The parent company has prepared its annual report in accordance with the Swedish Company Accounts Act (1995:1554) and the Swedish Financial Reporting Board recommendation RFR 2 Accounting rules for legal entities. RFR 2 requires that the parent company, in the annual report for the legal entity, use all EU adopted IFRSs and interpretations as far as possible within the framework of the Swedish Company Accounts Act, the Job Security Law and with due regard for the relationship between accounting and taxes. The recommendation states which exceptions and additions must be made to the IFRSs.

Changed accounting principles

The parent company’s accounting principles are unchanged compared to the Annual Report 2023.

New or amended IFRSs including interpretations that have been adopted by IASB but not yet applicable are not expected to have any material effect on parent company accounting.

Differences between the Group’s and parent company’s accounting principles

The Group’s accounting principles are found in each note in the consolidated section of the annual accounts. The primary differences in the accounting principles applied by the Group and the parent company are described below.

Classification and presentation

The parent company’s income statement and balance sheet are presented according to the structure in the Swedish Company Accounts Act. The departure from IAS 1 Presentation of financial statements, which is used in structuring the consolidated financial reports, is foremost in presenting financial income and expenses, fixed assets, equity and the provisions reported under a separate heading on the balance sheet.

Subsidiaries

Participations in subsidiaries are recognized in the parent company according to the acquisition value method. This means that acquisition costs are included in the reported value of the holding in the subsidiary. In Group accounting acquisition costs that refer to the subsidiary are recognized directly in profit/loss as they occur.

Financial instruments

The parent company applies the exception rule regarding IFRS 9 Financial instruments according to RFR 2, which means that all financial instruments are recognized according to a method based on the acquisition value according to the Swedish Company Accounts Act.

Financial guarantees

The parent company’s financial guarantee contracts mainly consist of sureties for the benefit of subsidiaries and joint ventures. The parent company recognizes financial guarantee contracts as provisions on the balance sheet when the company has an obligation for which payment is likely to be required to settle the obligation.

Taxes

Untaxed reserves including deferred tax liabilities are recognized in the parent company. In the Group accounting however, untaxed reserves are divided into deferred tax liabilities and equity.

Shareholder contributions

Paid shareholder’s contributions are activated in shares and participations in the provider after taking into consideration any impairments.

Group contributions

Group contributions are recognized as appropriations whether or not the Group contribution has been given or received.

Leases

The parent company does not apply IFRS 16 Leases in accordance with the exception in RFR2. As a lessee leasing fees are expensed linearly over the leasing period and therefore right of use assets and lease liabilities are not recognized on the balance sheet.