New Wave Group AB Annual_report_2018_EN_HQ | Page 76

NWG // FINANCIAL INFORMATION //
THE GROUP
in other comprehensive income are recognised in
equity and other comprehensive income.
Deferred income tax
Deferred tax is recognised in accordance with the
balance sheet method for all temporary differences
that arise between the carrying amounts and tax
values of assets and liabilities in the consolidated
accounts. Deferred tax liabilities are accounted
for taxable temporary differences. Exempt are
temporary differences for consolidated goodwill or
when an asset or liability is recognized as part of a
transaction which is not a business combination and
which, at the time of the transaction, neither affects
the reported profit or the taxable profit or loss (i. e.
initial recognition exemption).
Deferred tax assets are recognised for all
deductible temporary differences, including loss
carry-forwards to the extent that it is likely that a
taxable profit will be available against which the
tax asset can be offset. The valuation of deferred tax
assets is reviewed at each balance sheet date and
adjusted to the extent that it is no longer probable
that sufficient profits will be generated to enable all
or part of the deferred tax asset to be used. Deferred
tax assets and tax liabilities are determined at the
tax rates applying for the period in which the asset is
realised or the liability is paid based on tax rates (and
legislation) that have been adopted or announced at
076 // ANNUAL REPORT
the balance sheet date. Deferred tax assets and tax
liabilities are offset if there is a legal right to offset
the amounts against each other and the deferred tax
is attributable to the same unit in the Group and the
same tax authority.
Pensions
Both defined benefit and defined contribution
pension plans are used in New Wave Group. The
Group has defined benefit pension plans that are
managed by Alecta. This is a plan which covers
several employers, and, as Alecta does not have
sufficient information available for measurement,
the Company’s pension obligation with Alecta is
accounted for as a defined contribution plan. The
Group’s contributions to defined contribution
pension plans are charged to the income statement
in the period to which they are attributable. For
information regarding pension plans, see Note 6.
Operating segment reporting
The operating segments Corporate, Sports & Leisure,
and Gifts & Home Furnishings comprise the Group’s
segments. Under this classification, each trademark
is grouped to the various operating segments. See
Note 3.