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5.3 Recognition of foreign currency transactions and balances and applied exchange rates

Transactions executed in currency other than Polish zloty (PLN) are recognized at the NBP exchange rate valid for the transaction date. As at the end of the financial year, monetary items denominated in foreign currencies are translated at the average NBP rate as at that date. Non-monetary items measured at fair value and denominated in foreign currencies are measured at the average NBP exchange rate as at the date when the fair value was determined. Exchange differences from translation are charged directly to the statement of profit or loss.

Financial data of foreign subsidiaries are translated into PLN:

  • Assets and liabilities – at the average National Bank of Poland exchange rate established as at the end of the financial year;
  • Items in the statement of profit or loss and other comprehensive income – at rates determined as the arithmetic mean of the rates published by the National Bank of Poland, valid as at the last day of each month of the financial year.

Exchange differences are recognized under “Exchange differences from translation” in equity.

The following exchange rates have been applied in the consolidated financial statements:

Currency exchange rates adopted to translate financial data of foreign operations1 January - 31 December 201431 December 20141 January - 31 December 201331 December 20131 January 2013
EUR 4.1892 4.2623 4.2110 4.1472 4.0882
LTL 1.2133 1.2344 1.2196 1.2011 1.1840
UAH 0.2637 0.2246 0.3886 0.3706 0.3825