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 closing date exchange rate. 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. As a rule, 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 or at the time the business operations of a foreign subsidiary are discontinued. 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.

In financial year 2014/15, 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:

 Download XLS (26KB)

 

 

Average exchange rate per €

Exchange rate at closing date per €

 

 

 

 

 

 

 

 

2013/14

2014/15

30/9/2014

30/9/2015

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

8.34171

7.14511

7.72620

7.12060

Croatian kuna

HRK

7.62536

7.62450

7.64250

7.64450

Czech koruna

CZK

27.29877

27.42870

27.50000

27.18700

Danish krone

DKK

7.45919

7.45411

7.44310

7.45980

Egyptian pound

EGP

9.36833

8.57877

8.98510

8.66620

Hong Kong dollar

HKD

10.52203

8.90626

9.77400

8.68240

Hungarian forint

HUF

305.88518

308.94701

310.57000

313.45000

Indian rupee

INR

82.82878

72.50054

77.85640

73.48050

Indonesian rupee

IDR

15,853.76000

14,914.46000

15,366.97000

16,347.81000

Japanese yen

JPY

138.81282

136.84504

138.11000

134.69000

Kazakhstani tenge

KZT

233.71997

220.67414

231.05000

303.47000

Moldovan leu

MDL

18.36509

20.08065

18.47930

22.59260

Moroccan dirham

MAD

11.21069

10.88235

11.07545

10.87815

Norwegian krone

NOK

8.26985

8.75905

8.11900

9.52450

Pakistani rupee

PKR

138.88143

117.20413

129.39590

117.25160

Polish zloty

PLN

4.17814

4.17060

4.17760

4.24480

Pound sterling

GBP

0.81927

0.74305

0.77730

0.73850

Romanian leu

RON

4.44849

4.43956

4.41020

4.41760

Russian rouble

RUB

47.09572

64.80626

49.76530

73.24160

Serbian dinar

RSD

115.74586

120.61782

118.85090

119.74910

Singapore dollar

SGD

1.70377

1.54440

1.60630

1.59210

Swedish krona

SEK

8.99692

9.34718

9.14650

9.40830

Swiss franc

CHF

1.22078

1.09807

1.20630

1.09150

Turkish lira

TRY

2.88971

2.93219

2.87790

3.39030

Ukrainian hryvnia

UAH

13.95118

22.42906

16.44676

23.85750

US dollar

USD

1.35691

1.14863

1.25830

1.12030

Vietnamese dong

VND

28,673.35000

24,661.11000

27,428.59000

24,963.36000