4. Foreign currency
4.1. The functional currency and the presentation currency
The items contained in presentations of particular units of the Group are priced in the currency of the basic economic environment in which a given entity operates (“the functional currency”). These consolidated financial statements is presented in Polish Zloty, which is the functional currency and the presentation currency of the Group.
4.2. Transactions and balances in foreign currency
Transactions expressed in foreign currencies are translated at FX rate prevailing on the transaction date. The financial assets and liabilities, being result of the said transactions and denominated in foreign currencies are translated at the FX rate prevailing on a given day. The foreign exchange differences resulting from the settlements of the said transactions and the balance sheet valuation of the financial assets and liabilities denominated in foreign currency are recognized in the income statement in the detailed item FX result, which is an element of Net income on instruments measured at fair value through profit and loss and FX result.
Foreign exchange differences due to such items as equity instruments classified as available-for-sale financial assets are recognized in revaluation capital of available-for-sale financial assets.