Anders Hedin Invest årsredovisning ENG 1
NOTES NOTE 1 SIGNIFICANT FINANCIAL REPORTING STAN
DARDS Amounts in TSEK unless otherwise stated. The consolidated financial statement complies with International Financial Reporting Standards (IFRS) as adopted by the EU. Furthermore, complementary consolidated standards included in RFR1 have been implemented, as issued by the Council for Financial Reporting. Assets and liabilities have been valuated according to historical acquisition values with exception for certain financial assets that can be sold, and financial assets and liability which are valuated at fair value in the Income Statement. Property and land are appraised in accordance with the revaluation method. This Annual Report constitutes the first annual report by Anders Hedin Invest AB in accordance with IFRS standards. Historical financial information has been adjusted from 1/1/2014, which is the date for the transition to IFRS accounting procedures. Explanations for the transition from previously used accounting principles to IFRS, and the effects of this change to the Income Statement and equity capital, are included in Note 36. The Board approved this consolidated financial statement on 23/3/2016. Issuing statements in accordance with IFRS standards requires certain, significant estimates for accounting purposes. Furthermore, management is required to make certain assessments when following consolidated reporting standards. The areas that involve a high degree of complex assessment, or in which estimates and assessments are of significance to the Consolidated Financial Statement, are described in Note 3. New or changed financial reporting standards 2015 At the time of publication for this Annual Report, a number of standards and interpretations have been published which have not yet entered into force. No new changes are planned before current planned dates. There were no significant effects on the Group's accounts as a result of new or changed IFRS standards in 2015. IFRS 9 Financial instruments manage classification, appraisals and financial assets and liability statements, and introduces new rules for hedge accounting. The complete version of IFRS 9 was published in July 2014. It replaces sections of IAS 39 that handle classification and appraisals of financial instruments and introduces a new depreciation model. The Group has not yet evaluated how hedge accounting will be affected by the new rules. The new standard will be implemented at the latest by the fiscal year beginning 1/1/2018. The standard has not yet been adopted by the EU. IFRS 15 Revenue from Contracts with Customers is the new standard for income recognition. IFRS 15 replaces IAS 18 Income and IAS 11 Construction Contracts. IFRS 15 is based on the principle that income is reported once the customer has retained control of the sold product or service – a principle that replaces the earlier principle of reporting income when the risks and benefits have been passed on to the customer. A company can choose between "full retro-activity" or prospective application including further information. At present, the Group cannot estimate the impact of the new rules on the financial statements. The new standard will be implemented at the latest for the fiscal year that begins 1/1/2018. The standard has not yet been implemented by the EU. IFRS 16 Leases was published in January 2016 and is a new leasing standard which will replace IAS 17 Leasing agreement as well as the associated interpretations IFRIC 4, SIC-15 and SIC-27. The standard requires that assets and liabilities attributable to all leasing agreements, with a few exceptions, are reported in the balance sheet. This accounting method is based on the view that the lessee has the right to utilize an asset for a specific time period and a simultaneous obligation to pay for this right. Accounting practices for the lessor will in general remain unchanged. This standard will be implemented for the fiscal year that begins 1/1/2019 or later. Earlier implementation is allowed. The EU has not yet adopted the standard. The Group has not yet evaluated the impact of IFRS 16. Consolidated Financial Statement The Consolidated Financial Statement has been issued in accordance with the principles described in IFRS 10, Consolidated Financial Statement. Subsidiaries are companies in which the Parent Company directly or indirectly holds more than 50% of the voting rights, or otherwise has a controlling interest. The Group has controlling interests in a company when it is exposed to or has the right to variable yields from shares in the company, and can affect returns by way of its controlling interests in the company. The company is included in the Consolidated Financial Statement on the date the controlling interests are transferred to the Group. They are excluded from the Consolidated Financial Statement on the date the controlling interests expire. Internal transactions within the Group, balance sheet items, and unrealized gains and losses stemming from transactions between Group companies are eliminated. Acquisition method The acquisition method is used for statements of the Group's business combinations. The purchase price for the acquisition of a subsidiary company is based on fair value of assets and liabilities. The purchase price also includes all assets and liabilities at fair value as a result of a contingent consideration agreement. Later fair value adjustments of contingent consideration agreements that are classified as an asset or liability are reported in accordance with IAS 39 either in the Income Statement or in Other Comprehensive Income. Contingent consideration agreements that are classified as equity are not reappraised and the following adjustment is reported under equity capital. If the purchase price exceeds fair value of identifiable acquired net assets, the difference is reported as goodwill. If the amount exceeds fair value of the acquired net assets, in the event of an acquisition at a low purchase price, the difference is reported in the income statement. Costs related to acquisitions are expensed as they arise. Changes in ownership shares in a subsidiary company without changes in controlling interests. Transactions with proprietors without controlling interest that do not result in loss of controlling interest are reported as equity transactions; i.e., as transactions made by the owners in their role as owner. A change in ownership share is reported via an adjustment of the carrying amount for the holdings with both controlling and non-controlling interests in order to reflect changes in their relative holdings in the subsidiary company. In acquisitions from the holder with non-controlling interests, the difference between fair value and the actual, acquired share of the reported value of the subsidiary company's net assets is reported under equity. ANDERS HEDIN INVEST AB ANNUAL REPORT / 2015 69