What are fixed assets and inventories
1 § With a fixed asset of course access that is intended to be permanently used or held for business. With current assets of course another asset.
If the company is run by a natural person or an estate, , animals in farming or herding is considered a current asset regardless of the intent of holding. Create (1999:1112).
2 § Expenditure on research- and development and similar projects that are of significant value to the business in future years may be listed as intangible fixed assets. The same applies to expenditure on concessions, patent, licenses, brands, tenancy rights and similar rights and assets, and compensation for the acquisition of motion than the retained value of the assets acquired and liabilities assumed (goodwill).
Expenditures for business formation, increase the share capital or the equivalent or the company's management may not be recognized as assets. Create (1999:1112).
Acquisition of fixed assets
3 § Fixed assets should be recorded at amounts equivalent to the expenditure for the asset acquisition or production (cost), subject of 4-6 §, 12 §, 13 a §, 14 a §, 14 e § or 14 f §.
The cost of an asset acquired shall be included in, in addition to purchase price, expenses directly attributable to the acquisition.
The cost of a manufactured asset shall be included in, in addition to those costs directly attributable to the production of the asset, A reasonable proportion of manufacturing overheads.
Interest on capital borrowed to finance the production of an asset may be included in the cost to the extent that it relates to the production period. If interest is already included in the cost, must disclose that fact and the amount has been included given in the notes.
Expenses for value enhancing improvements to an asset may be included in the cost, if they have closed down in the fiscal year, or balance from previous years. Create (2004:1173).
Depreciation of fixed assets
4 § Fixed assets with finite useful lives be amortized systematically over this period.
The useful life of an intangible asset referred to in 2 § shall be deemed to amount to more than five years, unless a different time, with reasonable certainty can be established. If such a longer period of depreciation applied, it should be in a note submitted disclose that fact. The note, in this case also, the reason for the longer amortization period.
Depreciation shall be recognized in profit. Other accounts may be applied, if there are special circumstances and is consistent with 2 Chapter. 2 and 3 §§. Create (2004:1173).
Impairment of fixed assets
5 § Have a current asset on the balance sheet date a lower value than the value resulting from 3 § and 4 § first paragraph, access shall be written down to this lower value, if it can be assumed that the impairment is permanent.
A financial asset must be written down to the lower value of the asset at the balance sheet date, even if it can not be assumed that the decline in value is permanent.
An impairment loss in the first or second paragraph shall be returned, if there are no longer grounds for the.
Impairment losses and reversals referred to in the first three paragraphs shall be recognized in profit.
Revaluation of fixed assets
6 § A limited company or an economic union plant that has a reliable and lasting value that substantially exceeds the book value according to 3 §, 4 § first paragraph, 5 § first to third paragraphs and 12 § can be printed up to this value. Revaluation may be made only if the revaluation amount is used for transfer to a revaluation reserve or, in limited liability companies, to increase share capital through a bonus issue or rights issue.
In connection with the write-ups, it should be in the notes provided information about how the revaluation amount is treated for tax purposes.
Amortization and impairment of the asset that has been written up, after the revaluation is calculated based on the revalued amount. Create (2004:1173).
7 § A corporation may take the revaluation reserve space for
1. increase share capital through a bonus issue or rights issue,
2. covering of loss according to the adopted balance sheet when the loss can not be covered by unrestricted equity.
A decision to take the revaluation reserve in order to cover a loss in the first paragraph 2 may be taken only after the auditors' hearing. Before three years have elapsed from the decision takes dividends imposed only if the Companies Registration Office or, in case of dispute, general court gives permission to do so or if the share capital has been increased by at least an amount equal to the loss that has been covered with the revaluation amount. In the case of Companies Registration Office or the court's permission for 20 Chapter. 25-29 § § Companies (2005:551) mutatis mutandis. Create (2005:918).
8 § At the depreciation according to 4 § or impairment in accordance 5 § or the sale or disposal of the asset revaluation reserve shall be reduced accordingly, limit of the portion of the revaluation reserve corresponding to the availability.
The decrease in the revaluation reserve in cases referred to in the first subparagraph may be made only by
1. Fund, as explained 7 §,
2. the part of the revaluation reserve equal to depreciation or impairment is transferred to unrestricted equity, or
3. the part of the revaluation reserve equal to a divested asset is transferred to unrestricted equity.
Valuation of stocks
9 § Current assets shall, subject of 10 §, 12 §, 13 a §, 14 a §, 14 e § or 14 f §, admitted to the lower of cost and net realizable value at balance sheet date.
With the cost of course, subject of 11 §, costs of asset acquisition or manufacturing. In determining the cost applicable 3 § second to fourth paragraphs.
Net realizable value refers to the sale value less estimated selling expenses. If there are special reasons, get replacement value, where appropriate allowances for obsolescence, or any other value that is consistent with 2 Chapter. 2 and 3 § § used instead of the net realizable value.
With replacement value means the amount equal to the cost of acquiring the company would have had, if the asset acquired at the reporting date.
If the company is run by a natural person or an estate, , animals in farming or herding are valued at the value established by the Tax. Create (2004:1173).
Valuation of work in progress
10 § Work on behalf of another person may be valued at the amount that exceeds the cost, if there are special reasons, and there is compliance with 2 Chapter. 2 and 3 §§.
Inventory cost
11 § The cost of inventories of similar assets may be calculated using the first-in-first-out principle, weighted average prices or any other similar principle. The last-in first-out principle may not apply.
