Annual Report 2010 - CDON Group

CDON Group AB
Annual Årsredovisning report 2010 2010
Acquisition of non-controlling interest
Acquisition from non-controlling interest is recognised as a transaction in equity, that is, between the parent company’s owners (in
retained profits) and the non-controlling interest. Therefore, no goodwill arises in these transactions. The change in non-controlling
interest is based on its proportional share of net assets.
Sale of non-controlling interest
Sale of non-controlling interest, where some controlling interest is retained, is recognised as a transaction in equity; that is, between
the parent company’s owners and the non-controlling interest. The difference between retained liquidity and the non-controlling
interest’s proportional share of acquired net assets is recognised in retained profits.
Transactions eliminated in consolidation
Intra-group receivables and liabilities, income or expenses, and unrealised gains or losses that arise from intra-group transactions
between Group companies are entirely eliminated in preparation of the consolidated accounts.
2.5 Foreign currency
2.5.1 Foreign currency transactions
Foreign currency transactions are translated into the functional currency at the exchange rate that applied on the transaction date.
The functional currency is the currency used in the primary economic environments in which the companies operate. Monetary
assets and liabilities in foreign currencies are translated into the functional currency at the exchange rate on the reporting date.
Exchange differences arising from the translations are recognised in profit/loss for the year.
2.5.2 Financial statements of foreign operations
Assets and liabilities in foreign operations, including goodwill and other Group surpluses and deficits, are translated from the
functional currency of the foreign operation to the Group’s reporting currency, the Swedish krona, at the exchange rate applicable
on the reporting date. Income and expenses in foreign operations are translated to the Swedish krona at an average rate that is an
approximation of the exchange rates on the respective transaction date. Translation differences that arise from currency translation
of foreign operations are otherwise recognised in comprehensive income and are accumulated in a separate component of equity
called the translation reserve. In the event that the foreign operation is wholly owned, the translation difference is allocated to noncontrolling
interest based on its proportional participating interest. When divesting foreign operations, they are realised in the
operation for accumulated translation differences, where they are reclassified from translation reserve in equity to profit/loss for
the year. In cases where disposal occurs but controlling interest is retained, the proportional share of cumulative translation
differences are transferred from other comprehensive income to non-controlling interest.
2.6 Revenue
2.6.1 Sale of goods and rendering of services
Revenue from the sale of goods is recognised in accordance with the terms of sale, that is, when the goods are submitted to the
transport agent, net of returns.
Revenue from the sale of services is recognised when services are delivered.
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