PAGE:
1 – 5
6 – 7
CONSOLIDATED
COMPREHENSIVE INCOME
8 – 9
10
11 – 12
13 – 73
CHIMCOMPLEX S.A.
Notes attached form an integral part of these consolidated financial statements.
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CHIMCOMPLEX S.A.
Notes attached form an integral part of these consolidated financial statements.
CHIMCOMPLEX S.A.
Notes attached form an integral part of these consolidated financial statements.
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CHIMCOMPLEX S.A.
Notes attached form an integral part of these consolidated financial statements.
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on its behalf by:
CHIMCOMPLEX S.A.
Notes attached form an integral part of these consolidated financial statements.
interest
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revaluation gain
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revaluation for disposed assets
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of Sistemplast S.A (note 29)
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noncontrolling interest (note 30)
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CHIMCOMPLEX S.A.
Notes attached form an integral part of these consolidated financial statements.
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in foreign currencies
repayments, and repayment of borrowings). For the year ended December 31, 2022, and December 31, 2021 respectively,
the changes in finance lease comprise in principal cash changes, the effect of non-cash changes is not material therefore the
Group believes that the presentation truly reveals the cash changes in finance liabilities.
on its behalf by:
CHIMCOMPLEX S.A.
13
(“the Company”) and
its subsidiaries (together “the Group”) as at and for the year ended 31 December 2021.
incorporated in accordance with the Romanian legislation and recorded in 1991
to Trade Registry.
.
The Group operates in the chemical industry and it’s main groups of products are:
Chloralkali,
Organic Solvents,
Inorganic Chlorides,
Alkylamines, Polyols
Oxo-Alcholos.
As at December 31, 2022 and December 31, 2021 respectively, the Company’s subsidiaries and associates are the following:
2022
2021
SRL
other base
inorganic
chemicals
the sale of
machinery,
industrial
equipment, ships
and airplanes
production
mechanical
operations
2.
APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS
Standards (“IFRS”) as adopted by the European Union (“IFRS-EU”).
standards were in issue, but not yet effective:
IFRS
17
“Insurance
Contracts”
including
amendments
to
IFRS
17
issued
on
25
June
2020
and
amendments
to
IFRS
17
“Initial
Application
of
IFRS
17
and
IFRS
9”
issued
on
9
December
2021
(effective
for
annual
periods
beginning
on
or
after
1 January 2023),
Amendments
to
IAS
1
“Presentation
of
Financial
Statements”
–
Classification
of
Liabilities
as
Current
or
Non-Current
(effective for annual periods beginning on or after 1 January 2023),
Amendments
to
IAS
1
“Presentation
of
Financial
Statements”
–
Disclosure
of
Accounting
Policies
(effective
for
annual
periods beginning on or after 1 January 2023),
Amendments
to
IAS
8
“Accounting
Policies,
Changes
in
Accounting
Estimates
and
Errors”
–
Definition
of
Accounting
Estimates (effective for annual periods beginning on or after 1 January 2023),
Amendments
to
IAS
12
“Income
Taxes”
–
Deferred
Tax
related
to
Assets
and
Liabilities
arising
from
a
Single
Transaction
(effective for annual periods beginning on or after 1 January 2023),
Amendments
to
IFRS
16
“Leases”
–
Lease
Liability
in
a
Sale
and
Leaseback
(effective
for
annual
periods
beginning
on
or
after 1 January 2024),
Amendments
to
IAS
1
“Presentation
of
Financial
Statements”
–
Non-current
Liabilities
with
Covenants
(effective
for
annual periods beginning on or after 1 January 2024),
Amendments
to
IFRS
10
“Consolidated
Financial
Statements”
and
IAS
28
“Investments
in
Associates
and
Joint
Ventures”
–
Sale
or
Contribution
of
Assets
between
an
Investor
and
its
Associate
or
Joint
Venture
and
further
amendments
(effective date deferred indefinitely until the research project on the equity method has been concluded).
