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Mondial Assistance Annual Report 2008 35
Exchange rates of principal currencies
BALANCE SHEET YEAR END RATE
(AGAINST 1 EURO) 2008 2007
Australia (AUD) 2.0274 1.6757
Japan (JPY) 126.1400 164.9300
Brazil (BRL) 3.2436 2.6217
United Kingdom (GBP) 0.9525 0.7334
Switzerland (CHF) 1.485 1.6547
USA (USD) 1.3917 1.4721
INCOME STATEMENT AVERAGE RATE
(AGAINST 1 EURO) 2008 2007
Australia (AUD) 1.7432 1.6351
Japan (JPY) 152.3492 161.247
Brazil (BRL) 2.67854 2.6648
United Kingdom (GBP) 0.79705 0.6846
Switzerland (CHF) 1.58694 1.6427
USA (USD) 1.47109 1.3705
Consolidation scope
The consolidated fi nancial statements
of Mondial Assistance Group comprise
the annual accounts of Mondial
Assis tance AG and subsidiaries, which
are prepared in accordance with the
accoun ting and valuation principles of the
Mondial Assistance Group. Consoli-
dated subsidiaries are listed further in
the notes to the consolidated fi nancial
statements.
In 2008, the following companies
were founded: Neoasistencia Manot-
eras S.L. (Spain), Mondial Assistance
Sigorta Aracilik Hizmetleri Ltd Sirketi
(Turkey) and Atencion Integral a la
Dependencia S.L. (Spain). The first
two were consolidated in the Mondial
Assistance Group; whereas the last
one is a joint venture held at 50% and
is accounted for according the Equity
method.
In 2008, one Italian company Mondial
Contact Center Italia S.r.l. was acquired
and has been consolidated into Mondial
Assistance Group.
Finally, the Spanish subsidiary Mondial
Assistance Seguros y Reaseguros de
Riesgos Diversos was closed, and
replaced by a new branch: Elvia Travel
Insurance Spain.
Consolidation principles
Subsidiaries have been recorded accor-
ding to the full consolidation method
when subject to the majority control of
the Mondial Assistance Group.
All intra-group transactions and balances
have been eliminated.
Interests in joint ventures are recognised
by including the accounts using the
equity consolidation basis.
Equity investments in which the Mondial
Assistance Group owns at least 20%
of the voting rights are accounted
for using the equity method, except
for investments in which the Mondial
Assistance Group is not able to exercise
signifi cant infl uence, in which case the
cost method is used.
Participations in which the company
owns less than 20% are accounted for
under the cost method.
The equity and net income attributable
to minority shareholders’ interests are
disclosed separately in the balance sheet
and income statement respectively.
The purchase method of accounting is
used for acquired businesses, including
entities under common control of
Mondial Assistance AG’s ultimate holding
company. Companies acquired or
disposed of during the year are included
in the consolidated fi nancial statements
from the date of acquisition or to the
date of disposal respectively.
Foreign currency
translation
The Group’s reporting currency is the
euro (€). The functional currency for each
Group company is the currency of the
environment where the enterprise carries
on its activities. Assets and liabilities are
translated at the closing rate on the balance
sheet date. Expenses and income are
translated at the annual average rate from
the functional currency into the reporting
currency. Translation differences between
the functional currency and reporting
currency, including those arising in the
process of equity consolidation, are taken
to shareholders’ equity without affecting
earnings. Translation differences between
the transaction currency and functional
currency are reported in earnings.
Notes to the consolidated fi nancial statements
of Mondial Assistance Group