4.1 Consolidation principles

In order to determine whether the PZU Group controls an investment fund, the criteria laid down in SIC-12 “Consolidation – Special Purpose Entities”, issued by the Standing Interpretation Committee are considered, specifically having in fact the right to obtain the majority of benefits from the investment fund, hence exposure to risk related to the business of the aforesaid investment fund.

It is assumed that the PZU Group controls those investment funds where the share of the PZU Group entities in the net assets (exclusive of assets held under unit-linked insurance and investment contracts) exceeds 50%. Such funds are consolidated using the full method – their assets are presented in the statement of financial position as financial assets by type and portfolio classification, while a portion of the net assets of the fund held by third-party investors – as other liabilities under “Liabilities to participants in consolidated investment funds”.