The Council for Swedish Financial Reporting Supervision (”the council”) has conducted a review of the Company’s (”the company”) Annual Report for 2019 and has asked the company questions on September 22nd and November 26th 2020. The council has taken note of the company’s responses dated October 28th and December 7th 2020. Based on the written exchange and other communication in this review, the council is of the view that the company in some respects deviates from applicable regulations within IFRS regulations. The council’s view is presented below. The Company has been given an opportunity to comment on The Council’s preliminary assessment in a verification letter dated December 17th 2020. The company submitted a comment to the verification letter dated January 8th 2021 which has been taken into account in the final assessment below in applicable parts.
Information about geographical areas (IFRS 8)
According to IFRS 8 p 33 a) companies shall report revenues from external customers attributed to the entity’s country of domicile and attributed to all foreign countries in total from which the entity derives revenues. If revenues from external customers attributed to an individual foreign country are material, those revenues shall be disclosed separately.
In its annual report of 2019, the company has disclosed information about revenues from geographical areas and revenues for each segment.
The council has requested the company to submit quantitative information regarding the revenue from [Country A] which is the company’s country of domicile, and a specification of total revenue for each of the three countries which has the highest amount of revenue for respective region.
The specification states that the company has revenues from [Country A], which is the company’s country of domicile, and material revenues from [Country B], [Country C], [Country D] and [Country E] that each individually amount to an interval of 13–23 % of the company’s total revenue. The council assesses that the revenue from each of the mentioned countries to be material and is of the opinion that each country shall be disclosed separately according to IFRS 8 p 33 a).
The council considers that the omitted information is a minor violation of the regulations according to 13 § in the Swedish Financial Supervisory Authority’s regulations (FFFS 2018:8) and concludes the review with a decision to request the company to provide the complementary geographical information on revenue separately for [Country A], which is the company’s country of domicile, and for each other country in which the company has individual material revenue according to IFRS 8 p 33 a).
With regard to other issues that have occurred in the investigation, the Council has nothing further to state.