Accounting and Valuation Principles
Neonet AB (publ.) has introduced International Financial Reporting Standards (formerly IAS), in the form adopted by the European Union (EU), effective January 1, 2005. The consolidated financial statements follow the provisions of the Swedish Act on the Annual Reports of Credit Institutions and Securities Companies (ÅRKL), regulations FFFS 2003:11 issued by the Swedish Financial Supervisory Authority, which apply since the parent company is a financial holding company, as well as IFRS. A financial holding company is a company whose business consists entirely or almost entirely of the acquisition and management of shares in credit institutions and securities companies for profit. The financial statements of the parent company have been drawn up in accordance with the Swedish Annual Accounts Act (ÅRL) and Recommendation No. 32 (Accounting for Legal Entities) from the Swedish Financial Accounting Standards Council.