ANNUAL REPORT 2017 Director-General's Statement
ANNUAL REPORT 2017 LFV is with you on the travel
ANNUAL REPORT 2017 This is LFV
ANNUAL REPORT 2017 The Year in Brief
ANNUAL REPORT 2017 Operating Environment and Marke
t
ANNUAL REPORT 2017 Strategy and Objectives
ANNUAL REPORT 2017 Customer Focus
ANNUAL REPORT 2017 Environment
ANNUAL REPORT 2017 Aviation Safety
ANNUAL REPORT 2017 Innovation
ANNUAL REPORT 2017 Cooperation and Partnerships
ANNUAL REPORT 2017 Employees
ANNUAL REPORT 2017 Board of Director's Report
ANNUAL REPORT 2017 Income Statement, Comments on t
he Income Statement
ANNUAL REPORT 2017 Balance Sheet
ANNUAL REPORT 2017 Comments on the balance sheet a
nd funds statements
ANNUAL REPORT 2017 Financing
ANNUAL REPORT 2017 Accounting and Valuation Princi
ples ACCOUNTING AND VALUATION PRINCIPLES VIGNETTE ACCOUNTING AND VALUATION PRINCIPLES Accounting principles LFV’s accounts for the state-owned enterprise and the group comply with the Ordinance (2000:605) on Annual Reports and Budget Documentation, the Swedish National Financial Management Authority’s regulations and general advice and the requirement for generally accepted accounting principles as per the Bookkeeping Ordinance (2000:606). To the extent that there is no benchmark directly aimed at state-owned enterprises, LFV applies, in the way reported in each of the sections below, the valuation rules set out in the Swedish Accounting Standards Board’s General Guidelines BFNAR 2012:1, on Annual Accounts and Consolidated Accounts (K3). LFV’s subsidiaries draw up annual reports in accordance with the Swedish Annual Accounts Act and BFNAR 2012:1 Annual Accounts and Consolidated Accounts (K3). From 1 January 2017, cost for work performed by the company for its own use are capitalised for investment projects regarding intangible and tangible fixed assets. As to the rest, the accounting principles are unchanged compared with the previous year. Format and supplementary information Income statements, balance sheets and funds statements have been formatted in accordance with the rules applying to state-owned enterprises and state-owned enterprise groups. Report with consolidated accounts LFV draws up a report with consolidated accounts. The consolidated accounts include the state-owned enterprise and the group companies, in which the stateowned enterprise directly or indirectly holds more than half of all the votes for all of the shares or otherwise exercises a decisive influence (subsidiaries), as well as the other companies (associated companies) in which the state-owned enterprise has a significant influence as a result of 46 shareholdings. Outstanding accounts between group companies are eliminated in their entirety. The principles used for the group’s reporting of deferred tax are described under the heading Taxes and tax equivalent. Subsidiaries The companies, in which the state-owned enterprise directly or indirectly holds more than half of all the votes for all of the shares or otherwise exercises a decisive influence are classified as subsidiaries and are consolidated in the consolidated accounts. The consolidated accounts are drawn up in accordance with the acquisition method. The acquisition date is the date on which the decisive influence was obtained. Subsidiaries in other countries draw up their annual accounts in foreign currency. At the time of consolidation, the items in these subsidiaries’ balance sheets and income statements are recalculated using the exchange rate on the accounting date or the spot rate on the day each business transaction took place. The exchange rate differences that arise are reported in accumulated exchange rate differences in the group’s equity. Associated companies Companies in which the state-owned enterprise, or LFV Holding AB, can exercise significant influence as a result of holding between 20 per cent and 50 per cent of the votes are reported as associated companies. Associated companies are reported in accordance with the equity method in the group accounts. Reports from operative areas and geographical markets LFV’s operations consist of three main lines of business: En route air navigation services, Research and Innovation, and Other commercial services. More than 90 per cent of the operations are conducted in Sweden. A lesser part of Other commercial services arise from markets outside Sweden, mainly the United Arab Emirates, Norway, and Denmark. Revenue recognition The revenues are recognised to the extent it is probable that future economic benefits will fall to the Group and these benefits can be calculated in a reliable manner. In the consolidated accounts, internal group sales are eliminated. The principles applied are essentially consistent with BFNAR 2012:1 (K3), Chapter 23 Revenue, which the subsidiaries apply to revenue recognition. Revenue is reported at the real value of what has been received or will be received, net of discounts given. Grants are recognised as revenue from grants upon receipt if the purpose of the grant is to be used at LFV, and if there are no refunding obligation, or if the probability for refunding obligation is small. Grants connected to refunding are accounted as revenue, if such obligations only arise in cases where the state-owned enterprise do not observe conditions and regulations for the grant in question, or if something unexpected occurs which disturbs the prerequisites for the grant. Unused grants are allocated to cover future costs. Interest and dividends are reported as revenue when it is probable that the Group will be receiving the economic benefits associated with the transaction and that the revenue can be calculated in a reliable manner. Valuation of service work in progress For service work with a fixed price, the income and expenditure attributable to work in progress is reported as revenue or costs relative to its degree of completion on the accounting date (percentageof-completion method). The percentage of completion is determined by comparing the employed expenditure on the accounting date with the estimated total expendiLFV ANNUAL REPORT 2017
ANNUAL REPORT 2017 Notes
ANNUAL REPORT 2017 Investments
ANNUAL REPORT 2017 Reporting in Accordance with Pe
rformance Plan
ANNUAL REPORT 2017 Reporting in Accordance with Ap
propriation Directions
ANNUAL REPORT 2017 Risk Management
ANNUAL REPORT 2017 Dividend Proposal
ANNUAL REPORT 2017 Audit Report
ANNUAL REPORT 2017 Board of Directors
ANNUAL REPORT 2017 Group Management
ANNUAL REPORT 2017 Five Years at a Glance
ANNUAL REPORT 2017 Abbreviations and Explanations