4. Foreign currency translation

Monetary assets and liabilities in the Separate Financial Statements for the consolidated companies which are prepared in local currency are converted to a foreign 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 € 538 thousand in the financial year, largely due to the exchange rate development of the Czech koruna (previous year: profit of € 35 thousand, largely due to the exchange rate development of the Czech koruna and the Polish zloty).

The concept of functional currency according to 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 when they occur. Any translation differences are recognised as a separate component of equity outside profit or 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 rose, with the change recognised directly in equity, by € 8,566 thousand (previous year: an increase of € 1,617 thousand), largely due to the appreciation of the Ukrainian currency in the amount of € 8,483 thousand (previous year: appreciation of € 1,761 thousand).

Foreign currency translation

 

 

 

 

Spot rate = 1€

 

Average annual rate = 1€

Currency

 

ISO-Code

 

31.12.2019

 

31.12.2018

 

2019

 

2018

Czech crown

 

CZK

 

25.408

 

25.724

 

25.666

 

25.664

Georgian lari

 

GEL

 

3.210

 

3.070

 

3.164

 

3.003

Hungarian forint

 

HUF

 

330.530

 

320.980

 

325.492

 

319.097

Polish zloty

 

PLN

 

4.257

 

4.301

 

4.299

 

4.260

Ukrainian hryvnia

 

UAH

 

26.422

 

31.714

 

28.991

 

32.350

IAS

International accounting standards.