Annual Report 2007 - Financial StatementsNote 1 (Parent Company) - Basis of Preparation
General
The parent company TeliaSonera AB's financial statements have been prepared in accordance with the Swedish Annual Accounts Act, other Swedish legislation, and standard RFR 2.1 "Accounting for Legal Entities" and other statements issued by the Swedish Financial Reporting Board. As encouraged by the Board, TeliaSonera has pre-adopted RFR 2.1. The standard is applicable to Swedish legal entities whose equities on the balance sheet day are listed on a Swedish stock exchange or authorized equity market place. In their consolidated financial statements such companies have to comply with the EU regulation on international accounting standards, while they still have to comply with the Annual Accounts Act in their separate financial statements. RFR 2.1 states that as a main rule listed parent companies should apply IFRS and specifies exceptions and additions, caused by legal provisions or by the connection between accounting and taxation in Sweden.
Measurement bases and accounting principles
With the few exceptions below, TeliaSonera AB applies the same measurement bases and accounting principles as described in "Notes to Consolidated Financial Statements" (Note 4).
| Item | Note | Accounting treatment |
|---|---|---|
| Group contributions/Untaxed reserves and appropriations | 8.,9 | Group contributions net received are recognized as dividends from subsidiaries, while if net rendered are recognized directly in shareholders' equity, net of income tax. Untaxed reserves and appropriations are reported gross excluding deferred tax liabilities related to the temporary differences. |
| Goodwill | 7.,10 | Goodwill is amortized systematically over a maximum of 5 years. |
| Investments in subsidiaries and associated companies | 8.,12 | Investments in subsidiaries and associated companies are recognized at cost less any impairment. Dividends received are brought to income. |
| Provisions for pensions and employment contracts | 8.,17 | Pension obligations and pension expenses are recognized in accordance with FAR SRS accounting recommendation No. 4 (RedR 4). |
| Leasing agreements | 24 | All lease agreements are accounted for as operating leases. |
Following a review, management decided in 2007 to report certain balance sheet items related to cash-pool balances gross instead of net. The comparative year was recalculated accordingly, increasing the balance sheet total by SEK 22,917 million, affecting line items Trade and other receivables and Short-term borrowings, respectively.
Amounts and dates
Unless otherwise specified, all amounts are in millions of Swedish kronor (SEK million) or other currency specified and are based on the twelve-month period ended December 31 for income statement and cash flow statement items, and as of December 31 for balance sheet items, respectively.
- Parent Company Income Statements
- Parent Company Balance Sheets
- Parent Company Cash Flow Statements
- Parent Company Statements of Changes in Shareholders' Equity
- 1 Basis of Preparation
- 2 Critical Accounting Policies, Estimates and Assumptions
- 3 Net Sales
- 4 Operating Expenses
- 5 Other Operating Income and Expenses
- 6 Related Party Transactions
- 7 Amortization, Depreciation and Impairment Losses
- 8 Financial Income and Expenses
- 9 Income Taxes
- 10 Goodwill and Other Intangible Assets
- 11 Property, Plant and Equipment
- 12 Other Financial Assets
- 13 Inventories
- 14 Trade and Other Receivables
- 15 Short-term Investments, Cash and Cash Equivalents
- 16 Shareholder's Equity
- 17 Provisions for Pensions and Employment Contracts
- 18 Other Provisions
- 19 Long-term and Short-term Borrowings
- 20 Long-term Liabilities
- 21 Short-term Provisions, Trade Payables and Other Current Liabilities
- 22 Financial Assets and Liabilities by Category
- 23 Financial Risk Management
- 24 Operating Lease Agreements
- 25 Contingencies, Other Contractual Obligations and Litigation
- 26 Cash Flow Information
- 27 Human Resources
- 28 Auditors' Fees and Services
- 29 Specification of Shareholdings and Participations