Doing Business In Sweden - Sources of Accounting Principles

Financial Accounting Standards Council

In 1989 the Financial Accounting Standards Council, Redovisningsradet (RR), was established. The Council was founded by the Accounting Board, The Swedish Institute of Authorized Public Accountants and the Federation of Swedish Industries. The Financial Accounting Standards Council has the responsibility to issue and amend accounting recommendations.

Other influential bodies include the Institute of Financial Analysts and the Industry and Commerce Stock Exchange Committee.

Swedish Institute of Authorized Public Accountants

The Swedish Institute of Authorized Public Accountants (Foreningen Auktoriserade Revisorer, FAR) has long contributed to the development of generally accepted accounting principles in Sweden by issuing recommendations on accounting matters. The Institute ceased to publish new recommendations when the Financial Accounting Standards Council was founded in 1989. The standard-setting body of the institute, now only maintain it's recommendations on areas that have not yet been covered by a new accounting recommendation from the Financial Accounting Standards Council.

International Accounting Standards

The Swedish Institute of Authorized Public Accountants is a member of the International Accounting Standards Committee (IASC) and is thus involved in the international standards programme. The Institute's membership in IASC represents a commitment to use its best endeavours to promote local acceptance and observance of international accounting standards.

The contents of this article are intended as a general guide to the subject matter. Specialist advice should be sought for your specific circumstances.

For further information contact Per Snellman on Tel: +468 613 9000 0r Fax: +468 791 7511; or enter a text search 'Ernst & Young' and 'Business Monitor'.