NWG // FINANCIAL INFORMATION //
THE GROUP
Transactions and balance sheet items in foreign currency
Transactions in foreign currency are translated to each company ’ s functional currency at the exchange rate prevailing at the respective transaction date . Receivables and liabilities in currencies other than the functional currency are translated using the closing rate . Exchange rate differences related to accounts receivable , accounts payable and other operating assets and liabilities are recorded as other operating income and other operating costs . Exchange rate differences related to financial assets and liabilities are recorded as financial income and expenses .
Classification of balance sheet items
Fixed assets , non-current liabilities and provisions consist essentially of amounts that are expected to be recovered or paid later than twelve months from the balance sheet date . Current assets and current liabilities essentially consist of amounts that are expected to be recovered or paid within twelve months of the balance sheet date .
New and amended accounting policies
New accounting policies for 2020
During the year , the Group has applied the rent concession practical expedient introduced in IFRS 16 in response to the COVID-19 pandemic . The rent concessions are recorded as variable leasing payments .
No other standards , amendments or interpretations that entered into force in 2020 are deemed to have had any material impact on the Group financial statements .
New accounting policies for 2021 and later
A number of amendments of current accounting standards have been published and is effective from 2021 and later . None of these are considered to have a material impact on New Wave Group ´ s financial statements .
Note 2 – Key estimates and assumptions
Preparing the consolidated financial statements requires that management and the Board make certain estimates and assumptions . These estimates and assumptions are in all essential based on historical experience and expected future events . These estimates and assumptions affect reported assets and liabilities , as well as revenue and costs . Changes are reported in the period in which the estimates and assumptions are changed and in future periods if these are affected . Estimates and assumptions that may have a significant effect on the Group ’ s earnings and financial position are presented in each note where appropriate .
ANNUAL REPORT // 071