Group
has
elected
not
to
adopt
the
new
standard
and
amendments
to
existing
standards
in
advance
of
their
effective
dates.
[If
the
Company
/
Group
elected
to
adopt
some
of
the
standards
and
interpretations
in
advance,
the
information
under
IAS
8.28
should
be
disclosed.]
The
Group
anticipates
that
the
adoption
of
the
standard
and
amendments
to
existing
standards
will have no material impact on the financial statements of the
Group
in the period of initial application.
by IASB and adopted by the EU and which are not yet effective:
IFRS
17
“Insurance
Contracts”
including
amendments
to
IFRS
17
issued
by
IASB
on
25
June
2020
–
adopted
by
the
EU
on
19 November 2021 (effective for annual periods beginning on or after 1 January 2023),
Amendments
to
IFRS
17
“Insurance
contracts”
–
Initial
Application
of
IFRS
17
and
IFRS
9
–
Comparative
Information,
adopted by the EU on 8 September 2022 (effective for annual periods beginning on or after 1 January 2023),
Amendments
to
IAS
1
“Presentation
of
Financial
Statements”
–
Disclosure
of
Accounting
Policies
adopted
by
the
EU
on
2 March 2022 (effective for annual periods beginning on or after 1 January 2023),
Amendments
to
IAS
8
“Accounting
Policies,
Changes
in
Accounting
Estimates
and
Errors”
–
Definition
of
Accounting
Estimates adopted by the EU on 2 March 2022 (effective for annual periods beginning on or after 1 January 2023),
Amendments
to
IAS
12
“Income
Taxes”
–
Deferred
Tax
related
to
Assets
and
Liabilities
arising
from
a
Single
Transaction
adopted by the EU on 11 August 2022 (effective for annual periods beginning on or after 1 January 2023).
present,
IFRS
as
adopted
by
the
EU
do
not
significantly
differ
from
regulations
adopted
by
the
International
Accounting
Standards
Board
(IASB)
except
for
the following
new
standards
and
amendments
to
the
existing
standards,
which
were
not
endorsed
for
use
in
EU
as
at
the
date
of
publication
of
financial
statements
(the
effective
dates
stated
below
is
for
IFRS
as
issued by IASB)
:
Amendments
to
IAS
1
“Presentation
of
Financial
Statements”
–
Classification
of
Liabilities
as
Current
or
Non-Current
(effective for annual periods beginning on or after 1 January 2023),
Amendments
to
IAS
1
“Presentation
of
Financial
Statements”
–
Non-current
Liabilities
with
Covenants
(effective
for
annual periods beginning on or after 1 January 2024),
Amendments
to
IFRS
16
“Leases”
–
Lease
Liability
in
a
Sale
and
Leaseback
(effective
for
annual
periods
beginning
on
or
after 1 January 2024),
IFRS
14
“Regulatory
Deferral
Accounts”
(effective
for
annual
periods
beginning
on
or
after
1
January
2016)
–
the
European
Commission
has
decided
not
to
launch
the
endorsement
process
of
this
interim
standard
and
to
wait
for
the
final standard,
Amendments
to
IFRS
10
“Consolidated
Financial
Statements”
and
IAS
28
“Investments
in
Associates
and
Joint
Ventures”
–
Sale
or
Contribution
of
Assets
between
an
Investor
and
its
Associate
or
Joint
Venture
and
further
amendments
(effective date deferred indefinitely until the research project on the equity method has been concluded).
Group
anticipates
that
the
adoption
of
these
new
standards
and
amendments
to
the
existing
standards
will
have
no
material impact on the financial statements of the Company in the period of initial application.
accounting
for
a
portfolio
of
financial
assets
and liabilities
whose
principles
have
not
been
adopted
by
the
EU
remains
unregulated.
3.
SIGNIFICANT ACCOUNTING POLICIES
Statement of compliance
approval of accounting regulations in accordance with the International Financial Reporting Standards applicable to
companies whose securities are admitted to trading on a regulated market, with subsequent amendments and clarifications
(“OMFP 28422/2016”). These provisions are in accordance with the provisions of the adopted International Financial
Reporting Standards by the European Union (“IFRS EU”).
