New Wave Group AB Annual_report_2018_EN_HQ | Page 107

NWG // FINANCIAL INFORMATION //
THE PARENT COMPANY
Note 1 - Accounting policies
for the Parent company
The Swedish Financial Reporting Board’s Recommendation
2 – Accounting for Legal Entities (RFR 2) and the Swedish
Annual Accounts Act have been applied when preparing the
Parent company’s annual accounts. In accordance with RFR 2,
the Parent company shall prepare its reports in accordance with
the IASB’s International Financial Reporting Standards (IFRS)
adopted by the EU, to the extent that these are not contrary to
the Swedish Annual Accounts Act. The accounting policies
have been applied consistently for all periods, unless otherwise
stated.
In Sweden, group contributions are tax deductable or
taxable, unlike shareholder contributions. Group contributions
are reported so that they mainly reflect the transaction’s financial
consequence. Group contributions, which have the same aim as
the shareholder contribution, are added to the acquisition value
of shares in Group companies with a reservation for impairment
testing. Group contributions, received and provided, and their
associated tax effect are recognized in the income statement.
The deferred tax liability on untaxed reserves is reported
under untaxed reserves in the Parent company’s annual accounts
due to the connection between accounting and taxation.
Shares in Group and associated companies are recognised at
cost and subject to impairment testing each year, by comparing
discounted expected future cash-flows with book value of the
shares in each company.
Note 2 - Related parties
Sales
Of the Parent company's invoiced sales, SEK 104.8 million
(SEK 69.3 million) equivalent to 99.5 % (99.3 %) were sales
to Group companies. All transactions are carried out under
market conditions.
Transactions with related persons
The Parent company did not have any transactions with related
persons during 2018.
Note 3 - Other operating income
2017
20.9
2.7 1.5
40.4 22.4
Note 4 - Average number
of employees
New assessments of accounting policies
IFRS 9 Financial instruments and IFRS 15 Revenue from
contracts with customers came into effect as from 1 January
2018. Implementation of IFRS 9 and IFRS 15 did not have
any material effects on the financial statements of the Parent
company. As from January 1 2019, IFRS 16 Leases is applied
in the group accounting. However, the Parent company has
chosen to apply the exemption rules in The Swedish Financial
Reporting Board’s Recommendation 2, which imply that all
lease agreements will continue to be recorded as operational
leases.
2018
37.7
SEK million
Foreign exchange gains
Other contributions and payments
Total
Gothenburg
Total
2018
Number of
employees Of which
men 2017
Number of
employees Of which
men
37
37 24
24 35
35 23
23
ANNUAL REPORT // 107