We - KappAhl

taking into account the connection between accounting and taxation, the
company has applied chapter 4. Section 14 a–e of the annual accounts act,
which permits certain financial instruments to be recognised at their fair value,
instead of applying iaS 39. in the case of the parent company this refers to
interest swaps.
the accounting policies outlined below for the parent company have been
consistently applied to all periods that are presented in the parent company’s
financial statements and remain unchanged compared with last year.
Taxes
the parent company reports untaxed reserves including deferred tax liability. in
the consolidated accounts, however, the untaxed reserves are divided up into
deferred tax liability and equity.
Group contributions and shareholders’ contributions for legal
entities
the company accounts for group contributions in accordance with the statement
issued by the Swedish financial reporting Board, Ufr 2. Group contributions are
reported according to their financial significance. this means that group contributions
made in order to minimise the Group’s overall tax burden are entered directly
against retained earnings after a deduction for the current tax effect.
Note 2 DISTRIBUTION OF REVENUE
net sales in the Group consist entirely of the sale of goods.
other operating income applicable to the previous year refers to compensation
for vacating a store site.
Note 3 SEGMENT REPORTING
Segment reporting is prepared for the Group’s geographical areas. the Group’s
internal reporting system is based on returns from the Group’s activities in different
geographical areas and consequently geographical areas are the primary
basis of division.
transfer prices between the Group’s different segments are determined using
the “arm’s length” principle, i.e. a transaction between knowledgeable, willing
parties, each acting independently.
the segment results, assets and liabilities include directly attributable items
and items that can reasonably and reliably be allocated to segments. assets and
liabilities not allocated to segments are trademarks, goodwill, interest-bearing
long-term and current liabilities, deferred tax assets and deferred tax liabilities and
other financial liabilities.
the segments’ investments in property, plant, equipment and intangible
assets include all investments except investment in short-term equipment and
equipment of low value.
Geographical areas
the Group’s segments are divided into two geographical areas: nordic countries
and other countries, as well as Groupwide functions. the nordic countries are
Sweden, norway and finland. “other countries” refers to poland. the same type
of activities are conducted in the other geographical areas, i.e. selling value-formoney
fashion with wide appeal.
information concerning the segments’ assets and investments during the
period in property, plant, equipment and intangible assets is based on geographical
areas grouped according to where the assets are located.
IFRS Operating segments
as of the 2009/2010 financial year Kappahl is to apply the new ifrS 8. in view
of this, the division into operating segments is currently under review.
52 financial information Kappahl 2008/2009