1.1 Requirement to produce financial statements1.2 Requirement to audit financial statements 1.3 Publication of financial statements1.4 Accounting standards1.5 Contents of financial statements1.6 Accounting treatments and disclosures1.7 Appendix
1.1 Requirement to produce financial statements
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.
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.
This is not explicitly regulated, but most Swedish funds use the calendar year as the financial year.
Comparatives are required in both annual and half-year reports.
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).
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.
Legislation does not provide for short-form accounts.
It is not possible to set up umbrella schemes under Swedish regulation.
As from 1 August 2011, it is possible to have investment funds with classes of shares, e.g. different fee or dividend structure.
back to top
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.
back to top
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.
back to top
1.4 Accounting standards
Swedish generally accepted accounting principles (GAAP) must be followed.
back to top
1.5 Contents of financial statements
Requirements for inclusion in annual financial statements:
| 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 |
back to top
1.6 Accounting treatments and disclosures
The following items must be included in the annual financial statements:
| 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 |
back to top
1.7 Appendix
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
© 2013 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.