Accounting principles

General

Björn Borg owns the Björn Borg trademark and currently has operations in the product areas underwear, sports apparel and footwear as well as bags, eyewear and fragrances. Björn Borg products are sold in around 20 markets, the largest of which are Sweden and the Netherlands. Operations are conducted through a network of product and distribution companies that are either part of the Group or independent companies with licenses for product areas and geographical markets. The Björn Borg Group has its own operations at every level from brand development to consumer sales in its own Björn Borg stores.

The Parent Company operates as a limited liability company with its registered address in Stockholm. The address of the head office is Frösundaviks Allé 1, SE-169 70 Solna, Sweden. The Parent Company’s share is listed on Nasdaq OMX in Stockholm. A list of the largest individual shareholders as of December 31, 2019 is provided on page 99 of the annual report. The annual report was approved by the Board of Directors and the CEO on June 9, 2020 and adopted by the Annual General Meeting of the Parent Company on June 30, 2020.

 

Accounting and valuation principles

The consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) approved by the EU as of December 31, 2019. The Group also applies the Swedish Financial Reporting Board’s recommendation RFR 1 and 2 Supplementary Accounting Regulations for Groups, which specifies the disclosures that are required in addition to IFRS according to the provisions of the Annual Accounts Act. The Parent Company’s functional currency is the Swedish krona (SEK), which is also the Group’s reporting currency. All amounts are in SEK thousands unless indicated otherwise. The consolidated financial statements have been prepared in accordance with the cost method, other than financial assets including derivatives, which are measured at fair value through profit or loss.