Accounting rules
Subsidies
The Group receives subsidies in the form of tangible assets and reimbursement of costs spent on tangible assets. Subsidies are recognised in the statement of financial position as deferred revenue if there is sufficient certainty that they will be received and that the Group will meet the relevant conditions. Subsidies received as reimbursement of costs incurred by the Group are systematically recognised as revenue in the statement of profit and loss in the period in which the associated costs are incurred. Subsidies received as reimbursement of investment expenditures incurred by the Group are systematically recognised, proportionately to depreciation charges, as other operating revenue in the statement of profit and loss and other comprehensive income throughout the asset’s period of use.
Recognising a subsidy in financial statements depends on the intended use of such financing, e.g.:
- subsidies received and intended for the acquisition or manufacture of tangible assets are recognised in the statement of financial position as deferred revenue,
- subsidies for purposes other than those described above are recognised in the statement of profit and loss as other operating revenue.
Accounting for income from subsidies and road lighting modernisation services
| As at | ||
|---|---|---|
| 31 December 2021 | 31 December 2020 | |
| Long-term | ||
| Accounting for deferred revenue – subsidies | 271 458 | 168 473 |
| Accounting for deferred revenue – road lighting modernisation services | 105 558 | 92 689 |
| Total non-current deferred revenue | 377 016 | 261 162 |
| Short-term | ||
| Accounting for deferred revenue – subsidies | 13 368 | 9 326 |
| Accounting for deferred revenue – road lighting modernisation services | 4 705 | 3 982 |
| Total current deferred revenue | 18 073 | 13 308 |
Schedule for accounting for deferred revenue
| As at | ||
|---|---|---|
| 31 December 2021 | 31 December 2020 | |
| Up to one year | 18 073 | 13 308 |
| From one to five years | 68 971 | 52 448 |
| Over five years | 308 045 | 208 714 |
| Total deferred revenue | 395 089 | 274 470 |
The item 'deferred revenue concerning subsidies’ includes mainly EU subsidies and subsidies from the NFOŚiGW for the development of electricity and heating infrastructure.
Road lighting modernisation services, i.e. improving the quality and efficiency of road lighting, are services provided on an on-going basis. Revenue from improving the quality and efficiency of road lighting is recognised proportionally over the economic period of use for the tangible assets created.