32. Other financial assets

Other financial assets of the Group include, among others, shares and stocks, deposits, investments, bid bonds, security deposits and collaterals provided, receivables due to recompensations and loans granted to unrelated entities.

Upon initial recognition, financial assets are classified to the appropriate category of financial assets and measured accordingly. The principles of classification and measurement of financial assets in accordance with IFRS 9 Financial Instruments are described in Note 55 to consolidated financial statements.

The measurement of financial assets at a fair value requires the Group to estimate the fair value at each balance sheet date. The methodology for calculating fair value is presented in Note 55 to consolidated financial statements.

The measurement of financial assets measured at amortised cost requires the Group to estimate expected credit losses at each balance sheet date. The methodology for estimating expected credit losses for loans granted is presented in Note 56.1.4 to consolidated financial statements.

The decrease in investments and deposits of the Mining Decommissioning Fund results mainly from the loss of control and the cessation of consolidation of the subsidiary, TAURON Wydobycie S.A. as at the balance sheet date, as further described in Note 3 of consolidated financial statements.

Receivables due to financial compensation for trading companies relate to estimated by the companies in the Sales segment compensation for electricity supplies for 2022, which trading companies are entitled to, under the provisions of the Act of 27 October 2022 on extraordinary measures to limit the level of electricity prices and support certain consumers in 2023, as further described in Note 12 of consolidated financial statements.