5.5 Measurement of transactions and balances denominated in foreign currencies and FX rates used

Annual Report 2017 > Results 2017 > Supplementary information and notes > 5.5 Measurement of transactions and balances denominated in foreign currencies and FX rates used
Reference Areas:
Health
Investments
Banking
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Transactions carried out in a currency other than Polish zloty are recognized at the exchange rate set by the National Bank of Poland (NBP) for the transaction date. At the end of the reporting period, cash items denominated in foreign currencies are translated using the average NBP exchange rate in effect on that date. Non-cash items measured at fair value and denominated in foreign currencies are measured using the average NBP exchange rate in effect on the date on which the fair value is determined. Gains and losses on currency translation are recognized directly in the profit and loss account.

Financial data of foreign subsidiaries are converted into Polish zloty as follows:

  • assets and liabilities – at the average exchange rate set by the National Bank of Poland at the end of the reporting period;
  • items of the profit and loss account and other comprehensive income – at the arithmetic mean of average exchange rates set by the National Bank of Poland as at the dates ending each month of the reporting period.

Translation differences are recognized under “Foreign exchange translation differences” in equity.

The following FX rates have been used for these consolidated financial statements:

FX rates used for translation of financial data of foreign related parties1 January – 31 December 20171 January – 31 December 2016  31 December 2017  31 December 2016
Euro4.24474.37574.17094.4240
pound sterling4.7694n/a4.7001n/a
Ukrainian hryvnia0.14020.15420.12360.1542
  

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