SwissInfo

CONSOLIDATED FINANCIALSTATEMENTS
BarryCallebaut
Annual Report2010/11
Foreign currency transactions
The functional currency ofthe Group’s entities is the currency oftheir primary economic
environment. In individual companies,transactions in foreign currencies are recorded at the
rate of exchange at the date of transaction. Monetary assets and liabilities denominated in
foreign currencies are translated into respective functional currencies at the exchange rate
prevailing at the year-end date. Any resulting exchange gains and losses are taken to the
income statement. If related to commercial transactions or to the measurement of financial
instruments in coverage of commercial transactions, such foreign currency gains and losses
areclassified as cost of goods sold. Otherwise,foreign currencygains and losses areclassified
as financial income and financial expense.
Foreign currency translation
Forconsolidation purposes,assets and liabilities of subsidiaries reporting in currencies other
than Swiss francs aretranslated to Swiss francs using year-end rates of exchange.Income and
expenses are translated at the average rates of exchange for the year. Differences arising
from the translation of financial statements using the above method are recorded as cumulative
translation adjustments in equity.
Major foreign exchange rates
2010/11 2009/10
Closing rate Average rate Closing rate Average rate
EUR 1.1576 1.2682 1.2925 1.4482
GBP 1.3074 1.4643 1.574 1.6561
USD 0.8037 0.9128 1.021 1.0578
Cash and cash equivalents
Cash and cash equivalents comprise of cash on hand, checks,bank balances and unrestricted
bank deposit balances with an original maturity of 90 days or less.Bank overdrafts that are
repayable on demand and form an integral part of the Group’s cash management are
included as acomponent of cash and cash equivalents for the purpose of the Consolidated
Cash Flow Statement.
Trade receivables and other currentassets
Trade receivables are stated at amortized cost, less anticipated impairment losses. Impairment
provision for receivables represent the Group’s estimates of incurred losses arising
from the failure orinability of customers to make payments when due.These estimates are
assessed on an individual basis,taking into account the aging of customers’ balances,specific
credit circumstances and the Group’s historical default experience.Ifthe Group is satisfied
that no recovery of the amount owing is possible, the receivable is written off and the provision
related to it is reversed.
The Group maintains an asset-backed securitization program for trade receivables,
transferring the contractual rights to the cash flows of third-party trade receivables at their
nominal value minus adiscount. These receivables are derecognized from the balance sheet.
The net amount reported under “Other current assets” (see note 12) or “Other current
liabilities” (see note 21) is the amount of the discount minus the receivables already collected
at the balance sheet date but not yet remitted to the asset-purchasing company.
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