ONE ROOF

Notes to the Consolidated Financial Statements
136 Annual Report 2009
Currency translation
For currency translation purposes, the following exchange rates have been used for the main Group companies outside the euro area:
In their separate financial statements, Group companies dis-
close transactions denominated in foreign currency using the
average exchange rate on the day of recording the transaction.
Exchange gains or losses from valuing foreign currencydenominated
monetary assets or liabilities at the average exchange
rate on the reporting date are recognized in other
operating income or other operating expenses. Currency
translation differences relating to a net investment in a foreign
company are accounted for in accumulated other comprehensive
income until the company is sold. This includes foreign
currency receivables from fully consolidated Group companies
for which settlement is neither planned nor likely to occur
in the foreseeable future and which therefore resemble equity.
Financial statements of foreign companies are translated by
applying the functional currency approach. As all companies
outside the euro area operate autonomously in their own national
currencies, their balance sheet items are translated into
euros using the average exchange rate prevailing on the reporting
date in accordance with official requirements. The
same method is used to translate the annual valuation of the
shareholders’ equity of equity-method foreign associates. Differences
from the previous year’s translated valuation are recognized
in other comprehensive income and are reversed to
income or expense on sale. Goodwill of commercially independent
foreign Group entities is translated at the exchange
rate prevailing on the reporting date. Income and expense
items are translated into euros using the annual average exchange
rate.
Annual average Daily average at
reporting date
(All rates in EUR) 2009 2008 2009 2008
1 US dollar (USD) 0.72 0.68 0.69 0.72
1 Australian dollar (AUD) 0.57 0.57 0.62 0.49
1 British pound (GBP) 1.12 1.25 1.13 1.05
100 Polish zloty (PLN) 23.01 28.35 24.36 24.08
100 Qatari riyal (QAR) 19.69 18.60 19.20 19.49
100 Czech koruna (CZK) 3.77 3.99 3.78 3.72
100 Russian rubles (RUB) 2.26 2.72 2.32 2.42
100 Chilean pesos (CLP) 0.13 0.13 0.14 0.11
Accounting policies
Intangible assets are reported at amortized cost. All intangible
assets have a finite useful life with the exception of company
names recognized as assets on initial consolidation and
of goodwill. Intangible assets include concessions and other licenses
with useful lives of up to 30 years. These are amortized
according to the pattern of consumption of economic benefits.
They also include future earnings from additions to the
order backlog arising from business acquisitions; these are
amortized over the period in which the corresponding work is
billed. Intangible assets further encompass software for commercial
and engineering applications, which is amortized on a
straight-line basis over three to five years, and entitlements to
various financing arrangements with banks amortized over
between 27 and 84 months in accordance with the term of the
arrangement. Estimated useful lives and depreciation methods
are reviewed annually.
Company names and goodwill are not amortized. They are
tested instead for impairment losses in accordance with IAS
36 on an annual basis and whenever there are indications that
they may be impaired. The Turner and Flatiron names were
recognized as intangible assets with an indefinite useful life as
they do not have a product life cycle and are not subject to
technical, technological or commercial depletion or any other
restriction.
No development costs requiring the recognition of assets
were incurred in the HOCHTIEF Group in the fiscal year.