Hornbach-Baumarkt-AG Group

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Explanatory notes on the principles and methods applied in the consolidated financial statements 101
Control and profit and loss transfer agreements are in place between HORNBACH-Baumarkt-AG on the one
hand and HORNBACH International GmbH and Ollesch & Fitzner GmbH on the other.
Currency translation
In the separate financial statements of HORNBACH-Baumarkt-AG and its consolidated subsidiaries, transactions
in currencies other than the respective company’s functional currency have been translated into the
relevant functional currency at the transaction rate. All receivables and liabilities in currencies other than
the respective company’s functional currency have been measured, irrespective of any currency hedges, at
the reporting date rate. The resultant exchange gains and losses have generally been included in the income
statement. Forward exchange transactions have been recognized at fair value.
In line with IAS 21, the annual financial statements of foreign group companies have been translated into
euros on the basis of the functional currency concept. This is the local currency for all of the companies in
view of the fact that the foreign companies conduct their business independently from a financial, economic
and organizational point of view. Accordingly, non-current assets, other assets and liabilities have been
translated at the median rate on the reporting date. Income and expense items have been translated using
average rates. Exchange rate differences arising from the translation of the annual financial statements of
foreign subsidiaries are recognized directly in equity in a separate item within revenue reserves.
The most important foreign exchange rates applied are as follows:
Country Rate on reporting date Average rate
2.28.2013 2.29.2012 2012/2013 2011/2012
RON Romania 4.3588 4.3486 4.46426 4.25397
SEK Sweden 8.4475 8.8088 8.66173 9.02505
CHF Switzerland 1.2209 1.2051 1.20870 1.22086
CZK Czech Republic 25.6370 24.8430 25.18442 24.74297
USD USA 1.3129 1.3443 1.28992 1.38438