Basis of preparation
basis except for certain classes of financial instruments and Property Plant and Equipment that are measured at revalued
amounts or fair values, as explained in the accounting policies below. Historical cost is generally based on the fair value of
the consideration given in the exchange for assets.
adjusted for the effects of hyperinflation until December 31, 2003 for share capital and reserves, respectively property,
plant and equipment.
Going concern
on the following:
The Group recorded net profit in the amount of RON 271,613,984 for 2022 (2021: RON 388,654,469 );
As disclosed in Note 23A. the Group is compliant with the financial covenants as stated in the borrowing
agreements and expects to be compliant with them in 2023, as well.
Property, plant and Equipment and intangible assets
PROPERTY, PLANT AND EQUIPMENT
Recognition and measurement
to acquisition and bringing the asset to the location and condition necessary for their intended use.
losses since the most recent valuation. The assets in progress and advance payments for non-current assets are measured at
cost less any accumulated impairment losses.
not differ materially from the one that would be determined using the fair value at the end of the reporting period. The last
revaluation was made as of December 31, 2021 by an independent certified appraiser – Darian DRS S.A
of that item, and the net amount is restated to the revalued amount of the asset.
material costs and direct labour costs;
any amounts that can be directly attributable to bringing the asset into working condition;
costs of dismantle, removal and restoration of the area in which they were placed, when the Group is required to
move the assets and restore land;
borrowing costs (capitalized).
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Property, plant and Equipment and intangible assets (continued)
of tangible assets) are recognized in profit or loss account.
(ii)
Subsequent expenditure on maintenance
separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to
the
Group
and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized.
that would be determined using fair values at the end of each reporting period.
(iii)
Depreciation
tangible assets are as follows:
with the estimated period of economic benefits that will result from the use of assets.
Revaluation reserve
as revaluation reserve included in equity.
under the heading of revaluation reserve. However, the increase is recognised in profit and loss to the extent that it reverses
a revaluation decrease of the same amount of the asset previously recognised in profit and loss.
the decrease is recognized in equity in revaluation reserves if there is any credit balance existing in the revaluation reserve in
respect of that asset.
Property, plant and Equipment and intangible assets (continued)
directly to retained earnings when the asset is derecognised. This may involve transferring the whole of the surplus when
the asset is retired or disposed of. Transfers from revaluation surplus to retained earnings are not made through profit or
loss.
disclosed in accordance with IAS 12 Income Taxes.
(v)
Impairment of non-financial assets
each reporting date to determine whether there is evidence of the existence of any impairment. An impairment loss is
recognized if the carrying amount of an asset or cash-generating unit exceeds its estimated recoverable amount.
determining value in use, the expected future cash flows are discounted to determine the present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks specific to the asset. For impairment
testing, assets that cannot be tested individually are grouped in the smallest group of assets that generate cash inflows from
continuing use and that are largely independent of the cash inflows from other assets or group of assets (“cash-generating
unit”).
amount. If an asset has been revalued (e.g. an item of property, plant and equipment), the impairment loss is dealt with as a
revaluation decrease in accordance with the relevant Standard, (in this case, IAS 16).
is evidence that the loss has decreased or no longer exists.
impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that
would have been determined, net of depreciation, if no impairment had been recognized.
(vi)
Reclassification to and from investment property
Group
reclassifies elements of plant, property and equipment as investment property or elements of investment
property to plant, property and equipment when:
when there is a change in use, a change in use occurs when the property meets, or ceases to meet, the definition
of investment property and there is evidence of the change in use;
INTANGIBLE ASSETS
business combination is its fair value as at the date of acquisition. Following initial recognition, intangible assets are carried
at cost less any accumulated amortisation and any accumulated impairment losses.
reflected in the income statement in the year in which the expenditure is incurred. The useful lives of intangible assets are
assessed as either finite or indefinite.
