1. Entities shall recognise prepaid expanses if they are related to future reporting periods. 2. Entities shall recognise accrued expenses at amounts of probable liabilities which are related to the current reporting period, in particular with respect to: 1) goods and services provided to an entity by its contractors, if the amount of a liability can be estimated in reliable manner; 2) the obligation to provide, in the future, goods and services, relating to current activities, to own employees, including pension, as well as to unknown persons, the amount of which can be estimated even though the origination date of a liability is not yet known, including amounts relating to guarantees and warranties in respect of durable finished goods sold.

3. Deferred income recognized under the prudence principle includes in particular the following: 1) amounts received or receivable from contractors in respect of goods or services to be provided in future reporting periods; 2) cash received to finance the purchase or manufacture of property, plant and equipment, including items of property, plant and equipment under construction and development costs, if, in accordance with other acts, it is not credited to equity. Amounts recognized as deferred income are gradually recognized as other operating income, in parallel to the depreciation or amortization of property, plant and equipment or development costs financed from such sources; 3) negative goodwill referred to in Art. 33 Paragraph 4 and Art. 44b Paragraph 11 of the Accounting Act.

• Act of 29 September 1994 on Accounting
  Place of publication: (Dz. U. z 2021 r. poz. 217, z późn. zm.)

• Balance sheet