between 90 and 180 days, the expected credit losses is estimated based on analysis of historical data.
The estimated default ratios for clients whose debt is overdue for less than 180 days are as follows:
Exchange Members from 0.31% to 8.89%,
issuers of securities listed on markets operated by the Exchange from 1.12% to 26.88%,
other clients (including data vendors) from 0.67% to 5.80%.
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.
The Company considers a financial asset to be at risk of default if internal and external information indicates that it is unlikely
that the Company will receive the remaining contractual cash flows in full. A financial asset is written off if there is no
reasonable expectation that the contractual cash flows will be recovered.
37
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
The change of the impairment allowance for trade receivables in 2021 was PLN 1,489 thousand (decrease of allowance)
resulting from a higher amount of reversal (PLN 3,321 thousand) than creation of allowance (PLN 2,255 thousand); PLN
1,066 thousand was recognised in the statement of comprehensive income in 2021 as gains on reversed impairment of
receivables and PLN 423 thousand were receivables written off as non-recoverable.
The change of the impairment allowance for trade receivables in 2020 was PLN 215 thousand (decrease of allowance)
resulting from a higher amount of release (PLN 4,291 thousand) than creation of allowance (PLN 4,173 thousand); PLN
118 thousand was recognised in the statement of comprehensive income in 2020 as gains on reversed impairment of
receivables and PLN 97 thousand were receivables written off as non-recoverable.
The impairment of trade receivables was determined according to the expected loss concept using a provision matrix
described in Note 3.7.2.
Year ended 31 December
2021
2020
Opening balance
4,372
4,587
Creating a write-off
2,255
4,173
Dissolution of the write-off
(3,321)
(4,291)
Receivables written off during the period as uncollectible
(423)
(97)
Closing balance
2,883
4,372
The table below presents trade receivables by geographic segment.
As at 31 December
2021
2020
Domestic receivables
12,253
18,823
Foreign receivables
13,558
20,029
Total gross trade receivables
25,811
38,852
3.7.5. 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 3.7.1). Cash and cash equivalents, trade receivables and
other receivables are presented in dedicated items of the statement of financial position (Notes 3.7.4, 3.7.6). 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).
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.
38
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
As at 31 December
2021
2020
Corporate bonds
150,271
89,977
Bank deposits
55,048
160,008
Loans granted
91,128
-
Total current gross
296,447
249,985
Allowance for losses on debt instruments measured at amortised cost
(141)
-
Total financial assets measured at amortised cost (over 3 months)
296,306
249,985
For more information on loans to related parties, see Note 6.3.2.
As at 31 December 2021
Interest received
Interest accrued
Total recognised in
financial income
Corporate bonds
365
95
460
Bank deposits
66
40
106
Loans granted
164
129
293
Total revenue from assets measured at amortised cost (over 3
months)
595
264
859
Year ended 31 December 2020
Interest received
Interest accrued
Total recognised in
financial income
Corporate bonds
1,428
(457)
971
Bank deposits
1,850
(720)
1,130
Total revenue from assets measured at amortised cost (over 3
months)
3,278
(1,177)
2,101
The risk rating of financial assets measured at amortised cost is 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.
As at 31 December
2021
2020
Aaa
91,109
-
Aa/AA2
-
110,005
A
50,093
-
A-
155,103
50,003
Ba/BBB+
-
89,977
Total
296,306
249,985
39
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
3.7.6. 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).
As at 31 December
2021
2020
Current accounts (other)
13,530
25,868
VAT current accounts (split payment)
-
3
Corporate bonds
14,995
-
Bank deposits
141,038
113,002
Write-off for expected credit losses
(102)
-
Total cash and cash equivalents
169,461
138,873
Cash and cash equivalents include current accounts and short-term bank deposits (up to 3 months). The carrying amount
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 55 days in 2021 (53 days in 2020).
At the commencement of the development projects: New Trading System, TeO, 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 PLN 4,389 thousand as at 31 December 2021 (PLN 4,111 thousand as at 31 December 2020). 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.
The risk rating of cash and cash equivalents is 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.
As at 31 December
2021
2020
Aaa
3
-
A-
155,935
113,002
Ba/BBB+
13,523
25,871
Total
169,461
138,873
40
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
3.8. 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.
As at 31 December
2021
2020 (restated*)
Listing
7,003
6,776
Total financial market
7,003
6,776
Total non-current
7,003
6,776
Trading
1,313
4,178
Listing
3,355
388
Information services and revenue
from the calculation of reference rates
2
-
Total financial market
4,670
4,566
Other revenue
189
72
Total current
4,859
4,638
Total contract liabilities
11,862
11,414
*Data for the comparative period have been restated. See Note 6.7.
Contract assets include mainly information services. Other revenue classified as contract assets stood at PLN 2 thousand
as at 31 December 2021 and PLN 764 thousand as at 31 December 2020.
Contract liabilities include annual and quarterly fees paid by market participants as well as fees for introduction of instruments into trading.
3.9. (NON-CURRENT) PREPAYMENTS
Selected accounting policies
Non-current prepayments present amounts paid relating to future periods which are recognised over time.
As at 31 December
2021
2020
IT equipment maintenance service
1,890
1,740
Other
5
5
Total non-current prepayments
1,895
1,745
41
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
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 2021 and as at 31 December 2020, 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.
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 2021 and as at 31 December 2020.
As at 31 December 2021 and as at 31 December 2020
Value at par
%
share capital
total vote
State Treasury
14,688,470
35.00%
51.77%
Banks
49,000
0.12%
0.18%
Brokers
35,000
0.08%
0.12%
Total registered shares (series A)
14,772,470
35.20%
52.07%
Bearer shares (series B)
27,199,530
64.80%
47.93%
Total
41,972,000
100.00%
100.00%
3.10.2. OTHER RESERVES
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.
42
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
As at 1 January
2021
Revaluation
As at 31
December 2021
Revaluation
(7)
6
(1)
Deferred tax
2
(1)
1
Total capital from revaluation of financial assets measured at fair
value through other comprehensive income
(5)
5
-
Revaluation
(274)
223
(51)
Deferred tax
52
(42)
10
Total capital from actuarial gains/losses
(222)
181
(41)
Total other reserves
(227)
191
(41)
3.10.3. RETAINED EARNINGS
Reserve
capital
Other
reserves
Retained
earnings
Profit for the
period
Total
retained
earnings
As at 1 January 2021 (restated)*
37,021
311,927
(40,385)
169,510
478,073
Distribution of the net profit for the year 2020
-
63,750
105,760
(169,510)
-
Dividend
-
-
(104,930)
-
(104,930)
Net profit for 2021
-
-
-
174,425
174,425
As at 31 December 2021
37,021
375,677
(39,555)
174,425
547,568
*Data for the comparative period have been restated. See Note 6.7.
