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. Applied accounting
policies are otherwise consistent with the 2018 Annual Report, with
the exception for reporting of leases. 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 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 headquarters in
Gothenburg, Sweden, as well as on www.nwg.se.
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 lease liability, has been
applied at the transition and no transition effect is therefore recorded
in the equity of the Group. Complete accounting policies for leasing
as well as information about transition and transition effects are
presented in the 2018 Annual Report, Note 1 Accounting Policies
under New and amended accounting policies, p. 70-71.
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.
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 the lease fees are recognized as a cost on a linear
basis over the lease period and that no right of use assets or lease liabi-
lities are reported in the balance sheet.
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