Anders Hedin Invest årsredovisning ENG 1
receivable and accounts receivable, and recoverab
le financial assets. The classification is dependent on the purpose for which the financial assets was acquired. Management establishes classification of the financial assets at the first accounting date. Financial assets revaluated at fair value in the Income Statement. Financial assets revaluated at fair value in the Income Statement are financial assets that are held for trading. A financial asset is classified in this category in the event it has been acquired primarily to be sold in the near future. Derivatives are classified as being held for trading in the event they are not classified as securities. Assets in this category are classified as current assets in the event they are to be settled within 12 months, or are otherwise classified as fixed assets. Loans receivable and accounts receivable Loans receivable and accounts receivable are financial assets that are not derivatives, that have established or establishable payments and are not accounted for in an active market. Receivables are recognized as current assets, except for maturities more than 12 months after the balance sheet date, which are classified as fixed assets. The Group's receivables are comprised of accounts receivable and other receivables in the balance sheet. Disposable financial assets Disposable financial assets are assets that are not derivatives and have been identified as disposable or have not been classified in any other category. They are included in fixed assets unless management plans to dispose of the asset within 12 months after the balance sheet date. Accounting and valuation Purchases and sales of financial assets are accounted for on the trade date that the Group commits to purchasing or disposing of the asset. Financial assets are originally accounted for at fair value including transaction expenses, which also applies to all financial assets that are not valuated at fair value in the income statement. Financial assets valuated at fair value in the income statement are originally accounted for at fair value, while attributable transaction costs are noted in the income statement. Financial assets are eliminated from the balance sheet when the right to procure cash flows from the instruments have expired or been transferred and the Group has largely transferred all risks and benefits attributable to the right of ownership. Disposable financial assets and financial assets valuated at fair value in the income statement are booked after the acquisition date at fair value. Receivables are booked after the acquisition date at accrued acquisition value. Changes in fair value attributable to the category of financial instruments that are valuated at fair value in the Income Statement are booked for the period they arise in and are included under Operating Profit. Dividend incomes from securities in the category financial assets are valuated at fair value in the income statement under Other Operating Income. Derivative instruments and hedging instruments Derivative instruments are accounted for in the balance sheet on the date the contract enters into agreement and are valuated at fair value, both initially and in later revaluations. The Group uses derivative instruments only to a limited extent and does not use hedging accounting. Inventories Inventories are carried at the lowest end of acquisition cost and net realizable value. Acquisition cost is established by using the first-in-first-out method (FIFO). The net realizable value of the estimated disposal price in current operating activities, less applicable variable costs of disposal. Account receivables Account receivables are sums to be paid by customers for items or services purchased during daily operations. In the event payment is projected within 1 year, they are classified as operating assets. Otherwise, they are accounted for as fixed assets. Account receivables are initially accounted for at fair value and thereafter at accrued acquisition value using the effective interest method. Cash and cash equivalents Cash and cash equivalents include, both with regards to the balance sheet and the cash flow statement, cash, bank deposits and other short term investments that expire within 3 months of the acquisition date. Accounts payable Accounts payable are obligations to settle payment for goods or services that have been acquired in the course of business operations. Accounts payable are classified as short term liabilities in the event that they expire within a year. Otherwise, they are accounted for as long term liabilities. Accounts payable are initially accounted for at fair value and thereafter at accrued acquisition value using the effective interest method. Loans Loans from credit institutions are initially accounted for at fair value, net value after transaction costs. Loans are thereafter accounted for at accrued value, and differences between recovered amount (net amount after transaction costs) and repayment amount are accounted for in the Income Statement, distributed throughout the loan period. Loans are classified as short term liabilities in the event the agreed upon expiration date is within 12 months, including in the event the loan is projected to be renewed without changes in amortization rates. Bank overdrafts are accounted for under Current Liabilities to Credit Institutions in the balance sheet. Borrowing costs Borrowing costs that are directly attributable to purchases, construction and production of tangible fixed assets, which take a significant amount of time to complete, are accounted for as a part of these assets' acquisition value. Activation expires when the asset is ready for use. Other borrowing costs are recognized as expenses in the period to which they are attributable. Current and deferred taxes Tax costs include current and deferred taxes. Taxes are accounted for in the Income Statement, with exception for taxes attributable to items under Other Comprehensive Income or to Equity Capital. In those cases, the taxes are also accounted for under Other Comprehensive Income and Equity. The current tax cost is calculated in accordance with tax regulations that are valid at the date of the balance sheet or have been for all practical purposes adopted in countries where the parent or subsidiary company operates and generates taxable revenue. Deferred taxes are reported for all temporary changes that arise in the difference between the taxable value of assets and liabilities and their reported valuation in the Consolidated Financial Statement. Deferred taxes, however, are not accounted for in the event they arise due to the initial goodwill booking. Neither are deferred taxes booked in the event they arise as a result of a transaction that represents the first report of an asset or liability that is not a business acquisition and, at the time of the transaction, do not affect carrying amount or taxable income. Deferred taxes are calculated using tax rates that have come into force or have been published at the time of the balance sheet date, and that are projected to be in force when the relevant deferred tax payment is realized or the deferred tax is settled. Deferred taxes are accounted for to the extent that it is likely that future taxable surpluses will be available, against which temporary changes can be utilized. Employee benefits Plans for post-employment benefits are classified as either defined contribution plans or defined benefit plans. In defined contribution ANDERS HEDIN INVEST AB ANNUAL REPORT / 2015 71