Jednostkowe

sprawozdanie finan

This document is an unofficial translation of the Polish version of Annual Report for 2023 and does not constitute a current or periodical report as defined under the Regulation of

XTB S.A.

STANDALONE ANNUAL REPORT FOR 2023

In the period covered by these financial statements and in the comparative period, the Management Board was

composed of the following persons:

These financial statements constitute standalone financial statements of XTB S.A. and it is included in the consolidated

financial statements of XTB. Information on company’s subsidiaries is presented in note 16.

The financial statements of the XTB S.A. prepared for the period from 1 January 2023 to 31 December 2023 with

comparative data for the year ended 31 December 2022 cover the Company’s financial data and financial data of the

branch offices.

These financial statements have been prepared on the historical cost basis, with the exception of financial assets at fair

Company’s assets are presented in the statement of financial position according to their liquidity, and its liabilities

according to their maturities. Adopted material accounting policies are consistent with those of the previous financial

year, except for the new standards effective 1 January 2023.

The Company and its branch offices maintain their accounting records in accordance with the accounting principles

XTB S.A.

STANDALONE ANNUAL REPORT FOR 2023

The functional currency and the presentation currency of these financial statements is the Polish zloty (“zł”, “PLN”), and

unless stated otherwise, all amounts are shown in thousands of zloty (PLN’000).

The financial statements were prepared based on the assumption that the Company would continue as a going concern

in the foreseeable future. At the date of preparation of these financial statements, the Management Board of XTB S.A.

does not state any circumstances that would threaten the company’s continued operations in the 12 months from the

date of acceptance of these financial statements.

Data presented in the financial statements is comparable and prepared under the same principles for all periods

covered by the financial statements.

The accounting policies applied in the preparation of the standalone financial statements are consistent with those

applied in the preparation of the standalone financial statements of the Group for the year ended 31 December 2022,

except for the application of new or amended standards and interpretations applicable to annual periods beginning on

or after 1 January 2023.

• Amendments to IFRS 17 “Insurance contracts” and amendments to IFRS 17,

• Amendments to IFRS 17 “Insurance Contracts” - initial application of IFRS 17 and IFRS 9,

• Amendments to IAS 1 "Presentation of financial statements" and IFRS Board Guidelines on disclosures regarding

• Amendments to IAS 8 “Accounting policies, changes in accounting estimates and errors” - definition of estimated

statements. Due to changes related to IAS 1, the Company conducted an analysis of accounting policies and some

disclosures were removed

XTB S.A.

STANDALONE ANNUAL REPORT FOR 2023

The following standards and interpretations have been published by the International Accounting Standards Board but

are not yet binding:

• Amendments to IFRS 16 "Leases" - lease liabilities in sale and leaseback transactions – effective for financial years

• Amendments to IAS 1 “Presentation of Financial Statements” - classification of liabilities as current or non-current –

• Amendments to IAS 7 “Statement of Cash Flows” and IFRS 7 “Financial Instruments: Disclosures" - financing

• Amendments to IFRS 10 “Consolidated financial statements” and IAS 28 “Investments in Associates and Joint Ven-

Above new standards and interpretations which have been published but are not yet binding do not have a significant

impact on the Company’s standalone financial statements.

In the process of applying the accounting principles (policy), the Management Board of the Parent Company made the

following judgements that have the greatest impact on the reported carrying amounts of assets and liabilities.

Transaction price is determined at fair value, what is described in detail in notes 4.11 and 4.12. Variable remuneration,

carrying amounts of assets and liabilities.

Although the estimates are based on best knowledge regarding the current conditions and actions taken by the

Company, actual results may differ from the estimates. Adjustments to estimates are recognised during the reporting

period in which the adjustment was made provided that such adjustment refers only to the given period or in

subsequent periods if the adjustment affects both the current period and subsequent periods. The most important

areas for which the Company makes estimates are presented below.

As at each balance sheet date, the Company determines whether there are any indications of impairment of a given

financial asset or group of financial assets. In particular, the Company tests its past due receivables for impairment and

writes down the estimated amount of doubtful and uncollectible receivables.

XTB S.A.

STANDALONE ANNUAL REPORT FOR 2023

assets, including intangible assets. Impairment is recognised when it is highly likely that all or a significant part of the

respective assets will not bring about the expected economic benefits, e.g. as a result of expiry of licences or

decommissioning.

At each balance sheet date, the Company assesses the likelihood of settlement of unused tax credits with the estimated

Foreign exchange differences are reported under revenue or expenses of the period in which they occur.

date and for converting items of the comprehensive income statement:

XTB S.A.

