Generic Sweden AB – Transition from IFRS to K3
May 15, 2019
Press Release
The Board of Directors of Generic Sweden AB has decided to change its accounting standard from IFRS to K3 effective January 1, 2019.
The rationale behind the Board’s decision is that the company must meet the accounting standards required for a listing on the current First North list, which is K3. Generic Sweden AB was previously listed on First North Premier, and a listing on that list required compliance with IFRS. It is the Board’s assessment that the accounting standards under K3 are high and sufficient for Generic Sweden.
The effect of the transition will be
– Operating profit for the first quarter of 2019 is not affected by the change.
The Group's equity as of January 1, 2019, decreased from 27.9 MSEK to 22.0 MSEK.
Description and quantification of transition effects and adjustments relative to previous periods
The published interim reports are presented below, along with the restated interim reports for Q1–Q4 2018.
Transition to K3
Generic Sweden AB has previously applied the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) as adopted by the EU. In addition,
The Financial Reporting Council's recommendation RFR 1, as amended, has been applied
consolidated financial reporting rules for groups and applicable provisions.
Effective January 1, 2019, Generic will prepare its annual and consolidated financial statements in accordance with the rules
for K3. The transition date to K3 is January 1, 2018.
The factors that affect the financial statements are
– Annual amortization of goodwill is calculated over a 10-year period starting from the date of acquisition in 2009.
– Income from discontinued operations is reported under the relevant accounting line item.
Stockholm, May 15, 2019
The Board of Directors of Generic Sweden AB (publ), corporate ID No. 556472-3632
Note
This information is required to be disclosed by Generic Sweden pursuant to the Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for disclosure at 5:00 p.m. on May 15, 2019.