Reserve
capital
Other
reserves
Retained
earnings
Profit for the
period
Total
retained
earnings
As at 1 January 2020 (restated)*
37,021
297,538
(41,551)
116,288
409,296
Distribution of the net profit for 2019
-
14,389
101,899
(116,288)
-
Dividend
-
-
(100,733)
-
(100,733)
Net profit for 2020
-
-
-
169,510
169,510
As at 31 December 2020 (restated)*
37,021
311,927
(40,385)
169,510
478,073
*Data for the comparative period have been restated. See Note 6.7.
3.10.4. DIVIDEND
s profit for
2020, including a dividend payment of PLN 104,930 thousand. The dividend per share was PLN 2.50. The dividend record
date was 23 July 2021 and the dividend was paid on 5 August 2021. The dividend paid to the State Treasury was PLN 36,721
thousand.
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.
43
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
3.10.5. EARNINGS PER SHARE
Year ended 31 December
2021
2020 (restated*)
Net profit for the period
174,425
169,510
Weighted average number of ordinary shares (in thousands)
41,972
41,972
Basic/diluted earnings per share (in PLN)
4.16
4.04
*Data for the comparative period have been restated. See Note 6.7.
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.
As at 31 December
2021
2020
Series C bonds
-
124,810
Series D and E bonds
-
119,929
Total non-current
-
244,739
Series C bonds
125,746
683
Series D and E bonds
120,532
485
Total current
246,278
1,167
Total liabilities under bond issue
246,278
245,906
As at 31 December 2021
Opening
balance
Interest
accrued
Interest paid
Cost incurred
Cost settled
Closing
balance
Principal
244,929
-
-
-
244,929
Interest
1,551
5,440
(5,452)
-
-
1,539
Cost of issuance
(574)
-
-
(2)
386
(190)
Total liabilities under bond
issue
245,906
5,440
(5,452)
(2)
386
246,278
44
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
As at 31 December 2020
Opening
balance
Interest
accrued
Interest paid
Cost incurred
Cost settled
Closing
balance
Principal
244,929
-
-
-
-
244,929
Interest
2,316
6,535
(7,300)
-
-
1,551
Cost of issuance
(962)
-
-
(3)
391
(574)
Total liabilities under bond
issue
246,283
6,535
(7,300)
(3)
391
245,906
The table below presents the key parameters of bonds in issue.
Issue date
Maturity date
Total value
at par
Currency
Interest rate
Coupon
Series C bonds
6.10.2015
6.10.2022
125,000
PLN
3.19%
6M
Series D bonds
2.01.2017
31.01.2022
60,000
PLN
WIBOR 6M + 0.95%
6M
Series E bonds
18.01.2017
31.01.2022
60,000
PLN
WIBOR 6M + 0.95%
6M
The fair value of the bonds was recognised based on quoted prices as at 31 December 2021 and as at 31 December 2020
(level 1 in the fair value hierarchy).
The table below presents the fair value of bonds in issue.
As at 31 December
2021
2020
Fair value of series C bonds
126,491
130,440
Fair value of series D and E bonds
120,588
121,147
Total fair value of bonds in issue
247,079
251,587
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.
45
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
Year ended 31 December
2021
2020
Retirement benefits
677
781
Other employee benefits
603
-
Non-current
1,280
781
Retirement benefits
67
66
Other employee benefits
21,751
14,659
Current
21,818
14,725
Total benefits in the statement of financial position
23,098
15,506
3.12.1. RETIREMENT BENEFITS
Provisions for retirement benefits are recorded by the Exchange according to valuation as at the balance sheet date provided
by an independent actuarial advisor.
Year ended 31 December
2021
2020
Total benefits in operating expenses
118
114
Total benefits in other comprehensive income
(221)
44
Total benefits in the statement of comprehensive income
(103)
158
Year ended 31 December
2021
2020
Retirement benefits - opening balance
847
689
Current service cost
116
100
Interest cost
10
14
Gains and losses on the benefits scheme
(8)
-
Actuarial losses/(gains) shown in other comprehensive income due to change of:
(221)
44
- financial assumptions
(219)
84
- demographic assumptions
-
(27)
- other assumptions
(2)
(13)
Total change shown in comprehensive income
(103)
158
Retirement benefits - closing balance
744
847
Year ended 31 December
2021
2020
Discount rate
3.6%
1.2%
Expected average annual increase of the base of provisions for retirement benefits
3.5%
3.5%
Inflation p.a.
2.5%
2.5%
Weighted average employee mobility
6.4%
6.5%
46
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
3.12.2. OTHER EMPLOYEE BENEFITS
Year ended 31 December 2021
Opening
balance
Set up
Used
Reclassified
Released
Closing
balance
Annual and discretionary bonuses
12,092
14,231
(11,224)
-
(45)
15,054
Unused holiday leave
2,324
2,916
(1,851)
-
-
3,389
Overtime
244
125
(244)
-
-
125
Unpaid remuneration
-
3,183
-
-
-
3,183
Total current
14,660
20,455
(13,319)
-
(45)
21,751
Annual and discretionary bonuses
-
625
(23)
-
-
603
Total non-current
-
625
(23)
-
-
603
Total other employee benefits
payable
14,660
21,080
(13,342)
-
(45)
22,354
As at 31 December 2020
Opening
balance
Set up
Used
Reclassified
Released
Closing
balance
Annual and discretionary bonuses
9,015
11,829
(8,763)
11
-
12,092
Unused holiday leave
1,465
2,165
(1,306)
-
-
2,324
Overtime
57
244
(57)
-
-
244
Total current
10,537
14,238
(10,126)
11
-
14,660
Annual and discretionary bonuses
36
-
(25)
(11)
-
-
Total non-current
36
-
(25)
(11)
-
-
Total other employee benefits
payable
10,573
14,238
(10,151)
-
-
14,660
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.
