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K3 fundamentals

Consolidation obligation (ÅRL)

Rule

Reference

Requirement

Obligation trigger

ÅRL (Årsredovisningslagen)

Parent must prepare consolidated financial statements when it controls one or more subsidiaries — control through majority voting rights or board appointment right.

K3 applicability threshold

BFN K3 / ÅRL

Entities meeting at least 2 of 3 on 2 consecutive years: more than 80 employees, balance sheet above threshold, revenue above threshold — verify current ÅRL thresholds at implementation.

World-wide principle

ÅRL

Include all subsidiaries regardless of seat and legal form.

Exclusion options

ÅRL

May exclude entities with lasting restrictions, disproportionate cost, held for resale, or of minor importance.

Note: K3 applicability thresholds are subject to legislative update. Verify current thresholds against ÅRL at implementation.

Goodwill and negative goodwill (K3)

  • Acquisition method is mandatory for business combinations.

  • Assets and liabilities of the acquiree measured at fair value at acquisition date (PPA).

  • Goodwill is amortized over its useful economic life — K3 applies scheduled amortization.

  • If useful life cannot be reliably estimated, K3 specifies a maximum amortization period — verify the current maximum per BFNAR 2012:1 at implementation.

  • Negative goodwill — recognized per K3 guidance; confirm treatment with a K3-qualified accountant.

Note: K3 goodwill amortization maximum period and negative goodwill treatment must be confirmed against current BFNAR 2012:1 at implementation.

Currency translation (K3)

Account type

Rate

K3 basis

P&L accounts

AVG (genomsnittskurs)

Average rate for the period.

Balance sheet accounts

END (balansdagskurs)

Closing rate at period end.

Equity (except period result)

HISTAVG (historisk kurs)

Rate at the date each equity component originally arose — fixed permanently. Not the opening rate of the current period.

Omräkningsdifferens

CTR (plug)

Translation difference posted within equity. K3 does not use OCI terminology.

Note: Historical rate and opening rate are distinct under K3 as under HGB. Each equity component keeps its own original historical rate permanently — do not assign the opening rate to equity accounts.

Mandatory financial statements (K3 / ÅRL)

Statement

Swedish term

Status in Lineos

Consolidated balance sheet

Koncernbalansräkning

Covered

Consolidated income statement

Koncernresultaträkning

Covered

Consolidated cash flow statement

Koncernkassaflödesanalys

Confirm activation with Paul

Statement of changes in equity

Förändringar i koncernens eget kapital

Confirm activation with Paul

Notes to consolidated accounts

Koncernens noter

Manual — outside engine

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