Foreign Currency Translation
- Financial statements of foreign Group companies are translated into euros in accordance with IAS 21. The functional currency of every Group company is its respective national currency. Assets and liabilities are translated at middle rates of exchange at the balance sheet date. Expenses and income are translated at annual average rates of exchange, with the exception of the currency translation gains and losses from the measurement of receivables and liabilities related to Group financing.
- Differences compared to prior-year amounts arising from the translation of balance sheet items at current balance sheet date exchange rates or arising from the use of average rates in translating expenses and income compared to the use of current balance sheet date rates are recognised directly in equity.
- Foreign currency monetary items are measured at exchange rates at the balance sheet date, with currency translation gains and losses recognised in profit or loss in the consolidated income statement.
- In translating the financial statements of foreign Group companies, the following exchange rates were applied:
|Rate at reporting date||Average rate for year|
|In number of units of local currency per €||Currency||28 Feb 2011||28 Feb 2010||1 Mar 2010 -
28 Feb 2011
|1 Mar 2009 -
28 Feb 2010