13.10. OTHER OPERATING EXPENSES
Other operatingexpenses
|
|
NOTE |
2020 |
2019 |
|
Loss on sale of non-current non-financial assets |
|
(45) |
(55) |
|
Recognition of provisions |
|
(227) |
(104) |
|
Recognition of impairment allowances of property, plant and equipment and intangible assets, right-of-use asset, other non-current assets and classified as held for sale |
(1,961) |
(424) |
|
|
Penalties, damages and compensations |
|
(54) |
(24) |
|
Settlement and valuation of derivative financial instruments related to operating exposure |
|
(3,566) |
(692) |
|
Ineffective part related to valuation and settlement of operating exposure |
|
(47) |
(92) |
|
Settlement of hedging costs |
|
(6) |
(4) |
|
Other, incl.: |
|
(320) |
(322) |
|
donations |
|
(214) |
(58) |
|
shortages of materials in external warehouses |
- |
(156) |
|
|
|
|
(6,226) |
(1,717) |
In 2020 the line recognition of impairment allowances of property, plant and equipment and intangible assets, right-of-use asset and other non-current assets and classified as held for sale in the amount of PLN (1,961) million concerned mainly recognition of impairment allowances in the upstream segment in the amount of PLN (1,686) million. Additional information in note 14.4.
In 2020 the net positions of valuation and settlement of derivative financial instruments related to operating exposure (non-designated instruments for hedge accounting purposes) amounted to PLN 1,293 million mainly due to CO2 futures contracts settlement and valuation in the amount PLN 700 million (additional information In note 16.5.1.2). In 2019 there were no such transactions in Group. Moreover, the above line in 2020 and 2019 related to commodity swaps hedging time mismatch on crude oil purchases, future sales of products, including fixed prices in the amount of PLN 592 million and PLN (226) million, respectively. The change in the valuation of transaction results mainly from the decrease in crude oil prices related to the coronavirus crisis on the market as well as the weakening of PLN against USD. The change in the net position of valuations and settlements of derivative financial instruments related to operating exposure results from discontinuation of hedge accounting for transactions hedging exposure resulting from time mismatch on crude oil purchases. As at 31 December 2019, the transaction valuation was recognised in revaluation reserve, while as at 31 December 2020 both the valuation and settlement of the transaction are recognised in other operating activities.
In 2020, the increase in the cost of donations related mainly to the Group's pro-social activities to fight the coronavirus in the amount of PLN (139) million. Additional information in note 8.
