169
B.5
CONVERSION OF TRANSACTIONS IN CURRENCIES OTHER THAN
THE FUNCTIONAL CURRENCY
Transactions in currencies other than the functional
currency of the company which undertakes the transaction
are translated using the exchange rate applicable at the
transaction date.
Prysmian Metals Limited (Great Britain), Prysmian Cables and
Systems S.A. (Switzerland), P.T. Prysmian Cables Indonesia
(Indonesia), Draka NK Cables (Asia) Pte Ltd (Singapore) and
Draka Philippines Inc. (Philippines) present their financial
statements in a currency other than that of the country they
operate in, as their main transactions are not carried out in
their local currency but instead in their reporting currency
(respectively Euros and US dollars).
Foreign currency exchange gains and losses arising on
completion of transactions or on the year-end conversion of
assets and liabilities denominated in foreign currencies are
recognised in the income statement.
On 16 December 2011, the IASB published amendments to IAS
32 - Offsetting Financial Assets and Financial Liabilities to
clarify the criteria for offsetting financial instruments.
The amendments clarify that:
- the right of set-off between financial assets and liabilities
must be available at the financial reporting date and not
contingent on a future event,
- this right must be enforceable by all counterparties both in
the normal course of business and in the event of insolvency/
bankruptcy.
The document was published in the Official Journal of the
European Union on 29 December 2012. The amendments are
effective for financial years beginning on or after 1 January 2014
and are required to be applied retrospectively.
On the same date, the IASB published amendments to IFRS
7 - Disclosures: Offsetting Financial Assets and Financial
Liabilities to introduce new disclosures that will allow users
of financial statements to assess the impact on the financial
statements of offsetting financial assets and liabilities. The
disclosures relate to master netting arrangements and similar
agreements.
The document was published in the Official Journal of the
European Union on 29 December 2012. The amendments are
effective for financial years beginning on or after 1 January 2013
and are required to be applied retrospectively.
