4 Currency Translation
In the separate financial statements of Vonovia SE and the subsidiaries included in the consolidated financial statements, foreign currency transactions are translated into the functional currency at the exchange rate on the date of the transaction. Monetary assets and liabilities in foreign currencies are translated at the exchange rate prevailing on the reporting date. Non-monetary items that are measured in terms of historical cost are recorded on the reporting date at the exchange rate on the date when they were first recognized. Non-monetary items that are measured at fair value are translated on the reporting date using the exchange rate on the date when the fair value was determined. Any resulting translation gains and losses are recognized with effect on net income.