52. Offsetting financial assets and liabilities

Accounting policies

The Group offsets financial assets and liabilities and shows them in the statement of financial position in net amounts if there is a legally enforceable right to offset the recognised amounts and an intention to settle them on a net basis or to realize a given asset and settle the liability simultaneously. It follows from the provisions of paragraph 42 of IAS 32 that, amongst others, in order for offsetting to be possible, a legal right may not be conditioned on the occurrence of a specific future event.

The Group enters into offsetting arrangements, i.e. International Swaps and Derivatives Association Master Agreements (ISDA) and Global Master Repurchase Agreements (GMRA), which make it possible to offset financial assets and liabilities (the so-called close out netting) in the event of an infringement with respect to one of the parties to the agreement. These agreements are of particular importance to mitigate the risk posed by derivative instruments, because they enable offsetting both matured liabilities (mitigating the settlement risk) and non-matured liabilities of the parties (mitigating the pre-settlement risk). However, these agreements do not meet the requirements set out in IAS 32 because the right to offset the amounts is conditioned on the occurrence of a specific future event (instances of infringement).

Additional collateral for exposures resulting from derivative instruments are collateral deposits escrowed by counterparties as a part of CSA agreements (Credit Support Annex).

Financial information

31.12.2016Total financial assetsDerivativesRepurchase agreements
The amount of recognised financial assets (gross)4 905.22 905.02 000.2
The amount of financial liabilities, which are offset in accordance with the criteria set out in § 42 of IAS 32 (gross)(4.4)(4.4)-
The value of financial assets recognised in the statement of financial position (net)4 900.82 900.62 000.2
The value of financial instruments not subject to offsetting in the financial statements2 095.92 095.9-
The value of financial liabilities subject to enforceable framework agreement or similar agreement concerning offsetting (excluding financial collateral)1 698.21 698.2-
Cash collateral and in the form of securities received397.7397.7-
The net amount 2 804.9 804.7 2 000.2

31.12.2016Total financial liabilitiesDerivativesRepurchase agreements
The amount of recognised financial liabilities (gross)4 408.24 202.3205.9
The amount of financial assets, which are offset in accordance with the criteria set out in § 42 of IAS 32 (gross)(4.4)(4.4)-
The value of financial liabilities recognised in the statement of financial position (net)4 403.84 197.9205.9
The value of financial instruments not subject to offsetting in the financial statements3 021.22 987.034.2
The value of financial assets subject to enforceable framework agreement or similar agreement concerning offsetting (excluding financial collateral)1 698.21 698.2-
Cash collateral and in the form of securities received1 323.01 288.834.2
The net amount 1 382.6 1 210.9 171.7

31.12.2015Total financial assetsDerivativesRepurchase agreements
The amount of recognised financial assets (gross)9 767.14 354.25 412.9
The amount of financial liabilities, which are offset in accordance with the criteria set out in § 42 of IAS 32 (gross)(6.9)(6.9)-
The value of financial assets recognised in the statement of financial position (net)9 760.24 347.35 412.9
The value of financial instruments not subject to offsetting in the financial statements3 631.73 631.7-
The value of financial liabilities subject to enforceable framework agreement or similar agreement concerning offsetting (excluding financial collateral)2 794.92 794.9-
Cash collateral and in the form of securities received836.8836.8-
The net amount 6 128.5 715.6 5 412.9

31.12.2015Total financial liabilitiesDerivativesRepurchase agreements
The amount of recognised financial liabilities (gross)5 657.84 631.71 026.1
The amount of financial assets, which are offset in accordance with the criteria set out in § 42 of IAS 32 (gross)(6.9)(6.9)-
The value of financial liabilities recognised in the statement of financial position (net)5 650.94 624.81 026.1
The value of financial instruments not subject to offsetting in the financial statements4 072.64 048.524.1
The value of financial assets subject to enforceable framework agreement or similar agreement concerning offsetting (excluding financial collateral)2 794.92 794.9-
Cash collateral and in the form of securities received1 277.71 253.624.1
The net amount 1 578.3 576.3 1 002.0