Financial Crime World

Implementation of International Financial Reporting Standards (IFRS) in Sweden

Adoption of IFRS

Sweden has adopted IFRS as issued by the European Union, which includes some modifications such as a temporary “carve-out” from IAS 39.

  • The adoption of IFRS is a significant step towards international harmonization of financial reporting standards.
  • Modifications to IFRS Accounting Standards are made to suit local law and practice.

Auditor’s Report and Basis of Presentation Footnote

The auditor’s report and/or basis of preparation footnote states that financial statements have been prepared in conformity with IFRS Standards as adopted by the European Union.

  • This ensures transparency and consistency in financial reporting.
  • It also helps investors and stakeholders make informed decisions based on reliable financial information.

Incorporation of IFRS Accounting Standards into Law or Regulations

Yes, IFRS Accounting Standards are incorporated into Swedish law and regulations.

  • This provides a clear framework for companies to follow when preparing their financial statements.
  • It also ensures that financial reporting is consistent with international standards.

Process for Endorsement/Adoption of New or Amended IFRS Accounting Standards

The process is described in the Profile of the European Union.

  • This process involves a thorough evaluation and endorsement of new or amended IFRS Accounting Standards.
  • It ensures that any modifications to IFRS Accounting Standards are made in accordance with EU regulations.

Modification of IFRS Accounting Standards

Sweden has made modifications to IFRS Accounting Standards, including BFNAR 2012-1, which is based on the IFRS for SMEs Standard but with many amendments and exceptions due to Swedish law and “Swedish practice” as well as to reflect Swedish tax law.

  • These modifications are made to suit local law and practice.
  • They also ensure that financial reporting is consistent with international standards.

Translation of IFRS Accounting Standards

Yes, IFRS Accounting Standards are translated into the local language (Swedish).

  • This ensures that financial reporting is accessible to a wider audience.
  • It also helps companies communicate their financial information effectively.

Application of the IFRS for SMEs Accounting Standard

Sweden has not adopted the IFRS for SMEs Accounting Standard for at least some SMEs, but has developed a national accounting standard (BFNAR 2012-1) based on the IFRS for SMEs Standard with many amendments and exceptions.

  • This allows SMEs to follow a simplified version of IFRS.
  • It also ensures that financial reporting is consistent with international standards.