3.1. Functional currency, presentation currency and foreign currencies
Functional and presentation currency
Items included in the financial statements of the individual Group companies operating outside the territory of Poland are measured in the functional currency, i.e. the currency of the primary economic environment in which a given entity operates. The functional currency of the parent company and other entities included in these financial statements, except for the German Branch, the Czech Branch and entities conducting their activities outside of the Republic of Poland, is the Polish zloty. The functional currency of the entities operating in Ukraine is the Ukrainian hryvnia, the functional currency of the German Branch and the entities operating in Sweden and Ireland is euro, and the functional currency of the Czech Branch is the Czech koruna.
2018
Transactions and balances in foreign currencies
Transactions expressed in foreign currencies are translated into the functional currency using the exchange rates prevailing at the date of the transaction. At each balance sheet date items are translated by the Group using the following principles:
- cash items denominated in foreign currency are translated using a closing rate i.e. the average rate announced by the National Bank of Poland prevailing as at the end of the reporting period;
- non-cash items measured at historical cost expressed in a foreign currency are translated using the exchange rate as at the date of the transaction;
- non-cash items measured at fair value in a foreign currency are translated using the exchange rates prevailing as at the date of determination of the fair value.
Foreign exchange gains and losses arising from the settlement of such transactions and from the valuation of monetary and non-monetary assets and liabilities expressed in foreign currencies are recognized in the income statement.
| UAH | 2018 | 2017 |
|---|---|---|
| Foreign exchange rates as at the end of the period | 0,1357 | 0,1236 |
| Arithmetic mean of exchange rates as at the last day of each month in the period | 0,1330 | 0,1402 |
| The highest exchange rate during the period | 0,1424 | 0,1499 |
| The lowest exchange rate during the period | 0,1197 | 0,1236 |
| EUR | 2018 | 2017 |
|---|---|---|
| Foreign exchange rates as at the end of the period | 4,3000 | 4,1709 |
| Arithmetic mean of exchange rates as at the last day of each months in the period | 4,2669 | 4,2447 |
| The highest exchange rate during the period | 4,3616 | 4,3308 |
| The lowest exchange rate during the period | 4,1488 | 4,1709 |
| CZK | 2018 | 2017 |
|---|---|---|
| Foreign exchange rates as at the end of the period | 0,1673 | 0,1632 |
| Arithmetic mean of exchange rates as at the last day of each months in the period | 0,1663 | 0,1614 |
| The highest exchange rate during the period | 0,1683 | 0,1657 |
| The lowest exchange rate during the period | 0,1640 | 0,1559 |