PC9. Financial instruments

AP Accounting principles

The Parent Company’s financial instruments are recognized in accordance with the Group’s accounting principles. Refer to Notes E1, E2, E3, E4. Hedge accounting was not applied by the Parent Company.

Interest-bearing liabilities

Financial instruments by category

AP Accounting principles

The categories of financial instruments in 2018 classified according to IFRS 9 that exist in the Parent Company comprise financial assets and liabilities measured at fair value through profit or loss and amortized cost. In 2017, the Parent Company classified its financial instruments in the categories loans and trade receivables and financial liabilities measured at amortized cost, except for derivatives, which were measured at fair value through profit or loss. The transition to IFRS 9 did not entail any changes in valuations. All of the Parent Company’s financial assets and liabilities measured at fair value through profit or loss are assessed according to measurement level 2. For a definition, refer to Note E1. Financial assets measured at amortized cost are continuously reviewed to assess the need for credit loss provisions. If there is a material need for credit loss provisions, a provision is made in accordance with the expected credit loss model.

The nominal value of the derivatives before the right of set-off is SEK 136,392m (105,056). The nominal value of the derivatives after the right of set-off is SEK 56,561m (54,958).