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 2.2 “Accounting for Legal Entities” and other statements issued by the Swedish Financial Reporting Board. As encouraged by the Financial Reporting Board, TeliaSonera has pre-adopted RFR 2.2. 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 2.2 states that as a main rule listed parent companies should apply IFRSs and specifies exceptions and additions, caused by legal provisions or by the connection between accounting and taxation in Sweden.
Measurement bases and significant 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 |
|---|---|---|
| Goodwill | 6, 9 | Goodwill is amortized systematically over a maximum of 5 years. |
| Group contributions/Untaxed reserves and appropriations | 7, 8 | 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. |
| Borrowing costs | 7, 9, 10 | Borrowing costs directly attributable to the acquisition, construction or production of an asset are not capitalized as part of the cost of that asset. |
| Investments in subsidiaries and associated companies | 7, 11 | 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 | 7, 16 | Pension obligations and pension expenses are recognized in accordance with FAR SRS accounting recommendation No. 4 (RedR 4). |
| Leasing agreements | 23 | All leasing agreements are accounted for as operating leases. |
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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.
Recently issued accounting standards
For information relevant to TeliaSonera AB, see “Notes to Consolidated Financial Statements” (corresponding section in Note 1).
Key sources of estimation uncertainty
For information relevant to TeliaSonera AB, see “Notes to Consolidated Financial Statements” (Note 2).