Functional currency translation methodology—As of December 31, 2017, the functional currencies of Group entities were as follows:
|
|
|
|
|
|
• |
For entities incorporated in the Russian Federation, Dega and MTS International—the Russian Ruble ("RUB"); |
|
|
• |
For Vodafone Ukraine—the Ukrainian Hryvna; |
|
|
• |
For MTS Armenia—the Armenian Dram; |
|
|
• |
For MTS Turkmenistan—the Turkmenian Manat; |
|
|
• |
For MTS Belarus—the Belorussian Ruble; |
|
|
• |
For NVision Czech Republic—the Czech Crown. |
Foreign-currency transactions are translated into the functional currency at the exchange rates at the dates of the transactions. At the reporting date, monetary items denominated in foreign currencies are translated at the closing rate, whereas non-monetary items are stated at the exchange rate at the date of their recognition. Exchange rate differences are recognized in profit or loss.
For entities whose records are maintained in their functional currency, which is other than the reporting currency, all year-end assets and liabilities have been translated into U.S. Dollars ("USD") at the period-end exchange rate set by local central banks. Subsequently, U.S. Dollars balances have been translated into Russian Rubles at the period-end exchange rate set by the Central Bank of Russia. Revenues and expenses have been translated at the average exchange rate for the period using cross-currency exchange rate via U.S. Dollar as described above. Translation differences resulting from the use of these rates are reported as a component of other comprehensive income.