|SELECTED ACCOUNTING PRINCIPLES
Other financial liabilities classified as liabilities measured at amortised cost are recognised initially at the fair value, adjusted by transaction costs. Following the initial recognition other financial liabilities are measured at a level of amortised cost, applying the effective interest rate. If the discount effect is insignificant, they are measured at the amount due. Derivatives are financial liabilities measured at a fair value.
PROFESSIONAL JUDGEMENT AND ESTIMATES
As at each balance sheet date, the Group estimates the fair value of liabilities measured at a fair value. The fair value calculation methodology is presented in Note 51 hereto.
Table 1Export to Excel
31 December 2020
31 December 2019
|Bid bonds, deposits and collateral received||84,188||94,340|
|Margin deposits arising from stock exchange transactions||73,221||104|
|Liabilities due to obligation to repay overpaid amounts to customers in
connection with the entry into force of the amended Act*
* Act of 28 December 2019 amending the Act on excise duty and certain other acts.
As at 31 December 2020, liabilities due to negative valuation of derivatives relate to commodity derivatives (including, to a large extent, forward instruments on account of transactions for which CO2 emission allowances are the underlying commodity) and IRS and CCIRS instruments. Due to the market situation in the current reporting period, mainly related to COVID-19, the occurrence of material changes in commodity derivative prices, the depreciation of the Polish zloty and the decrease in interest rates, an increase in the liabilities arising from the measurement of the above derivatives occurred compared to the end of 2019. Derivatives are described in more detail in Note 51.3 hereto.
The value of variation margins is related mostly to futures transactions in CO2 emissions allowances concluded on foreign regulated markets. The change in the value of margins compared to the comparable period results mainly from the significant increase in the price of allowances, while taking into account the number of exchange contracts open as at the balance sheet date. The margin deposits represented funds received by the Company on account of current exchange clearing, in connection with the change in the valuation of the concluded futures contracts open as at the balance sheet date.
The obligation to reimburse customers for overpayments relating to the adjustments recognised by the Group reducing revenue from customers for the first half of 2019, which resulted from the need to adjust prices in this period to the provisions of the amended Act of 28 December 2018 amending the Excise Tax Act and certain other acts, was fully settled in the year ended 31 December 2020.