9. Basis for the Preparation of the Consolidated Financial Statements

These consolidated financial statements were prepared in accordance with the International Financial Reporting Standards (“IFRS”) and the EU-endorsed IFRS, published and binding as at December 31st 2008.

The IFRS include the standards and interpretations adopted by the International Accounting Standards Board (“IASB”) and the International Financial Reporting Interpretation Committee (“IFRIC”).

With the exception of the Parent Undertaking and foreign undertakings, the Group companies maintain their accounting books in accordance with the accounting standards specified in the Polish Accountancy Act of September 29th 1994 (the “Act”) and the provisions issued thereunder (“Polish Accounting Standards” – “PAS”). These consolidated financial statements include adjustments which are absent from the accounting books of the Group’s undertakings, and which have been introduced to adjust the financial information concerning these undertakings to the IFRS.

The accounting policies and calculation methods adopted in the preparation of these consolidated financial statements are the same as those used in the preparation of the consolidated financial statements for the year ended December 31st 2007 (see Note 10 to the consolidated financial statements for 2007 prepared in accordance with IFRS).

The Group has reviewed the new interpretations, standards and amendments to the existing standards. The new interpretations, standards and amendments to existing standards which are in effect and have been adopted by the European Union have no material impact on the accounting policies applied by the Group.

Binding interpretations, adopted by the International Accounting Standards Board or the International Financial Reporting Interpretation Committee:

• IFRIC 13 Customer Loyalty Programmes (applies to annual periods beginning after July 1st 2008, adopted by the European Union),
• IFRIC 14, IAS 19 The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction (applies to annual periods beginning after January 1st 2008, adopted by the European Union).

The following standards and interpretations have been issued by the International Accounting Standards Board or the International Financial Reporting Interpretation Committee:

• Amendment to IAS 23 Borrowing Costs (effective as of January 1st 2009, adopted by the European Union),
• Amendment to IAS 1 Presentation of Financial Statements (effective as of January 1st 2009, adopted by the European Union),
• IFRS 8 Operating Segments (applies to annual periods beginning after January 1st 2009, adopted by the European Union),
• Revised IFRS 3 Business Combinations (applies to annual periods beginning after July 1st 2009, not yet adopted by the European Union),
• Revised IAS 27 Consolidated and Separate Financial Statements (applies to annual periods beginning after July 1st 2009, not yet adopted by the European Union),
• IFRIC 12 Service Concession Arrangements (applies to annual periods beginning after January 1st 2008, not yet adopted by the European Union),
• Amendment to IFRS 2 Share-Based Payments – Vesting Conditions and Cancellations (applies to annual periods beginning on or after January 1st 2009, adopted by the European Union),
• Amendments to IAS 32 Financial Instruments: Presentation and IAS 1 Presentation of Financial Statements – Puttable Instruments and Obligations Arising on Liquidation (apply to annual periods beginning on or after January 1st 2009, adopted by the European Union),
• Improvements to the International Financial Reporting Standards – a collection of amendments to the IFRS (in most cases, the amendments apply to annual periods beginning on or after January 1st 2009; endorsed by the European Union),
• Amendments to IFRS 1 First-Time Adoption of IFRSs and IAS 27 Consolidated and Separate Financial Statements – Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate (apply to annual periods beginning on or after January 1st 2009, endorsed by the European Union),
• IFRIC 15 Agreements for the Construction of Real Estate (applies to annual periods beginning on or after January 1st 2009, not yet endorsed by the European Union),
• IFRIC 16 Hedges of a Net Investment in a Foreign Operation (applies to annual periods beginning on or after October 1st 2008, not yet endorsed by the European Union),
• Amendment to IAS 39 Financial Instruments: Exposures Qualifying for Hedge Accounting (applies to annual periods beginning on or after July 1st 2009, not yet endorsed by the European Union).

The Management Board does not expect any material impact of the new standards and interpretations specified above on the accounting policies applied by the Group.

The Group does not prepare information on individual business segments, as it does not meet the requirements concerning business segmentation, as stipulated in IAS 14 Segment Reporting.