STANDALONE ANNUAL REPORT FOR 2023

financing activities.

XTB S.A.

STANDALONE ANNUAL REPORT FOR 2023

For financial instruments available on an active market, the fair value is measured based on quoted market prices.

A market is considered to be active if the quoted prices are generally and directly available and represent current and

actual transactions concluded between unrelated parties.

available to measure fair value, maximising the use of relevant observable inputs and minimizing the use of

Financial liabilities measured at amortised cost, including bank loans and borrowings, are initially carried at fair value

less transaction costs.

Later on, they are measured at amortised cost using the effective interest rate method.

Financial liabilities measured at fair value through profit or loss include financial liabilities held for trading if:

XTB S.A.

STANDALONE ANNUAL REPORT FOR 2023

An entity may, at initial recognition, irrevocably designate a financial liability as measured at fair value through profit or

loss when doing so results in more relevant information. , because either:

Financial liabilities at fair value through profit or loss are disclosed at fair value and the resulting financial profits or

Investments in subsidiaries in separate financial statements are valued at cost.

Intangible assets include the Company’s assets which do not exist physically, which are identifiable and can be reliably

measured, and which will give the Company economic benefits in the future.

Intangible assets are disclosed initially at cost of acquisition or production. As at the balance sheet date, intangible

Amortisation of intangible assets is carried out on the basis of rates reflecting their estimated useful lives. The Company

has no intangible assets with an indefinite useful life. The straight-line method is applied to depreciate intangible assets

with a definite useful life. The useful life of the respective intangible assets is as follows:

Expenditures on property, plant and equipment include actual capital expenditures, as well as expenditures for future

supplies of equipment and services connected with the development of items of property, plant and equipment

(prepayments made).

Property, plant and equipment and expenses for property, plant and equipment under construction are initially

disclosed at cost of acquisition or production. Significant components are also treated as separate items of property,

plant and equipment. As at the balance sheet date, property, plant and equipment is carried at cost less depreciation

and impairment write-offs, if any.

Depreciation of property, plant and equipment, including their components, is carried out on the basis of rates

reflecting their estimated useful lives, and starts in the month following the month they are accepted for use. Useful life

estimates are reviewed on an annual basis. The straight-line method is applied to depreciate property, plant and

XTB S.A.

STANDALONE ANNUAL REPORT FOR 2023

Identifying a lease

At new contract inception, the Company assesses whether the contract is a lease or whether it contains a lease. An

agreement is a lease or contains a lease if it transfers the right to control the use of an identified asset for a given period

in exchange for remuneration.

Company have the right to control the use of an identified asset for part of the duration of an agreement only, the

agreement contains a lease in respect of this part of the period.

Rights resulting from lease, rental, hire or other agreements which meet the definition of a lease are recognised as right

of use underlying assets within the framework of non-current assets with a corresponding lease liabilities.

Initial recognition and measurement

commencement date shall be calculated on the basis of the current lease payments that are payable by that date and

ownership of the asset prior to the end of the lease term, right of use shall be depreciated from the day of

commencement of the lease until the end of the useful life of the asset.

Impairment

Right-of-use assets are amortised on a straight-line basis over the shorter of the lease term or the useful life of the

underlying asset, unless the Company is reasonably certain that it will obtain title before the end of the lease term, in

which case the right-of-use is amortized from the lease commencement date to the end of the asset's useful life.

Short-term lease

The Company applies a practical solution to short-term lease contracts, which are characterised by contract term to

12 months. Simplifications regarding these contracts involve the settlement of lease payments as costs on a straight-

line basis, for the duration of the lease agreement.

Provisions for liabilities are established when the Company has an existing legal or constructive obligation connected

with past events and it is probable that the performance of this obligation will result in an outflow of funds representing

economic benefits, and the amount of the liability can be reliably assessed, although the amount or maturity of the

liability are not certain.

The amount of the provision recognised reflects the most accurate estimates possible of the amount required to settle

the current liability as at the balance sheet date, taking into account risk and uncertainty connected with this liability. In

the event of measuring a provision using the estimated cash flow method necessary to settle the current liability, its

carrying amount reflects the current value of such cash flows.

If it is probable that some or all of the economic benefits required to settle a provision can be recovered from a third

XTB S.A.

STANDALONE ANNUAL REPORT FOR 2023

Equity includes capitals and funds established in compliance with the mandatory legal regulations, i.e. applicable laws

and the statute. Retained profit is also disclosed under equity. Share capital is disclosed in the amount set out in the