DHL 2015 Annual Report Download - page 149

Deutsche Post  Group —  Annual Report
 Currency translation
e nancial statements of consolidated companies prepared in
foreign currencies are translated into euros  in accordance with
  using the functional currency method. e functional cur-
rency of foreign companies is determined by the primary economic
environment in which they mainly generate and use cash. Within
the Group, the functional currency is predominantly the local cur-
rency. In the consolidated nancial statements, assets and liabilities
are therefore translated at the closing rates, whilst periodic income
and expenses are generally translated at the monthly closing rates.
e resulting currency translation dierences are recognised in
other comprehensive income. In nancial year , currency trans-
lation dierences amounting to  million (previous year:
  million) were recognised in other comprehensive income (see
the statement of comprehensive income and statement of changes
in equity).
Goodwill arising from business combinations aer  Janu-
ary  is treated as an asset of the acquired company and there-
fore carried in the functional currency of the acquired company.
e exchange rates for the currencies that are signicant for the
Group were as follows:
Country
Closing rates Average rates
Currency
2014
EUR 1 =
2015
EUR 1 =
2014
EUR 1 =
2015
EUR 1 =
 Australia 1.4823 1.4905 1.4729 1.4771
 China 7.5389 7.0687 8.1891 6.9773
  0.7789 0.7345 0.8064 0.7264
 Japan 145.1930 131.0778 140.3815 134.3334
 Sweden 9.3797 9.1879 9.1000 9.3523
 Switzerland 1.2025 1.0823 1.2146 1.0680
  1.2148 1.0886 1.3291 1.1105
e carrying amounts of non-monetary assets recognised at signi-
cant consolidated companies operating in hyperinationary econ-
omies are generally indexed in accordance with   and thus
reect the current purchasing power at the balance sheet date.
In accordance with  , receivables and liabilities in the
nan cial statements of consolidated companies that have been pre-
pared in local currencies are translated at the closing rate as at the
balance sheet date. Currency translation dierences are recognised
in other operating income and expenses in the income statement.
In nancial year , income of  million (previous year:
 million) and expenses of  million (previous year:  mil-
lion) resulted from currency translation dierences. In contrast,
currency translation dierences relating to net investments in a
foreign operation are recognised in other comprehensive income.
 Accounting policies
Uniform accounting policies are applied to the annual nancial
statements of the entities that have been included in the consoli-
dated nancial statements. e consolidated nancial statements
are prepared under the historical cost convention, except where
items are required to be recognised at their fair value.
Revenue and expense recognition
Deutsche Post  Group’s normal business operations consist of
the provision of logistics services. All income relating to normal
business operations is recognised as revenue in the income state-
ment. All other income is reported as other operating income. Rev-
enue and other operating income is generally recognised when
services are rendered, the amount of revenue and income can be
reliably measured and, in all probability, the economic benets from
the transactions will ow to the Group. Operating expenses are rec-
ognised in income when the service is utilised or when the expenses
are incurred.
Intangible assets
Intangible assets, which comprise internally generated and pur-
chased intangible assets and purchased goodwill, are measured at
amortised cost.
Internally generated intangible assets are capitalised at cost if
it is probable that their production will generate an inow of future
economic benets and the costs can be reliably measured. In the
Group, this concerns internally developed soware. If the criteria
for capitalisation are not met, the expenses are recognised immedi-
ately in income in the year in which they are incurred. In addition
to direct costs, the production cost of internally developed soware
includes an appropriate share of allocable production overhead
costs. Any borrowing costs incurred for qualifying assets are in-
cluded in the production cost. Value added tax arising in conjunc-
tion with the acquisition or production of intangible assets is in-
cluded in the cost if it cannot be deducted as input tax. Capitalised
soware is amortised over its useful life.
Intangible assets are amortised using the straight-line method
over their useful lives. Impairment losses are recognised in accord-
ance with the principles described in the section headed Impair-
ment. e useful lives of signicant intangible assets are presented
in the table below.
139
Consolidated Financial Statements — NOTES — Basis of preparation