Südzucker International Finance B. V. Südzucker AG ... - Xetra

III. Foreign currency translationAs set out in IAS 21, the financial statements of group companies are translated directly from local currency intothe reporting currency (D), as the foreign entities carry out their financial, operating and organisational activitiesautonomously (the functional currency concept). Hence, non-current assets, other assets and liabilities aretranslated using mid-market rates ruling at the end of the year (year-end rates). Income and expense items aretranslated at average rates for the year.Movements in exchange rates of the significant currencies used in preparing the consolidated financial statementswere as follows (conversion rates to D 1):Country Year-end rate Average rate28.02.2003 28.02.2002 2002/03 2001/02Local currencyGreat Britain GBP 0.6823 0.6105 0.6370 0.6186Moldova MDL 15.3159 11.5337 13.2743 11.4693Poland PLN 4.2287 3.5068 3.9003 3.6795Singapore SGD 1.8738 1.5875 1.7331 1.6035Slovakia SKK 41.8901 42.7600 42.5728 43.2739The Czech Republic CZK 31.7700 31.9900 30.9062 34.0429Hungary HUF 243.7550 245.9553 242.9284 256.7440USA USD 1.0798 0.8653 0.9771 0.8868Differences arising from translating assets and liabilities at year-end rates compared with rates ruling at the endof the previous year, together with differences between earnings for the year translated at average rates in theincome statement and at year-end rates in the balance sheet, are charged or credited directly to reserves. The effectin 2002/03 was to decrease non-current assets by D 9.8 million and shareholders’ equity by D 11.7 million.Foreign currency receivables and liabilities included in the financial statements of consolidated companies have beentranslated at year-end rates.F-15