Note 2 Changed accounting principles

As of fis­cal year 2020 Peab con­sol­i­dates projects with Swedish tenant-​​owned hous­ing as­so­ci­a­tions at the time the final home­buy­ers take pos­ses­sion of their apart­ments. This means that Peab rec­og­nizes the projects on the bal­ance sheet as work-​in-​progress under the asset item project de­vel­op­ment prop­er­ties, and as interest-​​​bear­ing current li­a­bil­i­ties (project financing). Rev­enue and costs for the projects will be rec­og­nized as home­buy­ers take pos­ses­sion of their apart­ments. Costs for loans are in­clud­ed in the ac­qui­si­tion value of the prop­er­ties. In con­junc­ture with this change Peab now rec­og­nizes all our own housing development projects in Swe­den, Nor­way and Fin­land ac­cord­ing to the com­ple­tion method. Ac­cord­ing to pre­vi­ous prin­ci­ples Peab did not con­sol­i­date projects with Swedish tenant-​​owned hous­ing as­so­ci­a­tions from the time land trans­fer and turnkey con­tracts were signed, and rev­enue and ex­pens­es were rec­og­nized over time as the projects were suc­ces­sive­ly com­plet­ed.

The changed accounting principle has been applied retroactively from January 1, 2019. The tables below show translated figures to the new accounting principle and opening balances on January 1, 2019. All com­par­a­tive fig­ures for 2019 are trans­lat­ed if not oth­er­wise spec­i­fied.

Jan 1, 2019

Group, MSEK Reported balance sheet Changed accounting principle Group IFRS
Koncernen, Mkr Rapporterad balans-
räkning		 Ändrad redovisningsprincip Koncernen IFRS
Assets Tillgångar  
Intangible assets Immateriella anläggningstillgångar 2,250 2,250
Tangible assets Materiella anläggningstillgångar 5,741 5,741
Investment property Förvaltningsfastigheter 589 589
Participation in joint ventures Andelar i joint ventures 1,076 1,076
Securities held as fixed assets Långfristiga värdepappersinnehav 109 5 114
Interest-bearing long-term receivables Räntebärande långfristiga fordringar 1,445 1,445
Deferred tax recoverables Uppskjutna skattefordringar – 346 346
Other long-term receivables Andra långfristiga fordringar 107 107
Total fixed assets Summa anläggningstillgångar 11,317 351 11,668
Project and development properties Projekt- och exploateringsfastigheter 9,685 7,534 17,219
Inventories Varulager 441 441
Accounts receivable Kundfordringar 10,166 -827 9,339
Interest-bearing current receivables Räntebärande kortfristiga fordringar 640 -184 456
Tax assets Skattefordringar 118 118
Worked-up not invoiced income Upparbetade men ej fakturerade intäkter 2,312 2,312
Prepaid expenses and accrued income Förutbetalda kostnader och upplupna intäkter 529 529
Other current receivables Övriga kortfristiga fordringar 732 732
Securities held as current assets Kortfristiga värdepappersinnehav 0 –
Liquid funds Likvida medel 1,376 1,376
Total current assets Summa omsättningstillgångar 25,999 6,523 32,522
Total assets Summa tillgångar 37,316 6,874 44,190
Equity and liabilities Eget kapital och skulder
Equity Eget kapital 11,348 -1,271 10,077
Liabilities Skulder
Interest-bearing long-term liabilities Räntebärande långfristiga skulder 5,194 -1,224 3,970
Interest-bearing long-term liabilities, project financing Räntebärande långfristiga skulder, projektfinansiering – 213 213
Other long-term liabilities Övriga långfristiga skulder 161 161
Deferred tax liabilities Uppskjuten skatteskuld 123 123
Provisions Avsättningar 816 -109 707
Total long-term liabilities Summa långfristiga skulder 6,294 -1,120 5,174
Interest-bearing current liabilities Räntebärande kortfristiga skulder 1,818 -508 1,310
Interest-bearing current liabilities, project financing Räntebärande kortfristiga skulder, projektfinansiering – 10,963 10,963
Accounts payable Leverantörsskulder 5,177 5,177
Tax liabilities Skatteskulder 69 69
Invoiced income not worked-up Fakturerade men ej upparbetade intäkter 6,841 -1,934 4,907
Accrued expenses and deferred income Upplupna kostnader och förutbetalda intäkter 4,046 4,046
Other current liabilities Övriga kortfristiga skulder 1,457 744 2,201
Provisions Avsättningar 266 266
Total current liabilities Summa kortfristiga skulder 19,674 9,265 28,939
Total liabilities Summa skulder 25,968 8,145 34,113
Total equity and liabilities Summa eget kapital och skulder 37,316 6,874 44,190

