Annual Report 2006 - Boehringer Ingelheim

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1.4 Currency conversions
The financial statements prepared in foreign currencies were translated into euros, the functional
currency of the group parent company, C. H. Boehringer Sohn, according to the year-end method.
All assets and liabilities have been converted at the year-end rate. The profit and loss statement and,
consequently, net income, were converted at the average annual rate for the reporting year.
Translation differences due to the conversion of foreign currencies are shown as a balancing item in
the equity without impact on income.
The functional currency of subsidiaries is the respective local currency. Annual financial statements in
high inflation countries are in principle drawn up in accordance with German Accounting Standard
14 (GAS 14); in the financial year 2006, no group company was affected by the high inflation
accounting. All positions in individual financial statements drawn up in prior years in hard currencies
(in US dollars or euros), were translated into the new functional currency on 1 January 2006 at the
respective spot rate.
The most important currencies for Boehringer Ingelheim reflect the following changes in the reporting
year (base 1 euro):
year-end rate average annual rate
31.12.2006 31.12.2005 2006 2005
US dollar 1.32 1.18 1.26 1.24
Japanese yen 156.93 139.90 146.06 136.87
Pound sterling 0.67 0.69 0.68 0.68
Canadian dollar 1.53 1.37 1.42 1.51
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