I his condition is regarded as met only when the sale is highly probable and the asset (or disposal group) is available for
immediate sale in its present condition. When a subsidiary is held for sale, all of its assets and liabilities are classified as held for
sale, when the conditions are met, even when the Group retains a non-controlling interest. Non-current assets that will be
abandoned are excluded from the scope of IFRS 5.
Im mediately before classification as held for sale, the assets (or components of a disposal group) are re-measured in accordance
with the Group's accounting policies. Th ereafter, non-current assets (or disposal group) held for sale are measured at the lower
of their carrying amount or fair value less costs to sell. If the impairment exceeds the carrying value of the non-current assets
within the scope of IFRS 5 Non~current Assets for Sale and Discontinued Operations measurement guidance, Delhaize
Group recognizes a separate provision to reflect the difference in its financial statements. Non-current assets are not depreciated
or amortized once classified as held for sale. See further details in Note 5.2.
A discontinued operation is a component of a business that either has been disposed of, or is classified as held for sale, and:
represents a separate major line of business or geographical area of operations;
is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or
is a subsidiary acquired exclusively with a view to resale.
Wh en an operation is classified as a discontinued operation, the comparative income statements are re-presented as if the
operation had been discontinued from the start of the comparative periods. The resulting profit or loss after taxes is reported
separately in the income statements (see Note 5.3).
Translation of Foreign Currencies
Functional and presentation currencyItems included in the financial statements of each of the Group's entities are
measured using the currency of the primary economic environment in which the entity operates ("functional currency").
Delhaize Group's financial statements are presented in (millions of) euros, the parent entity's functional and the Group's
"presentation currency," except where stated otherwise.
Foreign currency transactions and balances. Foreign currency transactions of an entity are initially translated into its
functional currency and recognized in its financial records at the exchange rate prevailing at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are subsequently re-translated at the balance sheet date
exchange rate into the functional currency of the entity. All gains and losses resulting from the settlement of foreign currency
transactions and from the translation of monetary assets and liabilities denominated in foreign currencies are included in the
income statement, except for exchange differences arising on monetary items that form part of a net investment in a foreign
operation (i.e., items that are receivable from or payable to a foreign operation, for which settlement is neither planned, nor
likely to occur in the foreseeable future), which are recognized in the "Cumulative translation adjustment" component of
equity. Foreign exchange gains and losses that relate to financial liabilities are presented in the income statement within
"Finance costs" (see Note 29.1), while gains and losses on financial assets are shown as "Income from investments" (see
Note 29.2).
Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rates as of
the dates of the initial transaction. Non-monetary items measured at fair value in a foreign currency are translated using the
exchange rate at the date when the fair value is determined and gains or losses are included in the income statement except
for differences arising on the retranslation of non-monetary items in respect of which gains and losses are recognized
directly in equity. For such non-monetary items, any exchange component of that gain or loss is also recognized directly in
eq uity.
Fore ign group entities. The results and balance sheets of all Group entities that have a functional currency d iffe rent from the
Group s presentation currency are translated into the presentation currency as follows:
(a)
(b)
(c)
the balance sheets of foreign subsidiaries are converted to euros at the year-end exchange rate (closing exchange
rate);
goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of
the foreign entity and translated at the closing exchange rate; and
the income statements are translated at the average daily exchange rate (i.e., the yearly average of exchange rates on
each working day).
The differences arising from the use of the average daily exchange rate for the income statement and the closing exchange
rate for the balance sheet are recorded in the "Cumulative translation adjustment" being part of "Other Comprehensive
Income" (OCI). On disposal of a foreign operation, the component of OCI relating to that particular foreign operation is
recognized in the income statement (as a "reclassification adjustment").
None of the Group entities has the currency of a hyper-inflationary economy nor does Delhaize Group currently hedge net
investments in foreign operations.
DELHAIZE GROUP FINANCIAL STATEMENTS '12 77
