Annual report 2012 - Peab

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Note1 Accounting principles
Compliance with standards and legislation
The consolidated accounts have been drawn up in accordance with
the International Financial Reporting Standards (IFRS) issued by the
International Accounting Standards Board (IASB) and interpretations
from IFRS Interpretations Committee (IFRIC) which have been adopted
by EU. In addition, the Swedish Financial Reporting Board recommendation
RFR 1 Supplementary accounting rules for groups has
also been applied.
The accounting principles given below for the Group have been
applied consequently for all the periods presented in the consolidated
financial reports, if not otherwise stated. The Group’s accounting principles
have been applied consequently for reports and the consolidation
of the parent company, subsidiaries, associated companies and
joint ventures in the consolidated financial reports.
The parent company applies the same accounting principles as the
Group except in the cases stated below in the section on the parent
company accounting principles.
The Annual Report and the consolidated accounts have been
approved of by the Board and CEO for publication on 3 April 2013.
The consolidated income statement and balance sheet and the parent
company’s income statement and balance sheet will be presented for
adoption by the AGM on 14 May 2013.
Valuation basis applied for preparation of the parent
company and Group financial reports
Assets and liabilities are reported at historical acquisition values
except for certain financial assets and liabilities which are assessed
at fair value. Financial assets and liabilities valued at fair value consist
of derivatives and shares and holdings that are not reported as subsidaries/associated
companies or joint ventures.
Functional currency and reporting currency
The parent company’s functional currency is the Swedish crown,
which is also the currency in which the accounts of the parent company
and the Group are reported. Thus the financial reports are presented
in Swedish crowns. Unless otherwise indicated all amounts are
rounded off to the nearest million.
Estimates and assessments in the financial reports
Preparing the financial reports in accordance with the IFRSs requires
that the company management make estimates and assessments and
make assumptions which affect the application of the accounting policies
and the recognized amounts with regard to assets, liabilities, revenues
and costs. The actual outcome may vary from these estimates
and assessments.
Estimates and assumptions are regularly reviewed. Changes to estimates
are entered in the accounts of the period the change is made
and, where applicable, in future periods.
Assessments made by the company management when applying
the IFRSs which have a significant impact on the financial reports and
assessments made, which could result in substantial adjustments to
following years’ financial reports, are described in more detail in note 2.
Changed accounting principles
Group accounting principles are the same as in the Annual Reports
2011. The amendments of IFRSs applied from 2012 have not had any
significant effect on Group accounting.
New IFRSs and interpretations that have not yet been applied
The Group has chosen not to prematurely apply new standards or
interpretations when preparing these financial reports and plans no
premature application in the coming years.
Amended IAS 19 Employee benefits eliminates the current rules
that make it possible to even out actuary gains and losses over time.
Instead actuary gains and losses will be recognized in the comprehensive
income statements as they occur. The yield on plan assets in
the result is recognized for an amount calculated on the discount rate
used when calculating employee benefit obligations. The difference
between the real and calculated yield of plan assets is recognized in
the other comprehensive income statement. The amendments will be
applied from the financial year 2013 and retroactively. EU has
approved the application of the amendments. Amendments in IAS 19
are expected to affect Group equity per 1 January 2012 by around
46 PEAB ANNUAL REPORT 2012
SEK –14 million after taking deferred tax into consideration. The translation
effect on the Group result is expected to amount to SEK 1 million
and SEK 7 million on the comprehensive result for 2012. Equity
at the end of the year is expected to be affected by SEK –6 million
taking deferred tax into consideration.
The amended IAS 1 Presentation of financial statements means
that items in other comprehensive income must be separated into two
categories and presented in other comprehensive income based on
whether the items will at a later date be reported as income or not.
The amendment, now approved by the EU, will be applied from the
financial year 2013 and retroactively. Group presentations are affected
by the fact that translation differences will belong to the category that
can be reversed whereas actuary gains and losses on defined benefit
pension plans (see the above) will belong to the category that can
never be reversed to profit/loss. Items that can be reclassified are, for
example, translation differences and profit/loss on cash flow hedges.
Items that are not reclassified are, for example, actuary gains and
losses.
IFRS 13 Fair value measurement will be applied onward from the
financial year 2013 and is only expected to affect Group disclosures.
IFRS 13 is approved for application by the EU.
Amendments to IAS 32 Financial instruments: Classification regarding
the rules for when financial assets and financial liabilities may be
offset. The amendments to IAS 32 are approved for application by the
EU and will be applied from the financial year 2014 and retroactively.
New disclosure requirements in IFRS 7 Financial instruments: Disclosures
regarding the offset of financial assets and financial liabilities
will be applied from the financial year 2013. Disclosures will also be
made retroactively. The amendments to IFRS 7 are approved for application
by the EU.
IFRS 10 Consolidated financial statements, IFRS 11Joint arrangements
and IFRS 12 Disclosure of interests in other entities deal with
when entities must be consolidated, how joint ventures and joint operations
should be presented as well as which disclosures must be
made regarding these investments. At the same time the consequential
amendments in IAS 27 called Separate financial reports will be
applied. IAS 28 has been revised as well and is called Investments in
associates and joint ventures. When EU approved the above standards
obligatory application was put off until 2014 with a requirement
for retroactive application. The new standards and amendments
above are not expected to affect Group accounting other than in
certain disclosures.
IFRS 9 Financial instruments, will replace IAS 39 Financial instruments:
Recognition and measurement as of 2015. IASB has published
the first two of at least three parts which will together form IFRS
9. The first two parts deal with classification and valuation of financial
assets and financial liabilities. IFRS 9 has not yet been approved for
application by the EU and approval is not expected until EU can take
a position on all three parts of IFRS 9. Peab has therefore chosen to
wait before making a consequence analysis.
Other new or amended IFRSs together with interpretations are not
expected to have any effect on Group accounting.
Operating segments
An operating segment is an entity in the Group that engages in business
activities from which it may earn revenues and incur expenses
and for which discrete financial information is available. An operating
segment’s results are reviewed by the company’s highest decision
maker in order to assess its performance and to be able to allocate
resources to the segment. Segment information is provided for the
Group only.
Classification etc.
Fixed assets, long-term liabilities principally consist of amounts which
may be expected to be recovered or defrayed later than 12 months
after the balance sheet date. Current assets and current liabilities
principally consist of amounts which may be expected to be recovered
or defrayed within 12 months of the balance sheet date.
Consolidation principles
Subsidiaries
Subsidiaries are entities over which Peab AB exercises a controlling
influence. The term controlling influence refers to a direct or indirect
right to mould the company’s financial and operating strategies in
order to obtain financial benefits. When assessing whether a con-