SISTEMA PJSFC AND SUBSIDIARIES
Consolidated Financial Statements for 2021 and Independent Auditor's Report
SISTEMA PJSFC AND SUBSIDIARIES | |
TABLE OF CONTENTS | |
Page | |
STATEMENT OF MANAGEMENT'S RESPONSIBILITIES FOR THE PREPARATION | |
AND APPROVAL OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR 2021 | 1 |
INDEPENDENT AUDITOR'S REPORT | 2-7 |
CONSOLIDATED FINANCIAL STATEMENTS FOR 2021: | |
Consolidated statement of profit or loss | 8 |
Consolidated statement of comprehensive income | 9 |
Consolidated statement of financial position | 10-11 |
Consolidated statement of changes in equity | 12 |
Consolidated statement of cash flows | 13-14 |
Notes to the consolidated financial statements |
1. | General | 15 |
2. | Basis of preparation | 15 |
3. | Significant accounting policies, judgements, estimates and assumptions | 15 |
4. | Segment information | 20 |
5. | Discontinued operations | 23 |
6. | Business combinations | 24 |
7. | Capital transactions of subsidiaries | 31 |
8. | Revenue | 32 |
9. | Impairment of long-lived assets | 37 |
10. | Impairment of financial assets | 38 |
11. | Income taxes | 38 |
12. | Employee benefits expenses | 41 |
13. | Property, plant and equipment | 41 |
14. | Investment property | 44 |
15. | Goodwill | 45 |
16. | Other intangible assets | 48 |
17. | Investments in associates and joint ventures | 51 |
18. | Profit on disposal of other assets | 58 |
19. | Other financial assets | 58 |
20. | Restricted cash | 65 |
21. | Inventories | 65 |
22. | Accounts receivable | 66 |
23. | Equity | 67 |
24. | Accumulated other comprehensive income | 67 |
25. | Loans and borrowings | 68 |
26. | Lease liabilities and right-of-use assets | 72 |
27. | Bank deposits and liabilities | 73 |
28. | Other financial liabilities | 74 |
29. | Provisions | 74 |
30. | Earnings/(loss) per share | 76 |
31. | Capital and financial risk management | 76 |
32. | Derivative instruments | 79 |
33. | Fair values | 81 |
34. | Related party transactions | 83 |
35. | Subsidiaries | 84 |
36. | Non-cash transactions | 85 |
37. | Reconciliation of liabilities arising from financing activities | 86 |
38. | Contingencies and commitments | 87 |
39. | Subsequent events | 91 |
SISTEMA PJSFC AND SUBSIDIARIES
STATEMENT OF MANAGEMENT'S RESPONSIBILITIES FOR THE PREPARATION AND APPROVAL OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
Management is responsible for the preparation of the consolidated financial statements that present fairly the financial position of Sistema Public Joint Stock Financial Corporation and its subsidiaries (the "Group")
as of 31 December 2021, and the results of its operations, cash flows and changes in equity for 2021, in compliance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRSs").
In preparing the consolidated financial statements, management is responsible for:
Properly selecting and applying accounting policies;
Presenting information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;
Providing additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the Group's consolidated financial position and financial performance;
Making judgements and assumptions that are reasonable and prudent;
Stating whether IFRSs have been followed, subject to any material departures disclosed and explained in the consolidated financial statements; and
Making an assessment of the Group's ability to continue as a going concern.
Management is also responsible for:
Designing, implementing and maintaining an effective and sound system of internal controls, throughout the Group;
Maintaining adequate accounting records that are sufficient to show and explain the Group's transactions and disclose with reasonable accuracy at any time the consolidated financial position of the Group, and which enable them to ensure that the consolidated financial statements of the Group comply with IFRSs;
Maintaining statutory accounting records in compliance with the Russian legislation and accounting standards;
Taking such steps as are reasonably available to them to safeguard the assets of the Group; and
Preventing and detecting fraud and other irregularities.
