[7] 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 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 at the rate prevailing on the transaction date. Currency translation differences are recognised in the income statement as 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

2012

2011

2012

2011

 

 

 

 

 

Australia (AUD)

1.2420

1.3480

1.2693

1.2683

Brazil (BRL)

2.5114

2.3273

2.7033

2.4142

Switzerland (CHF)

1.2052

1.2327

1.2079

1.2154

China (CNY)

8.1138

9.0018

8.2218

8.1551

United Kingdom (GBP)

0.8112

0.8680

0.8129

0.8343

Russia (RUB)

39.9190

40.8810

40.3252

41.7267

U.S.A. (USD)

1.2863

1.3929

1.3197

1.2957

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