Sweden

Financial Reporting Framework in Sweden

Adoption of IFRSs in Europe Effective in 2005

In June 2002, the European Union adopted an IAS Regulation requiring European companies listed in an EU securities market, including banks and insurance companies, to prepare their consolidated financial statements in accordance with IFRSs starting with financial statements for financial year 2005 onwards. EU countries have the option to:

  • Require or permit IFRSs for unlisted companies.
  • Require or permit IFRSs in parent company (unconsolidated) financial statements.
  • Permit companies whose only listed securities are debt securities to delay IFRS adoption until 2007.
  • Permit companies that are listed on exchanges outside of the EU and that currently prepare their primary financial statements using a non-EU GAAP (in most cases this would be US GAAP) to delay IFRS adoption until 2007.

The European IAS regulation applies not only to the 27 EU Member States but also to the three members of the European Economic Area (EEA) - Iceland, Liechtenstein, and Norway.

Sweden is an EU Member State. Consequently, Swedish companies listed in an EU/EEA securities market follow IFRSs since 2005. In July 2010, the European Commission published the results of a survey of the 27 EU member states and the 3 EEA member states regarding the four options above. For information on each country's plans, click to download:

The European Commission has adopted the following wording for use in the notes to the accounts and in the audit reports of companies subject to EU Regulation 1606/2002/EC (the 'IAS regulation'):

  • "in accordance with International Financial Reporting Standards as adopted by the EU" or
  • "in accordance with IFRSs as adopted by the EU".

Companies may also state, in a footnote, compliance with IFRSs as adopted by the IASB, if that is the case.

In September 2011, the European Commission services published a report an update on the extent to which certain options included within the Accounting Directives have been incorporated into the law of the Member States and EEA countries. Please click for access to the report(PDF 816k, link to EC website).

Accounting laws

The accounting legislation in Sweden consists of mandatory accounting acts, the Annual Accounts Act of 1995 and the Book-keeping Act of 1999 being the most important ones. Both the Annual Accounts Act and the Bookkeeping Act are general frameworks for accounting and both acts refer to 'generally accepted accounting principles'.

The Annual Accounts Act is based on the EC Fourth, Seventh, and Eleventh Directives. Credit institutions, brokers and dealers in securities, and insurance companies are covered by two special accounting acts.

Swedish Accounting Standards Board

Bokforingsnamnden, BFN (The Swedish Accounting Standards Board) is a governmental body with the main objective of promoting the development of, in Sweden, generally accepted accounting principles regarding current recording as well as the setting up of annual accounts.

The Board issues general advice and information material on accounting matters and accounting practices. Finansinspektionen (The Swedish Financial Supervisory Authority) is responsible for issuing standards required for financial companies.

Related news

  • FEE publishes survey on the accountancy profession in Europe

  • Mar 29, 2012

  • The Federation of European Accountants (Fédération des Experts-comptables Européens, FEE) has released a survey which provides a collection of key features on structure and organisation of the accountancy profession across 30 European countries.

  • Use of Options within the Accounting Directives

  • Sep 20, 2011

  • The European Commission services have published a report on the responses received to the consultation of accounting regulatory committee members on the use of options within the European Accounting Directives.

  • More than 70 jurisdictions apply ISAs

  • Jul 11, 2011

  • On June 30 2011, Prof. Arnold Schilder, the Chairman of the IAASB, delivered a speech on global progress in the use of the Clarified International Standards on Auditing (ISAs) at the 2011 annual conference on Accounting and Accountability for Regional Economic Growth in Latin America and the Caribbean (referred to as CReCER after its Spanish/Portuguese acronym).

  • European discussion paper on performance reporting

  • Mar 25, 2009

  • EFRAG and the national standard-setters of Denmark, France, Germany, Italy, Poland, Spain, Sweden, and the UK have published a Discussion Paper on Performance Reporting under the PAAinE initiative.

  • Two Swedish accountancy bodies merge

  • Aug 13, 2006

  • Two main Swedish professional accountancy organisations have agreed to merge effective 1 September 2006. The two groups are the Swedish Organisation of Certified Public Accountants (Foreningen for Auktoriserade Revisorer, or FAR) and the Swedish Organisation of Auditors (Svenska Revisorsamfundet or SRS).

  • Swedish accounting update

  • Jul 31, 2002

  • Swedish accounting requirements are based on the Annual Accounts Act incorporating the EU Directives, and on the accounting standards.

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