52
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 2017 are for the Group consisting of the Parent and all subsidiaries. The Group also
has ownership interests in associates and joint ventures. The Board of Directors approved these consolidated financial statements
for publication on April 23, 2018
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, and
the Swedish Financial Reporting Board’s recommendation RFR 1 “6XSSOHPHQWDU\DFFRXQWLQJUXOHVIRUJURXSVRIFRPSDQLHV´
The Parent company has prepared its financial statements in accordance with the Swedish Annual Accounts Act and the Swedish
Financial Reporting Board’s recommendation RFR 2 “$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, 2017 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, 2017 and were not
applied when preparing these financial statements. None of these are expected to have any significant effect on the Group’s
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IFRS 9 Financial instruments
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sion of IFRS 9 was published in July 2014. It replaces the parts of IAS 39 that concern the classification and valuation of financial
instruments. The standard must be applied for the financial year beginning January 1, 2018. Earlier application is permitted.
IFRS 9 retains a mixed valuation approach which means that there will be three valuation categories for financial assets,
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should be classified depends on the company’s business model and the nature of the cash flows attributable to the instrument.
Analyses show that the new rules for classification and valuation will not affect AAK’s financial position at the transition time as
the regulations will not entail any change in valuation of the financial instruments in AAK’s balance sheet at this time.
IFRS 9 also introduces a new model for calculating credit loss reserves based on expected credit losses. AAK is affected
by the new impairment model for the calculation of the credit loss reserve for accounts receivable, with the result that there is
a calculated loss for all accounts receivables, including those that are not yet due. AAK applies the simplified approach, i.e.
the reserve will correspond to the expected loss over the entire life of the account receivables. At the transition, the size of the
reserve will not have any material effect on the Group’s balance sheet.
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. The hedge relationships that AAK has under IAS 39 are deemed to qualify for hedge accounting under IFRS 9
and will not produce any material effect as at the transition time, based on the hedge relationships that run past this time. As the
criteria for applying hedge accounting change, the hedge documentation will also need to be updated.
A project is in progress to analyse which additional information may be required to meet the disclosure requirements in the
revised IFRS 7.
AAK applies IFRS 9 for the financial year starting on January 1, 2018. The Group will not recalculate comparison figures for the
2017 financial year in accordance with the transitional rules for the standard.