4. Foreign Currency Translation

Monetary assets and liabilities in the Separate Financial Statements for the consolidated companies which are prepared in a foreign currency are converted to local currency at the rate applicable on the balance sheet date. The resulting currency differences are recognised in the result for the period.

Non-monetary items held at historical cost in a foreign currency are translated at the applicable rate on the transaction date. Non-monetary items held at fair value in a foreign currency are translated at the rate applicable on the date fair value was measured.

Exchange rate gains and losses recognised in the income statement on foreign currency items resulted in a profit of € 2,604 thousand in the financial year, largely due to the appreciation of the Czech koruna (previous year: loss of € 2,188 thousand largely due to the depreciation of the Ukrainian currency).

The concept of functional currency according to IAS 21 is applied when translating all Annual Financial Statements of foreign affiliates prepared in a foreign currency. As the subsidiaries in question are generally independent in terms of their financial, economic and organisational activities, the functional currency is the respective national currency. As of the balance sheet date, the assets and liabilities of these subsidiaries are converted to euros at the rate prevailing on the reporting date. Income and expenses are translated at the weighted average rate for the financial year. Equity components are converted at their respective historical rates. Any translation differences are recognised as a separate component of equity without effect on profit and loss. If Group companies leave the group of consolidated companies, the associated translation difference is reversed through profit and loss.

The proportion of equity attributable to shareholders of the parent company fell, with the change recognised directly in equity, by € 5,446 thousand (previous year: € 2,902 thousand) largely due to the depreciation of the Ukrainian currency in the amount of € 5,831 thousand (previous year: € 3,019 thousand).

Foreign Currency Translation

 

 

 

 

Spot rate = 1€

 

Average annual rate = 1€

Currency

 

ISO code

 

31.12.2017

 

31.12.2016

 

2017

 

2016

Czech crown

 

CZK

 

25.535

 

27.021

 

26.345

 

27.041

Georgian lari

 

GEL

 

3.104

 

2.794

 

2.855

 

2.627

Hungarian forint

 

HUF

 

310.330

 

309.830

 

309.321

 

312.177

Polish zloty

 

PLN

 

4.177

 

4.410

 

4.256

 

4.368

Ukrainian hryvnia

 

UAH

 

33.495

 

28.423

 

30.087

 

28.094