If the value obtained following such a calculation is materially different from the inventory net realizable value at the balance sheet date, the larger companies enter the difference is in the notes on the distribution of the items included in the balance. Net realizable value is then calculated according to 9 § third paragraph, first sentence. Create (2006:871).
Accounting for fixed quantity and fixed value
12 § Tangible assets, raw materials and supplies that are replaced and the overall value is of secondary importance for the company, may be raised to a fixed amount and a fixed value, their quantity, value and composition does not vary significantly. Create (1999:1112).
Translation of assets and liabilities
13 § Assets and liabilities in currencies other than the reporting currency may be converted into the reporting currency using the exchange rate at the balance sheet date, if it is in accordance with 2 Chapter. 2 and 3 §§. Create (2000:34).
Recognition by the equity method
13 a § Companies referred to in 3 Chapter. 4 a § second paragraph may account for investments in associated companies in the balance sheet and income statement under the provisions of 7 Chapter. 25-29 §§, if it is consistent with 2 Chapter. 2 and 3 §§. Create (2004:1173).
Treasury Shares
14 § Treasury shares may not be recognized as an asset.
When valuing a parent's shares in a subsidiary should share that subsidiary owns the parent entity is not considered to have any value. Create (2001:934).
Valuation of financial instruments
14 a § Derivatives and other financial instruments to be recognized at their fair value, subject of 14 b §.
The fair value is determined on the basis of the instrument,. If no market value can be determined for an instrument but for its components or for a similar instrument, the fair value determined on the basis of the constituents or similar instrument's market value. If that does not require such an assessment is possible, the fair value determined by such generally accepted valuation models and techniques that provide a reasonable estimate of market value.
Valuation under the first paragraph may be made only when all of its financial instruments, except those for which 14 b § not at fair value, valued in the same way. Create (2003:774).
14 b § The following financial instruments may not be valued according to 14 a §:
1. financial instruments held to maturity and which are not derivative,
2. loans and other receivables originated by the company and not held for trading,
3. interests in subsidiaries, associates or joint ventures,
4. equity instruments of the company itself has released,
5. contracts for contingent consideration in connection with acquisitions and mergers,
6. liabilities, with the exception of liabilities included as part of a trading portfolio or represent derivatives, still
7. other financial instruments, which is of such special characteristics that they, as is generally accepted should be accounted for differently. Evaluation of 14 a § must not be pursued, if such a valuation would not provide a reliable value of the financial instrument.
Companies referred to in 3 Chapter. 4 a § second paragraph, although the first paragraph where the value specified financial instruments as 14 a §, to
1. it is compatible with international accounting standards referred to in the European Parliament and Council Regulation (EG) No 1606/2002 of the 19 July 2002 Application of International redovisningsstandarder5, and
2. information on the valuation made in accordance with these standards. Create (2009:34).
14 c § For the purposes of 14 a and 14 b § § shall contract for crude- and commodities and gives either party the right to regulate the contract with cash or another financial instrument is considered to be derivative. This does not apply if the contract
1. was entered into to cover the company's expected needs of the purchasing, sale or own consumption of raw- and commodities,
2. even after the agreement has met this need,
3. designated for such purpose when it was concluded, and
4. expected to be settled by delivery of the goods. Create (2003:774).
14 d § If the value is set according to 14 a §, the change in value since the previous reporting date is recognized in the income.
In the following cases applies to the change in value must be reported in a fair value rather than in the income statement:
1. change in value relates to a hedging instrument and the principles applied for hedge accounting allows a portion or all of the change in value not reported, or
2. change in value relates to an exchange difference arising on a monetary item that forms part of the company's net investment in foreign operations.
A change in value of a financial asset that is not held for trading purposes, nor is any derivative instruments may be recognized in the fair value rather than in the income statement.
When there is no longer reason to report an amount in the fair value, Fund shall be adjusted. Create (2004:1173).
The valuation of hedged items
14 e § If an asset, provision or liability or a part thereof has been secured against a financial instrument is valued according to 14 a §, shall also be the hedged item is carried under that section, if they applied the principles of hedge accounting permits. Thereby the 14 d § apply. Create (2003:774).
Valuation of certain assets at fair value
14 f § Companies referred to in 3 Chapter. 4 a § second paragraph may include biological assets, investment property and other tangible assets and intangible assets to fair value, if it is consistent with 2 Chapter. 2 and 3 §§. The fair value is determined on the basis of the asset's market value.
Valuation under the first paragraph may be made only when all of its assets within the same category are measured in the same way. Create (2004:1173).
14 g § If a biological asset or an investment property measured at fair value in accordance 14 f §, the change in value since the previous reporting date is recognized in the income.
If another asset referred to in 14 f § valued in accordance with that section, the change in value since the previous reporting date is recognized in the fair value. An increase in value should instead be recognized in profit, if it represents a reversal of previously expensed depreciation of the asset. An impairment loss is recognized in profit, if it exceeds what was previously reported as an increase in value of the asset in the fair value.
When there is no longer reason to report an amount in the fair value, Fund shall be adjusted. Create (2004:1173).
Accrual of certain figures in the raising of loans
15 § Capital discount and direct issue costs in raising loans be accrued, However, most of the time until the debt falls due. Such accruals are not required if it is irrelevant to the requirement in 2 Chapter. 3 § the true image.
Conversion of subordinated debentures
16 § If a cooperative has subordinated debentures in currencies other than the reporting currency, shall be converted at exchange rates prevailing at balance sheet date. The difference between the amount converted and the corresponding figure on the financial input, shall be against the Profit or Loss. Create (2000:34).
16 § Repealed (1999:1112).