What is currency conversion capability
In the individual financial statements of the group companies, all receivables and debts in foreign currencies are valued at the rate on the balance sheet date, regardless of whether they are hedged or not. Forward transactions, which - from an economic point of view - serve to hedge exchange rates, are recognized at their respective fair values. The resulting exchange differences are recognized in profit or loss or, if cash flow hedges exist, in other equity.
The annual financial statements of the consolidated companies prepared in a foreign currency are converted on the basis of the functional currency concept using the modified closing rate method. According to this, the balance sheets are converted from the functional currency to the reporting currency using the average rate on the balance sheet date and the income statements are converted using the average rates for the reporting period. Since the subsidiaries conduct their business independently from a financial, economic and organizational point of view, their functional currency is fundamentally identical to the respective national currency of the company. The currency difference resulting from the conversion of equity is recorded in the other equity items. Exchange differences resulting from different exchange rates in the income statement are also taken into account there. If group companies leave the scope of consolidation, the relevant currency conversion difference is released through profit or loss.
The exchange rates of the most important currencies used for currency conversion are as follows in relation to one euro:
- What makes a person dangerous to society
- What are interesting topics in demography
- Can an au pair study abroad
- What does your Korean handwriting look like
- Who killed Duryodhana in Mahabharata
- JFK is the only Catholic President of the United States
- How to say gently in Korean
- Is housekeeping good for girls
- What is a main snack for Brazilians
- Why is the world unfair 1
- What is a process ontology
- Why are Americans unhappy
- Bank of America ATMs have cameras
- What are good ways to recruit recruiters
- Is Locanto good for personal service
- What are the best websites for online projects
- What is it like to have a teenage mother
- Is the United Kingdom truly united?
- Is Poland a homogeneous country
- Who are pwc India's customers
- How do I find services in Vietnam
- What do you admire about a celebrity?
- What are some examples of recognition
- Why do Italians look like Arabs
- Is there a bank failure in India
- Can birds learn tricks
- What is a customs counter
- What is the Department of Corporate Affairs
- What is a private investment in public equity
- Can you put someone else into rehab?
- What's your favorite fish recipe
- What is guernsey
- Why are people afraid of dying
- Are crossdressers gay