TSC Annual Report 2024 final - Flipbook - Page 55
Notes - Financial statements
currency risk is arising from highly probable forecasted
operational expenses.
Financial instruments
Financial instruments reported in the balance sheet
as instruments:
• Accounts receivable (reported under the
heading “Receivables”).
• Shares and participating interests
• Bonds and other interest-bearing securities
Items reported as liabilities or equity include:
• Trade creditors (reported under the heading “Liabilities”)
• Forward exchange agreements
Reporting of 昀椀nancial assets and removal from the
balance sheet
A financial asset or financial liability is reported in the
balance sheet when the Club becomes a party to the
instrument’s contractual terms (economic approach),
except for instances when the Club acquires or disposes
listed securities (for these, cash/settlement approach is
applied). Accounts receivables are reported in the balance
sheet when an invoice has been sent. A liability is reported
when the counterparty has completed performance and
there is a contractual liability to pay, even if the invoice
has not yet been received. Accounts payable, however, are
reported when an invoice has been received. A 昀椀nancial
asset is removed from the balance sheet when the rights
in the agreement have been realized, expire or when the
company loses control over them. The same applies to a
part of a 昀椀nancial asset. A 昀椀nancial liability is removed from
the balance sheet when the obligation in the agreement has
been ful昀椀lled or in some other way extinguished. The same
applies to part of a 昀椀nancial liability.
Offset of 昀椀nancial instruments
Offsetting of a 昀椀nancial asset and 昀椀nancial liability and
reporting them at a net amount in the balance sheet only
occurs when there is a legally enforceable right to set-off
and the intention either is to settle on a net basis or is to
realise the 昀椀nancial asset and settle the 昀椀nancial liability
simultaneously.
Classi昀椀cation and measurement of 昀椀nancial assets
At valuation, financial assets are divided into the
following categories:
• Financial assets measured at amortised cost
• Financial assets measured at fair value through pro昀椀t or loss
• Financial assets measured at fair value through other
comprehensive income
Initial recognition of a 昀椀nancial instrument is based on the
purpose for which the instrument was acquired. The initial
classi昀椀cation also determines how the 昀椀nancial instrument
shall be measured going forward, as described below.
Financial assets measured at amortised cost
These are balance sheet assets reported in the categories
“other receivables” and “cash and bank balances”. Both are
measured at amortised cost. Bank deposits have repayment
cover. As such, anticipated credit losses are insigni昀椀cant
since the investments are secured by the Swedish State.
Financial assets measured at fair value through pro昀椀t
or loss
These are balance sheets assets as reported in “quoted
shares” and “bonds and other interest-bearing securities”. The
measurement method used is fair value through pro昀椀t or loss
because they are continually measured based on fair value.
Measurement of the Club’s investment assets at fair value is
at the current buying rate based on prices quoted on an active
market regarding Level 1 and Level 2. Measurement of the
Club’s investment assets at fair value regarding Level 3 is based
on information from the Club’s investment manager. See Note 2.
Financial assets measured at fair value through
other comprehensive income
These are forward exchange contracts measured at fair value
through other comprehensive income. The measurement
method used is fair value through other comprehensive income
because they are continually measured based on fair value. The
unrealised pro昀椀ts and losses that arise as a result of changes
in market value is reported after tax via other comprehensive
income and becomes a part of “other reserves” in equity until the
underlying contracts of the assets have expired and are removed
from the balance sheet.
Classi昀椀cation of 昀椀nancial liabilities
Borrowings and other financial liabilities, such as trade
creditors, are included in the category, Financial liabilities.
These are valued at amortised cost. In the event that the
measured fair value from forward exchange contracts is
negative it is classified as a financial liability. See Note 2.
Determination of fair value
For a description of the methods and assumptions used by
the Club to establish the fair value of 昀椀nancial instruments.
See Note 2.
Intangible assets
Intangible assets are valued at cost less accumulated
amortisation and any impairment losses. Amortisation is
calculated on a straight-line basis over a useful life of 昀椀ve years
starting from the time when the system is put into operation.
Tangible assets
Machinery and equipment are reported at cost less accumulated
depreciation according to plan, which is based on the useful life
of the assets plus any write-downs. Depreciation is calculated
on a linear basis over a useful life of three or 昀椀ve years. For
improvements made on property owned by others, depreciation
is calculated on a linear basis over a 20-year period.
Subsidiaries and associated companies
A subsidiary is a company that is subject to a controlling
influence by the Parent Company. Controlling influence is the
right to, directly or indirectly, formulate a company’s 昀椀nancial
or operating strategies to obtain economic bene昀椀ts.
Associates are companies in which the Group has
a significant (but not controlling) influence over the
operating and financial management, usually through
holdings corresponding to 20-50 % of the votes. Shares in
subsidiaries and participations in associated companies
are reported in accordance with the cost method. Any
dividends received are reported as income.
The Swedish Club | Annual Report 2024
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