Page 112 - Loomis Annual Report 2017

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Notes – Parent Company
Loomis Annual Report 2017
Summary of important accounting principles
The Parent Company’s nancial statements are prepared in accordance with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board’s Standard RFR 2 Accounting for Legal Entities. The Parent Company thereby applies the same accounting principles as the Group, where relevant, except in the cases stipulated below. Differences between the Parent Company’s and the Group’s accounting principles arise as a result of the limited applicability of IFRS for the Parent Company, due to the regulations of the Swedish Annual Accounts Act, the Swedish Act on the Safeguarding of Pension Commitments, etc., and due to the alternatives stipulated in RFR 2.
IAS 17 Leases
Financial leases cannot be accounted for at legal entity level,
as speci c rules on taxation are not available or are not complete. At legal entity level, therefore, nancial leases can be reported according to the requirements for operational lease agreements.
IAS 19 Employee Bene ts
The Parent Company are not, according to the Swedish Act on the Safeguarding on Pension Commitments, etc, able to report any de ned contribution plans as de ned bene t plans at legal entity level. Pension solutions either fall within the framework of the ITP plan insured via Alecta, which is described in the Group’s accounting principles, or, in all material aspects, comprise other de ned contribution plans.
IAS 39 and IFRS 7 Financial instruments
The Parent Company applies the exception in RFR 2 regarding IFRS 7, paragraph 1, which means that no information is provided in accordance with IFRS 7 or IAS 1 paragraph 124 A–124 C. In accordance with the Swedish Annual Accounts Act, Chapter 4, paragraph 14a, the Parent Company reports derivative instruments at fair value. Fair value is equivalent to the market value, calculated on the basis of current market listings as at balance sheet date. In addition, the Parent Company applies the exception in RFR 2 regarding IAS 39 paragraph 2. This means that the Parent Company does not apply the rules on assessment and recognition regarding any indemnity agreements bene ting subsidiaries. In accordance with RFR 2, the Parent Company, instead, applies IAS 37, Provisions, contingent liabilities and contingent assets.
Receivables with maturities greater than 12 months after the balance sheet date are reported as xed assets, and other receivables as current assets. Receivables are reported in the amounts at which they are expected to be received, on the basis of individual assessment.
IAS 21 Effects of changes in foreign exchange rates
Paragraph 32 in IAS 21 states that exchange rate differences constituting a portion of a reporting entity’s net investments in a foreign operation shall be reported via the statement of income in the separate nancial statements of the reporting company.
The Swedish Financial Reporting Board has amended the standard RFR 2 Accounting for Legal Entities. The amendment is related to IAS 21 and states that exchange rate differences arising on a monetary item that forms part of the Parent Company’s net investment in a foreign subsidiary should be accounted for in the Parent Company’s statement of income. Before the amendment came into force, RFR 2 stated that these exchange rate differences should be accounted for in other comprehensive income, which was not in line with IAS 21 paragraph 32. The amendment applies to nancial years beginning on or after January 1, 2016. The amendment affects nancial income and expenses in the Parent Company’s statement of income. It also affects translation reserve in the Parent Company’s equity, as the exchange rate differences no longer will be accounted for on this line. The comparative year 2015 in the Parent Company’s nancial statements has been restated to re ect this amendment.
The amendment has no effect on the Group’s nancial statements since these exchange rate differences, as previ- ously, are recorded in the translation reserve in equity.
Receivables and liabilities in foreign currencies
Receivables and liabilities in foreign currencies have been translated to SEK at the rate prevailing on the balance sheet date and the difference between the acquisition cost and the value on the balance sheet date has been recognized in the statement of income.
Group contributions
The Parent Company applies the general rule in RFR 2 IAS 27 concerning Group contributions, which means that Group contributions the Parent Company receives from subsidiaries are accounted for as nancial revenue. Group contributions submitted from the Parent Company to subsidiaries are reported as an increase in participations in subsidiaries.
NOTE 36
NOTE 37
Events after the balance sheet date
See information about the Group in Note 5.