PC1. Basis for preparation of parent company’s annual accounts
The Parent company has prepared its financial statements in accordance with the Swedish Annual Accounts Act (1995:1554) and RFR 2 Accounting for Legal Entities. According to RFR 2, the Parent company is to apply all the International Financial Reporting Standards adopted by the EU as far as this is possible within the framework of the Swedish Annual Accounts Act.
The same accounting principles are usually applied in both the Parent company and the Group. In some cases, the Parent company applies principles other than those used by the Group and, in such cases, these principles are specified under the respective note in the section about the Parent company.
The changes in RFR 2 applicable to the fiscal year beginning January 1, 2020 related to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures. Temporary relief concerning rent concessions in IFRS 16 Leases was introduced for fiscal years commencing June 1, 2020 though early adoption is permitted.