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DES - Online Annual Report 2008

Currency translation

The Group currency is the euro (€).

Ongoing transactions in foreign currencies are translated at the middle rate on the date of the respective transaction. Realised translation differences are recognised in the income statement.

The companies located outside the European Monetary Union that are included in the consolidated financial statements are treated as foreign entities. Under IAS 21, annual financial statements prepared in foreign currencies are translated using the functional currency method. All assets and liabilities are translated at closing rates. The items in the income statement are measured at average rates. The resulting translation differences are taken to equity in the Change item due to currency translation effects.

Differences from the consolidation of intercompany balances and of income and expenses are recognised in profit or loss.

A closing rate of HUF 264.78 (previous year: HUF 253.73) and an average rate of HUF 251.51 (previous year: HUF 251.35) were used in the translation of the Hungarian single-entity financial statements from forint to euros. A closing rate of PLN 4.1724 (previous year: PLN 3.593) and an average rate of PLN 3.5121 (previous year: PLN 3.783) was taken as a basis for translating the single-entity financial statements of the Polish property company.

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