NWG Annual Report 2019 - EN NWG Annual Report 2019 - EN | Page 109

NWG // FINANCIAL INFORMATION //
THE PARENT COMPANY
Note 1 - Accounting policies
for the Parent company
The Swedish Financial Reporting Board’s Recommendation
2 – Accounting for Legal Entities (RFR 2) and the Swedish
Annual Accounts Act have been applied when preparing the
Parent company’s annual accounts. In accordance with RFR 2,
the Parent company shall prepare its reports in accordance with
the IASB’s International Financial Reporting Standards (IFRS)
adopted by the EU, to the extent that these are not contrary to
the Swedish Annual Accounts Act. The accounting policies have
been applied consistently for all periods, unless otherwise stated.
In Sweden, group contributions are tax deductable or taxable,
unlike shareholder contributions. Group contributions are
reported so that they mainly reflect the transaction’s financial
consequence. Group contributions, which have the same aim as
the shareholder contribution, are added to the acquisition value
of shares in Group companies with a reservation for impairment
testing. Group contributions, received and provided, and their
associated tax effect are recognized in the income statement.
The deferred tax liability on untaxed reserves is reported under
untaxed reserves in the Parent company’s annual accounts due to
the connection between accounting and taxation.Shares in Group
and associated companies are recognized at cost and subject to
impairment testing each year, by comparing discounted expected
future cash flows with book value of the shares in each company.
Note 2 - Related parties
Sales
Of the Parent company's invoiced sales, SEK 103.2 (104.8) million
equivalent to 99.5 % (99.5 %) were sales to Group companies. All
transactions are carried out under market conditions.
Transactions with related persons
The Parent company did not have any transactions with related
persons during 2019.
Note 3 - Other operating income
2019
31.1
SEK million
Foreign exchange gains
Other contributions and payments
Total
2018
37.7
5.6 2.7
36.8 40.4
Note 4 - Average number
of employees
New accounting policies for 2019
As of January 1 2019, IFRS 16 Leases is applied in the group
accounting. The Parent company has chosen to apply the
exemption rules in RFR 2, which imply that the lease fees are
recognized as a cost on a linear basis over the lease period and that
no right-of-use asset or lease liability is reported in the balance
sheet.
Gothenburg
Total
2019
Number of
employees Of which
men 2018
Number of
employees Of which
men
38
38 26
26 37
37 24
24
ANNUAL REPORT // 109