Property, plant and Equipment and intangible assets (continued)
(continued)
an indication that the intangible asset may be impaired. The estimated useful lives used for intangible assets are as follows:
each financial year end.
asset is accounted for by changing the amortisation period or method, as appropriate, and are treated as changes in
accounting estimates.
amortization expense.
(b)
Investment property
property generates cash flows that are to a great extent independent from other assets held by an Group.
(c)
Foreign currencies
functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.
At the end of each reporting period, monetary items denominated in foreign currencies are translated at the rates prevailing
at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are translated at the rates
prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost
in a foreign currency are not retranslated.
Exchange differences on foreign currency borrowings relating to assets under construction for future productive use,
which are included in the cost of those assets when they are regarded as an adjustment to interest costs on those
foreign currency borrowings;
Exchange differences on transactions entered into in order to hedge certain foreign currency risks.
Foreign currencies (continued)
periods were as follows:
(d)
Trade receivables and other receivables
end of the year but invoiced in the first days after the end of the year. Trade receivables and similar accounts are initially
recognized at transaction price and subsequently presented at amortized cost less impairment losses. Trade and other
receivables do not contain any significant financing component, the amortized costs amounts approximates the fair value.
estimate of an interest rate, to take into account the time value of money and risk profile of the counterparty.
the simplified method of expected credit losses.
(e)
Inventories
acquisition cost or the price in foreign currency at the exchange rate on the date of acquisition, plus custom duties, custom
fees and travel expenses such as insurance.
inventories less all estimated costs of completion and costs necessary to make the sale.
(f)
Bank deposits, cash and cash equivalents
to an insignificant risk in fair value change. Cash in foreign currencies are revalued at the exchange rate at the end of the
period. Bank overdrafts are treated as current liabilities.
(g)
Impairment of financial assets
amortized cost or at fair value through other comprehensive income. The amount of expected credit losses is updated at
each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument. The Group
assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due.
financial assets are estimated using a provision matrix based on the Group’s historical credit loss experience, adjusted for
factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the
forecast direction of conditions at the reporting date, including time value of money where appropriate.
Definition of default
historical experience indicates that financial assets that meet either of the following criteria are generally not recoverable:
when there is a breach of financial covenants by the debtor; or
information developed internally or obtained from external sources indicates that the debtor is unlikely to pay its
creditors, including the Group, in full (without taking into account any collateral held by the Group).
default criterion is more appropriate.
Credit-impaired financial assets
flows of that financial asset have occurred. Evidence that a financial asset is credit-impaired includes observable data about
the following events:
significant financial difficulty of the issuer or the borrower;
a breach of contract, such as a default or past due event (see (ii) above);
the lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s financial difficulty,
having granted to the borrower a concession(s) that the lender(s) would not otherwise consider;
it is becoming probable that the borrower will enter bankruptcy or other financial reorganisation; or
the disappearance of an active market for that financial asset because of financial difficulties.
Write-off policy
entered into bankruptcy proceedings. Financial assets written off may still be subject to enforcement activities under the
Group’s recovery procedures, taking into account legal advice where appropriate. Any recoveries made are recognised in
profit or loss.
Impairment of financial assets (continued)
Measurement and recognition of expected credit losses
of the loss if there is a default) and the exposure at default. The assessment of the probability of default and loss given
default is based on historical data adjusted by forward-looking information as described above. As for the exposure at
default, for financial assets, this is represented by the assets’ gross carrying amount at the reporting date.
the Group in accordance with the contract and all the cash flows that the Group expects to receive, discounted at the
original effective interest rate.
of expected credit loss (ECL) model with a corresponding adjustment to their carrying amount through a loss allowance
account, except for investments in debt instruments that are measured at fair value through other comprehensive income
(FVTOCI, for which the loss allowance is recognised in other comprehensive income and accumulated in the investment
revaluation reserve, and does not reduce the carrying amount of the financial asset in the statement of financial position.