As at 31 December
2021
2020
New Trading Platform Project
13,243
6,377
GPW Data Project
2,518
910
Private Market
532
208
Total non-current
16,293
7,495
47
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
As at 31 December
2021
2020
New Trading Platform Project
-
1,538
GPW Data Project
-
580
Telemetria project
1,191
-
Private Market
1,652
87
Total current
2,843
2,205
Total accruals and deferred income
19,136
9,700
3.14. OTHER LIABILITIES
As at 31 December
2021
2020
Liabilities to the Polish National Foundation
5,731
7,061
Perpetual usufruct liabilities
3,561
3,576
Total non-current
9,292
10,638
Dividend payable
-
249
VAT payable
876
661
Liabilities in respect of other taxes
1,818
2,738
Contracted investments
983
1,560
Liabilities to the Polish National Foundation
1,331
1,293
Other liabilities
2,621
2,587
Total current
7,629
9,088
Total other liabilities
16,921
19,726
As a co-founder of the Polish National Foundation established by 17 State-owned compa
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 7,062 thousand as at 31 December 2021 (PLN 8,355 thousand as at 31 December 2020).
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.
48
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
As at 31 December
2021
2020
Trade payables to associates
91
68
Trade payables to subsidiaries
875
710
Trade payables to other entities, accruals and deferred income
6,713
6,560
Total trade payables
7,679
7,338
In the opinion of the Exchange Management Board, due to the short due dates of trade payables, the carrying amount of
trade payables is similar to the fair value.
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.
Deferred tax (asset)/liability
As at
1 January
2021
(restated*)
(Credited)/
Debited in
profit
(Credited)/
Debited in other
comprehensive
income
As at 31 December 2021
(Asset)/
Liability
Deferred tax
asset
Deferred tax
liability
Difference between accounting and
tax value of property, plant and
equipment and intangible assets
7,784
(1,953)
-
5,831
-
5,831
Impairment loss on investment in
other entities
(959)
-
1
(958)
958
-
Employee benefits
(2,965)
(1,713)
42
(4,636)
4,636
-
Cost estimates
(571)
30
-
(541)
541
-
Deferred income
(1,756)
(249)
-
(2,005)
2,005
-
Impairment loss on trade
receivables
(726)
302
-
(424)
424
-
Interest and costs of bond issue
(186)
(71)
-
(257)
293
36
Other
(242)
32
-
(210)
293
84
Total deferred tax
(asset)/liability
379
(3,622)
43
(3,199)
9,150
5,951
*Data for the comparative period have been restated. See Note 6.7.
49
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
Deferred tax (asset)/liability
As at
1 January
2020
(reported)
Corrections
As at
1 January
2020
(restated*)
(Credited)/
Debited in
profit
(Credited)/
Debited in
other
comprehensive
income
As at 31 December 2020
(Asset)/
Liability
Deferred tax
asset
Deferred tax
liability
Difference between
accounting and tax value of
property, plant and
equipment and intangible
assets
9,264
-
9,264
(1,480)
-
7,784
(6,237)
1,547
Impairment loss on
investment in other entities
(958)
-
(958)
-
(1)
(959)
959
-
Employee benefits
(2,172)
-
(2,172)
(785)
(8)
(2,965)
2,965
-
Cost estimates
(598)
-
(598)
27
-
(571)
571
-
Deferred income
(145)
(1,626)
(1,771)
15
-
(1,756)
1,756
-
Impairment loss on trade
receivables
(629)
-
(629)
(97)
-
(726)
726
-
Interest and costs of bond
issue
(258)
-
(258)
72
-
(186)
295
109
Other
201
-
201
(442)
-
(242)
411
169
Total deferred tax
(asset)/liability
4,705
(1,626)
3,079
(2,690)
(9)
379
1,446
1,825
*Data for the comparative period have been restated. See Note 6.7.
3.17. PHANTOM SHARES
On 29 April 2021, on the occasion of the 30
th
anniversary of the Company, the Exchange Management Board approved a
st until 2031. The Programme
covers all GPW employees in employment as at 16 April 2021. Under the Programme, each employee in employment as at
16 April 2021 is eligible to receive the following:
a number of phantom shares defined under the Programme for the period from the start of employment with GPW
to 16 April 2021 in total, 10,428 shares were allotted as at 16 April 2021,
another 4 phantom shares in each year of the Programme (provided that the GPW employee remains in employment
as at 16 April of such year) the estimated number of such phantom shares was 10,301 as at 31 December 2021,
dividend, i.e., the number of phantom shares allotted to the employees times the dividend per GPW share in the
year determined by the GPW General Meeting,
the right to dividends from the shares held. Employees may, by 30 September each year, request a dividend
payment which will be made by 15 October each year. If an employee does not request a payment during the period
of employment, the payment is made upon termination of employment or retirement.
The Programme meets the criteria of a share-based payment programme and will be accounted for under IFRS 2 Share-
based Payment.
The liability in respect of shares allotted in successive years will be recognised in subsequent years of the Programme up to
2031 and measured as at each balance-sheet date depending on the closing price of GPW shares at the balance-sheet date
and the number of eligible employees. Differences of valuation against fair value as at each balance-sheet date will be
recognised in employee costs.
The Phantom Share Programme was recognised in these financial statements as follows:
PLN 603 thousand liability under the Programme as at 31 December 2021, presented under Non-current liabilities
Employee benefits payable in the statement of financial position,
PLN 140 thousand liability under the Programme as at 31 December 2021, presented under Current liabilities
Employee benefits payable in the statement of financial position (the dividend part and liabilities in respect of vested
benefits),
PLN 621 thousand Programme cost in the 12-month period of 2021, presented in Employee costs in the statement
of comprehensive income.
50
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
The liability recognised as at 31 December 2021 will be increased with the value of future shares and dividends. The estimated
total dividend payable was PLN 486 thousand as at 31 December 2021 and the estimated amount of the Programme based
on a variable number of employees and a variable share price is PLN 1,224 thousand by the end of 2031.
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:
ove
at a point in time, when control of the services is transferred to the customer.
Revenues from the introduction of shares to trading are inextricably linked to the listing service. As a result, it was
decided that revenue from fees for introduction to trading will be recognised over time during the expected term of contracts
with customers (average listing period). Accordingly, the accounting recognition of revenue from fees for introduction of
shares to trading was modified retrospectively (see description in Note 6.7.1.). The Exchange defined the average period of
provision of the listing service equal to 9 years following a historical analysis of the average period of listing of companies
on the Main Market and NewConnect. The estimate is subject to uncertainty and will be reviewed as at each reporting date.
