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Details

  • Service: Tax
  • Type: Regulatory update, Survey report
  • Date: 1/1/2014

Sweden - Accounting 

International funds and fund management survey
1.1 Requirement to produce financial statements
1.2 Requirement to audit financial statements
1.3 Publication of financial statements
1.4 Accounting standards
1.5 Contents of financial statements
1.6 Accounting treatments and disclosures
1.7 Appendix


1.1 Requirement to produce financial statements

Requirement to maintain the books and records in the local jurisdiction


The Swedish Accounting Act of 1999 is not applicable to investment funds. The supervisor however, presumes that fund management companies comply with relevant provisions of the act. According to the Act, books and records must be maintained in Sweden.


Production of financial statements by collective investment funds


Collective investment funds are required to produce financial statements.


According to the Investment Fund Act, the fund management company is required to submit an annual report and half-year report each financial year.


Management need not sign the financial statements.


There are no formal requirements for directors to sign financial statements, but it is the normal practice. Most auditors require the annual report to be signed by the directors.


Choice of period/year-end for collective investment funds


This is not explicitly regulated, but most Swedish funds use the calendar year as the financial year.


Requirement for comparatives


Comparatives are required in both annual and half-year reports.


Restrictions on the currency under which financial statements must be prepared


The currency used is not explicitly regulated but almost all the Swedish funds use the Swedish Krona. There is however examples of funds denominated in Euro (EUR).


Accounting publications specific to the funds industry (as issued by accounting bodies or the regulators)


The following publications have been produced:


  • Swedish Financial Supervisory Authority: Regulations and guidelines with regard to Investment Funds (FFFS 2008:11)
  • Swedish Investment Fund Association: Recommendation for Key Ratio Accounting of Investment Funds.

Use of short-form accounts


Legislation does not provide for short-form accounts.


Umbrella schemes


It is not possible to set up umbrella schemes under Swedish regulation.


Classes of shares


As from 1 August 2011, it is possible to have investment funds with classes of shares, e.g. different fee or dividend structure.


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1.2 Requirement to audit financial statements

The Investment Funds Act of 2004 includes provisions for audit of annual reports.


It is not required to have interim financial statements audited.


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1.3 Publication of financial statements

The annual report must be published not later than the end of April and the half-year report not later than the end of August. The reports must only be delivered to unit-holders that, specifically asked to receive them, and shall be available at the offices of the management company and the depositary.


Accounts are not required to be filed with the regulator.


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1.4 Accounting standards

Swedish generally accepted accounting principles (GAAP) must be followed.


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1.5 Contents of financial statements

Requirements for inclusion in annual financial statements:


Required by law Required by GAAP (Swedish) Complied with for best practice
A statement which includes all income less expenses plus realized and unrealized gains and losses Yes Yes Yes
A statement which only includes income less expenses No No No
A statement which only includes income less expenses plus realized gains and losses No No No
Statements of net assets and liabilities Yes Yes Yes
Statement of changes in net assets Yes Yes Yes
Cash-flow statement No No No
Statement of accounting policies No Yes Yes
Five-year net asset value table Yes Yes Yes

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1.6 Accounting treatments and disclosures

The following items must be included in the annual financial statements:


Required by law Required by GAAP (Swedish) Complied with for best practice
Futures are shown on balance sheet using the grossed up notional amount No No No
Futures are shown on the balance sheet based on the margin outstanding Yes Yes Yes
Futures are shown on the balance sheet based on the margin outstanding and the margin paid to date No No No
Organization costs are written off immediately N/A N/A N/A
Organization costs are amortized over one year N/A N/A N/A
Organization costs are amortized over more than one year N/A N/A N/A
Issue costs are charged to the statement of operations No Yes Yes
Issue costs are netted off against creation proceeds No No No
Contingent deferred sales charges are recorded as income No Yes Yes
Contingent deferred sales charges are netted off against redemption proceeds No No No
Holdings in other collective investment funds are consolidated if the fund holds > 50 percent of the underlying collective investment fund's shares No No No

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1.7 Appendix

Reference material


The following details the relevant laws and regulations for collective investment funds and fund management companies and provides web addresses (in certain instances) for where this material can be located:



Regulator



Stock exchange



Taxation authority





© 2014 KPMG AB, a Sweden corporation and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

 

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Håkan Östebo

KPMG in Sweden

+46 70 313 6142

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