NWG // FINANCIAL INFORMATION
Our audit procedures included, but were not limited to:
# Evaluation of the company ' s process and related key controls for preparing forecasts that formed the basis for the impairment tests
# Review and assessment of the company’ s’ procedures and model for impairment tests of goodwill and evaluation of the reasonability of judgements and estimates made, that the procedures are consistently applied and that there is integrity in calculations
# Verification of input data in calculations, including information from business plans for the forecast period
# Assessment of head-room for each cash-generating unit through the performance of sensitivity analyses
# Review of the accuracy and completeness of relevant disclosures to the financial statements
When performing selected parts of the audit procedures our valuation experts have been involved.
Valuation of Inventory Inventory is a significant account balance for New Wave Group and mainly consists of finished goods. The inventory is recorded at the lower of acquisition cost and net realisable value. The acquisition cost is calculated according to the first-in, first-out principle. The reported value of the group ' s inventory as of 31 December 2024 amounted to SEK 5,124 million, which constitutes approximately 45 % of the group ' s total assets.
The group operates within the business segments Corporate, Sports & Leisure, and Gifts & Home Furnishings with a wide range of products. The inventory largely consists of timeless basic products, but also includes items with a higher fashion degree. Valuation of inventory and obsolescence calculations are based on estimates and judgments. For further information, refer to note 1 on critical estimates and judgments and note 15 on inventory.
Our audit procedures included, but were not limited to:
# Evaluation of the company ' s process and related key controls for accounting and valuation of inventory
# Gaining an understanding of and evaluation of the company ' s method for inventory valuation and its method for identifying obsolete products
# With the support of analytical audit procedures, challenging the company ' s critical judgments and assumptions regarding the obsolescence reserve for inventory
# Substantive testing through sampling to evaluate valuation according to the lower of acquisition cost and net realisable value and the first-in, first-out principle
# Review of the accuracy and completeness of relevant disclosures to the financial statements
Other information than the annual accounts and consolidated accounts
This document also contains other information than the annual accounts and consolidated accounts and is found on pages 1-39, 47-58 and 154-157. The Board of Directors and the Managing Director are responsible for this other information.
Our opinion on the annual accounts and consolidated accounts does not cover this other information and we do not express any form of assurance conclusion regarding this other information.
In connection with our audit of the annual accounts and consolidated accounts, our responsibility is to read the information identified above and consider whether the information is materially inconsistent with the annual accounts and consolidated accounts. In this procedure we also take into account our knowledge otherwise obtained in the audit and assess whether the information otherwise appears to be materially misstated. If we, based on the work performed concerning this information, conclude that there is a material misstatement of this
ANNUAL REPORT // 149