4.1 Translation of financial statements of foreign operations
The financial statements of foreign entities are translated into the presentation currency of the consolidated financial statements at the following exchange rates:
- items of the statement of financial position – at the mid rate quoted by the National Bank of Poland for the end of the reporting period (NBP’s mid rate for the end of the reporting period),
- items of the statement of comprehensive income – at the exchange rate computed as the arithmetic mean of mid rates quoted by the National Bank of Poland for the end of each month in the reporting period (NBP’s average mid rate for the reporting period).Na pozycję Różnice kursowe z przeliczenia składają się różnice kursowe związane z przeliczeniem na złote polskie sprawozdań finansowych zagranicznych jednostek i grup kapitałowych.
The resulting exchange differences are recognised as a separate component in equity and other comprehensive income.
Exchange differences on translating foreign operations comprise exchange differences resulting from the translation into the złoty of the financial statements of foreign companies and groups of companies.
Exchange differences arising on a monetary item that forms a part of a reporting entity’s net investment in a foreign operation are recognised in equity and other comprehensive income, and on disposal of the investment they are reclassified to consolidated profit or loss in the statement of comprehensive income.
At the time of disposal of a foreign entity, the accumulated exchange differences recognised in equity and relating to this foreign entity are taken to profit or loss.
Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets or liabilities of the foreign operation and are translated into the presentation currency of the financial statements at the exchange rate prevailing at the end of the reporting period.
The following exchange rates were used in the valuation of items of the statement of financial position:
| NBP’s mid rate quoted for | Dec 31 2021(1) | Dec 31 2020(2) |
|---|---|---|
| USD | 4.0600 | 3.7584 |
| EUR | 4.5994 | 4.6148 |
| GBP | 5.4846 | 5.1327 |
| NOK | 0.4608 | 0.4400 |
(2) NBP’s mid rates table, effective for December 31st 2020.
The following exchange rates were used in the valuation of items of the statement of comprehensive income:
| NBP’s average mid rate for the reporting period | 2021(1) | 2020(2) |
|---|---|---|
| USD | 3.8757 | 3.9045 |
| EUR | 4.5775 | 4.4742 |
| GBP | 5.3308 | 5.024 |
| NOK | 0.4505 | 0.4147 |
(2) Based on the arithmetic mean of the mid rates quoted by the NBP for the last day of each full month in the period January 1st–December 31st 2020.