Assessments of the operating segments’ financial results and decisions on allocation of resources are performed mainly on the basis of EBITDA. EBITDA is one of a measure of the efficiency of the activity, which is not defined in the IFRS. The ORLEN Group defines EBITDA as net profit/(loss) for the reporting period before taking into account the impact of the income tax, effects of financing activities and depreciation and amortization costs.
Revenues from transactions with external customers and transactions with other segments are carried out on an arm’s length basis.
9. Revenues, costs, financial results, increases in non-current assets
Increase in non-current assets includes increase of property, plant and equipment, intangible assets, investment property and right-of-use asset together with the capitalisation of borrowing costs and a decrease in received/due penalties for the improper execution of a contract.
Impairment allowances of property, plant and equipment, intangible assets, right-of-use assets, other non-current assets and non-current assets classified as held for sale
Operating segments include all assets except for financial assets, tax assets and cash. Assets used jointly by the operating segments are allocated based on revenues generated by individual operating segments.
Non-current assets by geographical area as at 31 December 2019 and 31 December 2018 include include property, plant and equipment (note 12.1), intangible assets (note 12.2), investment property (note 12.8),assets due to right-of-use (note 14.2.1) and perpetual usufruct of land (note 12.8).
