Annual Financial Report for the period from1st of January to the 31st of December 2013
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After the acquisition, the Group’s share in the profits or losses of associates is recognized in the income
statement, while the share of changes in reserves is recognized in Equity. The cumulated changes affect the
book value of the investments in associated companies. When the Group’s share in the losses of an associate
is equal or larger than the carrying amount of the investment, including any other doubtful debts, the Group
does not recognize any further losses, unless it has guaranteed for liabilities or made payments on behalf of
the associate or those that emerge from ownership.
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
Energy. 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
managed 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
during 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 activities),
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
liability 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
