CHEMICAL & MINING CO OF CHILE INC (ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory)

3.3	Foreign currency translation

(a) Group entities:

The revenue, expenses, assets and liabilities of all entities that have a functional currency other than the presentation currency are converted to the presentation currency as follows:

Assets and liabilities are converted at the closing exchange rate prevailing on the reporting date.

Revenues and expenses of each profit or loss account are converted at monthly average exchange rates.

All resulting foreign currency translation gains and losses are recognized as a separate component in translation reserves.

In consolidation, foreign currency differences arising from the translation of a net investment in foreign entities are recorded in equity (other reserves). At the date of disposal, such foreign currency translation differences are recognized in the statement of income as part of the gain or loss from the sale.

The main exchange rates and the adjustment unit used to translate monetary assets and liabilities, expressed in foreign currency at the end of each period in respect to U.S. dollars, are as follows:

	12/31/2017		12/31/2016
	US$		US$

Brazilian real		3.02		3.25
New Peruvian sol		3.08		3.35
Argentine peso		18.40		15.84
Japanese yen		113.00		116.83
Euro		0.83		0.95
Mexican peso		19.65		20.63
Australian dollar		0.78		0.72
Pound Sterling		0.74		0.81
South African rand		12.35		13.70
Ecuadorian dollar		1.00		1.00
Chilean peso		614.75		669.47
Chinese yuan		6.51		6.67
Indian rupee		63.84		66.60
Thai baht		32.85		34.59
UF (*)		43.59		39.36

(*) The Unidad de Fomento (UF) is an indexed monetary unit used in Chile, calculated based on the variation in the Consumer Price Index (CPI).

(b) Transactions and balances

Non-monetary transactions in currencies other than the functional currency (U.S. dollar) are translated to the respective functional currencies of Group entities at the exchange rate on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currency at the exchange rate at that date. All differences are recorded in the statement of income except for all monetary items that provide an effective hedge for a net investment in a foreign operation. These items are recognized in other comprehensive income on the divestment, when they are recognized in the statement of income. Charges and credits attributable to foreign currency translation differences on those hedge monetary items are also recognized in other comprehensive income.

Non-monetary assets and liabilities that are measured at historical cost in a foreign currency are retranslated to the functional currency at the historical exchange rate of the transaction. Non-monetary items that are measured based on fair value in a foreign currency are translated using the exchange rate at the date on which the fair value is determined.

CHEMICAL & MINING CO OF CHILE INC | CIK:0000909037 |

ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory