Currency translation

Foreign currency transactions

In the subsidiaries’ separate financial statements, transactions in foreign currency are recognised 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 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 (part of) 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 prepared according to the functional currency concept of IAS 21 (the effects of changes in foreign exchange rates) and translated into euros in as far as their functional currency is a currency other than the euro. The functional currency is defined as the currency of the primary economic environment of the sub- sidiary. 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 2017/18, 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 Economic and Monetary Union that are of major significance for METRO:

 

 

 

 

Average exchange rate per €

 

Exchange rate at closing date per €

 

 

 

 

2016/17

2017/18

 

30/9/2017

30/9/2018

Bulgarian lev

 

BGN

 

1.95583

1.95583

 

1.95583

1.95583

Chinese renminbi

 

CNY

 

7.52183

7.78072

 

7.85340

7.96620

Croatian kuna

 

HRK

 

7.46142

7.44639

 

7.49500

7.43460

Czech koruna

 

CZK

 

26.67131

25.59342

 

25.98100

25.73100

Danish krone

 

DKK

 

7.43772

7.44841

 

7.44230

7.45640

Egyptian pound

 

EGP

 

18.79223

21.14591

 

20.78390

20.96995

Hong Kong dollar

 

HKD

 

8.59544

9.32227

 

9.22140

9.05790

Hungarian forint

 

HUF

 

308.69863

315.96660

 

310.67000

324.37000

Indian rupee

 

INR

 

72.61794

79.17455

 

77.06900

83.91600

Indonesian rupiah

 

IDR

 

14,704.02000

16,563.99000

 

15,888.51000

17,249.98000

Japanese yen

 

JPY

 

122.90301

131.44140

 

132.82000

131.23000

Kazakhstani tenge

 

KZT

 

360.51395

399.50173

 

402.64000

420.91000

Moldovan leu

 

MDL

 

21.12759

20.07596

 

20.74650

19.76180

Myanmar kyat

 

MMK

 

1,485.61726

1,643.89863

 

1,601.80000

1,816.30000

Norwegian krone

 

NOK

 

9.18636

9.59644

 

9.41250

9.46650

Pakistani rupee

 

PKR

 

116.00002

136.55544

 

124.35150

144.19130

Polish zloty

 

PLN

 

4.29356

4.24399

 

4.30420

4.27740

Pound sterling

 

GBP

 

0.87177

0.88479

 

0.88178

0.88730

Romanian leu

 

RON

 

4.54062

4.64422

 

4.59930

4.66380

Russian rouble

 

RUB

 

65.71585

72.23349

 

68.25190

76.14220

Serbian dinar

 

RSD

 

122.45092

118.46441

 

119.36590

118.41790

Singapore dollar

 

SGD

 

1.53981

1.59897

 

1.60310

1.58390

Swiss franc

 

CHF

 

1.09089

1.16162

 

1.14570

1.13160

Turkish lira

 

TRY

 

3.88674

5.24182

 

4.20130

6.96500

Ukrainian hryvnia

 

UAH

 

29.07864

32.08969

 

31.37857

32.72527

US dollar

 

USD

 

1.10467

1.19026

 

1.18060

1.15760

Vietnamese dong

 

VND

 

24,607.59000

26,816.38000

 

26,487.30000

26,722.01000

Fair value
Recognised fair value. Amount that would have been received in return for the disposal of an asset or paid for the assignment of a debt in an ordinary transaction conducted between market participants on the assessment date.
Glossary