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 translated 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.

Currency differences are recognised through profit or loss in the net financial result in the year in which the operations of a foreign subsidiary are deconsolidated or terminated. 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 2015/16, 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 €

 

 

 

 

 

 

 

 

2014/15

2015/16

30/9/2015

30/9/2016

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

7.14511

7.25857

7.12060

7.44630

Croatian kuna

HRK

7.62450

7.55920

7.64450

7.52200

Czech koruna

CZK

27.42870

27.04140

27.18700

27.02100

Danish krone

DKK

7.45411

7.45069

7.45980

7.45130

Egyptian pound

EGP

8.57877

9.25176

8.66620

9.85335

Hong Kong dollar

HKD

8.90626

8.62172

8.68240

8.65470

Hungarian forint

HUF

308.94701

312.27877

313.45000

309.79000

Indian rupee

INR

72.50054

74.22463

73.48050

74.36550

Indonesian rupiah

IDR

14,914.46000

14,923.41000

16,347.81000

14,566.22000

Japanese yen

JPY

136.84504

124.09443

134.69000

113.09000

Kazakhstani tenge

KZT

220.67414

370.06902

303.47000

375.52000

Moldovan leu

MDL

20.08065

22.09941

22.59260

22.16110

Moroccan dirham

MAD

10.88235

10.86310

10.87815

10.91235

Norwegian krone

NOK

8.75905

9.36916

9.52450

8.98650

Pakistani rupee

PKR

117.20413

116.46653

117.25160

116.96670

Polish zloty

PLN

4.17060

4.33360

4.24480

4.31920

Pound sterling

GBP

0.74305

0.78209

0.73850

0.86103

Romanian leu

RON

4.43956

4.47856

4.41760

4.45370

Russian rouble

RUB

64.80626

75.28270

73.24160

70.51400

Serbian dinar

RSD

120.61782

122.49388

119.74910

123.29290

Singapore dollar

SGD

1.54440

1.53280

1.59210

1.52350

Swedish krona

SEK

9.34718

9.35415

9.4083

9.62100

Swiss franc

CHF

1.09807

1.09130

1.09150

1.08760

Turkish lira

TRY

2.93219

3.25276

3.39030

3.35760

Ukrainian hryvnia

UAH

22.42906

27.55541

23.85750

28.94817

US dollar

USD

1.14863

1.11098

1.12030

1.11610

Vietnamese dong

VND

24,661.11000

24,274.08000

24,963.36000

24,585.96000