AEG 21604 G Manual do Utilizador descarregar pdf (Página 317)

F-76

The purchase method of accounting is used to account for the acquisition of subsidiaries by the Company. The

cost of an acquisition is measured as the fair value of the assets given, equity instruments issued and liabilities

incurred or assumed at the date of exchange, plus costs directly attributable to the business combination, deriva-

tive of the extent of any minority interest. The excess of the cost of acquisition over the fair value of the Com-

pany's share of the identifiable net assets of the subsidiary acquired is recognised as goodwill. The minority

interests are disclosed separately in the consolidated statements of income as part of profit allocation and in the

Consolidated balance sheets as a separate component of equity.

Transactions eliminated on consolidation

Intra-group balances and transactions, and any unrealized income and expenses arising from intra-group transac-

tions, are eliminated in preparing the consolidated financial statements.

b) Foreign currency

Foreign currency transactions

The consolidated financial statements are presented in Euro, which is the Group's functional and presentation

currency. Transactions in other than the Euro (foreign) currencies are translated at the rate of exchange applica-

ble on the transaction date. Monetary assets and liabilities denominated in foreign currencies at the reporting date

are retranslated to the functional currency at the exchange rate at that date. The foreign currency gain or loss on

monetary items is the difference between amortised cost in the functional currency at the beginning of the pe-

riod, adjusted for effective interest and payments during the period, and the amortised cost in foreign currency

translated at the exchange rate at the end of the reporting period. Non-monetary assets and liabilities denomi-

nated in foreign currencies that are measured at fair value are retranslated to the functional currency at the ex-

change rate at the date that the fair value was determined.

Foreign currency differences arising on retranslation are recognised in profit or loss, non-monetary items that are

measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the

transaction.

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisi-

tion, are translated to Euro at exchange rates at the reporting date. The income and expenses of foreign opera-

tions are translated to Euro by applying the annual average rates.

Foreign currency differences are recognised in the foreign currency translation reserve (translation reserve, or

FCTR). When a foreign operation is disposed of, in part or in full, the relevant amount in the FCTR is transferred

to profit or loss as part of the profit or loss on disposal. When the settlement of a monetary item receivable from

or payable to a foreign operation is neither planned nor likely in the foreseeable future, foreign exchange gains

and losses arising from such a monetary item are considered to form part of a net investment in a foreign opera-

tion and are recognised in other comprehensive income, and are presented within equity in the FCTR.

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AEG 21604 G Manual do Utilizador Página 317