Current Report No. 4/2025: Change in Depreciation Method for Frostpunk 2

The report announces a change in the depreciation method applied to the intangible asset “Frostpunk 2” by 11 bit studios. The company’s Management Board, following an agreement with its auditor, has decided to switch from a straight‑line depreciation over five years to a declining balance method spanning seven years, effective from the game’s release on 20 September 2024. This adjustment was made during the preparation of the 2024 financial statements.

Under the new method, the amortisation expense recorded in the 2024 statement of comprehensive income is PLN 12,521,440. Had the previous straight‑line approach been retained, the expense would have been PLN 3,130,360. The change therefore increases the annual depreciation charge by approximately PLN 9.4 million, reflecting a more accelerated recognition of the asset’s consumption.

The scope of the adjustment is limited to the PC version of “Frostpunk 2” and pertains solely to the 2024 financial period. No other assets or segments are affected, and the report does not provide additional data on broader industry trends or comparative benchmarks. The methodology is straightforward: a recalculation of depreciation based on the agreed accounting policy, with no mention of external data sources or survey samples. The notice serves to inform stakeholders of the revised accounting treatment and its impact on reported earnings for the year.