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 rate valid on the 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 amortised cost or at cost 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 payables in foreign currency, which must be regarded as a net investment in a foreign business operation, equity instruments held for sale and qualified cash flow hedges are reported as reserves retained from earnings outside of profit or loss.

Foreign business 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 as income in the year in which foreign subsidiaries are deconsolidated. 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 nine-month short financial year 2013, translations were made using the average exchange rate for the period from 1 January 2013 to 30 September 2013. For year-on-year comparisons, the average rate from 1 January 2012 to 30 September 2012 was used for 9M 2012, and the average rate from the 2012 calendar year was used for 12M 2012. The exchange rates as of the respective balance sheet dates were determined for 30 September 2013, 30 September 2012 and 31 December 2012.

In the short financial year 2013, 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 €

Period-end exchange rate per €

 

 

 

 

 

 

 

 

 

 

12M 2012

9M 2012

9M 2013

31/12/2012

30/9/2012

30/9/2013

Bosnian mark

BAM

1.95583

1.95583

1.95583

1.95583

1.95583

1.95583

Bulgarian lev

BGN

1.95583

1.95583

1.95583

1.95583

1.95583

1.95583

Chinese renminbi

CNY

8.10830

8.10963

8.12135

8.22070

8.12610

8.26450

Croatian kuna

HRK

7.52157

7.51869

7.56235

7.55750

7.44680

7.61530

Czech koruna

CZK

25.14625

25.13996

25.74354

25.15100

25.14100

25.73000

Danish krone

DKK

7.44378

7.43864

7.45742

7.46100

7.45550

7.45800

Egyptian pound

EGP

7.80341

7.75488

9.02615

8.33160

7.83770

9.28670

Hong Kong dollar

HKD

9.97090

9.94325

10.21525

10.22600

10.02580

10.47220

Hungarian forint

HUF

289.34044

291.33281

296.79520

292.30000

284.89000

298.15000

Indian rupee

INR

68.59749

68.03499

75.63341

72.56000

68.34800

84.84400

Indonesian rupee

IDR

12,051.91000

11,908.44000

13,235.03000

12,713.97000

12,380.86000

15,425.27000

Japanese yen

JPY

102.62680

101.70635

127.30227

113.61000

100.37000

131.78000

Kazakhstani tenge

KZT

191.72246

190.56869

199.60568

199.22000

194.02000

207.55000

Moldovan leu

MDL

15.57239

15.45949

16.38863

15.99670

15.93230

17.48880

New Romanian leu

RON

4.45876

4.43641

4.40879

4.44450

4.53830

4.46200

Norwegian krone

NOK

7.47557

7.51262

7.66175

7.34830

7.36950

8.11400

Pakistani rupee

PKR

120.02184

118.38082

131.44686

128.17930

122.68010

143.13720

Polish złoty

PLN

4.18338

4.20750

4.20115

4.07400

4.10380

4.22880

Pound Sterling

GBP

0.81108

0.81225

0.85175

0.81610

0.79805

0.83605

Russian rouble

RUB

39.92102

39.79334

41.66034

40.32950

40.14000

43.82400

Serbian dinar

RSD

113.03958

112.89250

112.67855

113.71830

115.03200

114.60440

Singapore dollar

SGD

1.60594

1.61267

1.64807

1.61110

1.58480

1.69610

Swedish krona

SEK

8.70515

8.73251

8.58111

8.58200

8.44980

8.65750

Swiss franc

CHF

1.20529

1.20444

1.23124

1.20720

1.20990

1.22250

Turkish lira

TRY

2.31415

2.30954

2.45831

2.35510

2.32030

2.75100

Ukrainian hryvnia

UAH

10.27073

10.23613

10.52213

10.53717

10.29019

10.82012

US dollar

USD

1.28539

1.28148

1.31679

1.31940

1.29300

1.35050

Vietnamese dong

VND

26,793.52000

26,732.09000

27,496.42000

27,580.44000

27,093.06000

28,474.33000