14.6. CASH AND CASH EQUIVALENTS
SELECTEDACCOUNTING PRINCIPLES
Cash
Cash comprises cash on hand and in bank accounts as well as cash in transit. Cash equivalents are short-term, highly liquid investments (of initial maturity up to three months), that are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value. Valuation and outflows of cash and cash equivalents in foreign currencies are based on FIFO (First In First Out) method.
|
|
31/12/2020 |
31/12/2019 |
|
Cash |
1,240 |
6,037 |
|
Other cash |
- |
122 |
|
|
1,240 |
6,159 |
|
incl. restricted cash |
217 |
1,086 |
Restricted cash consists mainly of funds on the VAT account (split payment) and securing settlements with the Clearing and Settlement House (Izba Rozliczeniowa Giełd Towarowych S.A. (IRGiT) in Polish) contributed by PKN ORLEN and the ENERGA Group.
As at 31 December 2020, restricted cash decreased by PLN 869 million and amounted to PLN 217 million, mainly due to reversal recognised in the 2nd quarter 2020 of collateral established for the tender offer announced by PKN ORLEN in the previous period to subscribe for:
- the sale of all shares of ENERGA S.A.in the amount of PLN 1 billion as well as with;
- taking control over the ENERGA Group, which presents in this line, among others, securing settlements with the Clearing and Settlement House (Izba Rozliczeniowa Giełd Towarowych S.A. (IRGiT) in Polish) in the amount of PLN 45 million.
