K3 FAQ

How does K3 differ from IFRS for consolidation?

The main differences are: goodwill treatment (K3 uses scheduled amortization; IFRS uses impairment-only), currency translation reserve (K3 posts Omräkningsdifferens within equity; IFRS posts FCTR to OCI and recycles on disposal), and proportional consolidation for joint ventures (valid under K3; not permitted for JVs under IFRS 11).

What is the maximum goodwill amortization period under K3?

K3 specifies a maximum amortization period for goodwill where the useful life cannot be reliably estimated. Verify the current maximum against BFNAR 2012:1 at implementation — this is subject to update.

How is the Omräkningsdifferens different from OCI under IFRS?

The Omräkningsdifferens is posted directly within equity in the Koncernbalansräkning — there is no separate statement of other comprehensive income. Under IFRS, the FCTR is presented in OCI and reclassified to profit or loss on disposal of the foreign operation. Under K3, the Omräkningsdifferens stays in equity and is not recycled.

What if opening balances differ from prior closing?

Run the Carry Forward report from Phase 2. The only expected difference is in Balanserade vinstmedel (retained earnings), where the opening balance = prior closing retained earnings + prior period net profit. All other balance sheet accounts should match exactly. If they don't, check the prior-period closing balance and re-run if needed.