Saab 2014 Annual Report Download - page 88

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FINANCIAL INFORMATION – NOTES
SIGNIFICANT DIFFERENCES BETWEEN THE GROUP’S AND
THE PARENT COMPANY’S ACCOUNTING PRINCIPLES
The Parent Company follows the same accounting principles as the Group
with the following exceptions.
Business combinations
Transaction costs are included in the cost of business combinations.
Associated companies and joint ventures
Shares in associated companies and joint ventures are recognised by the Parent
Company according to the acquisition value method. Revenue includes dividends
received.
Intangible fixed assets
All development costs are recognised in profit or loss.
Tangible fixed assets
Tangible fixed assets are recognised after revaluation, if necessary.
Borrowing costs
The Parent Company recognises borrowing costs as an expense in the period in
which they arise.
Investment properties
Investment properties are recognised according to acquisition cost method.
Financial assets and liabilities and other financial instruments
The Parent Company carries financial fixed assets at cost less write-down and
financial current assets according to the lowest value principle. If the reason for
write-down has ceased, it is reversed. The Parent Company does not apply the
rules for setting off financial assets and liabilities.
Derivatives and hedge accounting
Derivatives that are not used for hedging are carried by the Parent Company accor-
ding to the lowest value principle. For derivatives used for hedging, recognition is
determined by the hedged item. This means that the derivative is treated as an off
balance sheet item as long as the hedged item is recognised at cost or is not inclu-
ded on the balance sheet. Receivables and liabilities in foreign currency hedged
with forward contracts are valued at the forward rate.
Employee benefits
The Parent Company complies with the provisions of the Law on Safeguarding of
Pension Commitments and the regulations of the Swedish Financial Supervisory
Authority, since this is a condition for tax deductibility.
Untaxed reserves
The amounts allocated to untaxed reserves constitute taxable temporary differen-
ces. Due to the connection between reporting and taxation, the deferred tax liability
is recognised in the Parent Company as part of untaxed reserves.
Group contributions and shareholders’ contributions
Shareholders’ contributions are recognised directly in the equity of the recipient
and capitalised in the shares and participating interests of the contributor, to the
extent write-down is not required.
Group contributions received are recognised through profit or loss in financial
income and expenses.
Group contributions paid are recognised directly in the equity of the recipient and
capitalised in the shares and participating interests of the parent, to the extent
write-down is not required.
84 – SAAB ANNUAL REPORT 2014