Tools
ACCOUNTING POLICIES
Company Social Benefits Fund and other Special Funds
The Act on Company Social Benefits Fund of 4 March 1994 (as amended) stipulates that an employer must set up a Company Social Benefits Fund if it has more than 20 full-time employees. The Group companies create such funds and make periodic contributions thereto. The purpose of the fund is to subsidise the Group’s social activities and to finance loans to employees and other employee benefits. Contributions to the Company Social Benefits Fund made during the year constitute a cost for the period to which they relate.
Assets and liabilities of the Company Social Benefits Fund are presented in the financial statements on a net basis.
| As at December 31, 2019 | As at December 31, 2018 | |
|---|---|---|
| Property, plant and equipment contributed to the fund | – | 2 |
| Loans advanced to employees | 80 | 84 |
| Cash | 48 | 44 |
| Other assets of the fund | – | 1 |
| Liabilities of the fund | (120) | (124) |
| NET BALANCE | 8 | 7 |
| Contribution to the fund during the period | 171 | 141 |
Additionally, as described in note 22, PGE Group entities recognise a provision for post-employment benefits (Company Social Benefits Fund).
