CORRAL PETROLEUM HOLDINGS AB (PUBL) - Preem

NOTE 1. SIGNIFICANT ACCOUNTING POLICIESCORRAL PETROLEUM HOLDINGS AB (publ)NOTESTO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts in MSEK unless otherwise specified)Corral Petroleum Holdings AB (publ) (the Parent Company), corp. ID no. 556726-8569, and its subsidiaryconstitute the largest oil company in Sweden.The Parent Company is a joint stock company registered in and with its registered office in Sweden. The addressof the head office is c/o Svenska Petroleum Exploration AB, 25/n Park Lane, W1K 1RA, London.Corral Petroleum Holdings AB (publ) is a wholly-owned subsidiary of Moroncha Holdings Co. Limited(Cyprus).The board of directors has on 27 April 2011, approved the consolidated comprehensive income statements, theconsolidated balance sheets and the consolidated cash flow statements.The most important accounting policies that have been applied in producing these consolidated financialstatements are described below. Unless otherwise specified, these policies are applied consistently.Basis on which the statements have been producedThe consolidated financial statements for the Corral Petroleum Holdings AB Group (Corral) have beenproduced in accordance with the International Financial Reporting Standards (IFRS) and the interpretations issued fromthe International Financial Reporting Interpretations Committee (IFRIC) as adopted by the EU with the exception of IAS33, earnings per share, in view of that the Group not are listed on the stock exchange. RFR 1 “Supplementary AccountingPrinciples for Groups,” issued by the Swedish Financial Reporting Board, has also been applied. The consolidatedfinancial statements have been produced according to the cost method, apart from financial assets held for trading andfinancial assets and liabilities valued at fair value in the profit (loss) for the year.The production of reports in accordance with IFRS requires the use of a number of important estimates foraccounting purposes. It also requires that management perform certain assessments when applying the Group’saccounting policies. The areas that involve a high degree of assessment, that are complex or areas where assumptions andestimates are of significant importance for the consolidated financial statements, see note 3.The financial reports are presented in Swedish kronor (SEK) which is also the Group’s functional currency. Ifnothing else is stated, the rounding offs are done towards the closest million. The amount in the Groups financialconsolidation system is based on thousands of SEK. The rounding of amounts in tables, to the closest million, couldresult that the total amount does not exactly summarize to the sum of all sub amounts.Standards, amendments and interpretations that came into force in 2010News that have come into force during the financial year have not had any significant effect on the Group’sfinancial statements.Standards, amendments and interpretations of existing standards that have not yet come into force and that have notbeen applied in advance by the GroupA number of new standards, amendments and interpretations that have not yet come into force have not beenapplied in advance by the Group when preparing these financial documents. New standards, amendments andinterpretations that come into force in the future are not planned to be adopted in advance by the Group. At present thesenew standards, amendments and interpretations are assessed not to have any impact on the Group’s accounts in thefuture.Classification, etc.Non-current assets and non-current liabilities consist essentially of amounts that are expected to be recovered orpaid after more than twelve months from the balance sheet date.Current assets and current liabilities consist essentially of amounts that are expected to be recovered or paidwithin twelve months of the balance sheet date.F-8