Currency translation

Foreign currency transactions

In the separate financial statements of the subsidiaries and the parent company, transactions in foreign currency are recognised at the rate prevailing on the transaction date. Monetary assets and liabilities in foreign currency are measured at the reporting period exchange rate. Non-monetary assets and liabilities that are measured at in foreign currency are translated at the rate prevailing at the time the fair value was determined. Non-monetary items measured at historical acquisition or production costs in foreign currency are translated at the rate of the transaction date.

In principle, gains and losses incurred by exchange rate fluctuations until the reporting period are recognised in profit or loss. However, the currency translation differences resulting from the subsequent measurement of the following assets and liabilities are reported under reserves retained from earnings outside of profit or loss:

  • Receivables and liabilities in foreign currency, which must be regarded as (part of) a net investment in a foreign operation
  • Equity instruments measured at fair value through other comprehensive income
  • Hedging instruments qualifying for cash flow hedges

Foreign operations

The annual financial statements of foreign subsidiaries are prepared according to the functional currency concept of IAS 21 (The Effects of Changes in Foreign Exchange Rates) and translated into euros for consolidation purposes in case their functional currency is a currency other than the euro. The functional currency is defined as the currency of the primary economic environment in which the subsidiary operates. Since all companies included in the consolidated financial statements operate as financially, economically and organisationally autonomous entities, their respective local currency is the functional currency. Necessary translations of assets and liabilities are made at the exchange rate on the reporting period. As a general rule, income statement items are translated at the average exchange rate during the financial year. Exchange rate differences arising from the translation of the financial statements of foreign subsidiaries are recognised directly in equity and are reported separately under reserves retained from earnings in other comprehensive income. To the extent that the parent company does not own all equity interests in foreign subsidiaries, the relevant share of currency differences is allocated to the non-controlling interests.

Currency differences are recognised through profit or loss in the net financial result in the year in which the operations of a foreign subsidiary whose functional currency is not the euro are deconsolidated or terminated. In a partial disposal in which a controlling interest in such a foreign subsidiary is retained, the relevant share of cumulated currency differences is allocated to the non-controlling interests. Should associates or jointly controlled entities whose functional currency is not the euro be partially sold without the loss of significant influence or joint control, the relevant share of the cumulated currency differences is recognised in profit or loss.

In financial year 2020/21, no functional currency of a consolidated company was classified as hyperinflationary as defined by IAS 29 (Financial Reporting in Hyperinflationary Economies).

The following exchange rates being of major significance for METRO were applied in the translation of key currencies outside the European Monetary Union:

 

 

Average exchange rate per €

Average exchange rate per €

 

 

2019/20

2020/21

30/9/2020

30/9/2021

Bulgarian lev

BGN

1.95583

1.95583

1.95583

1.95583

Chinese renminbi

CNY

7.84515

7.77989

7.97200

7.48470

Croatian kuna

HRK

7.50832

7.53955

7.55650

7.48890

Czech koruna

CZK

26.17769

25.97336

27.23300

25.49500

Danish krone

DKK

7.46137

7.43843

7.44620

7.43600

Egyptian pound

EGP

17.84167

18.76426

18.45160

18.18770

Hong Kong dollar

HKD

8.70568

9.28025

9.07420

9.01840

Hungarian forint

HUF

343.96227

357.56318

365.53000

360.19000

Indian rupee

INR

82.28265

88.02535

86.29900

86.07660

Indonesian rupiah

IDR

16,232.86000

17,135.09000

17,497.84000

16,572.03000

Japanese yen

JPY

120.71530

128.50236

123.76000

129.67000

Kazakhstani tenge

KZT

451.86301

508.04742

502.14000

496.42000

Malaysian ringgit

MYR

4.72060

4.92941

4.86530

4.84750

Moldovan leu

MDL

19.46755

20.99757

19.82730

20.59550

Myanmar kyat

MMK

1,599.26967

1,781.00822

1,532.00000

2,236.50000

Norwegian krone

NOK

10.55535

10.36198

11.10080

10.16500

Pakistani rupee

PKR

179.88229

187.71887

194.33550

184.07250

Philippine peso

PHP

56.30047

58.25465

56.77400

59.06600

Polish zloty

PLN

4.38844

4.53714

4.54620

4.61970

Pound sterling

GBP

0.87833

0.87384

0.91235

0.86053

Romanian leu

RON

4.81183

4.90144

4.87250

4.94750

Russian rouble

RUB

77.50392

89.14979

91.77630

84.33910

Serbian dinar

RSD

117.56680

117.57386

117.58030

117.55950

Singapore dollar

SGD

1.54913

1.60287

1.60350

1.57600

Swiss franc

CHF

1.07494

1.08737

1.08040

1.08300

Turkish lira

TRY

7.29146

9.62548

9.09900

10.29810

UAE dirham

AED

4.11363

4.39049

4.30235

4.25075

Ukrainian hryvnia

UAH

29.09853

33.08211

33.16430

30.82310

US dollar

USD

1.11982

1.19541

1.17080

1.15790

Vietnamese dong

VND

25,953.36000

27,701.87000

27,131.35000

27,063.56000

Fair value
Recognised fair value that would be received in return for the disposal of an asset or paid for the assignment of a debt in an ordinary transaction conducted between market participants on the assessment date.
Glossary