Samsung Electronics Co., Ltd. – Annual report – 31 December 2024
Industry: manufacturing
2. Material Accounting Policies (extract)
2.4 Functional and Presentation Currency
(A) Functional and presentation currency
The Company measures the items included in the financial statements of each component using the currency of the primary economic environment in which each it operates (“functional currency”). The functional currency of the parent company is Korean won (KRW) and the consolidated financial statements are presented in Korean won (KRW).
(B) Translation into the presentation currency
The results and financial position of all entities subjected to consolidation that have a functional currency different from the parent’s presentation currency are translated into the parent’s presentation currency as follows:
(1) Assets and liabilities are translated at the closing rate at the end of the reporting date.
(2) Income and expenses in the statement of profit or loss are translated at average exchange rates for the period. However, if this average rate is not a reasonable approximation of the cumulative effect of the exchange rates at the dates of the transactions, the transactions are translated at the exchange rates at the dates of transactions.
(3) Exchange differences arising on translation in (1) and (2) above are recognized in other comprehensive income.
2.18 Convenience Translation into United States Dollar Amounts
The US dollar amounts provided in the consolidated financial statements represent supplementary information solely for the convenience of the reader. All Korean won amounts are expressed in US dollar at the rate of W1,363.09 to $1, the average exchange rate for the year ended December 31, 2024. Such presentation is not in accordance with generally accepted accounting principles and should not be construed as a representation that the Korean won amounts shown could be readily converted, realized or settled in US dollars at this or any other rate.
Accounts examples 