LegalGrant Thornton
Independent Auditor's Report on the Annual Consolidated Financial Statements 2021
1 Apr 20229 pages~12 min full read
Grant Thornton Frackowiak issued an unqualified opinion on PCF Group S.A.'s 2021 consolidated financial statements, confirming they comply with IFRS and present a fair view of the group's financial position.
The audit identified 54.6 million PLN in goodwill resulting from the 2021 acquisitions of Game On Creative Inc., Incuvo S.A., and the Phosphor Games development team.
Auditors scrutinized 180.3 million PLN in sales revenue and 35.3 million PLN in assets from contracts with customers, focusing specifically on variable compensation, bonuses, and warrants.
The audit scope encompassed the consolidated statement of financial position, statement of profit or loss, and statement of cash flows for the fiscal year ending December 31, 2021.
The financial reporting was verified for compliance with the European Single Electronic Format (ESEF) requirements and the Polish Act on Statutory Auditors.
The audit engagement, which began in 2019, confirmed that the auditors maintained independence from the PCF Group throughout the three-year period.
The independent auditor’s report prepared by Grant Thornton Frackowiak provides an unqualified opinion on the 2021 annual consolidated financial statements of PCF Group S.A. and its capital group. The audit confirms that the financial documentation presents a fair and clear view of the group’s financial position as of December 31, 2021, in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union. The scope of the audit covers the consolidated statement of financial position, the statement of profit or loss, and the statement of cash flows for the fiscal year.
Two key audit matters were identified as particularly significant due to the complexity of professional judgment required. First, the valuation of assets from contracts with customers and sales revenue, totaling 35.3 million PLN and 180.3 million PLN respectively, required careful scrutiny of variable compensation elements, bonuses, and warrants. Second, the accounting for the 2021 acquisitions of Game On Creative Inc., Incuvo S.A., and the Phosphor Games development team was highlighted. These transactions resulted in a recognized goodwill value of 54.6 million PLN, necessitating complex assessments of fair value and control acquisition timing.
The audit was conducted in accordance with the Polish Act on Statutory Auditors and International Standards on Auditing. The methodology involved analyzing internal control environments, verifying management estimates against source documentation, and confirming the accuracy of budget assumptions. The report also confirms compliance with the European Single Electronic Format (ESEF) requirements and maintains that the auditors remained independent of the group throughout the three-year engagement period starting in 2019.
