The Gränges Group applies International Financial Reporting Standards (IFRS) as endorsed by the EU. The accounting principles adopted are consistent with those described in the Consolidated Financial Statements for Gränges AB (publ) 2016 which can be found the annual report. Read and download the annual report here.
Estimates and assumptions in preparing the consolidated financial statements
In preparing Gränges’ consolidated accounts, it is necessary to make a number of estimates and assumptions which can influence the carrying amounts of assets and liabilities. When preparing the financial statements, management makes its best judgements in areas of significant importance. Actual outcome may differ from these estimates under different assumptions or conditions.
Accounting principles for the Parent Company
The Parent Company financial statements have been prepared in accordance to the Annual Accounts Act and RFR 2 Reporting for legal entities. Application of RFR 2 entails that the Parent Company is to apply all IFRSs and interpretations approved by the EU as far as possible within the framework of the Swedish Annual Accounts Act, the Pension Obligation Vesting Act and in regard to the connection between accounting and taxation.
The main deviations between the accounting principles applied by the Gränges Group and the parent company are described below.
Gränges Group applies IAS 19 Employee Benefits in the consolidated financial statements. The Parent Company applies the principles of the Pension Obligations Vesting Act. Consequently there are differences between the Gränges Group and the Parent Company in the accounting of defined benefit pension plans.
Regarding machinery and equipment, the Parent Company recognises the difference between depreciation according to plan and tax depreciation as accumulated additional depreciation, included in untaxed reserves.
Group contributions received from subsidiaries are recognised as financial revenues.
New accounting principles 2016
No new IFRS or IFRIC-interpretations have had any material impact during 2016.