4. Conversion of foreign currency financial statements

All amounts in the Mondadori Group consolidated financial statements are in euros, which is the Group’s functional and presentation currency .

When the financial statements of companies are denominated in a different currency, they are converted into the entity’s presentation currency as follows:

  • assets and liabilities are converted at the exchange rate ruling at closing;
  • income statement items are converted at the average exchange rate for the period.

Currency exchange rate differences that arise from these conversions are recognised in a specific reserve under shareholders’ equity.

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