14.6. Cash

SELECTED ACCOUNTING PRINCIPLES

Cash

Cash comprises cash on hand and in bank accounts as well as cash in transit. Cash equivalents are short-term, highly liquid investments (of initial maturity up to three months), that are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value. Valuation and outflows of cash and cash equivalents in foreign currencies are based on FIFO (First In First Out) method.

The Group classifies cash as financial assets measured at amortised cost, taking into account impairment allowances determined in accordance with the expected loss model.

Restricted cash consists mainly of funds on the VAT account (split payment) and securing settlements with the Clearing and Settlement House (Izba Rozliczeniowa Giełd Towarowych S.A. (IRGiT) in Polish) contributed by PKN ORLEN and the ENERGA Group.