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.
Consumer Goods. The head office is located at Skrivaregatan
9, 215 32 Malmö, Sweden.
These consolidated financial statements for 2019 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 15, 2020.
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, 2019. None
of these will not have any significant effect on the Group’s
financial statements.
IFRS 16 Leases
In January 2016, IASB published 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
some exceptions, be recognized in the balance sheet. This
recognition is based on the view that the lessee has a right to
use an asset during a specific period of time and also has an
obligation to pay for this right. AAK applied the new standard
as of January 1, 2019.
The Group was affected primarily by lease agreements of
rental for premises, land and lease of vehicles. The Group
has applied the modified retrospective approach and has,
in accordance with the standard, not restated the comparatives
for 2018. The Group has adopted the majority of the
practical expedients allowed for the first time that IFRS 16 is
applied, the most significant being to account for leases with
a remaining lease term of less than 12 months as at January
1, 2019 as short-term leases. The Group has also, after initial
application, applied the practical expedients of accounting for
leases with a lease term of 12 months or less and leases of
low value as an expense on a straight-line basis in the income
statement.
On transition, the right-of-use assets were measured at an
amount corresponding to the lease liabilities at December
31, 2018 and amounted to SEK 741 million. Equity was not
affected in the transition to IFRS 16. For more information
about leasing, see note 16.
Consolidated financial statements
Subsidiaries
The consolidated financial statements cover AAK AB and all
its subsidiaries. Subsidiaries are all companies over which
the Group has a controlling influence. The Group controls
a company when it is exposed to or is entitled to variable
return from its holding in the company and is able to affect
the return by exerting influence in the company. Subsidiaries
are included in the consolidated financial statements as from
the date on which the controlling influence is transferred to
the Group. They are excluded from the consolidated financial
statements as from the date on which the controlling influence
ceases.
Purchase method
The acquisition of subsidiaries is recognized using the
purchase method of accounting. The cost of acquisition
is measured as the fair value of the assets provided as
consideration, liabilities incurred and shares issued by
the Group. Transaction costs relating to acquisitions are
expensed as they are incurred. Identifiable assets acquired
and liabilities and obligations assumed in an acquisition
are measured initially at fair value at the acquisition date.
For each acquisition, the Group determines whether all
non-controlling interests in the acquired companies are to
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