Anders Hedin Invest Årsredovisning 1
NOTES Amounts in thousand SEK (TSEK) unless state
d otherwise. NOTE 1 MATERIAL FINANCIAL REPORTING STANDARDS The Consolidated Financial Statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) as endorsed by the EU. RFR 1 Complementary Accounting Regulations for Groups, issued by the Swedish Financial Reporting Board, has also been applied. Assets and liabilities have been valued at cost with the exception of certain disposable financial assets, as well as financial assets and liabilities valued at fair value through profit or loss account. Property and land that are part of business operations are valued according to the revaluation method. The Board approved these Consolidated Financial Statements for publication on March 28, 2018. Preparing financial statements in accordance with IFRS requires the use of a number of significant estimates for accounting purposes. Furthermore, the management is required to make certain assessments when applying consolidated reporting standards. The areas that involve a high degree of assessment, which are complex, or are areas in which assumptions and estimates are of material significance to the Consolidated Financial Statements, are described in Note 3. New or amended financial reporting standards 2017 At the time of publication of this Annual Report, a number of standards and interpretations had been published which had not yet come into force. There are no plans to apply new standards and amendments in advance. There was no significant impact on the Group's accounts resulting from new or amended IFRS standards in 2017. IFRS 9 Financial instruments deals with classification, valuation and reporting of financial liabilities and assets and replaces the current sections in IAS 39. IFRS 9 states that financial assets must be divided into two classifications: measured at fair value or at cost. The classification is adopted on initial recognition based on the company’s business model and characteristic features in the contractual cash flows. In the case of financial liabilities, there are no major changes compared with IAS 39. IFRS 9 has been endorsed by the EU and will come into force on January 1, 2018. The evaluation of the effect on the Group upon introduction of the standard has taken place and is not expected to have any significant effect. IFRS 15 Revenue from Contracts with Customers regulates the reporting of revenues. The principles on which IFRS 15 is based will provide users of financial statements with more useful information about the company’s earnings. The expanded reporting obligation means that information must be provided about the type of revenue, the time of settlement, uncertainties linked to revenue recognition and cash flow attributable to the company’s customer contracts. According to IFRS 15, revenue is recognized when the customer receives control of the sold product or service and has the opportunity to use and receive benefit from the product or service. IFRS 15 replaces IAS 18 Revenue and IAS 11 Entrepreneurship agreements and associated SIC and IFRIC. IFRS 15 has been endorsed by the EU and will come into force on January 1, 2018. The evaluation of the effect on the Group upon introduction of the standard has taken place and is not expected to have any significant effect. IFRS 16 Leases was published in January 2016 and is a new leasing standard that will replace IAS 17 Leases and the associated interpretations IFRIC 4, SIC-15 and SIC-27. The standard requires that assets and liabilities attributable to all leases, with a few exceptions, are reported in the balance sheet. This accounting is based on the view that the lessee has the right to use an asset for a specific period of time along with a contemporaneous obligation to pay for this right. Accounting practices for the lessor will in all material respects remain unchanged. This standard will be applied for the financial year commencing January 1, 2019 or later. Application in advance is not permitted. EU has adopted the standard. The Group will be affected by the standard, and the information in the Note on Operating lease costs gives an indication of the agreements that are currently in force. The calculations of effects and the choice of the transition method are ongoing. The Group has not yet evaluated the effects of IFRS 16. Other new or amended financial reporting standards are not deemed to have a material impact on the Consolidated Financial Statements. Consolidated Financial Statements The Consolidated Financial Statements have been prepared in accordance with the principles set out in IFRS 10, Consolidated Financial Statements. The financial statements cover the Parent Company, Anders Hedin Invest AB, and all 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 returns on shares in the company, and can affect returns by way of its controlling interests in the company. Companies are included in the Consolidated Financial Statements on the date controlling interests are transferred to the Group. They are excluded from the consolidated financial statement on the date controlling interests expire. Intragroup transactions, balance sheet items and unrealized gains and losses deriving from intragroup transactions are eliminated. Acquisition method The acquisition method is used for reporting the Group’s business acquisitions. The purchase price for the acquisition of a subsidiary comprises the fair value of assets and liabilities. The purchase price also includes all assets and liabilities at fair value as a result of an agreed contingent purchase sum. Subsequent fair value adjustments of a contingent purchase sum that is classified as an asset or liability are reported in accordance with IAS 39, either in the Income Statement or in Other Comprehensive Income. Contingent purchase sums that are classified as equity are not revalued and the subsequent adjustment is reported under Equity. If the purchase price exceeds the fair value of identifiable acquired net assets, the difference is reported as goodwill. If, in the case of an acquisition made at a low purchase price, the amount is below the fair value of the acquired net assets, the difference is reported through profit or loss account. Costs related to acquisitions are expensed as they arise. Changes in ownership in subsidiaries without changes in controlling interest Transactions with shareholders without a controlling interest that do not result in a loss of controlling interest are reported as equity transactions, i.e., as transactions made by the shareholders in their role as shareholders. A change in shareholding is reported via an adjustment of the carrying value 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 a holder with a non-controlling interest, the difference between the fair value ANDERS HEDIN INVEST AB / ANNUAL REPORT / 2017 81