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Financial reporting framework in Poland

Adoption of IFRSs in Europe effective in 2005

In June 2002, the European Union adopted an IAS Regulation requiring European companies listed in an EU securities market, including banks and insurance companies, to prepare their consolidated financial statements in accordance with IFRSs starting with financial statements for financial year 2005 onwards. EU countries have the option to:

  • Require or permit IFRSs for unlisted companies.
  • Require or permit IFRSs in parent company (unconsolidated) financial statements.
  • Permit companies whose only listed securities are debt securities to delay IFRS adoption until 2007.
  • Permit companies that are listed on exchanges outside of the EU and that currently prepare their primary financial statements using a non-EU GAAP (in most cases this would be US GAAP) to delay IFRS adoption until 2007.

The European IAS regulation applies not only to the 27 EU Member States but also to the three members of the European Economic Area (EEA) - Iceland, Liechtenstein, and Norway.

Poland is an EU Member State. Consequently, Polish companies listed in an EU/EEA securities market follow IFRSs since 2005. The European Commission (EC) periodically issues a document which summarises the use of options of the IAS Regulation by European Union Member States. For information on each country's plans, click to access:

The European Commission has adopted the following wording for use in the notes to the accounts and in the audit reports of companies subject to EU Regulation 1606/2002/EC (the 'IAS regulation'):

  • "in accordance with International Financial Reporting Standards as adopted by the EU" or
  • "in accordance with IFRSs as adopted by the EU".

Companies may also state, in a footnote, compliance with IFRSs as adopted by the IASB, if that is the case.


Domestic Polish accounting standards

The KSR within the Polish Ministry of Finance issues domestic accounting standards which are additional guidance to the Polish Accounting Act. Companies that don't have to apply IFRSs in drawing up their financial statements can voluntarily apply the standards issued by the KSR. If a specific accounting matter is not regulated in the Polish Accounting Act or in the KSR standards, companies have the option to use guidance from IFRSs. However,  if a company decides to follow KSR standards, applying IFRS guidance is prohibited when a specific accounting matter is regulated under the domestic accounting standards or the Polish Accounting Act.

Currently there are seven domestic accounting standards:

  • No 1 Cash Flow
  • No 2 Income Tax
  • No 3 Construction contracts
  • No 4 Impairment of Assets
  • No 5 Leases
  • No 6 Provisions and contingent liabilities
  • No 7 Changes of accounting policies, correction of errors, changes in estimates and events after balance sheet date
  • No 8 Developer activities
  • No 9 Report on the activities

IFRS newsletters in Polish

Deloitte (Poland) publishes Biuletyn MSSF, a Polish-language monthly publication for IFRS practitioners and MSSF dla spółek giełdowych, a Polish-language quarterly publication dealing with IFRS for public companies. You can also find back issues of these publications on the Deloitte (Poland) website.


Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.