Scania Annual Report 2011

93
Amendment to IAS 1, “Presentation of Financial Statements” implies
new disclosure requirements of components accounted for in other
comprehensive income in respect of items that possibly will be reclassified
to net income and those which will never be reclassified to net
income. The standard enters into force on 1 July 2012 and shall be
applied for annual periods from 2013.
Amendment to IAS 19, “Employee Benefits” – Scania already
applie s the method for measurement of pension liabilities contained in
the new proposal, except that the returns on pension assets shall be
measured based on the same discount rate as pension liabilities rather
than on the estimated return. At present, it is not clear how Swedish
payroll tax and tax on investment returns shall be accounted for under
the new rules. The standard enters into force on 1 January 2013 and
shall be applied on this date. The standard is not expected to have any
material impact on Scania’s financial statements.
Other changes in standards and interpretations that enter into
force on 1 January 2012 or subsequently are not expected to have
any impact on Scania’s accounting.
PARENT COMPANY
Parent Company accounting principles
The Parent Company has prepared its Annual Report in compliance
with Sweden’s Annual Accounts Act and Recommendation RFR 2,
“Accounting for Legal Entities” of the Swedish Financial Reporting
Board. RFR 2 implies that the Parent Company in the Annual Report of
a legal entity shall apply all International Financial Reporting Standards
and interpretations approved by the EU as far as this is possible within
the framework of the Annual Accounts Act, and taking into account
the connection between reporting and taxation. The recommendation
states what exceptions from IFRS and additions shall be made. The
Parent Company does not apply IAS 39, “Financial instruments”, but
instead applies a cost-based method in accordance with the Annual
Accounts Act.
The scope of financial instruments in the accounts of the Paren t
Company is extremely limited. The reader is thus referred to the Group’s
disclosures related to IFRS 7, “Financial instruments – Disclosures”.
Subsidiaries
Holdings in subsidiaries are recognised in the Parent Company financial
statements according to the cost method of accounting. Testing
of the value of subsidiaries occurs when there is an indication of a
decline in value. Dividends received from subsidiaries are recognised
as income.
Anticipated dividends
Anticipated dividends from subsidiaries are recognised in cases where
the Parent Company has the exclusive right to decide on the size of the
dividend and the Parent Company has made a decision on the size of
the dividend before having published its financial reports.
Taxes
The Parent Company financial statements recognise untaxed reserves
including deferred tax liability. The consolidated financial statements,
however, reclassify untaxed reserves to deferred tax liability and equity.
Group contributions
The Parent Company recognises Group contributions received
as financial revenue in the income statement and recognises Group
contributions provided as financial expenses in the income statement.
This is a new accounting principle according to the Swedish Financial
Reporting Board’s recommendation RFR 2, and comparative years
have been restated accordingly.
financial reports Scania 2011