Other sales revenue is measured at the transaction price specified in the contract. No significant financing component has
been identified due to the fact that sales have a payment term of 21 days, which is in line with market practice. Revenue is
recognised on a one-off basis when the performance obligation is met, which is when the payment becomes unconditionally
due and only a specified period of time is required to receive it. In rare cases, the Group grants deferred payment terms,
but never for more than 12 months; therefore, the transaction price is not adjusted for the impact of a significant financing
component.
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: charged under the Exchange Rules and the Alternative Trading System Rules: 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 and other organisations including mainly financial institutions.
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.
Selected judgments and estimates
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.
51
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
The table below presents sales revenue by business line.
Year ended 31 December
2021
2020 (restated*)
Financial market
239,756
243,797
Trading
167,651
175,561
Equities and other equity-related instruments
143,797
151,042
Derivatives
13,737
15,376
Other fees paid by market participants
8,353
7,488
Debt instruments
501
439
Other cash instruments
1,263
1,216
Listing
21,049
20,257
Listing fees
16,881
16,563
Fees for admission and introduction and other fees
4,168
3,694
Information services
51,056
47,979
Real-time data
47,830
44,685
Historical and statistical data and indices
3,226
3,294
Commodity market
898
947
Information services
898
947
Other revenue
12,367
11,259
Services to GPW Group members (other than leases)
11,906
10,771
434
497
Building maintenance, cleaning, security
1,735
1,717
Maintenance fees for cars
204
198
Accounting and HR
2,309
2,240
Other IT services
3,783
3,781
Other administrative services
3,441
2,272
Services to GPW Group non-members (other than leases)
461
488
41
(24)
Building maintenance, cleaning, security
8
36
Sponsoring
62
124
Other
350
352
Total sales revenue
253,021
256,003
*Data for the comparative period have been restated. See Note 6.7.
Year ended 31 December
2021
% share
2020
% share
Revenue from foreign customers
114,626
45.3%
107,042
41.81%
Revenue from local customers
138,395
54.7%
148,961
58.19%
Total sales revenue
253,021
100.0%
256,003
100%
52
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a 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.
Note
Year ended 31 December
2021
2020 (restated*)
Depreciation and amortisation, including:
23,224
23,242
capitalised depreciation and amortisation charges
(638)
(436)
Salaries
4.2.1.
53,095
43,230
Other employee costs
4.2.1.
15,968
13,809
Rent and other maintenance fees
4,771
4,243
Fees and charges, including:
9,594
8,569
fees paid to PFSA
7,984
7,362
External service charges
4.2.2.
45,955
37,547
Other operating expenses
4,198
3,473
Total operating expenses
156,805
134,113
*Data for the comparative period have been restated. See Note 6.7.
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 sa
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
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.
53
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
Year ended 31 December
2021
2020
Gross remuneration
28,688
26,500
Annual and discretionary bonuses
12,168
9,831
Retirement severance pay
127
114
Reorganisation severance pay
77
42
Non-competition
-
185
Other (including: unused holiday leave, overtime)
1,553
1,416
Total payroll
42,613
38,088
Supplementary payroll
10,482
5,142
Total employee costs
53,095
43,230
Year ended 31 December
2021
2020
Social security costs (ZUS)
7,270
6,744
Employee Pension Plan (PPE)
2,813
2,185
Other benefits (including medical services, lunch subsidies, sports,
insurance, etc.)
5,885
4,880
Total other employee costs
15,968
13,809
Remuneration of the key management personnel is described in Note 6.4.
4.2.2. EXTERNAL SERVICE CHARGES
Year ended 31 December
2021
2020 (restated*)
IT infrastructure maintenance
13,576
12,058
Data transmission lines
3,568
3,500
Software modification
649
439
Total IT cost
17,793
15,997
Repair and maintenance of installations
980
843
Security
2,012
1,850
Cleaning
776
771
Fixed and mobile telephony
194
178
Total office space and office equipment maintenance
3,962
3,642
Lease, rental and maintenance of vehicles
284
288
Transportation services
54
40
Promotion, education, market development
5,408
3,302
Market liquidity support
1,041
1,247
Advisory (including legal, business consulting, audit)
5,935
2,633
Information services
7,185
7,085
Training
557
697
Mail fees
36
25
Bank fees
35
88
Translation
359
271
Other
3,306
2,232
Total external service charges
45,955
37,547
*Data for the comparative period have been restated. See Note 6.7.
0.00
0.00
54
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
4.3. OTHER INCOME
Year ended 31 December
2021
2020 (restated*)
Grants received - New Trading Platform Project
26
655
Annual correction of input VAT
-
372
Medical services reinvoiced to employees
360
318
Damages received
4
37
Investment property revenues
1,106
1,078
Other
85
1
Total other income
1,581
2,461
*Data for the comparative period have been restated. See Note 6.7.
4.4. OTHER EXPENSES
Year ended 31 December
2021
2020 (restated*)
Donations
2,131
3,135
Loss on sale of property, plant and equipment
50
28
Depreciation charges on investment property
380
384
Impairment of assets
-
4,222
Other
762
635
Total other expenses
3,323
8,404
*Data for the comparative period have been restated. See Note 6.7.
In 2021, the Exchange made donations to:
Polish National Foundation PLN 1,500 thousand (booked in expenses of 2016, see Note 3.14),
GPW Foundation PLN 2,070 thousand,
Care and Education Centre, Franciszk PLN 20 thousand,
Border Guards PLN 20 thousand,
European Foundation for Those in Need, Wlkp. PLN 14 thousand,
orphanages PLN 6 thousand,
PLN 1 thousand.
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
de 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,
Warsaw School of Economics PLN 100 thousand.
55
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
4.5. FINANCIAL INCOME
Selected accounting policies
Interest income is recognised on a time-proportionate basis using the effective interest rate method. Dividend income is
payment.
Year ended 31 December
2021
2020
Income on financial assets presented as cash and cash equivalents
79
305
Income on financial assets presented as financial assets measured at
amortised cost
859
2,101
Interest on sublease receivables
167
270
Total interest income under the effective interest rate method
1,105
2,676
Dividends
101,762
80,766
Other financial income
22
2,233
Tota financial income
102,889
85,675
Details concerning dividend received from subsidiaries and associates are presented in Notes 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.
