2022:1 Känslighetsanalys avseende valutakursrisk (IFRS 7)

The Council for Swedish Financial Reporting Supervision (”the council”) has conducted a review of Company’s (” the company”) Annual Report for 2020 and has asked the company questions on October, 20^th 2021. The council has taken note of the company’s responses dated November, 15^th 2021. 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 22^nd 2021.

Sensitivity analysis regarding currency risk – IFRS 7

The annual report for 2020 states that the company is exposed to currency risk (foreign exchange risk) arising from number of various foreign currencies. The sensitivity analysis presented in the annual report however, only shows the total impact on profit and equity of an increase or decrease of 10 % in the exchange rate for all currencies.

According to IFRS 7 Financial Instruments, paragraph 40, a company shall disclose a sensitivity analysis for each type of market risk, including currency risk, to which the company is exposed. The sensitivity analysis shall show how profit and equity would have been affected by reasonably possible changes in the current exchange rate. The application guide to the standard, point B24, states that a sensitivity analysis shall be disclosed for each currency to which the company has significant exposure.

The council 's view is that the sensitivity analysis must be disclosed for each significant currency separately in accordance with point B24 in the application guide, and that the present disclosures do not provide a complete picture of the foreign exchange risk to which the company is exposed.