Transactions in foreign currency
The individual consolidated companies recognise transactions in foreign currency using the mean rate of exchange on the date of each transaction. Monetary assets and liabilities in foreign currency existing on the balance sheet reporting date are translated to EUR using the mean rate of exchange on the balance sheet reporting date. Any resulting foreign currency gains and losses are recognised with no effect on the income statement.
Foreign currency translation of individual financial statements
For purposes of the IFRS, the functional currency of Wiener Städtische AG subsidiaries located outside of the Euro zone is the currency of the country where they are located. All assets and liabilities reported in the individual financial statements are translated to EUR using the mean rate of exchange on the balance sheet reporting date. Items in the income statement are translated using the average month-end mean rate of exchange during the reporting period. Foreign exchange gains and losses incurred since 1 January 2004, are recognised in equity under “Differences arising from foreign exchange translation” with no effect on the income statement.