Year ended 31 December
2021
2020 (restated*)
Interest on bonds, including:
5,826
6,926
accrued**
374
(374)
paid
5,452
7,300
Interest on lease liabilities, including:
376
603
impairment loss on investment in other entities
-
583
- expected credit loss
243
-
Other financial expenses
487
1,477
Currency differences
377
-
Total financial expenses
7,309
9,589
* Data for the comparative period have been restated. See Note 6.7.
** Negative interest accrued in 2020 due to changes of interest rates during the year.
56
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
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.
Year ended 31 December
2021
2020 (restated*)
Current income tax
20,317
25,511
Deferred tax
(3,622)
(2,870)
Total income tax
16,695
22,641
*Data for the comparative period have been restated. See Note 6.7.
As required by the Polish tax regulations, the corporate income tax rate applicable in 2021 and 2020 is 19%.
Year ended 31 December
2021
2020 (restated*)
Profit before tax
191,120
192,151
Income tax rate
19%
19%
Income tax at statutory rate
36,313
36,509
Tax effect of:
(19,618)
(13,868)
Non-tax deductible costs
995
2,495
Non-taxable dividend income
(19,335)
(15,346)
Non-taxable grants
(5)
(124)
Other adjustments
(1,273)
(893)
Total income tax
16,695
22,641
*Data for the comparative period have been restated. See Note 6.7.
)
Selected accounting policies
The companies participating in TG are not treated individually but collectively as one corporate income taxpayer under the
mes 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,
57
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
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. On 11 December 2020, the TG was extended for another tax year,
from 1 January to 31 December 2021. By decision of 7 December 2021, the TG was extended for the year 2022.
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.
from related parties participating in TG in respect of income tax paid on their behalf were PLN 2,196
thousand as at 31 December 2021 (PLN 7,327 thousand as at 31 December 2020), 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.
Year ended 31 December
2021
2020 (restated*)
Depreciation of property, plant and equipment**
9,989
10,131
Amortisation of intangible assets***
10,402
10,154
Depreciation and amortisation of right-to-use assets
2,834
2,956
Depreciation of investment property
380
384
Total depreciation and amortisation charges****
23,605
23,625
*Data for the comparative period have been restated. See Note 6.7.
** In 2021 depreciation included depreciation charge capitalised to intangible assets at PLN 501 thousand.
*** In 2021 amortisation included amortisation charge capitalised to intangible assets at PLN 137 thousand.
**** The depreciation value is different from the value included in the operating costs due to the property depreciation costs included in the other costs.
Year ended 31 December
2021
2020 (restated*)
(Gains)/losses on sale of property, plant and equipment and
intangible assets
3,892
28
(Gains)/losses on FX differences (valuation of accounts and
deposits)
153
(488)
Interest (income)/cost on loans to employees
(4)
-
Sublease interest (income)
(167)
(270)
Lease interest expense
370
603
Financial expense on the bond issue
383
389
Impairment loss on investment in other entities (PAR)
-
583
Grants moved to cash flows from financing activities
(6,968)
-
Actuarial (gains)/losses
179
-
Impairment loss on assets measured at fair value through profit or
loss
-
920
Impairment loss on other current assets
-
4,222
Other costs
324
738
Total other adjustments
(1,838)
6,725
58
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
6. OTHER NOTES
6.1. FINANCIAL INSTRUMENTS
Year ended 31 December 2021
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
Trade receivables (gross)
-
-
1,066
1,066
-
1,066
Equity instruments
-
-
-
-
5
5
Corporate bonds
365
107
-
472
-
472
Bank deposits
97
76
-
173
-
173
Loans granted
164
129
-
293
-
293
Total financial instruments (assets)
626
312
1,066
2,004
5
2,009
Bonds in issue
(5,452)
(374)
-
(5,826)
-
(5,826)
Loans
-
-
-
-
-
-
Total financial instruments (liabilities)
(5,452)
(374)
-
(5,826)
-
(5,826)
Total recognised in the statement of
comprehensive income
(4,826)
(62)
1,066
(3,822)
5
(3,817)
As at 31 December 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
Trade receivables (gross)
-
-
118
118
-
118
Equity instruments
-
-
(866)
(866)
(4)
(870)
Corporate bonds
1,428
(457)
-
971
-
971
Bank deposits
2,153
(718)
-
1,435
-
1,435
Loans granted
-
-
(507)
(507)
-
(507)
Total financial instruments (assets)
3,581
(1,175)
(1,255)
1,151
(4)
1,147
Bonds in issue
(7,300)
374
-
(6,926)
-
(6,926)
Loans
-
-
(500)
(500)
-
(500)
Total financial instruments (liabilities)
(7,300)
374
(500)
(7,426)
-
(7,426)
Total recognised in the statement of
comprehensive income
(3,719)
(801)
(1,755)
(6,275)
(4)
(6,279)
As at 31 December 2021 and as at 31 December 2020, the impairment loss on equity instruments, i.e., financial assets
measured at fair value through profit or loss amounted to PLN 0.9 million.
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
59
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
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 advanced technical parameters. The amount of the grant in the New Trading
System project will be PLN 30.3 million, the estimated cost of the project is PLN 90 million, the project has not been completed
as at 31 December 2021.
GPW Data
The GPW Data project is 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 amount of the grant in
the GPW Data project will be PLN 4.2 million, the estimated cost of the project is PLN 8.3 million, the project has not been
completed as at 31 December 2021.
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 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 amount of the grant in the GPW Private Market project will be PLN
8.5 million, the estimated cost of the project is PLN 12.6 million, the project has not been completed as at 31 December
2021.
TeO
On 4 October 2021, GPW signed an agreement with the National Centre for Research and Devel-
finance work related to the develoment of the TeO system - a multi-module auction platform designed for comprehensive
handling of media market transactions.
The aim of the project is to develop an innovative TeO Platform. The new solution will be designed to profile TV users and
sell and display targeted advertising on linear TV. The amount of the grant in the project will be PLN 13.3 million, the
estimated cost of the project is PLN 33.3 million, the project has not been completed as at 31 December 2021.
Gospostrateg
On 27 October 2021, as a member of a consortium comprising the Mazowieckie Voivodeship as Leader and the Warsaw
School of Economics, GPW concluded an agreement with the National Centre for Research and Development for the
implementation of the Gospostrateg project.
The main objective of the project is to transform the Mazowieckie Voivodeship into an accelerator of global enterprises by
building a knowledge repository of key global markets and developing and implementing an effective model of co-operation
between administration, science and business taking into account the conditions of the Mazowieckie Voivodeship. The amount
of the grant in the Gospostrateg project will be PLN 0.3 million, the estimated cost of the project is PLN 7.9 million, the
project has not been completed as at 31 December 2021.
