NWG // FINANCIAL INFORMATION //
THE GROUP
Note 1 – General accounting policies
Basis of preparation
The consolidated financial statements for New Wave Group AB and its subsidiaries have been prepared in accordance with the International Financial Reporting Standards ( IFRS ), issued by the International Accounting Standards Board ( IASB ), as adopted by the EU . This annual report has been prepared in accordance with IAS 1 Key Presentation of Financial Statements and the Swedish Annual Accounts Act . RFR 1 Supplementary Accounting Rules for Corporate Groups , published by the Swedish Financial Reporting Board , has also been applied .
As from this annual report , New Wave Group describes the accounting policies in conjunction with each note in the aim of providing enhanced understanding of each accounting area . In addition , general accounting policies are presented below . All accounting policies have been applied consistently in the entire Group for all periods presented in the consolidated financial statements , unless otherwise stated .
Consolidated financial statements and principles of consolidation
The consolidated financial statements comprise the Parent Company New Wave Group AB and all companies in which New Wave Group AB directly or indirectly holds more than 50 percent of the voting rights or otherwise exercises a controlling influence . In assessing whether a controlling influence exists , potential shares entitling the holder to vote that can be used or converted without delay are taken into account .
Intra-Group transactions , balance sheet items , revenue and costs regarding transactions between Group companies are eliminated in the Group accounting . Pricing between Group companies is set on a commercial basis and thus constitute market prices . Internal profits and losses arising from sales between Group companies have been fully eliminated .
Business combinations and goodwill
All business combinations are recorded using the purchase method . The acquisition value is defined as the sum of the fair values of the assets transferred , liabilities incurred to previous owners and equity instruments issued by New Wave Group to acquire the business .
If the transferred consideration for the shares exceeds the fair value of the acquired company ’ s net assets , consolidated goodwill is recognized . If the fair value of acquired net assets exceeds the transferred consideration , the difference is recognized in the Group ’ s consolidated income statement as gain from a bargain purchase . Acquisition-related costs are recognized in the income statement when incurred . The Group decides whether the non-controlling interest shall be valued at fair value or at the non-controlling interest ´ s proportionate share of the net assets or at its share of the acquired net assets .
The acquisition value of shares in Group companies is eliminated against equity in each subsidiary at the time of acquisition , meaning that only the portion of equity in the Group company that has been generated after the acquisition date is included in equity attributable to the shareholders of the Parent company .
Changes in value relating to contracted supplementary considerations is valued at fair value through the Group ’ s consolidated income statement and are recognized as other operating income or other operating costs in the Group ´ s consolidated income statement if the changes occur later than one year after the acquisition date . All changes in the equity stake in a subsidiary , where the controlling influence does not cease , should be accounted for as equity transactions .
Result from operations acquired during the year are recognized in the consolidated income statement from the acquisition date . Any gain or loss from the sale of operations during the year is calculated based on the Group ’ s recognized net assets in such operations , including result up to the date of sale .
The non-controlling interest ’ s share of the subsidiaries ’ net assets is accounted for as a separate item under consolidated equity . In the consolidated income statement , the non- controlling interest ’ s share is included in reported result .
Translation of items denominated in foreign currency
Currency translation when consolidating foreign subsidiaries
Items included in the financial statements of the various entities of the Group are valued in the currency used in the primary economic environment of each company ´ s operations ( functional currency ). Swedish kronor ( SEK ), which is the Parent Company ’ s functional currency and presentation currency , is utilized in the consolidated financial statements . In preparing the consolidated financial statements , items in the income statement of foreign subsidiaries are translated to SEK using monthly average exchange rates . Assets and liabilities in foreign subsidiaries are translated to SEK using exchange rates at year-end ( closing rate ). Exchange rate differences are recognized in other comprehensive income and accumulated in equity .
070 // ANNUAL REPORT