1. General Information
Covestro AG (registered at the district trade register, or Amtsgericht, for Cologne, number: HRB 85281) is a stock exchange-listed corporation headquartered at Kaiser-Wilhelm-Allee 60, 51373 Leverkusen (Germany). The consolidated financial statements of Covestro AG for the period ended December 31, 2018, cover Covestro AG and its subsidiaries, joint arrangements and associated companies. They have been prepared according to the International Financial Reporting Standards (IFRSs) of the International Accounting Standards Board (IASB), London (United Kingdom), as endorsed by the European Union (EU) and in effect at the reporting date, the Interpretations (IFRICs) of the IFRS Interpretations Committee (IFRS IC) and the Interpretations published by the Standing Interpretations Committee (SIC), as well as the additional requirements of German commercial law pursuant to Section 315e (1) of the German Commercial Code (HGB) for the exempting IFRS consolidated financial statements. Reference information for previous periods has not been restated for new accounting standards, see note 2.
The declaration pertaining to the German Corporate Governance Code pursuant to Section 161 of the German Stock Corporation Act (AktG) has been issued and made available to stockholders. It is reproduced in section “Declaration on Corporate Governance” of the management report.
If certain items in the income statement, statement of comprehensive income, statement of financial position, statement of cash flows and statement of changes in equity of the Covestro Group are condensed for the sake of clarity, this is explained in the notes. The income statement has been prepared using the cost-of-sales method. Assets and liabilities are classified by maturity. They are classified as current if they mature within one year or within the Group’s normal business cycle or are held for sale. Inventories and trade accounts receivable and payable are consistently presented as current. Deferred tax assets, deferred tax liabilities and pension provisions are consistently presented as noncurrent.
The consolidated financial statements are drawn up in euros. Amounts are stated in millions of euros (€ million) except where otherwise indicated.
Exchange rates
In the reporting period, the following exchange rates were used for the major currencies of relevance to the Covestro Group:
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Closing Rates |
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€1/ |
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2017 |
2018 |
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BRL |
Brazil |
3.97 |
4.44 |
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CNY |
China |
7.81 |
7.87 |
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HKD |
Hong Kong |
9.37 |
8.97 |
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INR |
India |
76.61 |
79.73 |
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JPY |
Japan |
135.01 |
125.85 |
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MXN |
Mexico |
23.66 |
22.49 |
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USD |
United States |
1.20 |
1.15 |
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Average Rates |
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€1/ |
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2017 |
2018 |
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BRL |
Brazil |
3.59 |
4.29 |
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CNY |
China |
7.61 |
7.81 |
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HKD |
Hong Kong |
8.78 |
9.25 |
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INR |
India |
73.38 |
80.64 |
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JPY |
Japan |
126.39 |
130.40 |
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MXN |
Mexico |
21.28 |
22.70 |
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USD |
United States |
1.13 |
1.18 |