5.6 Structure of the segment reporting note and reconciliations

Since the revenue measures of individual segments are based on local accounting standards applicable in the country of residence of the PZU Group‟s registered office, the financial data of the reporting segments is disclosed under a few different accounting standards. In addition, due to the differences in the formats of management reports submitted to the chief operating decision maker compared with the format of the financial statements prepared under IFRS, two separate reporting formats had to be used: the format of the management reports submitted to the chief operating decision maker (left-hand side of the note) and the format of the financial statements prepared under IFRS (right-hand side of the note).

As a consequence, reconciliation of the totals of revenue and profit or loss of the reportable segments with their consolidated counterparts as required by IFRS 8.28 included in the note is complex and comprises the following stages described in the segment note in the same order as the order of the reconciliation columns:

  • Transition from the format of the management reports submitted to the chief operating decision maker to the format of the financial statements prepared under IFRS (the “Differences in presentation ” column), resulting in a number of changes in the presentation, including reclassification of other operating revenue and expenses to items presented under “operating profit/(loss)” in accordance with IFRS;
  • Reconciliation of differences between the accounting standards used for the presentation of financial data of the segments and IFRS, and separate presentation of the key accounting standards;
  • Making consolidation adjustments (since it is the last phase of reconciliation – the adjustments have been presented in the format required under IFRS).