10.36. Costs

Costs are probable decreases in economic benefits during the period determined reliably in the form of a decrease in the value of assets or an increase in the value of liabilities or provisions which will result in a decrease in equity or an increase in its shortage in a manner other than the withdrawal of funds by shareholders or owners. The costs are recognised in the income statement according to the matching principle. In order to ensure the principle of matching the revenue and costs, the assets or liabilities for a given period comprise prepayments or accruals including costs or revenue referring to future periods and the costs for that period which have not been incurred yet.

They comprise costs directly and indirectly related to the operations of the Group in breakdown into particular types of costs.

It comprises the net value of recognised and reversed write-downs of receivables over their reversals in the specific period.

These are costs indirectly related to the operations of the Group, in particular:

recognised litigation provisions;
donations granted;
accrued or paid fines and damages;
losses in tangible current or non-current assets;
losses from the disposal of property, plant and equipment and intangible assets;
the surplus of recognised write-downs of materials and trade goods over their reversal in a given period;

Finance costs comprise specifically:

interest on credits, loans and other borrowings, including the discount of liabilities;
changes in the provisions resulting from the approaching of the maturity of a liability (the so called ‘unwinding of the discount’ effect);
losses from net currency translation differences on receivables and liabilities expressed in foreign currencies.

Operating costs

Revaluation of financial assets

Other operating costs

Finance costs