Anders Hedin Invest årsredovisning ENG 1
NOTE 34 ASSOCIATE TRANSACTIONS Exceptions for bus
iness combinations Board Member Helena Hedin owns 4 properties via a limited company, which are used in vehicle operations. Rental contracts have been established in accordance with market related conditions. Rental payments have been made to the amount of 7,887 (1,972). One resident property was sold to Anders Hedin in December 2015. The sale was conducted at market value based on the valuations of 2 external, unaffiliated appraisers. The Group retains loans from shareholders and associates to shareholders to the amount of 62,380 (58,418) Interest is replaced by the government borrowing rate plus 3 per cent. NOTE 35 SUBSEQUENT EVENTS Hedin Bil has acquired Johan Klasén Bil AB which runs a car dealership in Halmstad as of 1/3/2016. The acquisition also included 2 properties consisting of a car dealership and an undeveloped site. A new car dealership for the brands Nissan and Kia will be developed there. Hedin Bil has acquired Biva AB from OK Ekonomisk Förening, which has dealerships in Örebro, Karlskoga, Norrköping and Linköping, as well as Bilcity i Kristianstad AB which has dealerships in Kristianstad. The business properties have also been included in the acquisitions in the cities of Örebro, Karlskoga, Linköping and Kristianstad. Hedin Bil has also acquired Bilias Ford operations in Gothenburg. Hedin Bil plans to start up new Ford dealerships in Kungsbacka, Stockholm and Nacka. The acquisitions from OK and Bilia require approval by the Competition Board, and are expected to be approved in April 2016. NOTE 36 EFFECTS OF THE TRANSITION TO IFRS Anders Hedin Invest AB published its Annual Report in accordance with the Annual Accounts Act up until 31/12/2014, and the Accounting Board's general recommendations BFNAR 2012:1 for annual reports and consolidated financial statements (K3). Since 2015, the Group publishes its financial reports in accordance with International Financial Reporting Standards (IFRS). The Parent Company complies with RFR2 accounting for legal entities since 2015. The transition has no significant effect on the Parent Company's income and position. Choices made concerning the transition to IFRS The transition to IFRS is reported in accordance with IFRS1, at the time of the first application of IFRS standards. The main rule is that all applicable IFRS and IAS standards that are in force and approved by the EU shall be applied retro-actively. However, IFRS 1 includes transitional rules that allow the company some leeway. Exceptions from full retro-active application of all standards that the Group has chosen to implement in the transition that are allowed according to IFRS are reported below. Standard IFRS 1, which regulates the transition to IFRS, offers opportunities to apply the principles of IFRS3 Business Combinations, either prospectively or from a specific date prior to the transition. This allows for leeway with regards to full retro-active implementation which would require revaluation of all business combinations prior to the transition date. The Group has chosen to apply IFRS 3 prospectively for business combinations that take place after the date of transition to IFRS. Business combinations that occurred before the transition period have therefore not been revaluated. Reconciliation to previous accounting principles and IFRS. In accordance with IFRS 1, the Group shall provide reconciliation of equity capital and total earnings in accordance with previous accounting principles, and equity and total earnings in accordance with IFRS. The Group's transition had no impact on total cash flows from current operations, investment operations or financial operations. The tables below show the reconciliation of equity and total earnings to previously applied accounting principles and IFRS principles for each period respectively. Intangible assets of unpredictable life span In accordance with previous accounting principles, all intangible assets are estimated to have a defined utility period, and depreciations are therefore reported that correspond to this. IFRS presumes that certain intangible assets have an undefined utility period, and therefore depreciation is not applicable to such assets. Instead, these assets are impairment tested annually. Intangible assets with an undefined utility period within the Anders Hedin Invest Group include goodwill. Other intangible assets are depreciated as planned. Revaluation method Tangible assets are recognized at their acquisition value less accumulated depreciation and impairment losses plus revaluation. In compliance with IFRS, properties are revaluated in accordance with the revaluation method. This entails that external valuation of the properties is conducted regularly. In the event that property value has decreased, the revaluation is reported under profit for the year, and in the event that property values exceed the booked values, the revaluation is reported in Other Comprehensive Income, unless it is a return for a previous depreciation. Financial instruments For companies that trade in securities, previous trades are reported under Net Turnover and Merchandise. Since the transition to IFRS, this is reported in the Income Statement on the row for Other Operating Income. Holdings were previously reported as stock and as a result of the transition to IFRS are now reported as short term investments. Pensions Commitment to defined benefit plans is established partly through the security ensured by the PRI system. This safeguard has been closed for many years and no new earnings occur. The liability reported in the Balance Sheet in relation to defined pension plans corresponds to the present value of the defined benefit plan commitment at the closing of the year. The defined benefit plan is calculated annually by unaffiliated actuaries using the projected unit credit method. This results in a difference in comparison to previous accounting principles. ANDERS HEDIN INVEST AB ANNUAL REPORT / 2015 87