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
continuously exposed to various financial risks. The financial risks
are interest rate risks, currency and liquidity and credit risks. In order
to minimize the affect 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 headquarters 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 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
As of 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 leasing debt, 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 The
Swedish Financial Reporting Board’s Recommendation 2, which
imply that all lease agreements will continue to be recorded as opera-
tional leases.
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