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.
New and amended accounting policies
New accounting policies for 2025
No standards, amendments, or interpretations that became effective during 2025 are assessed to have had a material impact on the Group’ s financial statements.
New accounting policies for 2026 and later
Effective from 1 January 2027, IFRS 18 Presentation and Disclosure in Financial Statements will come into force. The new standard will replace IAS 1 Presentation of Financial Statements. The objective of IFRS 18 is to improve how companies present and disclose information in their financial statements, with a particular focus on the income statement and the statement of cash flows. The standard also introduces new requirements regarding disclosures of management-defined performance measures( MPMs), as well as the classification and disaggregation of expenses. IFRS 18 has been endorsed by the EU, and the Group is currently assessing the expected effects on presentation and disclosures, including any impact on comparative figures upon adoption.
No other new or amended accounting standards or interpretations issued and effective from 2026 and onwards are expected to have a material impact on New Wave Group’ s financial statements.
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. 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 // 107