NWG // FINANCIAL INFORMATION //
THE GROUP
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.
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
New and amended accounting policies
New accounting policies for 2024
New Wave Group is subject to the new legislation for Pillar 2( Pillar Two) that has been developed by the OECD and adopted in Sweden.
The legislation came into effect on January 1, 2024, and means that the Group, in certain jurisdictions, may be required to pay an additional tax for the difference between the effective tax rate according to Pillar 2 and the minimum tax rate of 15 percent.
Management evaluated during the year whether there are any jurisdictions where this could be applicable. The performed analysis did not indicate any significant exposure to additional taxes within the Group.
There are no published changes to IFRS and IFRIC with future application that are expected to have any significant impact on the Group ' s accounting.
From January 1, 2024, changes came into effect in IAS 1 Presentation of Financial Statements aimed at clarifying when a liability should be classified as current.
Additionally, there have been minor changes to the requirements for sale and leaseback transactions in IFRS 16 Leases, as well as new disclosure requirements regarding supplier financing arrangements in IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures.
The changes effective from January 1, 2024, have been approved by the EU.
New accounting policies for 2025 and later
There are no published changes to IFRS and IFRIC with future application that are expected to have any significant impact on the Group ' s accounting.
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. A liability is classified as short-term if New Wave Group does not have an unconditional right to postpone settlement of the debt beyond twelve months from the balance sheet date.
ANNUAL REPORT // 095