Accounting principles

From Ratos interim report January-March 2020

Each year, the Audit Committee adopts a fiscal cycle for its working duties and areas for which the Audit Committee is responsible. In 2019, adjustments were made to the Audit Committee’s fiscal cycle and formal work plan. The Audit Committee is responsible for and monitors according to an adopted schedule, among other things, accounting and reporting, audit, internal control, corporate governance, risk management, purchases of non-audit-related services, tax payment, the parent company’s guarantee and equity commitments, IT security, insurance, disputes and strategic accounting matters as well as compliance with rules and regulations and certain policy documents adopted by Ratos’s Board. Furthermore, the Audit Committee oversees Ratos’s externally operated whistleblowing system. The Audit Committee’s work follows Ratos’s interim reporting and Ratos’s work on valuation matters and impairment testing, with five regular meetings held every year where the auditor participates in all Committee meetings. Specific matters addressed in 2019 included valuation and impairment matters, follow-up of bank terms, commitments concerning capital contributions and disputes. The CEO and senior executives normally attend the meetings of the Committee to present specific matters.

Alternative performance measures

To facilitate comparison between periods and enable follow-up of ongoing earnings and development in the company portfolio, Ratos presents some financial information, which is not defined in IFRS. The link below contains a description of these key ratios as well as a reconciliation / bridge between alternative key ratios used in Ratos's financial reports and the closest IFRS measures.

*) Reconciliation of alternative performance measures can be found in respectively period's interim report. (archive)