Derecognition of financial assets
transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity.
transferred asset, the Group recognises its retained interest in the asset and an associated liability for amounts it may have
to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group
continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.
the sum of the consideration received and receivable is recognised in profit or loss.
(h)
Share capital
only after their approval by the Shareholders and registration at Trade Register. Additional costs directly attributable to issue
of shares are recognized as a deduction from equity, net of the effects of taxation.
(i)
Trade and other payables
method and include the invoices issued by suppliers of goods and services rendered.
(j)
Interest bearing loans
borrowings are presented at amortized cost, any difference between cost and redemption value being recognized in the
income statement over the period of a loan based on the effective interest rate.
(k)
Leasing
a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except
for short-term leases (with a lease term of 12 months or less) and leases of low value assets (of less than USD 5,000). For
these leases, the Group recognizes the lease payments as an operating expense on a straight-line basis over the term of the
lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased
assets are consumed.
date, discounted by using the interest rate implicit in the lease. If this rate cannot be readily determined, the Group uses its
incremental borrowing rate.
subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective
interest method) and by reducing the carrying amount to reflect the lease payments made.
whenever:
the lease term has changed or there is a significant event or change in circumstances resulting in a change in the
assessment of exercise of a purchase option, in which case the lease liability is remeasured by discounting the
revised lease payments using a revised discount rate;
the lease payments change due to changes in an index or rate or a change in expected payment under a
guaranteed residual value, in which cases the lease liability is remeasured by discounting the revised lease
payments using an unchanged discount rate (unless the lease payments change is due to a change in a floating
interest rate, in which case a revised discount rate is used)
a lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the
lease liability is remeasured based on the lease term of the modified lease by discounting the revised lease
payments using a revised discount rate at the effective date of the modification.
transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group expects to exercise a
purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation
starts at the commencement date of the lease.
(l)
Employee benefits
pensions, health care and unemployment cover. The cost of these payments is charged to profit or loss account in the same
period as the related salary cost.
Employee benefits (continued)
(m)
Governmental Grants
attaching to them and that the grants will be received.
expenses the related costs for which the grants are intended to compensate. Specifically, government grants whose primary
condition is that the Group should purchase, construct or otherwise acquire non-current assets (including property, plant
and equipment) are recognised as deferred income in the consolidated statement of financial position and transferred to
profit or loss on a systematic and rational basis over the useful lives of the related assets.
immediate financial support to the Group with no future related costs are recognised in profit or loss in the period in which
they become receivable.
(n)
Provisions
probable that the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the
obligation.
assessments of the time value of money and the risks specific to the liability. Unwinding of the discount is recognized as
financial expense. Where the effect of time value of money is material, the amount of a provision is the present value of the
expenditures that are foreseen to be required to settle the obligation.
receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the
receivable can be measured reliably.
considered to exist where the
Group
has a contract under which the unavoidable costs of meeting the obligations under the
contract exceed the economic benefits expected to be received from the contract.
Decommissioning provisions
an item of plant and to restore the site on which it is located, and when a reliable estimate of that liability can be made.
According with the Integrated Environmental Authorisation no. 1/10.01.2013 from the Agency of Environmental Protection
Bacau, the Group should dismantle the equipment when the activity will be ceased, and restore the land to its initial
condition. As at December 31, 2022, the Group have no plans to cease totally or partially the Group’s activity.
Provisions (continued)
(o)
Income tax
or substantively enacted at the reporting date, and any adjustment to the payment obligations of corporation tax for the
previous years. Current tax payable also includes any tax arising from declaring dividends.
Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the tax base used to calculate the tax. Deferred tax is not recognized for the following
temporary differences:
the initial recognition of assets or liabilities originating in a transaction that is not a business combination and
that is not affecting the accounting or taxable profit or loss;
differences on investments in subsidiaries or jointly controlled entities, to the extent that it is probable that they
will not be reversed in the foreseeable future; and
taxable temporary differences arising from the initial recognition of goodwill.
receivables, and relate to taxes levied by the same taxation authority to the same Group or different taxable Group, and the
Group intends to settle its current tax assets and liabilities on a net basis.
it is probable the realization of taxable profits which will be available in the future and will be used. Deferred tax assets are
reviewed at each reporting date and are reduced to the extent that it is no longer probable that a tax benefit will be
realized. Effect of tax rate change on deferred tax is recognized in profit or loss, except when it relates to items recognized in
other comprehensive income or directly in equity.
