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Cost of goods sold
Cost of goods sold includes:
Costs of products which are directly attributable to revenue generated by the entity affect the entity’s profit or loss for the reporting period in which the income was earned.
Costs of products that can only indirectly be attributed to revenue or other benefits received by the entity affect the entity’s profit or loss to the extent they are attributable to the reporting period, ensuring their matching with revenue or other economic benefits.
| Year ended December 31, 2019 | Year ended December 31, 2018 | |
|---|---|---|
| restated data | ||
| COSTS BY NATURE | ||
| Depreciation, amortisation and impairment losses | 11,417 | 3,985 |
| Materials and energy consumption | 5,370 | 4,900 |
| External services | 2,548 | 2,481 |
| Taxes and fees | 5,483 | 4,001 |
| Employee benefits expenses | 5,464 | 4,882 |
| Other costs by nature | 327 | 322 |
| TOTAL COST BY NATURE | 30,609 | 20,571 |
| Change in products | (28) | (2) |
| Cost of products and services for the entity’s own needs | (1,333) | (1,176) |
| Distribution and selling expenses | (1,361) | (1,406) |
| General and administrative expenses | (1,099) | (984) |
| Cost of goods and materials sold | 13,345 | 4,041 |
| COST OF GOODS SOLD | 40,133 | 21,044 |
The increase in the cost of goods and materials sold results from the increase in the purchase of electricity on the wholesale market and on the balancing market and is caused by the increased turnover of electricity on the exchange, which is a consequence of the introduction of exchange sale requirement of 100%.
As disclosed in notes 3.1 and 3.3 to these financial statements, following impairment tests performed, the Group recognised and reversed impairment losses on non-current assets in the amount of PLN 7,129 million under Amortisation, depreciation and impairment losses. In 2019, the total amount of impairment losses recognised and reversed was PLN 7,518 million.
