Conversion of financial statements presented in a foreign currency

The asset and liability items of a balance sheet presented in a foreign currency are to be converted into euros at the average spot exchange rate as given on the balance sheet date, to the exception of the equity capital, which is to be converted into euros at the historical exchange rate. The items of the profit and loss account are to be converted into euros at the average exchange rate. A resulting exchange difference is to be shown as part of the group’s equity capital following the reserves in the item “Equity capital difference resulting from currency translation.” Where the subsidiary enterprise leaves the group as a whole or in part, the item is to be reversed and applied against income in the corresponding amount.