25. Investments in associates and joint ventures

1) the value of the Group’s investments in joint ventures

2) the value of the Group's investments in associates (i.e. the acquisition cost adjusted to share in net assets change and impairment allowances)

In the consolidated financial statements for the year ended 31 December 2014, all joint ventures and associates are accounted for using the equity method.

In 2014, the Group decreased impairment allowances against shares of Bank Pocztowy SA by PLN 1 797 thousand and increased impairment allowances against shares of ‘Poznański Fundusz Poręczeń Kredytowych’ Sp. z o.o. by PLN 214 thousand.

The value of shares of Bank Pocztowy SA, including impairment allowances, were determined on the basis of performed test, under which the recoverable amount of the Company's shares, was estimated, i.e. value in use calculated based on the discounted cash flows model and fair value estimated based on market indicators of the comparable group of banks.
As at 31 December 2014 and 31 December 2013, the parent company had no share in contingent liabilities of associates acquired jointly with other investor.
The tables below show information about joint ventures and shares in associates of the PKO Bank Polski SA Group:

a) joint ventures

b) associates

All companies above indicated are recognised in the consolidated financial statements with the equity method.

The table below shows a summary of the financial data separately for each joint venture and each associate of the PKO Bank Polski SA Group.

Financial data concerning Bank Pocztowy SA and Centrum Elektronicznych Usług Płatniczych eService Sp. z o.o., presented in the table above are derived from financial statements prepared in accordance with the IFRS and the data of other companies are derived from financial statements prepared in accordance with the Polish Accounting Standards. According to the Bank’s estimates, differences between the above-mentioned statements and the financial statements prepared in accordance with IFRS are not significant from the perspective of the financial statements of the Group. Data for the year 2013 are derived from audited financial statements.

The disclosed amounts are derived from the financial statements of particular entities prepared in accordance with the IFRS or PAS (Polish Accounting Standards).

In 2014, as part of the third stage of the financial reorganisation of Polimex-Mostostal SA, PKO Bank Polski SA and Bankowe Towarzystwo Kapitałowe SA (the Bank’s subsidiary) acquired shares issued by the Company with a total issue price of PLN 211 366 thousand, paid by way of contractual deduction of debts owed to these entities (capital increase was registered with the National Court Register on 22 October 2014).
As a result, PKO Bank Polski SA together with its subsidiaries held 1 061 971 808 shares of Polimex – Mostostal SA in total, constituting 24.5% share in the share capital and entitling to 24.5% of votes at the General Shareholders’ Meeting of the Company as at 31 December 2014. At the same time, in connection with the agreement of sale of 200 million shares of Polimex – Mostostal SA concluded on 30 September 2014, PKO Bank Polski SA committed not to exercise the voting rights of the shares covered by the above-mentioned agreement. As a result of the above-mentioned, the share of the Bank’s Group in votes at the General Shareholders’ Meeting of the Company amounts to 19.9%. The sale agreement will be executed as of the registration date of sold shares by the National Depository for Securities (KDPW) and the registration on the investment account of the seller.

Taking into account the actual amount of voting rights of Bank’s Group at the General Shareholders’ Meeting of the Company and the lack of other significant conditions concerning exercise significant influence described in IAS 28, the shares of Polimex-Mostostal SA are recognised as financial assets in statement of financial position of the Group as at 31 December 2014.