Amadeus IT Holding, S.A. and Subsidiaries - Investor relations at ...

AMADEUS IT HOLDING, S.A. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED ANNUAL ACCOUNTS FOR THE YEARS ENDED
DECEMBER 31, 2011, AND 2010
(EXPRESSED IN THOUSANDS OF EUROS - KEUR)
b) Foreign currency transactions
Foreign currency transactions are accounted for at the exchange rates prevailing
at the date of the transactions. Gains and losses resulting from the settlement of
such transactions and from the translation at year-end of monetary assets and
liabilities denominated in foreign currencies are recognized in the statement of
comprehensive income within the “Financial expense, net” caption.
c) Currency translation
The stand-alone financial statements of each of the subsidiaries are presented in
each subsidiary’s functional currency. As the consolidated financial statements
are presented using the Euro, the assets and liabilities for each subsidiary are
translated into Euros at year-end closing rates; components of the profit or loss
for the period are translated at average exchange rates for the year; and share
capital, additional paid-in capital, and reserves are translated at historical rates.
Any exchange differences arising as a result of this translation, for subsidiaries
and investments in associates and joint-ventures, are shown together as a
separate component of equity attributable to owners of the parent in the
“Exchange differences on translation of foreign operations” caption. In the case of
translation differences related to non-controlling interests, these are included in
the non-controlling interests caption within equity.
d) Related parties
The Group considers the following as its related parties: its significant
shareholders and controlled companies, subsidiaries, associates, joint-ventures
and post employment benefit plans, key management personnel, members of the
Board of Directors and their close family members, as well as other entities where
the member of the Board of Directors is also a related party, when significant
influence exists.
e) Cash equivalents
The Group classifies its short-term investments as cash equivalents when held
for the purpose of meeting short-term cash commitments, the investments are
highly liquid, readily convertible to known amounts of cash and subject only to an
insignificant risk of changes in value. These short-term investments generally
consist of certificates of deposit, time deposits, commercial paper, short-term
government obligations and other money market instruments with maturity of
three months or less. Such investments are stated at cost, which approximates
fair value.
Bank overdrafts that are repayable on demand are included as a component of
cash and cash equivalents for the purposes of presenting the statement of cash
flows.
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