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approach’, under which segment information is presented on the same basis as that used for internal reporting
purposes. The Company is not obliged to disclose segment information neither under IAS 14 nor under
IFRS 8, since its debt or equity instruments are not publicly traded and it has not filed for issuing any
class of instrument in a public market.
• IFRIC 14, “IAS 19 – The limit on a defined benefits asset, minimum funding requirements and their
interaction” (effective from 1 January 008). IFRIC 14 provides guidance on assessing the limit in IAS 19
on the amount of the surplus that can be recognised as an asset. It also explains how the pension asset
or liability may be affected by a statutory or contractual minimum funding requirement. The Company
will apply IFRIC 14 from 1 January 008, but it is not expected to have any impact on the Company’s
accounts.
e) Interpretations to existing standards that are not yet effective and not relevant for the
Company’s operations
The following interpretations to existing standards have been published and are mandatory for the company’s
accounting periods beginning on or after 1 January 008 or later periods but are not relevant for the
Company’s operations:
• IFRIC 1, “Customer loyalty programmes” (effective from 1 July 008). IFRIC 1 clarifies that where
goods or services are sold together with a customer loyalty incentive (for example, loyalty points or
free products), the arrangement is a multiple-element arrangement and the consideration receivable
from the customer is allocated between the components of the arrangement in using fair values. IFRIC
1 is not relevant to the Company’s operations.
2.2 Foreign Currency Translation
a) Functional and Presentation Currency
Items included in the financial statements of the Company are measured using the currency of the primary
economic environment in which the Company operates (‘the functional currency’). The Company’s financial
statements are presented in EURO (€), which is the Company’s functional and presentation currency.
b) Transactions and Balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing
at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of
such transactions and from the translation at year-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in the income statement, except when deferred in equity
as qualifying cash flow hedges and qualifying net investment hedges.
Changes in the fair value of monetary securities denominated in foreign currency classified as available
for sale are analysed between translation differences resulting from changes in the amortised cost of
the security and other changes in the carrying amount of the security. Translation differences related to
changes in the amortised cost are recognised in profit or loss, and other changes in the carrying amount
are recognised in equity.
Translation differences on non-monetary financial assets and liabilities are reported as part of the fair
value gain or loss. Translation differences on non-monetary financial assets and liabilities such as equities
held at fair value through profit or loss are recognised in profit or loss as part of the fair value gain or loss.
Translation differences on non-monetary financial assets such as equities classified as available for sale are
included in the available-for-sale reserve in equity.
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purposes. The Company is not obliged to disclose segment information neither under IAS 14 nor under
IFRS 8, since its debt or equity instruments are not publicly traded and it has not filed for issuing any
class of instrument in a public market.
• IFRIC 14, “IAS 19 – The limit on a defined benefits asset, minimum funding requirements and their
interaction” (effective from 1 January 008). IFRIC 14 provides guidance on assessing the limit in IAS 19
on the amount of the surplus that can be recognised as an asset. It also explains how the pension asset
or liability may be affected by a statutory or contractual minimum funding requirement. The Company
will apply IFRIC 14 from 1 January 008, but it is not expected to have any impact on the Company’s
accounts.
e) Interpretations to existing standards that are not yet effective and not relevant for the
Company’s operations
The following interpretations to existing standards have been published and are mandatory for the company’s
accounting periods beginning on or after 1 January 008 or later periods but are not relevant for the
Company’s operations:
• IFRIC 1, “Customer loyalty programmes” (effective from 1 July 008). IFRIC 1 clarifies that where
goods or services are sold together with a customer loyalty incentive (for example, loyalty points or
free products), the arrangement is a multiple-element arrangement and the consideration receivable
from the customer is allocated between the components of the arrangement in using fair values. IFRIC
1 is not relevant to the Company’s operations.
2.2 Foreign Currency Translation
a) Functional and Presentation Currency
Items included in the financial statements of the Company are measured using the currency of the primary
economic environment in which the Company operates (‘the functional currency’). The Company’s financial
statements are presented in EURO (€), which is the Company’s functional and presentation currency.
b) Transactions and Balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing
at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of
such transactions and from the translation at year-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in the income statement, except when deferred in equity
as qualifying cash flow hedges and qualifying net investment hedges.
Changes in the fair value of monetary securities denominated in foreign currency classified as available
for sale are analysed between translation differences resulting from changes in the amortised cost of
the security and other changes in the carrying amount of the security. Translation differences related to
changes in the amortised cost are recognised in profit or loss, and other changes in the carrying amount
are recognised in equity.
Translation differences on non-monetary financial assets and liabilities are reported as part of the fair
value gain or loss. Translation differences on non-monetary financial assets and liabilities such as equities
held at fair value through profit or loss are recognised in profit or loss as part of the fair value gain or loss.
Translation differences on non-monetary financial assets such as equities classified as available for sale are
included in the available-for-sale reserve in equity.
19