Jan-Dec 2019

Group, MSEK Reported income statement Changed accounting principle Group IFRS
Koncernen, Mkr Rapporterad resultat-räkning Ändrad redovisningsprincip Koncernen IFRS
Net sales Nettoomsättning 54,008 2,295 56,303
Production costs Kostnader för produktion -48,734 -1,578 -50,312
Gross profit Bruttoresultat 5,274 717 5,991
Sales and administrative expenses Försäljnings- och administrationskostnader -2,879 -2,879
Other operating income Övriga rörelseintäkter 280 280
Other operating costs Övriga rörelsekostnader -107 -107
Operating profit Rörelseresultat 2,568 717 3,285
Financial income Finansiella intäkter 130 130
Financial expenses Finansiella kostnader -188 -188
Net finance Finansnetto -58 – -58
Pre-tax profit Resultat före skatt 2,510 717 3,227
Tax Skatt -418 -153 -571
Profit for the year Årets resultat 2,092 564 2,656
Profit for the year, attributable to: Årets resultat hänförligt till:
Shareholders in parent company Moderbolagets ägare 2,092 564 2,656
Non-controlling interests Innehav utan bestämmande inflytande 0 – 0
Profit for the year Årets resultat 2,092 564 2,656

Dec 31, 2019

Group, MSEK Reported balance sheet Changed accounting principle Group IFRS
Koncernen, Mkr Rapporterad balans-
räkning		 Ändrad redovisningsprincip Koncernen IFRS
Assets Tillgångar  
Intangible assets Immateriella anläggningstillgångar 2,334 2,334
Tangible assets Materiella anläggningstillgångar 6,811 6,811
Investment property Förvaltningsfastigheter 558 558
Participation in joint ventures Andelar i joint ventures 1,884 1,884
Securities held as fixed assets Långfristiga värdepappersinnehav 77 5 82
Interest-bearing long-term receivables Räntebärande långfristiga fordringar 1,086 1,086
Deferred tax recoverables Uppskjutna skattefordringar 8 193 201
Other long-term receivables Andra långfristiga fordringar 131 131
Total fixed assets Summa anläggningstillgångar 12,889 198 13,087
Project and development properties Projekt- och exploateringsfastigheter 11,407 5,541 16,948
Inventories Varulager 533 533
Accounts receivable Kundfordringar 9,285 -392 8,893
Interest-bearing current receivables Räntebärande kortfristiga fordringar 144 144
Tax assets Skattefordringar 101 101
Worked-up not invoiced income Upparbetade men ej fakturerade intäkter 2,387 2,387
Prepaid expenses and accrued income Förutbetalda kostnader och upplupna intäkter 544 544
Other current receivables Övriga kortfristiga fordringar 678 678
Securities held as current assets Kortfristiga värdepappersinnehav 388 -388 –
Liquid funds Likvida medel 373 373
Total current assets Summa omsättningstillgångar 25,840 4,761 30,601
Total assets Summa tillgångar 38,729 4,959 43,688
Equity and liabilities Eget kapital och skulder
Equity Eget kapital 12,266 -707 11,559
Liabilities Skulder
Interest-bearing long-term liabilities Räntebärande långfristiga skulder 5,617 -1,814 3,803
Interest-bearing long-term liabilities, project financing Räntebärande långfristiga skulder, projektfinansiering – 326 326
Other long-term liabilities Övriga långfristiga skulder 72 72
Deferred tax liabilities Uppskjuten skatteskuld 148 148
Provisions Avsättningar 942 -76 866
Total long-term liabilities Summa långfristiga skulder 6,779 -1,564 5,215
Interest-bearing current liabilities Räntebärande kortfristiga skulder 3,493 -482 3,011
Interest-bearing current liabilities, project financing Räntebärande kortfristiga skulder, projektfinansiering – 7,637 7,637
Accounts payable Leverantörsskulder 4,295 4,295
Tax liabilities Skatteskulder 111 111
Invoiced income not worked-up Fakturerade men ej upparbetade intäkter 5,618 -759 4,859
Accrued expenses and deferred income Upplupna kostnader och förutbetalda intäkter 4,007 4,007
Other current liabilities Övriga kortfristiga skulder 1,946 834 2,780
Provisions Avsättningar 214 214
Total current liabilities Summa kortfristiga skulder 19,684 7,230 26,914
Total liabilities Summa skulder 26,463 5,666 32,129
Total equity and liabilities Summa eget kapital och skulder 38,729 4,959 43,688