Note 29 Equity
Shares and share capital
|Group||A shares||B shares||Number of issued fully paid shares||Share capital, SEK|
|Issued shares per 1 January 2017||34,319,957||261,729,773||296,049,730||1,583,866,056|
|Issued shares per 31 December 2017||34,319,957||261,729,773||296,049,730||1,583,866,056|
An A share entitles the holder to 10 votes and a B share to 1 vote. The par value of all shares is SEK 5.35. All the rights for the shares held by the company (see below) have been revoked until these shares are reissued.
Repurchased own shares that have reduced the Equity item profit/loss brought forward including profit for the year
|Number of shares 1)||Amount that affected equity, MSEK 2)|
|Opening repurchased own shares||1,086,984||1,086,984||929||929|
|Closing repurchased own shares||1,086,984||1,086,984||929||929|
1) A withdrawal of 5,500,000 shares was made in 2007.
2) Amount affecting equity refers to the accumulated net sum of acquired and divested own shares.
Other contributed capital
Refers to equity contributed by the owners. Includes premiums paid in conjunction with new issues.
The translation reserve comprises all exchange rate differences generated by translating the financial reports from foreign companies presented in another currency than the one used in Group financial statements. The parent company and the Group present their reports in Swedish krona (SEK). The translation reserve also consists of exchange rate differences that occur when revaluating liabilities recognized as hedging instruments of net investments in foreign operations.
Fair value reserve
The fair value reserve includes the accumulated net change of the fair value of financial assets available-for-sale until the asset has been eliminated from the balance sheet.
The hedging reserve comprises the effective part of the accumulated net changes in fair value in a cash flow hedge instrument attributable to hedged transactions that have not as yet occurred.
Profit/ brought forward including profit for the year
Profit brought forward including profit for the year consists of profit in the parent company, its subsidiaries and joint arrangements.
After the balance sheet day the Board of Directors proposed the following dividend; A cash dividend of SEK 4.00 (3.60) per share, totaling SEK 1,179,850,984 (1,061,865,886), calculated on the number of outstanding shares. Total dividends are calculated on outstanding shares at the time of distribution. The dividend will be proposed for adoption by the AGM on 7 May 2018.
Restricted equity may not be reduced by the distribution of dividends.
The purpose of the reserve fund is to retain a part of the net profit which is not allocated to cover balanced losses. Amounts transferred to the share premium reserve before 1 January 2006 have been transferred to, and are part of, the statutory reserve.
Fund for development costs
The amount activated by internally generated development costs is transferred from non-restricted equity to a fund for development costs in restricted equity. The fund will contract as the activated costs are depreciated or written down.
Together with profit for the year the following funds make up non-restricted equity, i.e. the amount available for dividends to the shareholders.
Share premium reserve
When shares are issued at a premium, i.e. when more must be paid for the shares than their nominal price, an amount equivalent to the amount received in excess of the share’s nominal value is transferred to the share premium reserve. The amount transferred to the share premium reserve starting 1 January 2006 is included in unrestricted capital.
Refers to reserves to funds when the share capital contracts, to be used as the AGM decides.
Fair value reserve
The company uses the Annual Accounts Act rules for the valuation of financial instruments at fair value according to chapter 4 paragraph 14a-e. A change in value is recognized in the reserve for fair value when it refers to a hedging instrument and the principles applied for hedge accounting allow for a portion or the entire change in value to be recognized in equity. A change in value caused by an exchange rate change on a monetary item which is part of the company’s net investment in a foreign unit is recognized in the profit.
Profit/loss brought forward
Consists of the previous year’s profit/loss brought forward and profit less dividends paid out during the year.