New Wave Group AB Annual report 2017 EN | Page 97

THE PARENT COMPANY FINANCIAL INFORMATION NOTE 1 ACCOUNTING PRINCIPLES FOR THE PARENT COMPANY The Swedish Financial Reporting Board’s Recommendation 2 – Accounting for Legal Entities and the Swedish Annual Accounts Act have been applied when preparing the parent company’s annual accounts. In accordance with this recommendation, the parent company shall prepare its reports in accordance with the IASB’s International Financial Reporting Standards (IFRS) adopted by the EU, to the extent that these are not contrary to the Swedish Annual Accounts Act. The accountancy principles have been applied consis- tently for all periods, unless otherwise stated. In Sweden, group contributions are deductable, unlike the shareholder contribution. Group contributions are reported so that they mainly reflect the transaction’s financial consequence. Group contributions, which have the same aim as the shareholder contribution, are activated as an investment in subsidiaries in the balance sheet with a reservation for impairment testing. The Company has chosen to use the exclusion rule which means that given shareholders contribution are reported as financial expenses. Group contributions received which are comparable with a dividend are reported as a dividend, net income from shares in Group companies. This means that Group contributions received and their associated tax effect are recognized in the income statement. The deferred tax liability on untaxed reserves is reported under untaxed reserves in the parent company’s annual accounts due to the connection between accounting and taxation. NOTE 2 RELATED PARTIES NET SALES Of the parent company's invoiced sales, SEK 69.3 million (SEK 100.4 million) equivalent to 99.3% (99.9%) were sales to Group companies. All transactions have occured in accordance with market conditions. TRANSACTIONS WITH RELATED PERSONS Göran Härstedt has carried out consulting services amounting to MSEK 0.6 (0.0), which has been debited through his owned company. All trans- actions have taken place at market terms. NOTE 3 OTHER INCOME SEK million Foreign exchange gains Other contributions and payments Total 2017 20.9 1.5 22.4 2016 22.1 0.0 22.1 NOTE 4 AVERAGE NUMBER OF EMPLOYEES Gothenburg Total 2017 Number of employees 35 35 Of which men 23 23 2016 Number of employees 26 26 Of which men 16 16 NWG 2017 | 97