The accounting principles adopted are consistent with those described in the Consolidated Financial Statements for Gränges AB (publ) 2018 which can be found in the annual report. Download Gränges annual report 2018
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 recognizes the difference between depreciation according to plan and tax depreciation as accumulated additional depreciation, included in untaxed reserves.
Group contributions received from subsidiaries are recognized as appropriations.
Capitalized development expenditure is allocated to a fund for development expenditure. The fund is restricted equity and dissolve at the same rate as amortization or impairment of the capitalized development.
New accounting principles 2018
From the financial year beginning 1 January 2018, Gränges applies IFRS 9 Financial Instruments and IFRS 15 Revenues from contracts with customers. The new standards have not had a material impact on the Group’s financial statements.