Axactor Annual Report 2016

Notes to the Consolidated Financial Statements Note 1 Corporate Information The Parent Company Axactor AB (publ), until late December 2015 named Nickel Mountain Group AB (publ), Swedish corporate identity number 556227-8043 is a joint stock corporation, domiciled in Stockholm. The registered address is Hovslagargatan 5B, bottom floor, SE-111 48 Stockholm. The company’s shares are traded in Norway on the Oslo Stock Exchange. The corporation’s activities consist of debt collection since late 2015. The debt collection business segment arose with the first acquisition and consolidation of the Spanish debt collection company ALD Abogados SL in December 2015, followed by new acquisitions of Companies in 2016 in Norway, Italy and Germany. The Annual Report and Parent Company Report for Axactor AB (publ) were adopted by the Board of Directors on April 19, 2017 and will be submitted for approval to the Annual General Meeting on May 31, 2017. Note 2 Summary of significant Accounting Principles 2.1 Basis for the preparation The Consolidated Statements have been compiled in accord- ance with EU-approved International Financial Reporting Standards (IFRS) and interpretations of the International Financial Reporting Interpretations Committee (IFRIC). In addition, the Group applies the Swedish Financial Reporting Board’s recommendation RFR 1 “Supplementary accounting regulations for corporate conglomerates” specifying the supplements to IFRS required pursuant to the stipulations of the Swedish Annual Accounts Act. The Parent Company’s functional currency is the Swedish krona (SEK) and this is also the reporting currency for both the Group and the Parent Company. All amounts in the financial reports are stated in thousands of Swedish kronor (TSEK) unless otherwise specified. There is made a decision that from 01.01.2017 the presentation currency for the Group will be held in EUR. Items have been valued at their acquisition value in the consolidated accounts, with the exception of certain financial assets and liabilities, which have been valued at their fair value. The Parent Company’s accounting principles follow those of the Group with the exception of the mandatory regulations stipulated in the Swedish Financial Reporting Board’s recommendation, RFR 2 “Accounting for legal entities”. The most important accounting principles that have been applied are described below. These principles have been applied consistently for all years presented, unless otherwise specified. 2.2 Consolidation principles The Group’s consolidated financial statements comprise Axactor AB and entities in which Axactor AB has control over. The group controls an entity when the group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The balance sheets of the subsidiaries located outside Sweden are converted using the current exchange rates of the last day of the reporting period. The currency rate used in the income statements is the average rate for the entire reporting period. All group transactions and group unsettled matters, and profit and losses for transactions between group companies that are put into effect, are eliminated at the consolidation. A subsidiary is included in group accounts from the date of the acquisition, which is the day when the group obtains control of the company. The company is consolidated until such control ceases to exist. Control is considered to exist when the group has the right to form the future strategies of a subsidiary, in order to achieve economic advantages. A non-controlling interest is the part of a subsidiary’s result and net assets that is not, directly or indirectly, owned by the Parent Company. The non-controlling interest’s part of the result is included in the consolidated result after tax. The non-controlling interest’s part of the equity is included in the consolidated equity, but is accounted for separately from the equity that is related to the shareholders of the Parent Company. Axactor AB | Annual report 2016 31