Notes Amounts stated in SEK million unless specified otherwise.
Note 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
Note Summary of significant accounting policies
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 “Supplementary accounting
rules for groups of companies”. 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 “Accounting for
legal entities”.
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 amended standards applied by the Group
A number of new standards and interpretations enter into
force for financial years that start after January 1, 2018. None
Consumer Commodities. The head office is located at
Skrivaregatan 9, 215 32 Malmö, Sweden.
These consolidated financial statements for 2018 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 10, 2019
of these will not have any significant effect on the Group’s
financial statements.
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. The standard must be applied for
the financial year beginning January 1, 2018.
IFRS 9 retains a mixed valuation approach which means
that there are three valuation categories for financial assets,
amortized cost, fair value through other comprehensive
income and fair value through profit or loss. How an instrument
is classified depends on the company’s business model
and the nature of the cash flows attributable to the instrument.
The new rules for classification and valuation did not affect
AAK’s financial position at the transition time as the regulations
did not entail any change in valuation of the financial
instruments in AAK’s balance sheet at this time. Other liabilities
and financial assets classified as Loan and Receivables
under IAS 39 are classified as Measured at amortized cost
under IFRS 9. Financial assets previously classified as Held
for sale are classified as Measured at fair value through profit
or loss. AAK does not have any financial assets classified as
Available for sale under IAS 39.
IFRS 9 also introduced 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 corresponds to the expected
loss over the entire life of the account receivables. At the
transition, the size of the reserve did not have any material
effect on the Group’s balance sheet, please see note 3 for
further information.
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 had under IAS 39 are deemed to
qualify for hedge accounting under IFRS 9 and did 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 has changed, the hedge documentation
has been updated, please see note 3 for further
information about hedge accounting.
IFRS allows an entity to irrevocably designate and measure
a contract to buy or sell a non-financial item that can be
settled net in cash or another financial instrument, or by
exchanging financial instruments, at fair value through profit
or loss. Under IFRS 9 AAK applies the fair value option for
sales and purchase contracts for own use, i.e. contracts that
are not derivatives under IFRS 9.
The Group has not recalculated the comparison figures
for the 2017 financial year in accordance with the transitional
rules of the standard.
Accounting policies applicable to the financial year prior to
January 1, 2018 can be found on page 56-57 in AAK Annual
Report 2017.
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