39. Foreign currency translation

Functional currency and reporting currency

The items included in the financial statements for each operating subsidiary are measured based on the currency that corresponds with the currency of the primary economic environment in which the subsidiary operates (functional currency). The consolidated financial statements are prepared in euros which is UNIQA’s reporting currency.

Transactions in foreign currencies

Transactions in foreign currencies are translated into the functional currency of the Group entity at the exchange rate on the date of the transaction or, in the case of remeasurement, at the time of measurement.

Monetary assets and liabilities denominated in a foreign currency on the reporting date are translated into the functional currency at the closing rate. Non-monetary assets and liabilities measured at in a foreign currency are translated at the rate valid on the date the fair value is calculated. Currency translation differences are generally recognised in profit/(loss) for the period. Non-monetary items recognised in a foreign currency at historical cost are stated with the historical exchange rate. This results in no currency translation difference.

Currency translation differences from equity instruments available for sale are recognised in other comprehensive income by way of derogation from the general principle. An exception to this are impairments for which currency translation differences are reclassified from other comprehensive income to profit/(loss) for the period.

Foreign operations

Assets and liabilities from foreign operations, including the goodwill and adjustments that result from the acquisition, are translated into euros at the closing rate on the reporting date. Currency translation differences are reported in other comprehensive income and recognised in equity as a part of the accumulated profits in the item “Differences from currency translation” if the foreign exchange difference is not attributable to .

Income and expenses from foreign operations are translated at the monthly closing rates.

Currency translation differences from the proportion of the carrying amount in the Consolidated Income Statement and attributable to the are recognised in the item .

Major exchange rates

 

EUR closing rates

EUR average rates

 

31/12/2021

31/12/2020

1–12/2021

1–12/2020

Swiss franc (CHF)

1.0331

1.0802

1.0800

1.0720

Czech koruna (CZK)

24.8580

26.2420

25.6942

26.4138

Hungarian forint (HUF)

369.1900

363.8900

359.2377

352.2423

Polish złoty (PLN)

4.5969

4.5597

4.5736

4.4518

Romanian leu (RON)

4.9490

4.8683

4.9206

4.8379

Ukrainian hryvnia (UAH)

30.8866

34.6022

32.3684

30.9282

Russian rouble (RUB)

85.3004

91.4671

87.6021

83.1271

Albanian lek (ALL)

120.7600

123.2600

122.5062

124.0777

US dollar (USD)

1.1326

1.2271

1.1844

1.1452

Japanese yen (JPY)

130.3800

126.4900

130.0262

121.8885

Fair value
The fair value is the price that would be collected in an ordinary business transaction between market participants for the sale of an asset or that would be paid for transferring a liability.
Fair value
The fair value is the price that would be collected in an ordinary business transaction between market participants for the sale of an asset or that would be paid for transferring a liability.
Non-controlling interests
Shares in the profit/(loss) that are not attributable to the Group but rather to companies outside the Group that hold shares in affiliated companies.
Amortised cost
Amortised costs are costs of acquisition less permanent impairment (e.g. ongoing depreciation and amortisation).
Available-for-sale financial assets
The available-for-sale financial assets include financial assets that are neither due to be held to maturity, nor have been acquired for short-term trading purposes. Available-for-sale financial assets are measured at fair value. Fluctuations in value are recognised in other comprehensive income in the consolidated statement of comprehensive income.