LegalGrant Thornton
Independent Auditor's Report on the Annual Financial Statements of PCF Group: 2024
1 Apr 20257 pages~18 min full read
PCF Group S.A. received an unqualified audit opinion from Grant Thornton Polska for the 2024 fiscal year, confirming compliance with IFRS and Polish law.
See it on page 1The company reported 166.5 million PLN in sales revenue for 2024, with contract assets valued at 9.6 million PLN and liabilities at 5.8 million PLN.
See it on page 2Subsidiary investments totaling 42.2 million PLN incurred an impairment loss of 18.9 million PLN during the 2024 period.
See it on page 3Capitalized development costs for games in progress stand at 94.7 million PLN, supplemented by 44.3 million PLN in other intangible assets.
See it on page 4Deferred tax assets of 52.7 million PLN face realization uncertainty between 2025 and 2029 due to shifts in the company’s business strategy.
See it on page 4Auditors identified revenue recognition as a critical matter due to the complexity of variable compensation elements and the subjective estimation of development contract progress.
See it on page 3This independent auditor’s report, prepared by Grant Thornton Polska, provides a professional evaluation of the annual financial statements for PCF Group S.A. for the fiscal year ending December 31, 2024. The audit concludes with an unqualified opinion, stating that the financial statements provide a fair and clear view of the company’s financial position, results, and cash flows in accordance with International Financial Reporting Standards (IFRS) and applicable Polish law.
The scope of the audit covers the Warsaw-based game development company’s balance sheet, income statement, and cash flow statements. Key findings highlight several critical audit matters specific to the gaming industry. Sales revenue for 2024 reached 166.5 million PLN, while contract assets and liabilities were valued at 9.6 million PLN and 5.8 million PLN, respectively. The auditors emphasized the complexity of revenue recognition due to variable compensation elements, such as bonuses and warrants, and the subjective nature of estimating work progress on development contracts.
Significant attention was directed toward asset valuation and impairment. The company holds 42.2 million PLN in subsidiary investments, which saw an impairment loss of 18.9 million PLN during the period. Additionally, PCF Group maintains 94.7 million PLN in capitalized development costs for games in progress and 44.3 million PLN in other intangible assets. The report includes an explanatory note regarding 52.7 million PLN in deferred tax assets, noting uncertainty regarding their realization between 2025 and 2029 due to shifts in the company’s business strategy.
The methodology followed National Auditing Standards and EU Regulation 537/2014. The audit involved verifying management’s estimates, testing internal controls, and evaluating discounted cash flow models used for impairment tests. This report marks the second consecutive year Grant Thornton has served as the independent auditor for PCF Group.
