33. Entities measured using the equity method

Associates 31 December 2016 31 December 2015 31 December 2016 31 December 2015
Name of entity EMC Instytut Medyczny SA GSU PomocGórniczy Klub Ubezpieczonych SA
Nature of the relationship between PZU and the entity Associate – non-strategic Associate – non-strategic
Seat of the entity Wrocław Wrocław Tychy Tychy
Share in the entity's capital 28.31% 28.31% 30.00% 30.00%
Share in the entity's votes 25.44% 25.44% 30.00% 30.00%
Valuation method in consolidated financial statements Equity method Equity method
Accounting standards applied by the entity IFRS PAS
Carrying amount of the involvement in the entity 37 53 - 1
Fair value of the interest in the entity 37 55 None – unlisted entity None – unlisted entity
Dividends received from the entity - - - -
         
Basic financial information        
         
Assets, including: 285 252 4 3
Short-term assets, including: 46 54 3 2
Cash and cash equivalents 11 16 3 2
Long-term assets 239 198 1 1
         
Equity 142 153 2 2
Liabilities, including: 143 99 2 1
Short-term liabilities, including: 76 56 2 1
Short-term financial liabilities 28 21 - -
Long-term liabilities, including: 67 43 - -
Long-term financial liabilities 50 20 - -
         
Revenue from core operations 278 258 2 2
Depreciation and amortization 14 13 - -
Interest income - - - -
Interest expense 3 2 - -
Income tax 2 1 - -
         
Total net comprehensive income, including: (11) (4) - -
Profit/loss, including: (11) (4) - -
Profit (loss) from continued operations (11) (4) - -
Profit (loss) from discontinued operations - - - -
Other comprehensive income - - - -

There are no restrictions (e.g. due to lending arrangements, regulatory requirements or contracts) concerning the possibility of transfer of funds by associates in the form of cash dividends.

Reconciliation of the EMC measurement 1 January–31 December 2016 1 January–31 December 2015
Net assets of EMC 142 153
Non-controlling interest in EMC financial statements (8) (8)
Goodwill in financial statements of EMC as at the moment of achieving a considerable inflow (1) (1)
Net assets of EMC measured using equity method valuation 133 144
PZU Group’s share in EMC capitals 38 40
Goodwill 29 29
Impairment loss (30) (16)
Carrying amount 37 53

Impairment test

Impairment test was conducted as at 31 December 2016 and showed the necessity to recognize impairment loss on the value of EMC shares amounting to PLN 14 million.

The recoverable amount was determined based on fair value.

 

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