EXAMPLE PAGE - ANNUAL REPORT - THE SWEDISH CLUB - Flipbook - Sida 55
NOTES - FINANCIAL STATEMENTS
Note 1. Accounting principles
Statement of compliance with
regulations applied
The annual report has been prepared in
accordance with the Law of Annual
Reports in Insurance Companies (ÅRFL)
and The Swedish Financial Supervisory
Authority’s rules, and regulations
regarding annual reports for insurance
companies (FFFS 2019:23) and the
Swedish Financial Reporting Board's
recommendation RFR 2. Law-limited IFRS
have been applied, which are international
accounting standards that have been
adopted for use with the limitations that
follow from RFR 2 and FFFS 2019:23.
This means that all of the EU approved
IFRS and statements have been applied,
to the extent possible given Swedish law
and with consideration given to the
relationship between accounting and
taxation.
Unless otherwise stated, all amounts in
the financial statements are in USD
thousands.
The Club has a subsidiary in Hong Kong
which, in accordance with Chapter 7,
Section 3a of the Swedish Annual
Accounts Act (ÅRL), has not been
consolidated, since the subsidiary is
considered to be of lesser importance
with regard to true and fair view
requirements.
The Club also has holdings in the
associated company, The Swedish Club
Academy
Assumptions when preparing the
insurance company’s financial
statements
USD is the Club’s accounting currency
since most of the Club’s income and
expenses are in USD. It is also the most
significant currency used when making
technical provisions and therefore, the
primary environment in which the Club
runs the business.
All assets and liabilites are registered in
the original currency and converted to
USD and to SEK at the end of the
reporting period. This has the effect that
the result in the two reporting currencies
differs as the bulk of the balance sheet
consists of USD. See Note 2.
technical provisions, consideration is
given to such things as unpaid claims,
claims development including changes in
the Club’s assumptions within the scope
of International Group of P&I Clubs,
changes in legislation, judicial decisions
and general economic development.
Assets and liabilities are reported at cost,
except for certain financial assets and
liabilities that are measured at fair value.
Financial assets and liabilities that are
measured at fair value consist of assets
classified as financial assets measured at
fair value through profit or loss.
Hydra receivables are estimated to have a
value equal to the Club’s share of the
captive company, Hydra.
Assessments and estimates made
when preparing the financial
statements
To prepare the financial statements, it is
sometimes necessary to make certain
assessments and estimates. These are
based on experience and assumptions.
Assessments and estimates that have
been made impact the amounts reported
in both the balance sheet and income
statement.
The effects of changes in estimates are
reported in the period in which the
change occurred, provided that the
change only has an effect on that period.
Alternatively, if the changes affect both
current and future periods, changes are
reported in the period in which the
change occurred and in future periods.
The assessed value of premium
receivables is equal to the amount
expected to be received. A review of
outstanding items is done on a continual
basis.
The assessed value of recourse
receivables is equal to the amount
expected to be received.
The accounting principles stated below
have been applied consistently to all
periods presented in the financial
statements.
Principles applied
New and revised standards applied
by the Club
None of the new standards or
amendments published after 1 January
2021 have had a significant impact on the
Club’s financial statements.
New standards, amendments and
interpretations to existing standards
that have not yet entered into force
and have not been early adopted
Several new international accounting
standards, along with revisions to
standards and interpretations will come
into force as of the next financial year and
the Club has not opted for early adoption
when preparing these financial statements.
The Club has no plans to elect early
adoption on new or revised standards.
IFRS 17 enters into force on 1 January
2023. The standard has been adopted by
the EU. The Swedish Financial Supervisory
Authority (FI) has announced that IFRS 17
will not be deemed to apply in statutory
IFRS.
Insurance contracts
The assessed value of reinsurance
receivables corresponds to the amount
agreed in the insurance contract.
All of the Club’s insurance contracts are
defined as insurance contracts in
accordance with IFRS 4. Insurance
The Club converts transactions in foreign
contracts are reported and measured in
Important estimates and assessments
currency to the currency rate applicable
the income statement and balance sheet
on the transaction day, both to SEK and to associated with technical provisions have in accordance with their financial
USD. This financial statement is reported been based on assumptions about future substance rather than their legal form
claims payments. Estimates are based on whenever there is a difference between
in USD while SEK is used in official
the Club’s own historical statistics on
Swedish regulatory reporting, in
the two. Items reported as insurance
prior claims outcomes. When estimating
accordance with law-limited IFRS.
contracts must transfer substantial
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