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17.2 Other current assets
(in PLNm) | As at December 31, 2022 | As at December 31, 2021 |
---|---|---|
PREPAYMENTS | ||
Cost to acquire customers | 60 | 56 |
Logistics costs related to coal purchases | 55 | 4 |
Long-term contracts | 35 | 38 |
IT services | 19 | 15 |
Property and tort insurance | 17 | 14 |
Social Fund | 5 | 7 |
Other prepayments | 30 | 18 |
OTHER CURRENT ASSETS | ||
VAT receivables | 1.570 | 537 |
Advances for deliveries | 404 | 507 |
Excise tax receivables | 12 | 17 |
Other current assets | 12 | 27 |
TOTAL OTHER ASSETS | 2.219 | 1.240 |
The increase in input VAT receivables is mainly due to the introduction of the anti-inflation shield (a reduction in the VAT rate on electricity, system heat, gas, among others) and an increase in coal purchases. The amount of the delivery advance is linked to future coal deliveries.
ACCOUNTING POLICIES
Cost to acquire customers
Pre-contractual costs incurred in connection with the performance of the contract are included in other assets and recognised as prepaid expenses if it is probable that these costs will be covered in the future by revenue received from the customer.
The Group recognised the following costs to be settled over time as at December 31, 2022 and December 31, 2021.
(in PLNm) | Year ended December 31, 2022 |
Year ended December 31, 2021 |
---|---|---|
AS AT JANUARY 1 | 162 | 155 |
Costs of bringing a contract to conclusion – capitalised | 56 | 61 |
Amortisation and impairment | (56) | (54) |
AS AT DECEMBER 31 | 162 | 162 |
Current | 60 | 56 |
Non-current | 102 | 106 |
The costs of bringing a contract to conclusion primarily include agency commissions for acquiring or retaining a customer.
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.