IBERSOL | Integrated Management Report - 2024

Consolidated Financial Statements position, with reference to the date on which the business combination took place. When recording concentration transactions involving entities under the Group’s control, assets and liabilities are valued at their book value, with no impact on results being calculated. 2.1.6. Presentation currency and transactions in foreign currency 2.1.6.1.Presentation currency The Financial Statements of each of the Group’s entities are prepared using the currency of the economic environment in which the entity operates (“functional currency”). The consolidated Financial Statements are presented in Euros, which is the Ibersol Group’s functional and presentation currency. The foreign currency exchange rates used to convert transactions and balances expressed in Kwanzas at 31 December 2024 and 2023 were respectively: dec. 2024 Euro exchange rates (x foreign currency per 1 Euro) Rate on December, 31 2024 Average interest rate year 2024 Kwanza de Angola (AOA) 947,867 941,620 dec. 2023 Euro exchange rates (x foreign currency per 1 Euro) Rate on December, 31 2023 Average interest rate year 2023 Kwanza de Angola (AOA) 931,099 746,269 2.1.6.2. Foreign currency transactions Exchange differences arising on the settlement of monetary items or on the transla- tion of monetary items at rates different from those at which they were translated on initial recognition or in previous financial statements are recognized in profit or loss for the year, unless they arise on monetary items that form part of the net investment in a foreign operation. In this case, exchange differences are initially recognized in other comprehensive income and are reclassified from equity to consolidated net income for the year on the disposal of all or part of that operation. Exchange differences related to financing (financial) transactions are recorded as fi- nance costs or income. Exchange differences related to operating activities are re- corded under “Other operating income / (expenses)”. 368