SECTION 9.2  General accounting  policies Entities which by agreement are managed  jointly with one or more other parties (joint  ventures) are consolidated proportionately, and  the individual accounting entries are recognised  in proportion to the ownership interest. The consolidated financial statements have  been prepared as a consolidation of the  financial statements of the Parent Company,  subsidiaries and proportionately consolidated  entities according to the Group’s accounting  policies. On consolidation, intra-Group income  and expenses, shareholdings, intra-Group  balances and dividends, and realised and un- realised gains on intra-Group transactions are  eliminated. Unrealised gains on transactions  with associates and proportionately consoli- dated entities are eliminated in proportion to  the Group’s ownership share of the entity.  Unrealised losses are eliminated in the same  way as unrealised gains to the extent that  impairment has not taken place. Investments in subsidiaries and propor- tionately consolidated entities are set off  against the proportionate share of the sub- sidiaries’ fair value of identifiable net assets,  including recognised contingent liabilities, at the acquisition date. The accounting items of subsidiaries are  included in full in the consolidated financial  statements. Non-controlling interests’ share  On initial recognition, transactions denomi- nated in foreign currencies are translated  to the functional currency at the exchange  rates at the transaction date. Foreign  exchange differences arising between the  exchange rates at the transaction date and  at the date of payment are recognised in the income statement as financial income or financial expenses. For each of the reporting entities in the Group,  a functional currency is determined. The func- tional currency is the primary currency used  for the reporting entity’s operations. Transac- tions denominated in currencies other than the  functional currency are considered transactions  denominated in foreign currencies. Entities acquired or formed during the year  are recognised in the consolidated financial  statements from the date of acquisition or  formation. Entities which are disposed of or  wound up are recognised in the consolidated  income statement until the date of disposal  or winding-up. The comparative figures are  not restated for entities acquired, disposed  of or wound up. of the profit/loss for the year and of the eq- uity of subsidiaries is included in the Group’s  profit/loss and equity respectively, but is  disclosed separately. Receivables, payables and other monetary  items denominated in foreign currencies are  translated at the exchange rates at the end of  the reporting period. The difference between  the exchange rates at the end of the reporting  period and at the date at which the receivable  or payable arose or the exchange rate in the  latest consolidated financial statements is rec- ognised in the income statement as financial  income or financial expenses. On recognition in the consolidated financial  statements of entities with a functional  currency other than the presentation cur- rency of Carlsberg A/S (DKK), the income  statement and statement of cash flows  are translated at the exchange rates at  the transaction date, and the statement of  financial position items are translated at  the exchange rates at the end of the report- ing period. An average exchange rate for  the month is used as the exchange rate at  the transaction date to the extent that this  does not significantly deviate from the ex- change rate at the transaction date. Foreign  exchange differences arising on translation  of the opening balance of equity of foreign  entities at the exchange rates at the end of  the reporting period and on translation of  the income statement from the exchange  rates at the transaction date to the ex- change rates at the end of the reporting  period are recognised in other comprehen- On recognition in the consolidated financial  statements of associates with a functional  currency other than the presentation cur- rency of Carlsberg A/S, the share of profit/ loss and other comprehensive income for the  year is translated at average exchange rates  and the share of equity, including goodwill, is  translated at the exchange rates at the end  of the reporting period. Foreign exchange  differences arising on the translation of the  share of the opening balance of equity of  sive income and attributed to a separate  translation reserve in equity. Foreign exchange adjustment of balances  with foreign entities which are considered  part of the investment in the entity is recog- nised in the consolidated financial statements  in other comprehensive income if the balance  is denominated in the functional currency of  the Parent Company or the foreign entity.  Correspondingly, foreign exchange gains and  losses on the part of loans and derivative  financial instruments which is designated  as hedges of investments in foreign entities  with a functional currency other than that of  Carlsberg A/S and which effectively hedge  against corresponding foreign exchange gains  and losses on the investment in the entity  are also recognised in other comprehensive  income and attributed to a separate transla- tion reserve in equity. Foreign currency translation  132 Consolidated financial statements SECTION 9: BASIS FOR PREPARATION Carlsberg Group Annual Report 2013