Equity comprises of the share capital, share premium, revaluation reserve and retained earnings. All balances of capital and funds are recognized at nominal value.
10.1. Share capital
Share capital is presented at nominal value, in accordance with the charter and entry into the commercial register of the dominant entity.
10.1.1. Own shares
If the Group acquires its own shares, then the paid amount together with the costs directly attributed to such purchase is recognized as a change in the equity. Acquired own shares are treated as own shares and disclosed as reduction of the equity.
Dividends for the financial year which have been approved by the General Shareholders’ Meeting, but not paid as of the balance sheet day are disclosed under the balance sheet recognized in the item Other Liabilities.
10.2. Share premium
Share premium is formed from agio obtained from the issue of shares reduced by the attributable direct costs incurred with that issue.
10.3. Revaluation reserve
Revaluation reserve is created as a result of:
- revaluation of financial instruments classified as available for sale,
- valuation of derivatives for the element being the effective cash flow hedge,
- revaluation of tangible fixed assets carried at fair value.
The deferred tax resulting from above mentioned revaluation is included in the revaluation reserve. The revaluation reserve is not subject to profit distribution.
10.4. Retained earnings
Retained earnings are created from charges against profit and are allocated for purposes specified in the Articles of Association (the company’s Charter) or other legal regulations. Retained earnings comprise of:
- other supplementary capital,
- other reserve capital,
- general banking risk fund,
- undistributed result from previous years,
- net result attributable to owners of the parent of current year.
Other supplementary capital, other reserve capital and general banking risk fund are created from charges against profit and are allocated for purposes specified in the Articles of Association (the company’s Charter) or other legal regulations.
General banking risk fund is created in accordance with the Banking Act dated 29th August 1997 with subsequent amendments, from profit after tax.
The net financial result allocated to the dominant entity represents the gross result under the performance statement for the current year, adjusted with the corporate income tax and the result allocated to the minority shares.