- JSW GROUP
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Current liabilities comprise trade and other liabilities maturing within 12 months of the final day of the reporting period. Initially liabilities are recognized at fair value, but this measurement corresponds to the required payment amount or the amount of the liability and, in later periods, financial liabilities are shown at amortized cost, using the effective interest rate method (for trade liabilities this corresponds to the required payment amount), while other non-financial liabilities at the required payment amount.
Non-current liabilities are initially recognized at fair value minus the transaction costs incurred, and in the next periods are shown at amortized cost, using the effective interest rate method.
The increase in liabilities due to lapse of time is recorded as financial costs.
Subsidies are not recognized until obtaining reasonable certainty that the Group will satisfy the required conditions and receives such subsidies.
Subsidies which involve a principal condition that the Group acquires or develops non-current assets, are recognized in the consolidated statement of financial position in the deferred income line item and charged to the financial result systematically throughout the anticipate useful life of such assets.
Other subsidies are systematically recognized in revenues, over a period required to compensate the costs which such subsidies were intended to compensate. Subsidies due as compensation of costs or losses already incurred or as a form of direct financial support for the Group without incurring future costs, are recognized in the financial result over the period in which they are due.
Pursuant to Article 5 of the Polish Act on Payment Terms in Commercial Transactions of 8 March 2013, the Group calculates, not less frequently than as at the end of each quarter, hypothetical interest on liabilities for which the contractually defined payment term is longer than 30 days. The amount of calculated interest is then adjusted to the level of forecast amounts owed by the Parent Company to counterparties on account of the rights due to them. JSW charges 50% of the maximum amount of interest due to hypothetical counterparties to its financial result; this amount corresponds to the current level of the risk of counterparties raising a claim to pay interest for the term of payment extended over and above the one prescribed in the Act on payment terms in commercial transactions. Hypothetical interest on liabilities accruing for 2018 amounted to PLN 29.0 million (in 2017: PLN 22.8 million).
The remaining part of the expected risk of the Group being charged any hypothetical late interest is recognized as contingent liabilities.
Note | 31.12.2018 | 31.12.2017 | |
---|---|---|---|
FINANCIAL LIABILITIES | |||
Trade liabilities | 1,236.9 | 1,046.5 | |
Finance lease liabilities | 6.3 | 40.3 | 66.8 |
Accruals and deferred income | 15.5 | 8.7 | |
Other liabilities of a financial nature, including: | 719.2 | 354.4 | |
– investment liabilities | 703.9 | 336.8 | |
– other liabilities | 15.3 | 17.6 | |
TOTAL | 2,011.9 | 1,476.4 | |
NON-FINANCIAL LIABILITIES | |||
Deferred income | 95.2 | 97.9 | |
Other liabilities of a non-financial nature, including: | 850.3 | 701.5 | |
– liabilities for social security contributions and other taxes | 476.5 | 402.6 | |
– trade advances | 2.6 | 5.8 | |
– payroll | 300.7 | 245.6 | |
– other | 70.5 | 47.5 | |
TOTAL | 945.5 | 799.4 | |
TOTAL TRADE AND OTHER LIABILITIES | 2,957.4 | 2,275.8 | |
including: | |||
long-term | 119.9 | 135.7 | |
short-term | 2,837.5 | 2,140.1 |
The Group has received subsidies under which it is obligated to use the funds received solely and exclusively for the performance of tasks specified in the relevant subsidy agreements and to meet the conditions set forth in the agreements. In 2018 and 2017, those conditions were satisfied. The subsidy amount recognized in profit or loss is specified in Note 4.3.