PCOL
On 4 November 2021, GPW signed an agreement with the National Centre for Research and Development to co-finance the
project.
PCOL is a project for an innovative logistics platform based on artificial intelligence to optimise costs in areas related to
transport and logistics services for State-owned companies as well as private companies which will in the future use the
services and solutions offered. The grant will be used to finance research and development work related primarily to the
development of innovative technologies based on artificial intelligence. The amount of the grant in the PCOL project will be
PLN 5.4 million, the estimated cost of the project is PLN 9.3 million, the project has not been completed as at 31 December
2021.
60
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
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 applies the exemption under IAS 24 Related Party Disclosures and 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
cours
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 7,984 thousand in 2021 and PLN 7,362 thousand in 2020.
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.
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.
61
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
As at 31 December 2021
Year ended 31 December 2021
Receivables
Trade payables
and other
liabilities
Sales revenue or
sublease interest
Operating expenses
(including: decrease
of depreciation and
amortisation due to
subleases)
TGE:
93,058
86
7,921
3
leases
933
-
40
(626)
other
1,115
86
7,881
629
loan
91,010
-
-
-
IRGiT:
2,058
-
2,374
(859)
leases
1,702
63
(859)
other
356
-
2,311
-
BondSpot:
1,023
17
1,047
161
leases
867
-
35
(581)
other
156
17
1,012
742
GPWB:
710
685
1,454
5,183
leases
347
-
14
(216)
other
363
685
1,440
5,399
InfoEngine:
5
3
49
8
leases
-
3
-
-
other
5
-
49
8
GPW Tech:
247
87
6
(93)
leases
199
-
6
(93)
other
48
87
-
-
GPW Ventures ASI:
79
-
2
(36)
leases
56
-
2
(36)
other
23
-
-
-
Total
97,180
878
12,853
4,367
As at 31 December 2020
Year ended 31 December 2020
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
leases
1,473
-
59
(585)
other
2,191
90
7,404
656
IRGiT:
3,197
-
2,106
(795)
leases
2,500
-
115
(808)
other
697
-
1,991
13
BondSpot:
1,481
38
1,067
57
leases
1,374
-
54
(573)
other
107
38
1,013
630
GPWB:
704
582
1,028
4,219
leases
524
-
18
(200)
other
180
582
1,010
4,419
InfoEngine:
4
-
33
2
leases
-
-
-
(4)
62
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
As at 31 December 2020
Year ended 31 December 2020
Receivables
Trade payables
and other
liabilities
Sales revenue or
sublease interest
Operating expenses
(including: decrease
of depreciation and
amortisation due to
subleases)
other
4
-
33
6
GPW Tech:
319
-
6
(64)
leases
289
-
6
(64)
other
30
-
-
-
GPW Ventures ASI:
103
-
4
(36)
leases
92
-
4
(36)
other
11
-
-
-
Total
9,472
710
11,707
3,454
The table above does not include transactions in fixed assets. The Exchange purchased no fixed assets from Group members
in 2021 and in 2020, and no receivables from subsidiaries were impaired.
Receivables from subsidiaries were not written off as uncollectible in the year ended 31 December 2021 and 31 December
2020.
Loans granted to related parties
On 3 November 2021, GPW granted TGE a revolving loan with a limit of PLN 240 million. The loan may be used in parts or
as a one-off. The loan for TGE will be repaid within 3 months from the date the funds are disbursed, however, no later than
30 June 2022 with the option of concluding an annex for another period. Each repayment of the loan amount or tranche
results in the possibility of its renewal.
The interest rate on the loan is variable and equal to the base interest rate WIBOR O/N plus a margin of 0.4% per annum.
Interest is calculated on the actual amount of the loan used. Interest on the loan amount is not capitalised.
Inspite of loan to TGE, GPW granted loans to PAR. For a description of loansto PAR, see the note 6.3.3.
Year ended 31 December
2021
2020
Opening balance
-
-
Loans granted
91,310
500
Loans granted - IRR valuation
142
7
Revaluation including expected credit loss
(343)
507
Closing balance
91,109
-
Dividend from subsidiaries
On 30 June 2021, the Annual General Meeting of TGE passed a resolution distributing the profit for 2020 and decided to
allocate PLN 94,700 thousand to a dividend payment. The entire dividend was paid to the Exchange on 4 August 2021.
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.
6.3.3. TRANSACTIONS WITH ASSOCIATES AND JOINT VENTURES
space, including joint property,
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.
63
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
As at 31 December 2021
Year ended 31 December 2021
Receivables
Trade payables
and other
liabilities
Sales revenue or
sublease interest
Operating expenses
KDPW Group:
1
-
3
-
other
1
3
-
-
474
-
2,381
leases
-
-
-
-
other
-
474
-
2,381
PAR:
10
-
-
-
leases
-
-
-
-
other
10
-
-
-
Total
11
474
3
2,381
As at 31 December 2020
Year ended 31 December 2020
Receivables
Trade payables
and other
liabilities
Sales revenue or
sublease interest
Operating expenses
KDPW Group
3
-
22
56
other
3
-
22
56
-
6,185
-
5,777
leases
-
6,117
-
2,391
other
-
68
-
3,386
PAR:
86
-
86
6
leases
81
-
63
6
other
5
-
23
-
Total
89
6,185
108
5,839
Other than the receivable under the loan granted by PAR (see below), receivables from associates and joint ventures were
not written off as uncollectible or provided for in the year ended 31 December 2021 and 31 December 2020.
Dividend from associates
On 18 June 2021, the Annual General Meeting of CG decided to allocate a part of the 2020 profit equal to PLN 1,700 thousand
to a dividend payment. The dividend paid to the Exchange on 23 July 2021 was PLN 421 thousand. In 2020, CG paid dividend
for 2019 at PLN 2,067 thousand, including dividend paid to the Exchange at PLN 512 thousand.
On 29 June 2021, the Annual General Meeting of KDPW decided to allocate a part of the 2020 profit equal to PLN 19,925
thousand to a dividend payment. The dividend paid to the Exchange on 3 September 2021 was PLN 6,641 thousand. In
2020, KDPW paid dividend for 2019 at PLN 15,561 thousand, including dividend paid to the Exchange at PLN 5,187 thousand.
