Foreign currencies
Functional and presentation currency
Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”).
The Group conducts its business predominately in the PRC and hence its functional currency is the Renminbi (RMB).
Translation from RMB to USD found place at the following rates:
| Period end rates | Average rates | ||||
| December 31, 2015 | USD 1.00= RMB 6.4936 | USD 1.00=RMB 6.2401 | |||
| December 31, 2016 | USD 1.00= RMB 6.9370 | USD 1.00=RMB 6.6528 | |||
| December 31, 2017 | USD 1.00= RMB 6.5924 | USD 1.00=RMB 6.7423 |
Translation from HKD to USD found place at the following rates:
| Period end rates | Average rates | ||||
| December 31, 2015 | USD 1.00= HKD 7.7508 | USD 1.00=HKD 7.7517 | |||
| December 31, 2016 | USD 1.00= HKD 7.7552 | USD 1.00=HKD 7.7614 | |||
| December 31, 2017 | USD 1.00= HKD 7.8170 | USD 1.00=HKD 7.7928 |
The results and financial positions in functional currency are translated into the presentation currency, USD, of the Company as follows:
| (1) | Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet; |
| (2) | Income and expenses for each income statement are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions); |
| (3) | Share equity, share premium and dividends are translated at historical exchange rates; and |
| (4) | All resulting exchange differences are recognized in foreign currency translation reserve, a separate component of equity. |
All financial information presented in USD has been rounded to the nearest dollar, except when otherwise indicated.