Note Summary of significant accounting policies
forward in equity as the options will be redeemed with equity
instruments. Information on outstanding subscription warrants
is available in Note 8.
Liabilities to banks and credit institutions
Borrowings are initially recognized at fair value, net of
transaction costs. Borrowings are subsequently stated at
amortized cost and any difference between proceeds (net of
transaction costs) and redemption value is recognized in the
income statement, allocated over the period of the borrowing
using the effective interest method.
Accounts payables
Accounts payables are initially recognized at fair value and
subsequently at amortized cost using the effective interest
method.
Provisions
Provisions are recognized in the balance sheet when the
Group has a present legal or constructive obligation as a
result of past events, and it is more likely than not that an
outflow of resources will be required to settle the obligations
and the amount can be estimated reliably. No provisions are
made for future operating losses. If the effect of when in time
payment is made is significant, provisions are calculated
through discounting the expected future cash flow at an
interest rate before tax that reflects current market assessments
of the time value of money and, if applicable, the risks
associated with the debt.
A provision for restructuring is recognized when the Group
has adopted a comprehensive and formal restructuring plan,
and the restructuring has either been started or published.
Income tax
Tax expenses for the period comprise both current tax due
and deferred income tax. Tax is recognized in the income
statement, apart from when tax is attributable to items recognized
in other comprehensive income or directly in equity. In
such cases, tax is also recognized in other comprehensive
income and equity. Income tax is determined using the tax
rules that have been enacted or announced by the balance
sheet date and are expected to apply when the related
deferred tax asset is realized or the deferred tax liability is
settled. Tax expenses stated include both current tax due and
deferred income tax.
Deferred tax is provided in full, using the liability method,
on all temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in the
balance sheet. The principal temporary differences arise from
depreciation of property, plant and equipment, provisions for
pensions and other post-retirement benefits and tax losses
carried forward. The tax rates enacted in each country are
used in determining deferred income tax.
Deferred income tax assets for tax-deductible temporary
differences and loss carry-forwards are recognized only to the
extent it is likely that it will be possible to utilize these items.
The value of deferred tax assets is derecognized when it is no
longer deemed likely that they can be utilized.
Deferred income tax assets are recognized on temporary
differences arising from investments in subsidiaries, except
where the timing of the reversal of the temporary differences
is controlled by the Group and it is probable that the difference
will not be reversed in the foreseeable future.
Cash and cash equivalents
Cash equivalents comprise balances with less than three
months’ maturity, including cash, bank deposits and other
current securities.
Cash flow statement
Payments in and out have been divided up into three categories:
operating activities, investing activities and financing
activities. The indirect method is used for flows from operating
activities.
The changes during the year in operating assets and
operating liabilities have been adjusted for the effects of
changes in exchange rates. Acquisitions and disposals are
recognized under investing activities. The assets and liabilities
that acquired and divested companies had at the time of
the change are not included in the analysis of the changes
in operating capital, nor in changes to balance sheet items
recognized under investing and financing activities. These
items are reported separately under investing activities.
Earnings per share
The calculation of earnings per share is based on the consolidated
profit attributable to the Parent’s shareholders and the
weighted average number of shares outstanding during the
year.
When determining earnings per share after dilution, a
company must base its calculations on the company’s shares
and stock options which could result in dilution being exercised.
Compensation from these instruments will be deemed
to have been received from the issuing of ordinary shares
at the average market price for ordinary shares during the
period. The difference between the number of issued ordinary
shares and the number of ordinary shares that should have
been issued at the average market price for ordinary shares
during the period shall be treated as an issue of ordinary
shares without consideration. According to paragraph 47 of
IAS 33, options and stock options only have a dilutive effect
when the average market price for ordinary shares during the
period exceeds the exercise price for options or stock options.
Dividend
The dividend to shareholders in the Parent is recognized
as a liability in the consolidated financial statements in the
period when the dividend was approved by the shareholders.
However, in 2018 a dividend to the Parent company of SEK
250 million was accounted in 2019. As a result of this, the
financial statements of the Parent company are restated in
the annual report of 2019.
Accounting policies – Parent
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”. No differences with the Group’s
accounting policies have been identified.
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