Foreign currency translation
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”). The Consolidated Financial Statements are presented in euro, which is the presentation currency of the Group and the functional currency of the Parent Company.
Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date. All currency translation differences are taken to the Consolidated Income Statement with the exception of all monetary items that provide an effective hedge for a net investment in a foreign operation. These are recognised in other comprehensive income until the disposal of the net investment, at which time they are recognised in the Consolidated Income Statement.
Results and cash flows of subsidiaries, joint ventures and associates with non-euro functional currencies have been translated into euro at average exchange rates for the year, and the related balance sheets have been translated at the rates of exchange ruling at the balance sheet date. Adjustments arising on translation of the results and net assets of non-euro subsidiaries, joint ventures and associates are recognised in a separate translation reserve within equity, net of differences on related currency borrowings. All other translation differences are taken to the Consolidated Income Statement. Goodwill and fair value adjustments arising on acquisition of a foreign operation are regarded as assets and liabilities of the foreign operation and are translated accordingly.
The principal exchange rates used for the translation of results, cash flows and balance sheets into euro were as follows:
| Average | Year-end | |||||||||||||||||||||||
| euro 1 = | 2017 | 2016 | 2015 | 2017 | 2016 | |||||||||||||||||||
|
Brazilian Real |
3.6054 | 3.8561 | 3.7004 | 3.9729 | 3.4305 | |||||||||||||||||||
|
Canadian Dollar |
1.4647 | 1.4659 | 1.4186 | 1.5039 | 1.4188 | |||||||||||||||||||
|
Chinese Renminbi |
7.6290 | 7.3522 | 6.9733 | 7.8044 | 7.3202 | |||||||||||||||||||
|
Hungarian Forint |
309.1933 | 311.4379 | 309.9956 | 310.3300 | 309.8300 | |||||||||||||||||||
|
Indian Rupee |
73.5324 | 74.3717 | 71.1956 | 76.6055 | 71.5935 | |||||||||||||||||||
|
Philippine Peso |
56.9734 | 52.5555 | 50.5217 | 59.7950 | 52.2680 | |||||||||||||||||||
|
Polish Zloty |
4.2570 | 4.3632 | 4.1841 | 4.1770 | 4.4103 | |||||||||||||||||||
|
Pound Sterling |
0.8767 | 0.8195 | 0.7258 | 0.8872 | 0.8562 | |||||||||||||||||||
|
Romanian Leu |
4.5688 | 4.4904 | 4.4454 | 4.6585 | 4.5390 | |||||||||||||||||||
|
Serbian Dinar |
121.3232 | 123.1356 | 120.7168 | 118.3086 | 123.4600 | |||||||||||||||||||
|
Swiss Franc |
1.1117 | 1.0902 | 1.0679 | 1.1702 | 1.0739 | |||||||||||||||||||
|
Ukrainian Hryvnia |
30.0341 | 28.2812 | 24.3693 | 33.6769 | 28.6043 | |||||||||||||||||||
|
US Dollar |
1.1297 | 1.1069 | 1.1095 | 1.1993 | 1.0541 | |||||||||||||||||||