Disclosure Of Material Accounting Policy Information [Text Block]

OMV Petrom S.A. - Filing #1878806

Concept	2022-01-01 to 2022-12-31
Disclosure of material accounting policy information [text block]	—
Description of accounting policy for available-for-sale financial assets [text block]	at fair value through profit or loss
Description of accounting policy for business combinations [text block]	a) Business combinations
Description of accounting policy for construction in progress [text block]	The cost of self-constructed assets includes cost of direct materials, labour, overheads and other directly attributable costs that have been incurred in bringing the assets to their present location and condition.
Description of accounting policy for contingent liabilities and contingent assets [text block]	g) Contingencies
Description of accounting policy for decommissioning, restoration and rehabilitation provisions [text block]	Decommissioning and environmental obligations
Description of accounting policy for deferred income tax [text block]	Deferred tax
Description of accounting policy for depreciation expense [text block]	Depreciation and amortization is calculated on a straight-line basis, except for Exploration and Production assets, where depletion occurs to a large extent on a unit-of-production basis. In the consolidated income statement, impairment losses for exploration assets are disclosed as exploration expenses, and those for other assets are reported within depreciation, amortization, impairments and write-ups line.
Description of accounting policy for derecognition of financial instruments [text block]	The Group derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognizes its retained interest in the asset and an associated liability that reflects the rights and obligations that the Group has retained. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognize the financial asset and also recognizes a collateralized borrowing for the proceeds received.
Description of accounting policy for determining components of cash and cash equivalents [text block]	q) Cash and cash equivalents
Description of accounting policy for dividends [text block]	Dividend and interest income
Description of accounting policy for earnings per share [text block]	Basic earnings per share (EPS) is calculated by dividing the profit for the year attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the financial year.
Description of accounting policy for emission rights [text block]	received free of charge from governmental authorities (EU Emissions Trading Scheme for greenhouse gas emissions allowances) reduce financial obligations for CO
Description of accounting policy for employee benefits [text block]	Pensions and similar obligations
Description of accounting policy for expenses [text block]	b) Pre-licence costs
Description of accounting policy for exploration and evaluation expenditures [text block]	d) Exploration and evaluation expenditure
Description of accounting policy for finance costs [text block]	k) Borrowing costs
Description of accounting policy for financial instruments [text block]	j) Financial instruments
Description of accounting policy for foreign currency translation [text block]	5. FOREIGN CURRENCY AND TRANSLATION
Description of accounting policy for government grants [text block]	l) Government grants
Description of accounting policy for hedging [text block]	Derivative financial instruments and hedge accounting
Description of accounting policy for impairment of assets [text block]	Impairment of intangible assets and property, plant and equipment
Description of accounting policy for impairment of financial assets [text block]	These assets are subsequently measured at amortized cost using the effective interest method less any impairment losses. Interest income, impairment losses and gains or losses on derecognition are recognized in income statement. The Group’s financial assets at amortised cost include mainly trade receivables.
Description of accounting policy for impairment of non-financial assets [text block]	c) Impairment of non-financial assets
Description of accounting policy for income tax [text block]	o) Taxes on income and royalties
Description of accounting policy for leases [text block]	h) Lease term and incremental borrowing rate
Description of accounting policy for measuring inventories [text block]	m) Inventories
Description of accounting policy for intangible assets and goodwill [text block]	Goodwill is calculated as the excess of the aggregate of the consideration transferred, the amount recognized for non-controlling interests and any previous interest held, over the net identifiable assets acquired and liabilities assumed. Goodwill is recognized as an asset and reviewed for impairment at least annually. All impairments are immediately charged against income statement, and there are no subsequent reversals of goodwill impairment. If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Group reassesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognized at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognized in income statement.
Description of accounting policy for intangible assets other than goodwill [text block]	c) Licence acquisition costs
Description of accounting policy for investment in associates [text block]	b) Associates
Description of accounting policy for investments in joint ventures [text block]	c) Interests in joint arrangements
Description of accounting policy for non-current assets or disposal groups classified as held for sale and discontinued operations [text block]	Assets classified as held for sale are measured at the lower of carrying amount and fair value less costs to sell. Non-current assets and groups of assets are classified as held for sale if their carrying value will be recovered principally through a sale transaction rather than through continuing use. This classification requires that the sale must be estimated as highly probable, and that the asset must be available for immediate disposal in its present condition. The highly probable criteria implies that management must be committed to the sale and an active plan to locate a buyer was initiated, the transaction should be expected to qualify for recognition as a completed sale within one year from the date of classification (except if certain conditions are met), the asset is actively marketed at a price that is reasonable in relation to its current fair value and it is unlikely that significant changes will occur to the sale plan or that the plan will be withdrawn. Property, plant and equipment and intangible assets are not depreciated or amortized once classified as held for sale.
Description of accounting policy for offsetting of financial instruments [text block]	Offsetting of financial assets and liabilities
Description of accounting policy for oil and gas assets [text block]	a) Oil and gas reserves
Description of accounting policy for property, plant and equipment [text block]	e) Development and production costs
Description of accounting policy for provisions [text block]	n) Provisions
Description of accounting policy for recognition of revenue [text block]	p) Revenue recognition
Description of accounting policy for repairs and maintenance [text block]	g) Major maintenance and repairs
Description of accounting policy for research and development expense [text block]	h) Research and development
Description of accounting policy for segment reporting [text block]	OMV Petrom Group is organized into three operating business segments: Exploration and Production, Refining and Marketing and Gas and Power, while management, financing activities and certain service functions are concentrated in the Corporate and Other segment.
Description of accounting policy for subsidiaries [text block]	a) Subsidiaries
Description of accounting policy for taxes other than income tax [text block]	Production taxes
Description of accounting policy for termination benefits [text block]	Provisions for restructuring programs
Description of accounting policy for trade and other payables [text block]	Non-derivative financial liabilities
Description of accounting policy for trade and other receivables [text block]	Non-derivative financial assets
Description of accounting policy for transactions with non-controlling interests [text block]	Non-controlling interests entitle their holders to a proportionate share of the entity's net assets in the event of liquidation. Non-controlling interests are presented separately in the consolidated statement of comprehensive income and within equity in the consolidated statement of financial position, separately from parent’s shareholders’ equity. Losses within a subsidiary are attributed to the non-controlling interest even if that results in a deficit balance.