Corporate Magazine 2012 - Boehringer Ingelheim

1.4 Currency translationAssets and liabilities resulting from foreign currency transactions were translated using the middle spotexchange rate as at the balance sheet date. The realisation principle (section 298 paragraph 1 in conjunctionwith section 252 paragraph 1 no. 4, 2nd half-sentence HGB) and the historical cost convention (section298 paragraph 1 in conjunction with section 253 paragraph 1 sentence 1 HGB) were complied withfor remaining terms of more than one year.In these consolidated financial statements, the financial statements of foreign subsidiaries domiciled in astate outside the euro zone and denominated in foreign currency have been converted into euro in accordancewith section 308a HGB using the modified closing rate method.Using the modified closing date rate method, the asset, equity and liability items of the annual financialstatements prepared in foreign currency were translated into euro using the middle spot exchange rate as atthe closing date, with the exception of equity, which was translated using the historical rate. The items ofthe profit and loss statement were translated into euro using the average rate. The resulting translation differencewas reported within consolidated equity below the reserves within “Difference in equity fromcurrency translation”. The most important currencies for the Group developed as follows in the reportingyear (basis: EUR 1):Year-end rateAverage annual rate31.12.2012 31.12.2011 2012 2011US dollar 1.32 1.29 1.29 1.39Japanese yen 113.61 100.20 102.62 111.03Pound sterling 0.82 0.84 0.81 0.87Canadian dollar 1.31 1.32 1.28 1.3848Boehringer Ingelheim annual report 2012