50 Notes Amounts stated in SEK million unless specified otherwise. NOTE 1 – GENERAL INFORMATION AAK AB (publ.), corporate identity number 556669-2850, is a Swedish registered limited liability company domiciled in Malmö, Sweden. The shares of the Parent are listed on NASDAQ OMX Stockholm, in the Large Cap list and under Consumer Commodities. The head office is located at Skrivaregatan 9, 215 32 Malmö, Sweden. These consolidated financial statements for 2016 are for the Group consisting of the Parent and all subsidiaries. The Group DOVRKDVRZQHUVKLSLQWHUHVWVLQDVVRFLDWHVDQGMRLQWYHQWXUHV7KH%RDUGRI'LUHFWRUVDSSURYHGWKHVHFRQVROLGDWHGILQDQFLDO statements for publication on March 31, 2017. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies applied in the preparation of these consolidated financial accounts are set out below. Basis of presentation of the annual report and consolidated financial statements The Group’s consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the International Accounting Standard Board (IASB) and the interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC) as adopted within the EU, the Swedish Annual Accounts Act, DQGWKH6ZHGLVK)LQDQFLDO5HSRUWLQJ%RDUG¶VUHFRPPHQGDWLRQ5)5µ6XSSOHPHQWDU\DFFRXQWLQJUXOHVIRUJURXSVRIFRPSDQLHV¶ The Parent company has prepared its financial statements in accordance with the Swedish Annual Accounts Act and the Swedish )LQDQFLDO5HSRUWLQJ%RDUG¶VUHFRPPHQGDWLRQ5)5µ$FFRXQWLQJIRUOHJDOHQWLWLHV¶ The annual and consolidated financial statements have been prepared on a historical cost basis, with the exception of currency, fixed-income and commodity derivative instruments, which are measured at fair value through profit or loss. Preparing these financial statements requires that the Board of Directors and the Company management use certain critical accounting estimates and assumptions. These estimates and assumptions can materially affect the income statement, balance sheet and other information contained herein, including contingent liabilities; see Note 4. Actual outcome can vary from these estimates under different assumptions or circumstances. New and changed standards applied by the Group None of the new standards and changes in and interpretations of existing standards that have been published and are obligatory for the consolidated financial statements for financial years starting on January 1, 2016 or later have had any material impact on the consolidated financial statements. New standards and interpretations that have not yet been applied by the Group A number of new standards and interpretations enter into force for financial years that start after January 1, 2016 and were not applied when preparing these financial statements. None of these are expected to have any significant effect on the Group’s financial statements, except those shown below: IFRS 9 Financial instruments IFRS 9 ’Financial instruments’ concerns the classification, valuation and reporting of financial assets and liabilities. The full version of IFRS 9 was published in July 2014. It replaces the parts of IAS 39 that concern the classification and valuation of financial instruments. IFRS 9 retains a mixed valuation approach, but simplifies this approach in certain respects. There will be three valuation categories for financial assets, amortized cost, fair value through other comprehensive income and fair value through the income statement. How an instrument should be classified depends on the company’s business model and the characteristics of the instrument. Investments in own capital instruments must be recognized at fair value through the income statement, but it is also possible, when the instrument is first recognized, for it to be recognized at fair value through other comprehensive income. No reclassification to the income statement will then take place in connection with disposal of the instrument. IFRS 9 also introduces a new model for calculating credit loss reserves based on expected credit losses. For financial liabilities, the classification and valuation are not changed except where a liability is recognized at fair value through the income statement based on the fair value alternative. Changes in value attributable to changes in own credit risk must then be recognized in other comprehensive income. IFRS 9 reduces the requirements for application of hedge accounting by replacing the 80–125 criterion with requirements for an economic relationship between hedging instruments and hedged items and for the hedging quota to be the same as that used in risk management. Hedging documentation is also changed slightly compared with that prepared under IAS 39. The standard must be applied for the financial year beginning January 1, 2018. Earlier application is permitted. The Group has not yet evaluated the full effect of the introduction of the standard, but will carry out an analysis of this in 2017. A preliminary assessment is that the change in standard will not have a material impact on the Group’s financial reports. IFRS 15 Revenue from contracts with customers ,)56µ5HYHQXHIURPFRQWUDFWVZLWKFXVWRPHUV¶JRYHUQVKRZUHYHQXHVKRXOGEHUHFRJQLHG7KHSULQFLSOHVRQZKLFK,)56 is based are designed to give users of financial statements more useful information about the company’s revenue. The extended duty of disclosure means that information on revenue type, the time of settlement, uncertainties linked to recognition of revenue and cash flow attributable to the company’s contracts with customers must be provided. According to IFRS 15, revenue must be recognized when the customer gains control over the product or service sold and is able to use the product or service and gain benefit from it.
AAK Annual Report 2016
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