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15. CO₂ emission allowances for captive use

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13.2 Deferred tax liabilities

14. Inventories

SIGNIFICANT ACCOUNTING PRINCIPLES
Inventories
Inventories are assets held for sale in the course of ordinary business activities; they are in the course of being manufactured for the purpose of selling or have the form of materials or products consumed in production processes or in the provision of services.
Inventories include the following:
  • materials,
  • products,
  • intermediate products and work in progress,
  • energy origin rights – purchased, generated or received property rights related to certificates of origin for energy generated from renewable sources, property rights related to certificates of origin for energy generated in cogeneration, and property rights related to certificates of energy efficiency,
  • goods (in particular CO2 emission allowances intended for resale).

Inventories (except for CO2 emission allowances acquired in order to realise gains) are measured at the lower of cost and net realisable value.
Rights acquired to realise gains from market price fluctuations are recognised at fair value less costs of sale.
Inventory outflows are measured in accordance with the following rules:
  • materiały i towary (z wyjątkiem uprawnień do emisji CO2 oraz praw majątkowych) – według metody FIFO,
  • uprawnienia do emisji CO2 – według szczegółowej identyfikacji,prawa majątkowe – według szczegółowej identyfikacji.

As at the reporting date, the purchase prices or manufacturing costs of inventories used in their valuation may not be higher than their possible net prices. Write-downs of inventories are recognised as operating costs. If a given component of inventories regains previously lost value in part or in whole, its value is updated by decreasing the value of the previous write-down.
The companies in which backlog and redundant inventories represent a significant item may, on the basis of specific instructions, apply more detailed rules for calculating and writing down their values. Write-downs of backlog and redundant inventories may be recognised in other operating activities.
As at 31 December 2023 As at 31 December 2022

Initial value Revaluation Net book value Initial value Revaluation Net book value
Coal 2.022 – 2.022 1.958 – 1.958
Repair and maintenance materials 820 (22) 798 776 (30) 746
Mazout 46 – 46 64 – 64
Other materials 181 (16) 165 156 (13) 143
TOTAL MATERIALS 3.069 (38) 3.031 2.954 (43) 2.911
Green property rights 305 (37) 268 466 (38) 428
Other property rights 15 – 15 4 (1) 3
ENERGY ORIGIN RIGHTS 320 (37) 283 470 (39) 431
CO2 emission allowances 1 – 1 1 – 1
Coal 773 (430) 343 1,723 (226) 1,497
Other goods 6 (1) 5 8 (1) 7
TOTAL GOODS 780 (431) 349 1,732 (227) 1,505
OTHER INVENTORIES 110 – 110 71 – 71
TOTAL INVENTORIES 4,279 (506) 3,773 5,227 (309) 4,918

Year ended
31 December 2023		 Year ended
31 December 2023
REVALUATION OF INVENTORIES AS AT 1 JANUARY (309) (101)
Creation of write-down (792) (81)
Reversal of write-down 5 66
Use of write-down 574 3
Fair value measurement 95 (196)
Change in composition of CG – (5)
Other changes (79) 5
REVALUATION OF INVENTORIES AS AT 31 DECEMBER (506) (309)