2.1. Grounds for preparation of the financial statements

These consolidated financial statements of the Jastrzębska Spółka Węglowa S.A. Group for the financial year ended 31 December 2018 were prepared in accordance with the International Financial Reporting Standards (“IFRS”) approved by the European Union (“EU”).

The consolidated financial statements have been drawn up in accordance with the historical cost principle, except for financial derivatives, FIZ assets and interests in other entities that are measured at fair value.