Loans and advances
As at 31 December 2021, the carrying amount of loans granted to PAR was 0 (impairment loss of PLN 832 thousand), of
which the amount of the impairment loss on the loan equal to PLN 507 thousand was charged to 2020 and the amount of
PLN 325 thousand was charged to 2021. The carrying amount of the loans granted at 31 December 2020 was 0 (impairment
On 30 June 2021, an annex was signed to the agreement concerning the loan granted to PAR by GPW in September 2020.
In accordance with the amendments introduced by the annex, the interest for the period from the date of the loan to 30
June 2021 was capitalised as at 30 June 2021 and added to the loan amount. The interest for the period from 1 July 2021
to 30 June 2022 will be calculated in accordance with the existing provisions of the agreement. The loan and accrued interest
will be repaid in a single payment by 30 June 2022.
64
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
6.3.4. OTHER TRANSACTIONS
Transactions with the key management personnel
The Exchange entered into no transactions with the key management personnel other than transactions arising from the
employment relationship in 2021 and in 2020.
In 2021 4 Street Tenants Association of which it is a member. The
expenses amounted to PLN 4,719 thousand in 2021 and PLN 4,160 thousand in 2020. 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 130 thousand in 2021
and PLN 13 thousand in 2020.
GPW Foundation
In 2021, GPW donated PLN 2,396 thousand (in 2020 PLN 1,179 thousand) to the GPW Foundation, received an income of
PLN 236 thousand (in 2020 PLN 127 54 thousand
(in 2020 PLN 1 thousand). As at 31 December 2021from the GPW Foundation stood at PLN
39 thousand and its payables to the Foundation at PLN 0 thousand (as at 31 December 2020 PLN 63 thousand and PLN
143 thousand, respectively).
Polish National Foundation
Payments and transactions with PFN are described in Notes 3.14 and 4.4.
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
ment includes:
a fixed monthly base salary determined depen
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 2021 and 2020, respectively.
Year ended 31 December
2021
2020
Base salary
1,613
1,728
Variable pay
1,627
1,780
Bonus
-
14
Other benefits
286
352
Benefits after termination
-
185
Total remuneration of the Exchange Management Board
3,526
4,059
Remuneration of the Exchange Supervisory Board
581
550
Total remuneration of the key management personnel
4,107
4,609
65
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
As at 31 December 2021, due (not paid) bonuses and variable remuneration of the key management personnel stood at PLN
1,812 thousand and concerned bonuses for 2021. The cost was shown in the statement of comprehensive income for 2021.
As at 31 December 2020, due (not paid) bonuses and variable remuneration of the key management personnel stood at PLN
1,944 thousand and concerned bonuses for 2020. The cost was shown in the statement of comprehensive income for 2020.
6.5. CONTRACTED INVESTMENTS
As at 31 December
2021
2020
Contracted investments in property, plant and equipment
13
928
Contracted investments in intangible assets
3,500
533
Total contracted investments
3,513
1,461
Contracted investments in plant, property and equipment included purchase of office furniture as at 31 December 2021 and
investments in as at 31 December 2020.
Contracted investments in intangible assets were related to the implementation of a controlling system as at 31 December
2021 and included mainly the GRC system and the Indexator as at 31 December 2020.
6.6. CONTINGENT LIABILITIES
In connection with the implementation of the projects New Trading System, GPW Data, GPW Private Market, TEO and PCOL,
-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 o
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. CORRECTIONS OF ERRORS
6.7.1. FEES FOR INTRODUCTION OF SHARES TO TRADING
When preparing the financial statements for H1 2021, the recognition of revenue from fees for introduction of shares to
trading was reviewed. As a result of the analysis, in line with the IFRIC agenda decision of January 2019 Assessment of
promised goods or services, it was determined in the light of IFRS 15 Revenue from Contracts with Customers that the
service of introduction to trading is inextricably linked to the listing service. As a result, it was decided that revenue from
fees for introduction to trading will be recognised over time during the expected term of contracts with customers (average
listing period). Accordingly, the accounting recognition of revenue from fees for introduction of shares to trading was modified
retrospectively. The Company restated the comparative figures presented in these financial statements.
The Exchange defined the average period of provision of the listing service equal to 9 years following a historical analysis of
the average period of listing of companies on the Main Market and NewConnect. The estimate is subject to uncertainty and
will be reviewed as at each reporting date.
6.7.2. RIGHT OF PERPETUAL USUFRUCT OF LAND
When preparing the financial statements for H perpetual
criteria of leases under IFRS 16 Leases. As a result, it wa-to- and
tended
to 2093. The corrections are retrospective and the Group restated the comparative data presented in these financial
statements.
66
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
6.7.3. INVESTMENT PROPERTY
When preparing the financial statements for H1 2021, the properties held by the Company were reviewed under IAS 40
Investment Property. As a result of the analysis, it was determined that ca Street owned
by GPW and leased to a GPW Group company is investment property due to a change in the use of this part of the property.
Accordingly, in these financial statements, the Company has reclassified the property from Property, plant and equipment
to Investment property. At the same time, the Company changed the presentation of revenues and expenses related to
the investment property. Previously, revenues were presented as sales revenues and expenses as operating expenses. After
the change, they are presented as other revenue and other expenses, respectively. The corrections are retrospective and
the Group restated the comparative data presented in these financial statements. The investment property is measured at
cost less accumulated depreciation and impairment losses. The fair value of the investment property as at 31 December
2021 was estimated at PLN 12,413 thousand.
The tables below present the impact of the corrections described above on the statement of financial position, the statement
of cash flows, and the statement of comprehensive income for each relevant period.
