General Accounting Principles of the Combined Financial Statements

6. CURRENCY TRANSLATION

The Combined Financial Statements are prepared in euros. This corresponds to the currency of the groups' primary economic environment (functional currency).

The items of each entity included in the financial statements are measured using the currency of the primary economic environment in which the entity operates (functional currency).

Translation of Transactions in the Separate Financial Statements

Transactions in foreign currency in the financial statements of the groups' combined companies are translated into the functional currency using the exchange rate applicable as at the transaction date. Gains and losses resulting from the settlement of such transactions as well as from the translation of monetary assets and liabilities maintained in foreign currency at the closing rate are recognised in profit or loss.

Translation of Financial Statements of Subsidiaries with Different Functional Currencies into the Reporting Currency (Euro)

Financial statements of subsidiaries which were prepared in a functional currency other than the euro reporting currency are translated pursuant to the concept of functional currency translation. Assets and liabilities are translated using the closing rate for each balance sheet date. For the sake of simplification, the income and expense items in the income statement are translated at the average rate for the period.

Differences from the translation of financial statements prepared in a different functional currency are recognised directly in equity. A translation difference recognised directly in equity will not be realised until the corporate unit is deconsolidated.

Financial statements that are accounted for using the equity method and prepared in a different functional currency are also translated pursuant to the functional currency concept when adjusting equity.

Exchange Rates of Countries not Participating in the European Monetary Union
ISO codeCountryCurrencyClosing rate per €Average rate per €
31 Dec. 201831 Dec. 201720182017
AEDUnited Arab EmiratesDirham4.2074.4044.3384.148
AUDAustraliaDollar1.6221.5351.5801.473
BGNBulgariaLew1.9561.9561.9561.956
CADCanadaDollar1.5601.5041.5291.465
CHFSwitzerlandFranc1.1231.1701.1551.112
CNYChinaYuan7.8787.8047.8087.629
CZKCzech RepublicKoruna25.77825.53525.64726.326
DKKDenmarkKrone7.4677.4457.4537.439
GBPUnited KingdomPound Sterling0.9030.8870.8850.877
HKDHong KongDollar8.9729.3729.2578.805
HRKCroatiaKuna7.4107.4407.4187.464
HUFHungaryForint321.610310.330318.881309.193
MADMoroccoDirham10.92011.23611.08210.950
NOKNorwayKrone9.9749.8409.5969.327
NZDNew ZealandDollar1.7061.6851.7061.590
PLNPolandZloty4.3034.1774.2614.257
RONRomaniaLeu4.6634.6594.6544.569
RUBRussian FederationRouble79.54569.39274.01965.938
SEKSwedenKrona10.2779.84410.2589.635
SGDSingaporeDollar1.5641.6021.5931.559
THBThailandBaht37.31739.12138.16938.296
TNDTunisiaDinar3.4242.9743.1092.731
UAHUkraineHryvnia31.58333.73232.11130.020
USDUSADollar1.1451.1991.1811.130
ZARSouth AfricaRand16.45114.80515.61515.049