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ACCOUNTING POLICIES
Investment property
At initial recognition, investment property is measured at cost, taking into account transaction costs. If an investment property was purchased, the cost of a purchased investment property comprises its purchase price and any directly attributable expenditure, such as legal services and tax on property purchase.
Investment property at PGE Group companies comprises mainly buildings located in the entity’s locations, leased fully or partially to third parties. Fair value of investment property is not significantly different than valuation determined under the historical cost convention in light of the materiality related to the consolidated financial statements.
In the present period, the Group recognised PLN 1 million of expenditure on investment property, whereas depreciation charges reached PLN 2 million.
