Loading presentation...

Present Remotely

Send the link below via email or IM


Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.


Make your likes visible on Facebook?

Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.

No, thanks

The accounting system of Sweden

No description

cristina jandic

on 8 February 2014

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of The accounting system of Sweden

The accounting system of Sweden
Accounting records
Swedish accounting rules are mainly based on two
legal frameworks :
• the Book Keeping Act , and
• the Annual Accounts Act.

All legal forms are required to maintain accounting
records according to the Book Keeping Act chapter
2, § 1. The books are kept according to the double -
entry method.

Accounting records are to be kept in the Swedish currency (SEK), or in Euro (EUR); and generally accepted accounting principles (GAAP) have to be followed.
Companies have the option to adopt any book keeping system they find desirable. The most companies apply the accounting plan called EU BAS.

Accounting principles

Going concern assumption;
• Consistency between accounting periods, comparability;
• Prudence principle;
• Realization principle;
• Accrual accounting;
• Item by item principle;
• Gross recognition (no right of offset);

Sweden has not implemented the so called “true and fair override” rule from the Fourth Council Directive. This means that Swedish companies have to follow the law in all their parts and cannot do anything else with reference to true and fair view.

The major standard setters in Sweden are the Swedish Accounting Standards Board called Bokföringsnämnden, and the Swedish Financial Accounting Standards Council called Redovisningsrådet.

In Sweden, there is a linkage between tax and accounting. In some areas accounting is influenced from the tax law and in other areas the taxation is based on accounting rules. The Swedish tax law makes a reference to generally accepted accounting principles if there are no specific tax rules applicable. Areas were tax is linked to accounting rules are for example revenue recognition and provisions.
In Sweden the Book Keeping Act and the
Annual Accounts Act provide definition, also
based on Fourth Council Directive 78/660/EC,
of small and large companies.
The definition is the same for all legal forms.
All companies that are listed on a statutory market are large companies.

Companies that reach more than one of the following criteria during the last two financial years are also large companies:
• Net turn over: more than SEK (Swedish Krona) 50,000,000 (nearly € 5,000,000);
• Balance sheet total: more than SEK 25,000,000 (nearly € 2,500,000);
• Number of employees (average): more t han 50.

The valuation principle stated in the Swedish Account Act is based on the historical cost approach with only very few exceptions. Non-current assets have to be valued to their purchase or manufacturing cost. Non -current assets with definite useful life have to be amortized or depreciated over this period.
Also, current assets have to be valued to their purchase or manufacturing cost. At balance sheet day all current assets have to be measured at the lowest of historical cost and net r ealizable value.
Annual accounts and financial statement
The annual accounts for small companies have to consist of a balance sheet, an income statement, notes and a management (directors) report.

The financial statements can be prepared in normal readable format or electronic format. It has to be in th e Swedish language. The numbers have to be presented in Swedish currency, SEK, or Euro, EUR.

The Sole Trader has to close the accounts by annual financial statements. If the net turnover is lower than SEK 3,000,000 a year it is possible to make a simplified annual financial statement.
Balance Sheet
Income statement
Full transcript