(6.) Currency translation
Foreign-currency transactions in the separate financial statements of WILO SE and consolidated subsidiaries are translated into functional currency at the transaction date exchange rate. Foreign-currency monetary assets and liabilities are translated at the average rate as at the end of the reporting period and any exchange gains or losses are recognised in profit or loss. Non-monetary assets and liabilities measured at cost are translated at the transaction date exchange rate. Non-monetary items measured at fair value are translated at the measurement date exchange rate.
Items in the separate financial statements of consolidated entities are measured in the currency of the primary economic environment (functional currency).
Financial statements prepared in functional currencies other than the euro are translated into euro for consolidation. The reporting currency used in the consolidated financial statements is the euro. All assets and liabilities are translated at the exchange rate as at the end of the reporting period. Consolidated income statement items are translated for inclusion in the consolidated financial statements at annual average rates that appropriately approximate the transaction date exchange rates. Translation differences are accounted for as a separate component of consolidated equity until a subsidiary is disposed of.
The main exchange rates used in currency translation are as follows:
|Annual average rate||Rate as at 31 December|
|EUR 1 =||2016||2015||2016||2015|
|Chinese renminbi (yuan)||CNY||7.3488||6.9434||7.3443||7.0724|
|South Korean won||KRW||1,279.9034||1,250.6113||1,276.2370||1,277.0284|