Karolinska Development is an investment entity according to IFRS 10 Consolidated Financial
Statements, which affects financial years beginning January 1, 2014, or later. This means that future consolidated accounts are compiled significantly different (including comparative figures 2013). The difference versus the Annual Report 2013 is that all portfolio companies, including subsidiaries, are measured at fair value.
The largest effects of the change in accounting policy are that:
- Subsidiaries are not consolidated. This means that the income statements, balance sheets and cash flows of previously consolidated subsidiaries are not included in the investment company’s financial statements
- Deferred tax liabilities related to surplus values from subsidiary acquisitions are no longer recognized
- Karolinska Development no longer recognizes non-controlling interests, which amounted to SEK 354,294 thousand on January 1, 2013
- The portfolio companies’ fair values are estimated based on Karolinska Development’s ownership interest
- Of the previously recognized result from the transaction with Rosetta Capital IV LP of SEK 404,646 thousand, SEK 336,414 thousand relates to the revaluation to fair value of the remaining holdings. This amount is recognized by the investment company as an adjustment to opening equity at January 1, 2013, since all portfolio company holdings are measured at fair value
- The total effect of the transition to investment company recognized in opening equity at January 1, 2013, was SEK 37,798 thousand
- The effects of the change in accounting policies on the Group’s financial position, comprehensive income and cash flow at January 1, 2013, and December 31, 2013, are reported in the following tables.
More information about the effects of the change in accounting policies can be found in Note 50 in the Annual Report 2013.
For further information, please contact:
Torbjörn Bjerke, CEO, Karolinska Development AB
Phone: +46 (0)72 744 41 23, e-mail: torbjorn.bjerke@karolinskadevelopment.com
Benjamin Nordin, IRO, Karolinska Development AB
Phone: +46 (0)73 093 60 80, e-mail: benjamin.nordin@karolinskadevelopment.com
TO THE EDITORS
About Karolinska Development AB
Karolinska Development aims to create value for patients, researchers, investors and society by developing innovations from world class science into differentiated products that can be partnered. The business model is to: SELECT the most commercially attractive medical innovations that can potentially satisfy unmet medical needs; DEVELOP innovations to the stage where the greatest return on investment can be achieved; and COMMERCIALIZE the innovations through the sale of companies or out-licensing of products. An exclusive deal flow agreement with Karolinska Institutet Innovations AB, along with other cooperation agreements with leading universities, delivers a continuous flow of innovations. Today, the portfolio consists of 34 projects, of which 17 are in clinical development. For more information, please visit www.karolinskadevelopment.com.
Karolinska Development is listed on NASDAQ OMX. Karolinska Development may be required to disclose the information provided herein pursuant to the Securities Markets Act.
