4.2 Foreign currency transactions

Business transactions denominated in foreign currencies are reported in the consolidated financial statements after translation into the Group’s presentation currency (Polish złoty) at the following exchange rates:

• the mid rate quoted for a given currency by the National Bank of Poland (the “NBP”) for the day immediately preceding the transaction date – in the case of payment of receivables or liabilities where there is no rationale for using the exchange rate referred to above, and for other

The exchange rate applicable to purchase invoices is the mid rate quoted by the National Bank of Poland for the last business day immediately preceding the invoice date, and the exchange rate applicable to sales invoices is the mid rate quoted by the National Bank of Poland for the last business day immediately preceding the sale date. This practical expedient is applied unless it results in significant differences.

The exchange rate applicable to purchase invoices is the mid rate quoted by the National Bank of Poland for the last business day immediately preceding the invoice date, and the exchange rate applicable to sales invoices is the mid rate quoted by the National Bank of Poland for the last business day immediately preceding the sale date. This practical expedient is applied unless it results in significant differences.

The Company calculates realised and unrealised foreign exchange gains (losses) separately and recognises the resulting total balance in the statement of comprehensive income under:

• other income or other expenses: in the case of foreign exchange gains and losses related to settlement of trade receivables and payables,
• finance income or finance costs: in the case of borrowings, investment commitments, and cash and cash equivalents.