Integrated report 2020
- PGE’s vision
- Sustainable transformation
- PGE in 2020
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Integrated report 2020
|
As at December 31, 2020 |
As at December 31, 2019 |
|
| PREPAYMENTS AND DEFERRED EXPENSES | ||
| Customer acquisition costs | 50 | 44 |
| Long-term contracts | 43 | 35 |
| Property and tort insurance | 14 | 19 |
| Logistic costs related to purchase of coal | 17 | 17 |
| IT services | 16 | 11 |
| CSBF | 10 | 7 |
| Other prepayments and deferred expenses | 20 | 13 |
| OTHER CURRENT ASSETS | ||
| Input VAT receivables | 519 | 338 |
| Excise tax receivables | 17 | 32 |
| Prepayments for deliveries | 11 | 15 |
| Other current assets | 82 | 74 |
| TOTAL OTHER ASSETS | 799 | 605 |
The amount of input VAT receivables is mainly related to the estimated sales of electricity not read on metering equipment as at the reporting date. The amount of excise tax receivables relates to the exemption from excise tax on electricity generated from renewable energy sources, based on a document confirming the redemption of an energy certificate of origin.
Costs incurred prior to the execution of a contract for the performance of its subject matter are classified as other assets and recognised as prepayments if it is likely that future revenue from the customer will cover such costs.
As at December 31, 2020 and December 31, 2019, the Group recognised the following costs to be settled over time:
|
Year ended December 31, 2020 |
Year ended December 31, 2019 |
|
| AS AT JANUARY 1 | 148 | 143 |
| Capitalised incremental costs of obtaining a contract | 53 | 49 |
| Depreciation | (46) | (43) |
| Other changes | – | (1) |
| AS AT DECEMBER 31 | 155 | 148 |
| Short-term | 50 | 44 |
| Long-term | 105 | 104 |
2
Incremental costs of obtaining a contract comprise mainly agency commissions for customer acquisition or retention.
The asset is depreciated on a systematic basis, taking into account the period over which the goods or services to which it relates are transferred to the customer.