EXAMPLE PAGE - ANNUAL REPORT - THE SWEDISH CLUB - Flipbook - Sida 57
NOTES - FINANCIAL STATEMENTS
these, cash/settlement approach is
applied). Accounts receivables are
reported in the balance sheet when an
invoice has been sent. A liability is
reported when the counterparty has
completed performance and there is a
contractual liability to pay, even if the
invoice has not yet been received.
Accounts payable, however, are reported
when an invoice has been received. A
financial asset is removed from the
balance sheet when the rights in the
agreement have been realised, expire or
when the company loses control over
them. The same applies to a part of a
financial asset. A financial liability is
removed from the balance sheet when
the obligation in the agreement has been
fulfilled or in some other way
extinguished. The same applies to part of
a financial liability.
Offset of financial instruments
Offsetting of a financial asset and
financial liability and reporting them at a
net amount in the balance sheet only
occurs when there is a legally enforceable
right to set-off and the intention either is
to settle on a net basis or is to realise the
financial asset and settle the financial
liability simultaneously.
Classification and measurement of
financial assets
Initial recognition of a financial
instrument is based on the purpose for
which the instrument was acquired. The
initial classification also determines how
the financial instrument shall be
measured going forward, as described
below.
Measurement of the Club’s investment
assets at fair value is at the current
buying rate based on prices quoted on an
active market regarding Level 1 and Level
2. Measurement of the Club’s investment
assets at fair value regarding Level 3 is
based on information from the Club’s
investment manager.
Financial assets measured at amortised
cost
These are balance sheet assets reported
in the categories ‘Other receivables’ and
‘Cash and bank balances’. Both are
measured at amortised cost. Bank
deposits have repayment cover. As such,
anticipated credit losses are insignificant
since the investments are secured by the
Swedish State.
Associates are companies in which the
Group has a significant (but not
controlling) influence over the operating
and financial management, usually
through holdings corresponding to
20-50% of the votes. Shares in
subsidiaries and participations in
associated companies are reported in
accordance with the cost method. Any
dividends received are reported as
income.
Cash and bank balances
Cash and bank (with the exception of
minor cash amounts) consists of bank
accounts and funds that have been
transferred to asset management but not
yet invested in assets.
Prepaid acquisition costs
Classification of financial liabilities
Borrowings and other financial liabilities,
such as trade creditors, are included in
the category, ‘Financial liabilities’. These
are valued at amortised cost.
The item includes allocated commissions
associated with the signing of insurance
contracts. These costs are allocated in
the same way as the allocation of
unearned premiums.
Determination of fair value
Provision for unearned premiums
For a description of the methods and
assumptions used by the Club to
establish the fair value of financial
instruments, please see Note 2.
The provision for unearned premiums is
calculated strictly pro rata (pro rata
temporis). In accordance with technical
guidelines pertaining to insurance, testing
is performed on a regular basis to
determine whether a provision needs to
be made for remaining risks.
Intangible assets
Intangible assets are valued at cost less
accumulated amortisation and any
impairment losses. Amortisation is
calculated on a straight-line basis over a
useful life of five years starting from the
time when the system is put into
operation.
Provision for claims outstanding
The provision for incurred and reported
claims is based on individual, realistic
assessments of individual claims using
information that is available on the
reporting date. Incurred but not reported
claims, (IBNR), are calculated using
Tangible assets
Financial instruments are initially reported Machinery and equipment are reported at statistical methods that are based on
at cost, which is equal to the instrument’s cost less accumulated depreciation
experience of the number and extent of
fair value plus transaction costs. This
claims reported for prior accounting
according to plan, which is based on the
applies to all financial instruments, except useful life of the assets plus any writeyears. The provision for outstanding
those that belong to the category
claims also includes a reserve for
downs. Depreciation is calculated on a
‘Financial assets measured at fair value
operating costs associated with settling
linear basis over a useful life of three or
through profit or loss’. Those are reported five years. For improvements made on
outstanding claims. The provision for
at fair value excluding transaction costs.
property owned by others, depreciation is outstanding claims has been reported
calculated on a linear basis over a 20-year using undiscounted values.
Financial assets measured at fair value
period.
through profit or loss
Pensions costs and pensions
All of the Club's investment assets and
commitments
Subsidiaries and associated
forward exchange contracts are
The pension obligations comprise
companies
measured at fair value through profit or
A subsidiary is a company that is subject pension plans that are regulated through
loss. For bonds and other interest-bearing to a controlling influence by the Parent
collective agreements and national
securities, this measurement method is
insurance laws. The obligations consist
Company. Controlling influence is the
used because they are continually
of both defined contribution and defined
right to, directly or indirectly, formulate a
measured based on their fair value.
benefit plans.
company's financial or operating
strategies to obtain economic benefits.
THE SWEDISH CLUB ANNUAL REPORT 2021
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