Swedish Financial Accounting Council issues three new standards
Oct 31, 2002
The Swedish Financial Accounting Standards Council (standards for listed entities)
The Swedish Financial Accounting Council (SFASC) has issued three new accounting standards, which will be effective for financial years beginning on or after January 1, 2003:
- SFASC 25 - Segment Reporting (based on IAS 14, Segment Reporting)
- SFASC 26 - Events After the Balance Sheet Date (based on IAS 10, Events After the Balance Sheet Date)
- SFASC 27 - Financial Instruments: Disclosure and Presentation (based on IAS 32, Financial Instruments: Disclosure and Presentation)
A significant difference between IAS and Swedish GAAP is found in SFASC 27: The Swedish Annual Account Act prescribes that all financial instruments in the legal form of a share shall be accounted for and classified as an equity instrument. Therefore, the paragraphs in IAS 32 prescribing that a financial instrument with a legal form of a share shall be accounted for according to the substance rather than its legal form do not exist in SFASC 27.
Regarding SFASC 25 and 26 there are no material differences compared to IAS.
The Swedish Accounting Standards Board (standards for non-listed entities)
There are no new standards issued by the Swedish Accounting Standards Board (SASB). However, SASB is currently reviewing several new areas in order to issue general advice and guidance:
- the concept of annual financial statements and annual reports;
- the concept of average number of employees.;
- fixed assets register;
- salary and other payments to members of the board and CEO;
- business activity in condominiums;
- accounting for automatic sales.