Foreign currencies
Functional and presentation currency
Items included in the consolidated financial statements of the Group are measured using the currency of the primary economic environment in which each Group’s entity operates (the “functional currencies”).
Until December 31, 2016, the functional currency of the Company was the Swiss franc (CHF). As from January 1, 2017, due to a change of its primary economic environment, the functional currency of ObsEva SA became the US dollar (USD), which is also the functional currency of ObsEva USA, Inc. and the presentation currency of the Group.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions or valuation where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are recognized in profit or loss.
Foreign exchange gains and losses that relate to borrowings are presented in the consolidated statement of comprehensive loss, within finance costs. All other foreign exchange gains and losses are presented in the consolidated statement of comprehensive loss on a net basis within other income or other expenses.
Translation into the presentation currency until December 31, 2016
The results and financial position of operations that had a functional currency different from the presentation currency were translated into the presentation currency as follows:
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assets and liabilities were translated at the exchange rate prevailing on December 31 of each year; |
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income and expenses were translated at average exchange rates; and |
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all resulting exchange differences were recognized in other comprehensive income. |
The following rates have been used for the translation from the functional currency to the presentation currency:
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Income statement |
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Balance sheet |
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Average rate (CHF) |
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Closing rate as of December 31, (CHF) |
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2016 |
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2015 |
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2016 |
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2015 |
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USD |
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0.9850 |
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0.9624 |
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1.0160 |
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1.0010 |
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