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According to the provisions of the Geological and Mining Law Act and the Minister of Economy’s Regulation on the principles of establishing and managing a mine closure fund, the Parent Company is obligated to accumulate funds on a separate bank account of the Mine Closure Fund (Fundusz Likwidacji Zakładów Górniczych – FLZG), which may be expended solely and exclusively to finance a total or partial closure of a mine Cash and cash equivalents of the Mine Closure Fund, due to restrictions on their disposal, are presented in the consolidated statement of financial position as long-term financial assets, regardless of their maturity. The Group measures these assets using the effective interest rate method, taking impairment losses into account. The impairment model is based on a calculation of expected losses.
| Note | 31.12.2018
(IFRS 9) |
01.01.2018
(IFRS 9) |
31.12.2017
(IAS 39) |
|
|---|---|---|---|---|
| Long-term financial assets – cash and cash equivalents of the Mine Closure Fund | 329.1 | 310.7 | 310.9 | |
| gross value | 329.3 | 310.9 | 310.9 | |
| impairment loss | 9.1 | (0.2) | (0.2) | – |
| Bank term deposits | 10.6 | 10.3 | 10.3 | |
| gross value | 10.6 | 10.3 | 10.3 | |
| impairment loss | – | – | – | |
| Ownership interest and shares in other entities | 0.1 | 0.1 | 0.1 | |
| Other non-financial receivables | 9.3 | 7.6 | 7.6 | |
| TOTAL | 349.1 | 328.7 | 328.9 |
All the long-term financial assets are denominated in Polish zloty.
The fair value of long-term financial assets is not significantly different from their carrying amount.
Information on the degrees of assessment of credit risk for cash based on external agency ratings is presented in Note 9.5.1.