Financial liabilities are recognized in the statement of financial position when the PZU Group company becomes a party to a binding contract in which it assumes the risk associated with the financial instrument. In the case of transactions concluded on an organized market, the purchase or sale of financial liabilities are recognized in the books on the date of the transaction.
A financial liability (or part thereof) is excluded from the consolidated statement of financial position when the obligation specified in the contract is discharged or canceled or expires.
Financial liabilities measured at fair value through profit or loss included in particular:
Financial liabilities measured at amortized cost included in particular liabilities on account of repurchase transactions.
Due to the short-term nature, trade liabilities are recognized at the amount of the required payment.
Accrued expenses resulting from benefits provided for PZU Group companies by external business partners or from an obligation to provide benefits whose value can be estimated, despite the fact that the date when the liability is created is not yet known, is measured at the amount of estimated future cash flows.
The cost of employee vacation time is recognized on an accrual basis, using the liability method. The liability on account of employee vacation time is determined based on the difference between the actual amount of vacation time used by employees and the amount that would have been used if the vacation time had been taken pro rata to the elapse of time in the period when the employees are entitled to their vacation time.
|Other liabilities||31 December 2020||31 December 2019
|Liabilities measured at fair value||1,389||675|
|Liabilities on borrowed securities (short sale)||851||293|
|Investment contracts for the client’s account and risk (unit-linked)||268||259|
|Liabilities toward participants in consolidated mutual funds||265||90|
|Liability on the settlement of the acquisition of Tomma shares||5||33|
|Accrued expenses of agency commissions||359||390|
|Accrued payroll expenses||609||635|
|Accrued reinsurance expenses||731||706|
|Liabilities on account of repurchase transactions||1,154||599|
|Liabilities due under transactions on financial instruments||1,044||905|
|Liabilities to banks for payment documents cleared in interbank clearing systems||1,140||1,096|
|Liabilities on direct insurance||915||892|
|Liabilities on account of payment card settlements||354||408|
|Liabilities for contributions to the Bank Guarantee Fund||514||356|
|Estimated non-insurance liabilities||143||161|
|Liabilities to employees||42||47|
|Estimated refunds of compensation in connection with banks’ clients lapsing or withdrawing from insurance purchased during the sale of credit products||30||69|
|Current income tax liabilities||355||352|
|Liabilities on account of employee leaves||156||139|
|Liabilities to the state budget, other than income tax liabilities||116||182|
|Liabilities on account of donations||21||23|
|Alior Bank’s liabilities for insurance of bank products offered to the bank’s clients||21||12|
|Insurance Guarantee Fund||14||15|
|Liability for the refund of loan costs||88||106|
|Liabilities for direct claims handling||31||29|
|Other liabilities, total||12,434||10,599|
As at 31 December 2020 and 31 December 2019, the fair value of other liabilities did not differ significantly from their carrying amount, primarily due to fact that over 90% of them are short-term liabilities.
|Other liabilities by maturity||31 December 2020||31 December 2019
|Up to 1 year||11,246||9,592|
|1 to 5 years||759||544|
|Over 5 years||429||463|
|Total other liabilities by maturity||12,434||10,599|