Annual Report 2010 - Hannover Re

come. Currency translation differences from the translation of
non-monetary assets measured at fair value via the statement
of income are recognised with the latter as profit or loss from
fair value measurement changes. Exchange differences from
non-monetary items – such as equity securities – classified
as available for sale are initially recognised outside income
in a separate item of shareholders’ equity and only booked to
income when such non-monetary items are settled.
The individual companies‘ statements of income prepared in
the national currencies are converted into euro at the average
rates of exchange and transferred to the consolidated financial
statement. The conversion of foreign currency items in the
balance sheets of the individual companies and the transfer of
these items to the consolidated financial statement are effected
at the mean rates of exchange on the balance sheet date.
In accordance with IAS 21 “The Effects of Changes in Foreign
Exchange Rates” differences from the currency translation of
financial statements of foreign Group companies must be recognised
in the consolidated financial statement as a separate
item in shareholders‘ equity. Currency translation differences
resulting from long-term loans or lendings without specified
maturity between Group companies are similarly recognised
outside the statement of income as a separate item in shareholders’
equity.
Key exchange rates
1 EUR corresponds to:
31. 12. 2010 31. 12. 2009 2010 2009
Mean rate of exchange
Average rate of exchange
on the balance sheet date
AUD 1.3068 1.6048 1.4510 1.7839
BHD 0.4997 0.5404 0.5009 0.5267
CAD 1.3259 1.5048 1.3758 1.5916
CNY 8.7511 9.7847 8.9895 9.5419
GBP 0.8585 0.9042 0.8592 0.8966
HKD 10.3146 11.1172 10.3232 10.8274
KRW 1,501.6346 1,669.5842 1,541.5994 1,771.3279
MYR 4.0869 4.9113 4.2915 4.9076
SEK 9.0119 10.2986 9.5582 10.6210
USD 1.3254 1.4336 1.3287 1.3969
ZAR 8.7907 10.6121 9.7204 11.6273
Non-current assets held for sale and discontinued operations:
in accordance with IFRS 5 “Non-current Assets Held
for Sale and Discontinued Operations”, non-current assets and
disposal groups are classified as held for sale if the relevant
carrying amount is realised largely through sale rather than
through continued use. Components of an entity that can be
clearly distinguished from the rest of the entity for operational
and accounting purposes and were classified as sold or for
sale are recognised as discontinued operations. Measurement
is at the lower of carrying amount and fair value less costs to
sell. Scheduled depreciation is not taken on non-current assets
classified as held for sale. Impairment losses on fair value
less costs to sell are recognised in profit or loss; a gain for
any subsequent increase in fair value less costs to sell leads
to the realisation of profit up to the amount of the cumulative
impairment. If the impairment loss to be taken on a disposal
group exceeds the carrying amount of the corresponding
non-current assets, the need to establish a provision within
the meaning of IAS 37 “Provisions, Contingent Liabilities and
Contingent Assets” is examined.
Notes
Hannover Re Group annual report 2010
3.2 SUMMARY of MAjor ACCoUNtiNG policiES Notes
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