Currency translation

Foreign currency transactions

In the subsidiaries’ separate financial statements, transactions in foreign currency are valued at the rate prevailing on the transaction date. Monetary assets and liabilities in foreign currency are valued at the exchange rate at closing date. Non-monetary assets and liabilities that are measured at fair value in foreign currency are translated at the rate prevailing at the time the fair value was determined. Non-monetary items measured at historical acquisition or production costs in foreign currency are translated at the rate valid at the transaction date.

In principle, gains and losses from exchange rate fluctuations incurred until the closing date are recognised in profit or loss. Currency translation differences from receivables and liabilities in foreign currency, which must be regarded as a net investment in a foreign operation, equity instruments held for sale and qualified cash flow hedges are reported as reserves retained from earnings outside of profit or loss.

Foreign operations

The annual financial statements of foreign subsidiaries are translated into euros according to the functional currency concept of IAS 21 (The Effects of Changes in Foreign Exchange Rates). The functional currency is defined as the currency of the primary economic environment of the subsidiary. Since all consolidated companies operate as financially, economically and organisationally autonomous entities, their respective local currency is the functional currency. Assets and liabilities are therefore converted at the current exchange rate prevailing on the closing date, whereas income statement items are translated at the average exchange rate during the financial year. Differences from the translation of the financial statements of foreign subsidiaries do not affect income and are shown as separate items under reserves retained from earnings. To the extent that foreign subsidiaries are not under the full control of the parent company, the relevant share of currency differences is allocated to the non-controlling interests.

The currency differences are recorded through profit or loss in the year in which foreign subsidiaries are disposed of. In a partial disposal in which a controlling interest in the foreign subsidiary is retained, the relevant share of cumulated currency differences is allocated to the non-controlling interests. Should foreign associates or jointly controlled entities be partially sold without the loss of significant influence or joint control, the relevant share of the cumulated currency differences is recognised in the income statement.

For the financial year 2013/14, translations were made using the average exchange rate for the period from 1 October 2013 to 30 September 2014; the nine-month short financial year 2013 used the average exchange rate for the period from 1 January 2013 to 30 September 2013. For the comparative figures for the period 12M 2012/13, translations for the nine months of the short financial year were made using the average exchange rate defined above and for the three months of the fourth quarter of 2012 using the average exchange rate of the financial year 2012. The exchange rates at the closing date were determined for 30 September 2014 and 30 September 2013.

In financial year 2013/14, no functional currency of a consolidated company was classified as hyperinflationary as defined by IAS 29 (Financial Reporting in Hyperinflationary Economies).

The following exchange rates were applied in the translation of key currencies outside the European Monetary Union that are of major significance for METRO GROUP:

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Average exchange rate per €

Exchange rate at closing date per €

 

 

 

 

 

 

 

 

9M 2013

12M 2013/14

30/9/2013

30/9/2014

Bosnian mark

BAM

1.95583

1.95583

1.95583

1.95583

Bulgarian lev

BGN

1.95583

1.95583

1.95583

1.95583

Chinese renminbi

CNY

8.12135

8.34171

8.26450

7.72620

Croatian kuna

HRK

7.56235

7.62536

7.61530

7.64250

Czech koruna

CZK

25.74354

27.29877

25.73000

27.50000

Danish krone

DKK

7.45742

7.45919

7.45800

7.44310

Egyptian pound

EGP

9.02615

9.36833

9.28670

8.98510

Hong Kong dollar

HKD

10.21525

10.52203

10.47220

9.77400

Hungarian forint

HUF

296.79520

305.88518

298.15000

310.57000

Indian rupee

INR

75.63341

82.82878

84.84400

77.85640

Indonesian rupee

IDR

13,235.03000

15,853.76000

15,425.27000

15,366.97000

Japanese yen

JPY

127.30227

138.81282

131.78000

138.11000

Kazakhstani tenge

KZT

199.60568

233.71997

207.55000

231.05000

Moldovan leu

MDL

16.38863

18.36509

17.48880

18.47930

Moroccan dirhams

MAD

11.14603

11.21069

11.20510

11.07545

Norwegian krone

NOK

7.66175

8.26985

8.11400

8.11900

Pakistani rupee

PKR

131.44686

138.88143

143.13720

129.39590

Polish złoty

PLN

4.20115

4.17814

4.22880

4.17760

Pound Sterling

GBP

0.85175

0.81927

0.83605

0.77730

Romanian leu

RON

4.40879

4.44849

4.46200

4.41020

Russian rouble

RUB

41.66034

47.09572

43.82400

49.76530

Serbian dinar

RSD

112.67855

115.74586

114.60440

118.85090

Singapore dollar

SGD

1.64807

1.70377

1.69610

1.60630

Swedish krona

SEK

8.58111

8.99692

8.65750

9.14650

Swiss franc

CHF

1.23124

1.22078

1.22250

1.20630

Turkish lira

TRY

2.45831

2.88971

2.75100

2.87790

Ukrainian hryvnia

UAH

10.52213

13.95118

10.82012

16.44676

US dollar

USD

1.31679

1.35691

1.35050

1.25830

Vietnamese dong

VND

27,496.42000

28,673.35000

28,474.33000

27,428.59000