(p)
Related parties
the opportunity to directly or indirectly control or significantly influence the other party.
(q)
Revenues
in accordance with IFRS 15 – Revenues from Contracts with Customers
.
Step 1: Identification of a contract with a customer
Step 2: Identification of performance obligations established in the contract.
Step 3: Determination of the transaction price
Step 4: Allocation of the transaction price for the performance obligations included in the contract
Step 5: Recognition of revenues as the company fulfils each performance obligation
expects to be entitled in exchange of the transfer of goods or services to a customer
Revenues (continued)
credits, price concessions, incentives, performance bonuses or other similar items.
might have a maximum length of 90-day payment terms. Advance payments are requested by the Group to the external
clients and once the advance is received the goods are delivered in less than 30 days.
orders.
goods under contractual conditions based on delivery terms.
estimated to be one single performance obligation. The Group
charges extra for shipping if the customer requires delivery
services and the delivery fees are included in the price of products sold. Thereby delivery necessarily occurs before control
of the goods transfers to the customer and the Group policy is to consider that the delivery fees are not a separate service
provided to the customer and are included in the transaction price. The Group does not provide transportation services as a
standalone service and these are done in connection with the sale of goods to certain customers.
transferred to the customer, namely upon delivery of the goods in accordance with the Incoterms established. The main
incoterm used by the Group is Free Carrier “FCA” is on over 70% of the Group’s sales followed by Delivered at Place “DAP”,
Delivered Duty Paid “DDP” and Carriage and Insurance Paid to “CIP”.
contract with a customer. The Group recognises revenue when it transfers control of a service to a
customer. The services
provided by the Group are recognized monthly once the service is performed. The
Group applies a typical 30-day payment
terms
(r)
Financial income and expenses
Interest income is recognized as it accumulates in profit or loss using the effective interest method. Dividend income is
recognized in profit or loss at the date when is determined the Group’s right to receive dividends.
financial assets recognized at fair value through profit or loss.
recognized in profit or loss, using the effective interest method.
(s)
Contingencies
possibility of an outflow of resources representing possible economic benefits, but not probable, and / or the amount can be
estimated reliably. A contingent asset is not recognized in the accompanying consolidated financial statements, but
disclosed when an inflow of economic benefits is probable but not remote and the amount cannot be reliably estimate
(t)
Fair value
for financial assets and liabilities such as for non-financial. The fair values were determined in order to evaluate and present
the information in the consolidated financial statements using the methods described below. When applicable, further
information about the assumptions used in determining fair values are disclosed specific to the asset or liability.
(u)
Business combinations
combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of assets transferred
by the Group, liabilities incurred by the Group to the former owners of the acquiree and the equity interest issued by the
Group in exchange for control of the acquiree. Acquisition-related costs are recognised in profit or loss as incurred.
acquisition date, except that:
deferred tax assets or liabilities and assets or liabilities related to employee benefit arrangements are recognised
and measured in accordance with IAS 12 Income Taxes and IAS 19 Employee Benefits respectively;
liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based
payment arrangements of the Group entered into to replace share-based payment arrangements of the acquiree
are measured in accordance with IFRS 2 Share-Based Payments at the acquisition date (see below); and
assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 Non-current Assets Held
for Sale and Discontinued Operations are measured in accordance with that Standard.
