Nabaltec_E_GB2016

70 ACCOUNTING POLICIES The share of consolidated shareholders’ equity and consolidated net income which is attribut- able to non-controlling interests is disclosed separately from the shares attributable to the parent company. Insofar as the capital accounts of non-controlling interests show a negative balance, they are recognized as a negative item in shareholders’ equity and consolidated profit and loss. 2.5 CURRENCY TRANSLATION The consolidated financial statements are prepared in Euros, the Group’s functional and reporting currency. Foreign-currency monetary items (liquid funds, accounts receivable, accounts payable) in the individual financial statements of consolidated companies which are prepared in the local currency are measured at the closing rate. Exchange differences are recognized in profit and loss. Non-monetary items denominated in foreign currency are recognized at the historical rates. The translation of the financial statements of the consolidated company, which are prepared in a foreign currency, is performed based on the functional currency concept in accordance with IAS 21, “The effects of changes in foreign exchange rates,” using the modified closing rate method. Since the subsidiary essentially operates independently in financial, economic and organizational terms, the functional currency is identical to the company’s national currency. Accordingly, assets and liabilities are translated at the closing rate, shareholders’ equity at the historical rate and income and expenses at the average rate for the year. Differences arising from currency translation are not recognized in profit and loss and are instead recognized separately in shareholders’ equity under “other changes in shareholders’ equity with no effect on profit and loss.” Currency differences relative to currency translation in the year before are recognized in shareholders’ equity under “other changes in equity with no effect on profit and loss.” Initial historical costs and depreciation of fixed assets are translated at the exchange rate in effect on the last reporting date, while depreciation and all other transactions during the year are translated at the average exchange rate for the year. The translation of the foreign subsidi- ary’s fixed assets results in translation differences which are presented in separate columns in the statement of fixed assets. S T N E M E T A T S L A I C N A N I F D E T A D I L O S N O C |||| Nabaltec AG | Annual Report 2016

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