Note 22 – Equity
Share capital and shares outstanding
|Issued capital at January 1||13,010,124||260,202,495|
|Reverse share split (1:20)||–||-247,192,371|
|Issued capital at December 31||13,010,124||13,010,124|
At December 31, 2017, registered share capital amounted to 13,010,124 (13,010,124) common shares. The quotient value per share is SEK 20.00 (20,00). Holders of common shares are entitled to dividends, the amount of which is set each financial year and shareholdings convey voting rights at the Annual General Meeting of one vote per share. All shares convey equal rights to the Company’s remaining net assets.
Other capital contributions
Refers to capital contributions from shareholders. Includes share premium reserves transferred to the statutory reserve at December 31, 2005. Share premium reserve provisions are also reported as capital contributions as of January 1, 2006.
The translation reserve comprises of exchange differences arising from translation of the financial statements of foreign operations that have prepared their financial statements in a currency other than the currency in which consolidated financial statements are presented. The Parent Company and Group present their financial statements in Swedish kronor (SEK).
Hedging of net investments in foreign subsidiaries is also recognized in the translation reserve. This consists of exchange rate differences arising from the revaluation of liabilities recognized as hedging instruments of a net investment in a foreign operation. The amount is based on tax consequences.
|Carrying amount at January 1||24||18|
|Exchange rate difference for the year||16||20|
|Hedging of net investments in foreign subsidiaries||-12||-18|
|Tax attributable to hedging of net investment in foreign subsidiary||3||4|
|Carrying amount at end of period||31||24|
Retained earnings including profit/loss for the year
Retained earnings including profit for the year include earnings in the Parent Company and its subsidiaries. This equity item includes prior provisions to the statutory reserve, excluding transferred share premium reserves.
|Balance at January 1||26,920||21||538,381||21|
|Reverse share split (1:20)||–||–||-511,461||–|
|Closing balance at end of period||26,920||21||26,920||21|
Acquisition of treasury shares are recognized directly in retained earnings.
Dividends that reduce restricted reserves are prohibited.
The purpose of the statutory reserve has been to save a portion of net profits not used to cover retained losses. The statutory reserve also includes the amount transferred to the share premium reserve prior to January 1, 2006.
Comprises of prior years’ non-restricted equity after distribution of profits, if any. Combined with profit for the year, the total makes up non-restricted equity, which is the amount available for distribution to shareholders.
Share premium reserve
When shares are issued at a premium, that is, when more must be paid for the shares than their quotient value, an amount equal to the amount received in excess of the quotient value of the shares must be transferred to the share premium reserve. The amount transferred to the share premium reserve from January 1, 2006 is included in non-restricted equity.