The consolidated financial statements of the Group for 2021 were approved by:
________________________ Vladimir Chirakhov
________________________ Vladimir Travkov
Chief Executive Officer (President)
Vice President for Finance (CFO)
7 April 2022
AO Deloitte & Touche CIS 5 Lesnaya Street Moscow, 125047, Russia
Tel: +7 (495) 787 06 00 Fax: +7 (495) 787 06 01 deloitte.ru
INDEPENDENT AUDITOR'S REPORT
To the Shareholders and the Board of Directors of Sistema Public Joint Stock Financial Corporation:
Opinion
We have audited the consolidated financial statements of Sistema Public Joint Stock Financial Corporation ("Sistema") and its subsidiaries (the "Group"), which comprise the consolidated statement of financial position as at 31 December 2021 and the consolidated statement of profit or loss, consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at 31 December 2021, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards ("IFRSs").
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing ("ISAs").
Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report.
We are independent of the Group in accordance with the Auditor's Independence Rules and the Auditor's Professional Ethics Code, that are relevant to our audit of the financial statements in the Russian Federation together with the ethical requirements of the
International Ethics Standards Board for Accountants' Code of Ethics for Professional
Accountants (the "IESBA Code"), and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period.
These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ("DTTL"), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as "Deloitte Global") does not provide services to clients. Please see www.deloitte.com/aboutfor a more detailed description of DTTL and its member firms.
© AO Deloitte & Touche CIS. All rights reserved.
Why the matter was determined to be a key audit matter | How the matter was addressed in the audit |
Diversified structure of the Group
Sistema is a holding company that owns mainly controlling stakes in its subsidiaries, whose results are included in the consolidated financial statements. The large number of entities of the Group and diversified nature of their operations require the Group's management to design and implement group wide controls, including monitoring and control activities to ensure timely, reliable and complete financial information received from its subsidiaries.
Audit procedures regarding the financial information of the subsidiaries included in the consolidated financial statements may be performed by us or by the auditors of those subsidiaries ("components") acting under our supervision. As the group auditor, we are fully responsible for conducting the audit and forming our audit opinion.
We focused on this matter because the diversified structure of the Group has a significant impact on our audit approach, and the nature and extent of our involvement in component auditors' work is significant.
We obtained an understanding of the group-wide controls over the consolidation process and the preparation of the consolidated financial statements, including instructions of the Group's management to its subsidiaries.
Our audit approach was developed considering the
Group's diversified structure and associated risks of material misstatement of the consolidated financial statements. It included determination of necessary procedures and audit scope in relation to each component's financial information, depending on its significance for the Group and identification of risks of misstatement of their financial information. The nature and extent of our involvement in the component auditors' work was also dependent on our assessment of their professional competence in the context of allocated scope.
To obtain reasonable assurance of fair presentation of the components' financial information, we assessed risks and determined audit procedures performed by the component auditors, and evaluated the results of the procedures. This included a critical analysis of the component auditors' documentation, discussion of significant matters with the component auditors, component or Group management and, if applicable, designing and performing additional audit procedures.
We also performed procedures with respect to consolidation adjustments to the financial information of the subsidiaries in order to assess their nature, completeness and accuracy.
Significant non-routine transactions
In light of its strategy, the Group regularly conducts complex acquisitions and disposals, debt restructurings and other significant non-routine transactions.
We focus on these matters because the appropriate accounting treatment of such transactions is often complex and requires exercise of significant judgement, in particular, in determining whether or not the Group has control over its investees,Our procedures included reviewing legal documents to fully understand the terms and conditions of each transaction and therefore the associated accounting implications and evaluating documentation of management's positions on how
IFRSs were applied to the transactions.
In relation to the previously mentioned specific transactions, we:
analysed legal documents and evaluated the appropriateness of management's conclusions on whether or not the Group has control over
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Afk Sistema OAO published this content on 08 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 April 2022 08:08:06 UTC.