RISKS CORPORATE GOVERNANCE GROUP NOTES FOR THE GROUP REMENT POLICIES financial statements is presented esented in Swedish kronor (SEK). nts are given in millions of Swedish eses pertain to operations in 2022, ulations do not always add up due otal corresponds with its original g differences in the totals. Foreign currencies Functional currency: Transactions in foreign currencies are translat- ed to the functional currency of the financial statements according to the exchange rate on the date of the transaction. Receivables and liabilities in foreign currencies are measured at the closing day rate, and unrealized currency gains and losses are included in profit or loss. Exchange-rate differences attributable to operating receivables and liabilities are recognized in operating profit. Exchange-rate differences regarding financial assets and liabilities are recognized under other financial items. essments s in accordance with IFRS, the to make assessments and assump- mounts of assets and liabilities and tatements as well as the revenues he period. Estimates, assessments a regular basis. The actual outcome nts, estimates and assumptions. Management Team believe to par- ent of Arjo’s earnings and financial here applicable. gnificant influence through a share- cognized as an associated compa- to only 10 percent, see also Note 15. r which Arjo exercises a controlling y when it is exposed to or has the ts holding in the company and can luence over the company. Translation of foreign operations: Arjo applies the current method for translation of foreign subsidiaries’ balance sheets and income statements. For long-term intra-Group loans of subsidiaries, Arjo applies the rules on expanded net investments, which means that translation differences on these intra-Group loans are recognized in the same way as the translation effects on the subsidiaries’ net assets. Government grants Government grants relating to costs are recognized in profit or loss. The income is recognized in the same period as the cost that the grants are intended to compensate. Dividend Dividends proposed by the Board of Directors are not deducted from distributable earnings until the dividend has been approved by the Annual General Meeting (AGM). Alternative performance measures Alternative performance measures are presented in this report to monitor Arjo’s operations, the primary measures being adjusted EBITDA, cash conversion and net debt/equity ratio. Definitions and reconciliations of the alternative performance measures are presented on pages 144–146. ARJO 2023 ANNUAL AND SUSTAINABILIT Y REPORT 73
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