THE GROUP AND THE PARENT COMPANY
NOTES
NOTE 1 - ACCOUNTING POLICIES NOTE 2 - RISKS AND RISK CONTROL
This report is prepared in accordance with IAS 34 Interim Financial
Reporting and the Annual Accounts Act. The interim report for the
Parent Company has been prepared according the Annual Accounts
Act as well as RFR 2 - Reporting for Legal Entities. New Wave Group’s international operations mean that it is conti-
nuously exposed to various financial risks. The financial risks are
interest rate risks, currency risks and liquidity and credit risks. In
order to minimize the effect these risks may have on earnings, the
Group has a financial policy. For a more detailed description of the
Group’s risk management please refer to the Annual Report 2018,
note 17, p. 92-98. The annual report is available at the Group's head-
quarters in Gothenburg, Sweden, as well as on www.nwg.se.
New accounting policies for 2019 are described in the Annual
Report for 2018, Note 1 Accounting Policies under the section New
and amended accounting policies, p. 70-71. Applied accounting
policies are otherwise consistent with the 2018 Annual Report.
The Group’s policy is to have short fixed-rate interest periods, which
means that fluctuating short-term interest rates have a rapid impact
on the Group’s net interest income.
NEW ACCOUNTING POLICIES FOR 2019
Starting from January 1, 2019, New Wave Group applies IFRS 16
Leases. The Group has applied the simplified transition method and
has not recalculated the comparative figures. The simplification rule,
that the right of use asset shall correspond to the lease liability, has
been applied at the transition. Hence, no transition effect is recorded
in the equity of the Group. Complete accounting policies for leasing
are presented in the 2018 Annual Report.
The Group’s reported risks are deemed to be essentially unchanged.
The Parent company has chosen to apply the exemption rules in RFR
2, which imply that all lease agreements will continue to be recorded
as operational leases.
21