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ACCOUNTING POLICIES
Financial receivables
Financial receivables, including trade receivables, are measured at fair value at the date on which they arise, and subsequently at amortised cost using the effective interest rate method, taking into account an allowance for expected credit losses.
The Group uses simplified methods to measure receivables at amortised cost, unless this would distort information contained in its statement of financial position, in particular where the period until the due date for payment is not long.
In the case of financial receivables, the Group measures loss allowance for expected credit losses at an amount equal to lifetime expected credit losses of the instrument.
The Group measures financial assets at amortised cost, in line with the business model adopted.
| As at December 31, 2019 | As at December 31, 2018 | |||
|---|---|---|---|---|
| Non-current | Current | Non-current | Current | |
| Trade receivables | – | 3,155 | – | 3,155 |
| Deposits and loans | 174 | 8 | 161 | 7 |
| Receivables from recognised compensations based on the Act on Electricity Prices | – | 304 | – | – |
| Deposits, securities and collateral | 1 | 771 | 1 | 694 |
| Damages and penalties | – | 112 | – | 193 |
| Other financial receivables | 5 | 137 | 6 | 53 |
| FINANCIAL RECEIVABLES | 180 | 4,815 | 168 | 4,102 |
Deposits, securities and collateral mainly concern transaction and hedging deposits and the guarantee fund related to trade in electricity and CO2 allowances.
Trade receivables
The main component of trade receivables are receivables reported by PGE Obrót S.A. Receivables from households account for about 16% of the consolidated balance of trade receivables, while receivables from the corporate clients of PGE Obrót S.A. represent about 61% of the consolidated balance of trade receivables. As at December 31, 2019, the share of PGE Group’s three most significant customers accounted for approximately 26% of the total balance. For additional information on trade receivables, see note 26.3.1 to these financial statements.
Trade receivables also include electricity sales accrual.
Other financial receivables
The value of other financial receivables consists mainly of the guarantee fund, compensation for damages and disputed receivables described in note 28.4 to these consolidated financial statements.
