72
Unrealized profits from transactions between the Group and its associates are eliminated according to the
Group’s percentage ownership in the associates. Unrealized losses are eliminated, except if the transaction
provides indications of impairment of the transferred asset. The accounting principles of the associates have
been adjusted to be in conformity to the ones adopted by the Group.
3.3 Segment reporting
MYTILINEOS Group is active in three main operating business segments: Metallurgy, Constructions and En-
ergy. In identifying its operating segments, management generally follows the Group’s service lines, which
represent the main products and services provided by the Group. Each of these operating segments is man-
aged separately as each of these service lines requires different technologies and other resources as well as
marketing approaches. The adoption of IFRS 8 has not affected the identified operating segments for the Group
compared to the recent annual financial statement.
3.4 Foreign currency translation
The measurement of the items in the financial statements of the Group’s companies is based on the currency
of the primary economic environment in which the Group operates (operating currency). The consolidated
financial statements are reported in euros, which is the operating currency and the reporting currency of the
parent Company and all its subsidiaries.
Transactions in foreign currencies are converted to the operating currency using the rates in effect at the date
of the transactions.
Profits and losses from foreign exchange differences that result from the settlement of such transactions dur-
ing the period and from the conversion of monetary items denominated in foreign currency using the rate in
effect at the balance sheet date are posted to the results. Foreign exchange differences from non-monetary
items that are valued at their fair value are considered as part of their fair value and are thus treated similarly
to fair value differences.
The Group’s foreign activities in foreign currency (which constitute an inseparable part of the parent’s activi-
ties), are converted to the operating currency using the rates in effect at the date of the transaction, while the
asset and liability items of foreign activities, including surplus value and fair value adjustments, that arise
during the consolidation, are converted to euro using the exchange rates that are in effect as at the balance
sheet date.
The individual financial statements of companies included in the consolidation, which initially are presented
in a currency different than the Group’s reporting currency, have been converted to euros. The asset and li-
ability items have been converted to euros using the exchange rate prevailing at the balance sheet date. The
income and expenses have been converted to the Group’s reporting currency using the average rates during
the aforementioned period. Any differences that arise from this process, have been debited / (credited) to the
Equity under the “Translation Reserves” account..
