Electrolux applies International Financial Reporting Standards (IFRS) as adopted by the European Union. The financial reports have been prepared in accordance with IAS 34, Interim Financial Reporting, ÅRL (the Swedish Annual Accounts Act) and RFR 2 ‘Accounting for legal entities’ issued by the Swedish Financial Reporting Board.
Electrolux interim reports contain a condensed set of financial statements. For the Group this chiefly means that the disclosures are limited compared to the consolidated financial statements presented in the annual report. For the Parent Company this means that the financial statements in general are presented in condensed versions and with limited disclosures compared to the annual report.
The accounting policies adopted are consistent with those followed in the preparation of the Group’s Annual Report 2017, except for the adoption of new standards effective as of January 1, 2018. The Group’s accounting principles are described in Note 1 in the Annual Report 2017, including transition effects and accounting principles related to IFRS 15 Revenue from Contracts with Customers and IFRS 9 Financial Instruments, which are applied by Electrolux from January 1, 2018. Changes have been made to the 2017 restatement for IFRS 15 presented in the Annual Report 2017. The changes only impact trade receivables, accounts payable and other current liabilities in the balance sheet.
Preparations for new accounting standards
During 2018, Electrolux preparatory work related to new accounting standards to be applied after 2018 has covered IFRS 16 Leases. Extensive preparatory work has been performed throughout the group in order to implement IFRS 16. Work has comprised assessing the full impact of IFRS 16, identifying and reviewing lease contracts, designing processes and implementing a common system solution for the group in order to fulfill the account¬ing and reporting requirements, as well as collecting and analyzing lease contract data. The general impact of IFRS 16, the outcome of the preparatory work and the preliminary effects from applying the standard are described in the Annual Report 2018.