5.3 Equity, dividends and capital management policies
Accounting policies
Share capital is disclosed at par value, in the amount specified in the Parent’s Articles of Association and the entry in the court register.
Share premium comprises the positive difference between the issue price of shares and the par value of the shares which remains after covering issue costs.
Accumulated other comprehensive income includes exchange differences on translating foreign operations, effects of the application of cash-flow hedge accounting which are taken to equity, actuarial gains and losses on employee benefits, and accounting for investments in equity instruments measured at fair value.
Retained earnings are the aggregate of the profit for the reporting period and accumulated profits brought forward which were not distributed as dividend but were transferred to reserve funds or remained undistributed.
The key objective of the Group’s capital management is to maintain the ability to continue its operations, taking into account investment plans, while increasing the Group’s shareholder value. The PGNiG Group also monitors its ability to pay liabilities based on the net debt to EBITDA ratio (Note 5.1.).