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Accounting Policies

(continued)

for the period ended 31 December 2015

RCS GROUP CONSOLIDATED FINANCIAL STATEMENTS

2015

24

1.20 Foreign Currencies

Foreign currency transactions

Transactions in currencies other than the entity’s functional

currency are translated at the rates of exchange ruling on the

transaction date.

Monetary assets and liabilities denominated in such currencies

are translated at the rates ruling at the reporting date.

Non-monetary assets and liabilities denominated in such

currencies are translated using the exchange rate at the date

of the transaction.

Foreign currency gains and losses arising on translation are

recognised in the income statement.

Foreign operations

As at the reporting date, the assets and liabilities of foreign

operations, including goodwill and fair value adjustments

arising on acquisition, are translated into the presentation

currency of the group at the rate of exchange ruling at the

reporting date and the income and expenses are translated

at the exchange rates at the dates of the transactions or the

average rates if it approximates the actual rates.

Gains and losses arising on translation of the assets, liabilities,

income and expenses of foreign operations are recognised in

other comprehensive income, and presented in the foreign

currency translation reserve in equity.