Functional currency and presentation currency
The items included in the Company's financial statements are measured in the currency of the main economic environment in which the Company conducts its operations ("functional currency"). The functional currency of JSW S.A. is the Polish zloty. The financial statements are presented in Polish zloty ("PLN") which is the Company's presentation currency.
Transactions and balances
Transactions in foreign currencies are converted at their initial capture to the functional currency at the exchange rate from the day preceding the transaction date, the weighted average exchange rate or the exchange rate actually used by the bank, depending on the nature of the transaction.
At the end of each reporting period:
cash items denominated in a foreign currency are converted using the closing rate effective on that date, i.e. the average NBP exchange rate set for the currency,
non-cash items carried at historical cost in a foreign currency are converted using the exchange rate in effect on the transaction date,
non-cash items at fair value in a foreign currency are converted using the exchange rate from the date the fair value is determined.
Foreign exchange gains and losses obtained as a result of settlements of those transactions and book value measurement of the assets and liabilities denominated in foreign currencies are recorded in the financial result, provided they are not deferred in other comprehensive income, when they are are eligible for recognition as security of cash flows.
