New Wave Group AB Annual report 2017 EN | Page 110

FINANCIAL INFORMATION
AUDITOR’S REPORT
To the general meeting of the shareholders of New Wave Group AB (publ), corporate identity number 556350 - 0916
REPORT ON THE ANNUAL ACCOUNTS
AND CONSOLIDATED ACCOUNTS The audit procedures related to revenue recognition, among other
things include:
OPINIONS • Walkthrough of processes and procedures related to revenue
recognition, verification of compliance in regards to IFRS
standards.
• Detailed analysis of recorded revenue for different agreements
based on historical results, budgets, and the follow ups where
made to deviations from the expected outcome.
• Random inspection of contracts and the transfer of risk asso-
ciated to the period close in order to verify correct revenue
accruals.
• Review of the supporting material that judgments, calculations
and accruals related to estimates of discounts and bonuses are
based on.
We have audited the annual accounts and consolidated accounts
of New Wave Group AB (publ) for the year 2017. The annual
accounts and consolidated accounts of the Company are included
on pages 50–109 in this document.
In our opinion, the annual accounts have been prepared in accor-
dance with the Annual Accounts Act and present fairly, in all
material respects, the financial position of the parent company as
of 31 December 2017 and its financial performance and cash flow
for the year then ended in accordance with the Annual Accounts
Act. The consolidated accounts have been prepared in accordance
with the Annual Accounts Act and present fairly, in all material
respects, the financial position of the group as of 31 December
2017 and their financial performance and cash flow for the year
then ended in accordance with International Financial Reporting
Standards (IFRS), as adopted by the EU, and the Annual Accounts
Act. The statutory administration report is consistent with the
other parts of the annual accounts and consolidated accounts.
We therefore recommend that the general meeting of shareholders
adopts the income statement and balance sheet for the parent
company and the group.
BASIS FOR OPINIONS
We conducted our audit in accordance with International
Standards on Auditing (ISA) and generally accepted auditing
standards in Sweden. Our responsibilities under those standards
are further described in the Auditor’s Responsibilities section. We
are independent of the parent Company and the group in accor-
dance with professional ethics for accountants in Sweden and have
otherwise fulfilled our ethical responsibilities in accordance with
these requirements.
We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinions.
KEY AUDIT MATTERS
Key audit matters of the audit are those matters that, in our
professional judgment, were of most significance in our audit of
the annual accounts and consolidated accounts of the current
period. These matters were addressed in the context of our audit
of, and in forming our opinion thereon, the annual accounts and
consolidated accounts as a whole, but we do not provide a separate
opinion on these matters.
REVENUE RECOGNITION
Total revenue amounted to 5 597 MSEK in 2017. On page 64
the company states the applied accounting principles for revenue
recognition. In short they state that revenue related to the sales of
goods is recognized when it is likely that payment will be received
and when all risks and benefits have been transferred from seller
to buyer. The revenue recognition is associated with a certain
element of judgement in regards to recognition of discounts for
retailers, risks related to revenue reduction and the transfer of risk
to the customer, which is why we have considered the revenue
recognition as a key audit matter in our audit.
110 | NWG 2017
We have also reviewed the Company´s effectiveness regarding the
revenue disclosures.
VALUATION OF GOODWILL AND TRADEMARKS
The reported value for goodwill and trademarks amounted to
1 322 MSEK per 31 of December 2017 according to the conso-
lidated statement regarding financial posit