Office Depot 2012 Annual Report Download - page 150

Significant intercompany balances and transactions have been eliminated in the accompanying consolidated financial
statements.
The currency in which transactions are recorded and the functional currency of foreign operations and the exchange rates
used in the different translation processes are as follows:
8
Company Equity Activity
Indirect subsidiaries:
Centro de A
p
o
y
o Caribe S. A. de C. V. 90.00%
The acquisition and leasing of all types
of real estate. This company has not
initiated operations as of the date of
these consolidated financial
statements (subsidiary of Centro de
Apoyo, S. A. de C. V.), located in
Mexico.
OD Colombia, S. A. S. 89.90%
Stores specializing in the sale of services
and office supplies (subsidiary of
ODG Caribe, S. A. de C. V.), located
in Colombia.
Pa
p
elera General, S. A. de C. V. 99.99%
The distribution of office supplies
(subsidiary of Formas Eficientes,
S. A. de C. V.), located in México.
Ofix
p
res, S. A. S. 100%
The distribution and handling of office
supplies inventories as well as
fabrication of printed forms, located
in Colombia, (subsidiary of OD
Colombia, S. A. S.).
e. Translation of financial statements of foreign subsidiaries
—
To consolidate financial statements of foreign subsidiaries,
the accounting policies of the foreign entity are converted to MFRS using the currency in which transactions are recorded.
As the functional currency is the same as the currency in which transactions are recorded for all of the Company’s foreign
operations, the financial statements are subsequently translated to Mexican pesos using the following exchange rates: 1) the
closing exchange rate in effect at the balance sheet date for assets and liabilities; 2) historical exchange rates for
stockholders’ equity, and 3) the rate on the date of accrual of revenues, costs and expenses. Translation effects are recorded
in stockholders’ e
q
uit
y
.
Com
p
an
y
Recordin
g
currenc
y
Functional
currenc
y
Exchange rate to
translate from
functional currency to
Mexican
p
esos
OD Guatemala
y
Cía. LTDA Quetzal Quetzal 1.6436
Erial BQ, S. A.
Colon Colon 0.0253
FESA Formas Eficientes, S. A. Colon Colon 0.0253
OD El Salvador, LTDA de C. V.
US dollars US dollars 12.988
0
Ofix
p
res, S.A. de C.V. US dollars US dollars 12.988
0
OD Honduras, S. de R. L.
Lem
p
iras Lem
p
iras 0.6508
OD Panamá, S. A. US Dollars US Dollars 12.988
0
OD Colombia, S. A. S.
Colombian
p
esos Colombian
p
esos 0.0073
Ofix
p
res, S. A. S. Colombian
p
esos Colombian
p
esos 0.0073
f. Comprehensive income
—
Represents changes in stockholders’ equity during the year, for concepts other than distributions
and activity in contributed common stock, and is comprised of the net income of the year, plus other comprehensive
income items of the same period, which are presented directly in stockholders’ equity without affecting the consolidated
statements of income. Other comprehensive income is represented solely by the translation effects of operations of foreign
entities.
g. Classification of costs and expenses
—
Costs and expenses presented in the consolidated statements of income were
classified accordin
g
to their function. Conse
q
uentl
y
, cost of sales is
p
resented se
p
aratel
y
from the other costs and ex
p
enses.