Functional currency of SRV’s real-estate companies in Russia changes to the rouble
The functional currency of SRV’s real-estate companies in Russia changed from the euro to the rouble on 1 September 2016. The change concerns SRV’s real-estate business subsidiaries and associated companies operating in Russia whose functional currency to date has been the euro.
In its interim report for 1 January – 30 June 2016, SRV stated that the challenges of the Russia economy have lasted longer than anticipated and the shopping centre leasing market has become increasingly rouble-denominated.
SRV’s functional currency in Russia has mainly been the euro. SRV’s leasing has become rouble-denominated to such an extent that, in accordance with IAS 21, the functional currency of SRV’s real-estate business subsidiaries and associated companies in Russia has been changed to the rouble as of 1 September 2016. The accounting change related to the functional currency means that SRV will be more exposed to fluctuations in the value of the rouble. The change in the functional currency will also apply, for example, to the companies that own the Okhta Mall and Pearl Plaza shopping centres.
Ilkka Pitkänen, CFO, +358 40 667 0906, email@example.com
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