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests
in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree (if any) over the net of the
acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. If, after reassessment, the net of the
acquisition-date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration
transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer’s previously held
interest in the acquiree (if any), the excess is recognised immediately in profit or loss as a bargain purchase gain.
the contingent consideration is measured at its acquisition-date fair value and included as part of the consideration
transferred in a business combination. Changes in fair value of the contingent consideration that qualify as measurement
period adjustments are adjusted retrospectively, with corresponding adjustments against goodwill. Measurement period
adjustments are adjustments that arise from additional information obtained during the ‘measurement period’ (which
cannot exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date.
period adjustments depends on how the contingent consideration is classified. Contingent consideration that is classified as
equity is not remeasured at subsequent reporting dates and its subsequent settlement is accounted for within equity. Other
contingent consideration is remeasured to fair value at subsequent reporting dates with changes in fair value recognised in
profit or loss.
remeasured to its acquisition-date fair value and the resulting gain or loss, if any, is recognised in profit or loss. Amounts
arising from interests in the acquiree prior to the acquisition date that have previously been recognised in other
comprehensive income are reclassified to profit or loss, where such treatment would be appropriate if that interest were
disposed of.
Business combinations (continued)
combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. Those
provisional amounts are adjusted during the measurement period (see above), or additional assets or liabilities are
recognised, to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if
known, would have affected the amounts recognised as of that date.
(v)
Investments in associates
joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee
.
accounting, except when the investment is classified as held for sale, in which case it is accounted for in accordance with
IFRS 5.
position at cost and adjusted thereafter to recognise the Group’s share of the profit or loss and other comprehensive
income of the associate. When the Group’s share of losses of an associate exceeds the Group’s interest in that associate
(which includes any long-term interests that, in substance, form part of the Group’s net investment in the associate), the
Group discontinues recognising its share of further losses. Additional losses are recognised only to the extent that the Group
has incurred legal or constructive obligations or made payments on behalf of the associate.
associate. On acquisition of the investment in an associate, any excess of the cost of the investment over the Group’s share
of the net fair value of the identifiable assets and liabilities of the investee is recognised as goodwill, which is included within
the carrying amount of the investment. Any excess of the Group’s share of the net fair value of the identifiable assets and
liabilities over the cost of the investment, after reassessment, is recognised immediately in profit or loss in the period in
which the investment is acquired.
(w)
Consolidation of entities under common control
same party or parties both before and after the consolidation, and that control is not transitory. Under the predecessor
value method, the consolidation is performed as follow:
the acquired assets and liabilities are recorded at their existing carrying values;
no goodwill is recorded, the surplus from the acquisition is recorded in the Group retained earnings;
the carrying amounts of assets, liabilities, income and expenses of entities under common control have
been aggregated and all balances and transactions between the entities have been eliminated.
4.
CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
judgements (other than those involving estimations) that have a significant impact on the amounts recognised and to make
estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other
sources. The estimates and associated assumptions are based on historical experience and other factors that are considered
to be relevant.
Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only
that period, or in the period of the revision and future periods if the revision affects both current and future periods.
following
are
the
critical
judgements,
apart
from
those
involving
estimations
(which
are
presented
separately
below),
that
the
management
have
made
in
the
process
of
applying
the
Group’s
accounting
policies
and
that
have
the
most
significant
effect on the amounts recognised in financial statements.
equipment has been performed as at December 31, 2021, using the depreciated cost method and adjusted, as necessary,
based on an impairment test exercise.
Impairment of tangible and intangible assets
whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the
recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). As at
December 31, 2022 and December 31, 2021 respectively, the management assessed if there is any impairment indicators for
tangible and intangible assets. There was no impairment indicator identified.
to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and
the risks specific to the tangible and intangible assets for which the estimates of future cash flows have not been adjusted.
The Company considers that the disposal costs are not negligible and the fair value less costs of disposal of the revalued
asset is necessarily less than its fair value.
of the revalued asset is necessarily less than its fair value. Therefore, the revalued asset will be impaired if its
is less than its revalued amount. In this case, after the revaluation requirements have been applied, the Group
applies this to determine whether the asset may be impaired.
as the fair value less costs to sell of the specific intangible asset. The Group determine the fair value for impairment analysis
specifically for each item of intangible assets with indefinite useful life.
