Notes to the Financial Statements - Efacec

1.3 Reporting by segments
A business segment is a group of activities and operations involved in the supply of products and services subject to risks and
benefi ts that are different to other business segments. A geographical segment is involved in supplying products and services in a
specifi c economic environment that is subject to different risks and benefi ts that those of segments that operate in other economic
environments.
1.4 Exchange Rate Conversion
(a) Functional currency and that for presentation purposes
The fi gures included in the Financial Statements of each of the Group entities are stated using the currency of the country in
which the unit operates (“The functional currency”). The consolidated Financial Statements are presented in Euro, this being the
functional and presentational currency of the Group accounts.
(b) Transactions and Balances
Transactions in currencies other than the Euro are converted to the functional currency using the Exchange rate at the date of
the transaction. Exchange gains and losses arising from the payment of transactions and from conversion at the rate on the
balance sheet date of the assets and liabilities denominated in a currency other than the Euro, are recognised in the Profi t and
Loss account.
(c) Group Companies
The fi nancial results and position of all Group entities (none of which use a currency of a country suffering hyper infl ation) that
have a functional currency different to that of account presentation are converted to the presentation currency as follows:
(I) The assets and liabilities of each balance sheet presented are converted at the
exchange rate in force at the date of the Financial Statements;
(II) Income and expenses of each profi t and loss account are converted at the average
Exchange rate; and
(III) The resulting exchange rate differences are shown in Shareholders’ Funds in the line
“Reserves”.
(d) Rates used to convert major foreign currencies into Euro
In Group companies with registered offi ces outside the Euro Zone, the fi gures in the fi nancial statements relating to assets and
liabilities, and included in the fi nancial statements, were converted to Euro using the following Exchange rates as at 31 December
2007:
1.5 Tangible Fixed Assets
For 1 monetary unit – Euro 31.12.2007 31.12.2006
Argentina Peso ARS 4,63640 4,04517
Brazil Real BRL 2,59630 2,81272
China Yuan CNY 10,75240 10,34088
Czech Republic Crown CZK 26,62800 27,48500
Algeria Dinar DZD 98,24060 90,88288
India Rupee INR 57,85500 58,29042
Macau Pataca MOP 11,82440 10,54810
Malaysia Ringgit MYR 4,86820 4,65509
Mozambique New Metical MZN 34,81500 34,73749
Singapore Dollar SGD 2,11630 2,01929
Tunisia Dinar TND 1,79470 1,71408
United States Dollar USD 1,47210 1,31700
Venezuela Bolívar VEB 3.161,04000 2.017,60000
Land and buildings basically correspond to factories and offi ces. Land is shown at fair value, based on periodic valuations done at
least every three years by external independent valuers. Other tangible fi xed assets are shown at historical cost, less depreciation,
including all expenditure directly attributable to the acquisition of the assets.
Subsequent costs are included in the cost already booked for the asset, or recognised as separate assets, as appropriate, but
only when it is probable that economic benefi ts will accrue to the company and that the cost can be measured reliably. Other
expenditure for repairs and maintenance are recognised as costs in the period in which they are incurred.
11
2007 Consolidated and
Individual Financial Statments