4. CURRENCY TRANSLATION
The financial statements of the subsidiaries are translated to the Group currency according to the functional currency concept. The functional currency of the subsidiaries is the respective national currency. The functional currency of the parent company is the euro.
The assets and liabilities of foreign companies that do not participate in the European Monetary Union are translated using the exchange rate on the balance sheet date. Income and expenses are converted at the average exchange rate for the period. The resulting currency translation differences are carried under equity under the currency translation item.
The following exchange rates have been used for currency conversion for the foreign subsidiaries.
In the individual financial statements, assets and liabilities denominated in foreign currency are converted using the exchange rate on the date of acquisition. There is then an adjustment to the respective closing rate on each balance sheet date. This adjustment is recognized in income.
In total, income from exchange rate differences totaling 3.9 million EUR (previous year: 1.0 million EUR) and corresponding expenses totaling 0.4 million EUR (previous year 0.6 million EUR) were recorded in income.