When measuring the fair value of tangible and intangible assets, the Group uses market observable data as far as possible.
Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques
as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets;
Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset, either directly (i.e. as
prices) or indirectly (i.e. derived from prices);
Level 3: inputs for the asset that are not based on observable market data (unobservable inputs).
based on current and anticipated market conditions and are approved by the board. However, the budgets used are subject
to uncertainties mainly determined by the market volatility and assumptions used by management, the headroom is
significant.
Key sources of estimation uncertainty
may have a significant risk of causing a material adjustment to the carrying amounts of liabilities within the next financial
year, are discussed below.
annual reporting period.
provision, CO2 emissions provision, commercial litigation, etc.) and the exposures to contingent liabilities related to pending
litigation or other outstanding claims subject to negotiated settlement, mediation, arbitration or government regulation, as
well as other contingent liabilities. Judgment is necessary in assessing the likelihood that a pending claim will succeed, or a
liability will arise, and to quantify the possible range of the financial settlement. Because of the inherent uncertainty in this
evaluation process, actual losses may be different from the originally estimated provision.
5.
REVENUES
December 31,
December 31,
December 31,
December 31,
Presentation of revenues on geographical segments:
December 31,
December 31,
Presentation of revenue on countries:
December 31,
December 31,
1,985,196,366), the entity expects to recognise as revenue in 2023 the amount disclosed.
6.
OTHER GAINS AND LOSSES
December 31,
December 31,
December 31,
December 31,
8.
EMPLOYEE BENEFITS EXPENSES
December 31,
December 31,
9.
DEPRECIATION AND AMORTISATION
December 31,
December 31,
December 31,
December 31,
11.
OTHER INCOME
December 31,
December 31,
and subsectors exposed to a significant risk of relocation due to the transfer of the cost of greenhouse gas emissions to the
price of electricity. The measure covers indirect emission costs incurred in years 2021 and 2022.
cost. The subsidy related to 2022 indirect emission costs in the amount of RON 64,173,308 has been recorded under Water
and energy expenses in the Consolidated Statement of Profit or loss and other comprehensive income. The aid scheme was
approved by the Government in October 2022 therefore, the entries were performed by the Group in 2022 when was
certain that the aid is granted by the Government.
12.
OTHER EXPENSES
December 31,
December 31,
penalties for exceeding the maximum admissible concentration of chemical indicators in wastewater, paid to Romanian
Waters and varies depending on propylene production level.
13.
FINANCE COSTS
December 31,
December 31,
foreign currencies
14.
INCOME TAX EXPENSE
December 31,
December 31,
INCOME TAX EXPENSE (continued)
temporary
differences
temporary
differences
15.
PROPERTY, PLANT AND EQUIPMENT
other
constructions
machinery and
equipment
fittings
progress
g provision
payments non-
current assets
amortization
property
PROPERTY, PLANT AND EQUIPMENT (continued)
other
constructions
machinery and
equipment
fittings
progress
g provision
payments non-
current assets
DEPRECIATION
depreciation
depreciation
other
constructions
machinery and
equipment
fittings
progress
g provision
payments non-
current assets
in other comprehensive
income
in other comprehensive
income
Measurement of fair value
revaluation, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
independent valuer. Darian DRS S.A. is member of the National Association of Authorised Romanian Valuers, and has
appropriate qualifications and recent experience in the fair value measurement of properties in the relevant locations. The
valuation conforms to International Valuation Standards and was based on recent market transactions on arm’s length
terms for similar properties, whenever possible and discounted cash-flows method.
December 2022 compared with the last revaluation.
23.a). The term loans from CEC Bank and Alpha Bank are jointly secured with mortgage on property, plant and equipment
located on the industrial platform from Onesti and assignment of the insurance policy.
are included under cost of buildings and other constructions.
would have been as follows:
2022
2021
2021
16.
INTANGIBLE ASSETS
patents, licenses,
trademarks and
similar rights and
assets
assets