TSC Annual Report 2024 final - Flipbook - Page 53
Notes - Financial statements
Note 1. Accounting principles
Statement of compliance with regulations applied
The annual report has been prepared in accordance with
the Law of Annual Reports in Insurance Companies (ÅRFL)
and The Swedish Financial Supervisory Authority’s rules,
and regulations regarding annual reports for insurance
companies (FFFS 2019:23) and the Swedish Financial
Reporting Board’s recommendation RFR 2. Law-limited
IFRS have been applied, which are international accounting
standards that have been adopted for use with the
limitations that follow from RFR 2 and FFFS 2019:23. This
means that all of the EU approved IFRS and statements
have been applied, to the extent possible given Swedish law
and with consideration given to the relationship between
accounting and taxation.
income statement.
The effects of changes in estimates are reported in the
period in which the change occurred, provided that the
change only has an effect on that period. Alternatively, if the
changes affect both current and future periods, changes are
reported in the period in which the change occurred and in
future periods.
The assessed value of premium receivables is equal to the
amount expected to be received. Reviews of outstanding
items are done on a continual basis.
The assessed value of recourse receivables is equal to the
amount expected to be received.
Unless otherwise stated, all amounts in the 昀椀nancial
statements are in USD thousands.
The assessed value of reinsurance receivables corresponds
to the amount agreed in the insurance contract.
The Club has a subsidiary in Hong Kong which, in accordance
with Chapter 7, Section 3a of the Swedish Annual Accounts
Act (ÅRL), has not been consolidated, since the subsidiary is
considered to be of lesser importance with regard to true and
fair view requirements.
The Club previously held an ownership interest in the
associated company, The Swedish Club Academy,
which was divested during the year.
Important estimates and assessments associated with
technical provisions have been based on assumptions about
future claims payments. Estimates are based on the Club’s
own historical statistics on prior claims outcomes. When
estimating technical provisions, consideration is given to
such things as unpaid claims, claims development including
changes in the Club’s assumptions within the scope of
International Group of P&I Clubs, changes in legislation,
judicial decisions and general economic development.
Assumptions when preparing the insurance
company’s 昀椀nancial statements
Hydra receivables are estimated to have a value equal to the
Club’s share of the captive company, Hydra.
USD is the Club’s accounting currency since most of the Club’s
income and expenses are in USD. It is also the most signi昀椀cant
currency used when making technical provisions and therefore,
the primary environment in which the Club runs the business.
The accounting principles stated below have been applied
consistently to all periods presented in the 昀椀nancial statements.
The Club converts transactions in foreign currency to
the currency rate applicable on the transaction day, both to
SEK and to USD. This 昀椀nancial statement is reported in USD
while SEK is used in of昀椀cial Swedish regulatory reporting, in
accordance with law-limited IFRS.
All assets and liabilities are registered in the original currency
and converted to USD and to SEK at the end of the reporting
period. This has the effect that the result in the two reporting
currencies differs as the bulk of the balance sheet consists of
USD. See Note 2.
Assets and liabilities are reported at cost, except for certain
昀椀nancial assets and liabilities that are measured at fair value.
Financial assets and liabilities that are measured at fair value
consist of assets classi昀椀ed as 昀椀nancial assets measured at
fair value through pro昀椀t or loss.
Assessments and estimates made when preparing
the 昀椀nancial statements
To prepare the financial statements, it is sometimes
necessary to make certain assessments and estimates.
These are based on experience and assumptions.
Assessments and estimates that have been made impact
the amounts reported in both the balance sheet and
Principles applied
New and revised standards applied by the Club
None of the new standards or amendments published after
1 January 2024 have had a signi昀椀cant impact on the Club’s
昀椀nancial statements.
New standards, amendments and interpretations
to existing standards that have not yet entered into
force and have not been early adopted
Several new international accounting standards, along with
revisions to standards and interpretations will come into
force as of the next 昀椀nancial year. None of these changes
is deemed to have a signi昀椀cant impact on the accounting.
The Club has no plans to elect early adoption on new or
revised standards.
IFRS 18, Presentation and Disclosures in Financial
Statements, comes into effect on January 1, 2027, with
retrospective application for the comparative year. The
Club will adapt its 昀椀nancial reporting in accordance with
the new standard and implement the necessary changes
in presentation and disclosures to ensure compliance.
Insurance contracts
All of the Club’s insurance contracts are de昀椀ned as insurance
contracts in accordance with FFFS 2019:23. Insurance contracts
are reported and measured in the income statement and balance
The Swedish Club | Annual Report 2024
53
