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ACCOUNTING POLICIES
Cash and cash equivalents
Cash comprises cash on hand and demand deposits.
Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
Short-term deposits are placed for different periods, from one day up to one month, depending on the Group’s needs for cash.
The balance of cash and cash equivalents comprises the following items:
| As at December 31, 2019 | As at December 31, 2018 | |
| Cash in hand and at banks | 1,093 | 1,023 |
| Overnight deposits | 19 | 33 |
| Short-term deposits | 103 | 156 |
| Cash in VAT accounts | 98 | 69 |
| TOTAL | 1,313 | 1,281 |
| Exchange differences on cash in foreign currencies | (2) | (2) |
| Cash and cash equivalents presented in the statement of cash flows | 1,311 | 1,279 |
| Undrawn borrowing facilities as at December 31 | 5,309 | 8,312 |
| including overdraft facilities | 1,035 | 934 |
A detailed description of credit agreements is presented in note 25.1.3 to these financial statements.
The balance of cash includes restricted cash in the amount of PLN 230 million (PLN 98 million in the comparative period) in PGE Dom Maklerski S.A. clients’ accounts as collateral for settlements with IRGiT (the Warsaw Commodity Clearing House), cash in VAT accounts in the amount of PLN 98 million (PLN 69 million in the comparative period) as well as securities and collateral of PLN 100 million (PLN 13 million in the comparative period).
