[6] Currency translation

The financial statements in foreign currencies are translated in accordance with the functional currency concept (IAS 21 'The Effects of Changes in Foreign Exchange Rates'). The functional currency is the currency of the primary economic environment in which a company operates. The closing-rate method is used for currency translation.

The assets and liabilities of foreign subsidiaries, including goodwill, are translated at the middle spot exchange rate, i.e. at the average of the bid or offer rates on the reporting date. Income and expenses are translated at the average rate for the year. With the exception of income and expenses recognised as other comprehensive income (loss), equity is recognised at historical rates. The resulting translation differences are not recorded in income but are recognised in other comprehensive income (loss) until subsidiaries are disposed of.

Transactions of the consolidated companies in foreign currencies are translated into the relevant company's functional currency at the rate prevailing on the transaction date. On the reporting date, monetary items are translated at the closing rate, and non-monetary items are translated at the rate prevailing on the transaction date. Currency translation differences are recorded in income and included in other income/expenses.

The following translation rates were used for currencies that are material to the financial statements:

Major foreign currency rates in €

Average rate

Closing rate

 

2011

2010

2011

2010

 

 

 

 

 

Australian dollar (AUD)

1.3480

1.4440

1.2683

1.3075

Brazilian real (BRL)

2.3273

2.3348

2.4142

2.2203

Chinese yuan (CNY)

9.0018

8.9863

8.1551

8.8173

Pound sterling (GBP)

0.8680

0.8584

0.8343

0.8575

Polish zloty (PLN)

4.1210

3.9941

4.4675

3.9666

Swiss franc (CHF)

1.2327

1.3815

1.2154

1.2496

Czech koruna (CZK)

24.5807

25.2775

25.5990

25.0415

Hungarian forint (HUF)

279.3808

275.3971

315.5400

278.3900

U.S. dollar (USD)

1.3929

1.3275

1.2957

1.3380

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