Investor Presentaiton
En+
GROUP
FINANCIAL STATEMENTS
5.
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2021
En+ Group Annual Report 2021
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2021
STRATEGIC REPORT
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
Revenues
IFRS 15 establishes a comprehensive framework for determining whether, how much and when revenue is
recognised. The details of significant accounting policies in relation to the Group's various goods and
services are set out below:
Sales of goods: comprise sale of primary aluminium, alloys, alumina, bauxite and other products. Customers
obtain control of the goods supplied when the goods are delivered to the point when risks are transferred
based on Incoterms delivery terms stated in the contract. Invoices are generated and revenue is recognised at
that point in time. Invoices are usually payable within 60 days or in advance. Under certain Group sale
contracts, the final price for the goods shipped is determined a few months later than the delivery took place.
Under current requirements the Group determines the amount of revenue at the moment of recognition based
on estimated selling price at the date of the invoice issued. At price finalisation the difference between
estimated price and actual one is recognised as other revenue.
Rendering of transportation services: as part of sales of goods the Group also performs transportation to
the customer under contract terms. In certain cases, the control of goods delivered is transferred to customers
prior to transportation being completed. In these cases rendering of transportation services from when the
control of goods has been transferred is considered as a separate performance obligation.
Rendering of electricity supply services: The Group is involved in sales of energy to third and related
parties. Invoices are issued once a month at the end of month and paid within 30 days. Revenue is recognised
over time during the month of energy supply.
6.
Other operating expenses, net
Impairment of trade and other receivables
Charity
Loss on disposal of property, plant and equipment
Other operating expenses, net
Year ended 31 December
2021
2020
USD million
USD million
(65)
(10)
(55)
(71)
(5)
(12)
(93)
(67)
(218)
(160)
7.
Personnel costs
Year ended 31 December
2021
2020
USD million
USD million
Sales of primary aluminium and alloys
Third parties
Related parties companies capable of exerting significant influence
Related parties - other
9,766
6,969
9,445
6,660
307
298
12
9
Related parties associates and joint ventures
2
2
Sales of alumina and bauxite
612
534
Third parties
388
314
Related parties companies capable of exerting significant influence
12
Related parties associates and joint ventures
224
208
Sales of semi-finished products and foil
767
547
Third parties
Sales of electricity
Third parties
767
547
1,525
1,169
1,487
1,137
Related parties
Related parties - other
associates and joint ventures
5
5
33
27
Sales of heat
465
426
Third parties
444
407
Personnel costs comprise salaries, annual bonuses, annual leave and cost of non-monetary benefits. Salaries,
annual bonuses, paid annual leave and cost of non-monetary benefits are accrued in the year in which the
associated services are rendered by employees. Where payment or settlement is deferred and the effect would
be material, these amounts are stated at their present values.
The employees of the Group are also members of retirement schemes operated by local authorities.
The Group is required to contribute a certain percentage of their payroll to these schemes to fund the benefits.
The Group's total contribution to those schemes charged to profit or loss during the years presented is shown
below.
The Group's net obligation in respect of defined benefit pension and other post-retirement plans is calculated
separately for each plan by estimating the amount of future benefit that employees have earned in return for their
service in the current and prior periods. That benefit is discounted to determine its present value and the fair
value of any plan assets are deducted. The discount rate is the yield at the reporting date on government bonds
that have maturity dates approximating the terms of the Group's obligations. The calculation is performed using
the projected unit credit method. When the calculation results in a benefit to the Group, the recognised asset is
limited to the present value of any future refunds from the plan or reductions in future contributions to the plan.
Where there is a change in actuarial assumptions, the resulting actuarial gains and losses are recognised
directly in other comprehensive income.
When the benefits of a plan are improved, the portion of the increased benefit relating to past service by
employees is recognised in profit or loss immediately.
The Group recognises gains and losses on the curtailment or settlement of a defined benefit plan when the
curtailment or settlement occurs. The gain or loss on curtailment comprises any resulting change in the fair
value of plan assets, any change in the present value of the defined benefit obligation, any related actuarial
gains and losses.
The Group also makes contributions for the benefit of employees to Russia's and the Ukrainian State's
pension funds. The contributions are expensed as incurred.
Year ended 31 December
2021
USD million
Related parties companies capable of exerting significant influence
Related parties other
2
2
Contributions to defined contribution retirement plans
19
17
Contributions to defined benefit retirement plans
Total retirement costs
Other revenues
991
711
Third parties
818
587
Wages and salaries
Related parties companies capable of exerting significant influence
Related parties - other
11
5
2020
USD million
(273)
(3)
(225)
(5)
(276)
(230)
(1,170)
(1,023)
(1,446)
(1,253)
11
8
Related parties associates and joint ventures
151
111
8.
Finance income and costs
14,126
10,356
In 2020 transactions with Glencore International AG (a member of Glencore International) have exceeded
10% of the Group's revenue and amounted to USD1,259 million.
All revenue of the Group relates to revenue from contracts with customers.
Finance income comprises interest income on funds invested, dividend income and foreign currency gains.
Interest income is recognised as it accrues, using the effective interest method.
Finance costs comprise interest expense on borrowings, foreign currency losses and changes in the fair value
of financial assets at fair value through profit or loss. All borrowing costs are recognised in profit or loss
using the effective interest method, except for borrowing costs related to the acquisition, construction and
production of qualifying assets which are recognised as part of the cost of such assets.
160
Appendices
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