3.20 Revenue recognition

Recognition of revenue due to insurance contracts has been described in section 3.18.1. 

Interest

Interest revenue is recognized in accordance with effective interest rate and reported in the income statement in the period it pertains to under "Change in the net fair value of assets and liabilities measured at fair value", "Claims and change in measurement of investment contracts” (for investment contracts) and “Net revenue from investments” (for other assets).

Dividends

Dividends are recognized as revenue when the right to the dividend is acquired; however, in the case of dividend paid from profits generated before acquisition of shares measured at the acquisition cost, the value of due dividend is reduced by the value of share acquisition. Dividend revenue is recognized in “Net revenue from investments”.

Revenue from pension fund management services

Revenue from management of PZU Open Pension Fund (“PZU OPF”) is recognized in the periods when the services were rendered. The revenue includes in particular:

  • fees on premiums transferred by the Social Insurance Institution (“ZUS”) to PZU OPF in the amount specified in the by-laws of PZU OPF and in line with the limits stipulated in the Pension Funds Act of 28 August 1997 (Journal of Laws 2013, item 989 with subsequent amendments; “Pension Funds Act),
  • fees specified in the by-laws of PZU OPF for managing PZU OPF, in accordance with the limits specified in the Pension Funds Act,
  • other fees determined in the by-laws of PZU OPF.

Revenue from operating activities of PTE PZU is recognized under “Revenue from commissions and fees”.