Doing Business In Sweden - Financial Reporting

Under the Accounting Act, a business must prepare financial statements at the end of each financial year. These statements must include a balance sheet, a statement of earnings and notes to the financial statements. Groups must present this information for the parent company and on a consolidated basis. The Companies Act expands those requirements for limited companies, requiring them to prepare an annual report that includes a directors' report in addition to the financial statements. The directors' report must include the information necessary to understand the company's (and group's) results and financial position. Important post-balance sheet events must also be disclosed. Large companies must also submit a statement of changes in financial position, and the financial statements must present comparative figures for the previous financial year.