As at
31 December
2020
(reported)
Corrections
As at
31 December
2020
(restated)
Perpetual
usufruct of
land
Investment
property
Fees for
introduction
of shares to
trading
Non-current assets, including:
431,127
1,845
-
1,446
434,418
Property, plant and equipment
92,090
-
(8,564)
-
83,526
Right-to-use assets
11,538
(4,047)
-
-
7,491
Intangible assets
53,306
5,892
-
-
59,198
Investment property
-
-
8,564
-
8,564
Deferred tax asset
-
-
-
1,446
1,446
TOTAL ASSETS
870,648
1,845
-
1,446
873,939
Equity, including:
547,749
126
-
(6,164)
541,711
Retained earnings
484,111
126
-
(6,164)
478,073
Earnings of previous years
(33,517)
64
-
(6,932)
(40,385)
This year's net profit
168,680
62
-
768
169,510
Non-current liabilities, including:
274,024
1,771
-
5,606
281,401
Lease liabilities
10,952
(1,805)
-
-
9,147
Contract liabilities
1,170
-
-
5,606
6,776
Other liabilities
7,062
3,576
-
-
10,638
Current liabilities, including:
48,875
(52)
-
2,004
50,827
Lease liabilities
5,259
(67)
-
-
5,192
Contract liabilities
2,634
-
-
2,004
4,638
Other liabilities
9,073
15
-
-
9,088
TOTAL EQUITY AND LIABILITIES
870,648
1,845
-
1,446
873,939
67
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
As at
31 December
2019
(reported)
Corrections
As at
31 December
2019
(restated)
Perpetual
usufruct of
land
Investment
property
Fees for
introduction of
shares to
trading
Non-current assets, including:
435,342
1,733
-
1,626
438,702
Property, plant and equipment
95,416
-
(8,899)
-
86,517
Right-to-use assets
14,329
(4,240)
-
-
10,090
Intangible assets
49,829
5,973
-
-
55,802
Investment property
-
-
8,899
-
8,899
Deferred tax asset
-
-
-
1,626
1,626
TOTAL ASSETS
792,764
1,733
-
1,626
796,123
Equity, including:
479,843
64
-
(6,932)
472,975
Retained earnings
416,165
64
-
(6,932)
409,297
Earnings of previous years
(33,517)
-
(8,034)
(41,551)
This year's net profit
115,123
63
1,102
116,288
Non-current liabilities, including:
275,299
1,719
-
6,433
283,451
Lease liabilities
15,826
(1,870)
-
-
13,956
Contract liabilities
572
-
-
6,433
7,005
Other liabilities
8,355
3,589
-
-
11,944
Current liabilities, including:
37,622
(50)
-
2,125
39,697
Lease liabilities
5,024
(65)
-
-
4,959
Contract liabilities
1,390
-
-
2,125
3,515
Other liabilities
10,401
15
-
-
10,416
TOTAL EQUITY AND LIABILITIES
792,764
1,733
-
1,626
796,123
Year ended 31 December 2020
Before
corrections
Perpetual
usufruct of
land
Investment
property
Fees for
introduction
of shares to
trading
Restated
Total cash flows from operating activities
119,411
-
-
-
119,411
Net profit
168,680
62
-
768
169,510
Adjustments, including:
(28,878)
(62)
-
(768)
(29,708)
Income tax
22,461
-
180
22,641
Depreciation and amortisation
23,737
(112)
-
-
23,625
Other adjustments*
6,675
50
-
-
6,725
Change of assets and liabilities, including:
(5,419)
-
-
(948)
(6,367)
Contract liabilities
1,842
-
-
(948)
894
(Decrease)/increase of net cash and cash
equivalents
90,422
-
-
-
90,422
Impact of FX rates on cash balance in currencies
488
-
-
-
488
Cash and cash equivalents - opening balance
47,964
-
-
-
47,964
Cash and cash equivalents - closing balance
138,873
-
-
-
138,873
68
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a w Warszawie S.A.
Year ended
31 December
2020
(reported)
Corrections
Year ended
31 December
2020
(restated)
Perpetual
usufruct of
land
Investment
property
Fees for
introduction
of shares to
trading
Sales revenue
256,133
-
(1,078)
948
256,003
Operating expenses
(134,609)
112
384
-
(134,113)
Other income
1,383
-
1,078
-
2,461
Other expenses
(8,020)
-
(384)
-
(8,404)
Operating profit
115,005
112
-
948
116,065
Financial expenses
(9,539)
(50)
-
-
(9,589)
Profit before tax
191,141
62
-
948
192,151
Income tax
(22,461)
-
-
(180)
(22,641)
Profit for the period
168,680
62
-
768
169,510
6.8. EVENTS AFTER THE BALANCE SHEET DATE
On for PLN 117.8 thousand to
simplify and shorten the process of establishing and registering a company. This shelf company will be used to operate the
market under the Private Market project.
On 31 January 2022, GPW redeemed series D and E bonds issued on 18 January 2017. The total nominal value of the bonds
redeemed was PLN 120,000 thousand.
On 25 January 2022 r., 1 February 2022 r., 22 February 2022 r. TGE repaid loan granted by GPW. The total amount of
repaid interests was PLN 346 thousand.
On 24 February 2022, armed conflict broke out in Ukraine. The international community reacted by imposing sanctions on
Russia. Due to the impact of the conflict on the political and economic situation in Europe and globally, the GPW took into
consideration the recommendations of the Polish Financial Supervision Authority for issuers of securities issued on 2 March
2022.
As a result, the GPW:
analysed potential risks arising from the conflict
Report on the Activity of the Parent Entity and the Group of the Warsaw Stock Exchange, Note 2.8); and
analysed the potential impact of the conflict on the 2021 financial statements in the context of the GPW ability to
continue as a going concern.
The Company has no direct investments in / exposures to entities operating in Ukraine / Russia. No material receivables
from the GPW counterparties related to parties involved in the armed conflict in Ukraine were identified as at 31 December
2021. As shown in Note 2.2.2, the GPW has no material foreign currency assets and, therefore, exchange rate fluctuations
are not expected to have a material impact on the Gs financial position.
As at 31 December 2021, the GPW held PLN 466 million in cash and cash equivalents and short-term financial assets including
bank deposits and guaranteed corporate bonds. They are sufficient financial resources to conclude that the GPW-
term and mid-term liquidity risk is low.
According to available information and based on analyses completed as at 31 December 2021, the GPW Group did not identify
any material uncertainties relating to events or circumstances that would cast significant doubt on its ability to continue as
a going concern.
The company follows and monitors developments relating to the armed conflict in Ukraine and analyses the potential adverse
consequences of the conflict on the companies operations in order to take necessary actions to mitigate the potential impact.
Given the significant uncertainties arising from further developments in the conflict, the reaction of the international
community, and the impact on the economy, the long-term effects of the conflict are not determinable as at the date of the
financial statements.
69
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN UNLESS STATED OTHERWISE.
SEPARATE FINANCIAL STATEMENTS
of a 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 Member of the Management Board
Member of the Management Board
Izabela Olszewska Member of the Management Board
Signature of the person responsible for keeping books of account:
Piotr Kajczuk, Director, Financial Department
Warsaw, 15 - 16 March 2022