Exhibit 99.1

 

STIGA SPORTS GROUP AB
Reg nr 556216-6347

 

Annual report 2016 (Unaudited)

The board of directors and the managing director hereby submit the consolidated Annual report for the financial year 2016-01-01 — 2016-12-31.

 

The Annual Report consists of

 

Page 2	Adminstration report
Page 3	Report of Independent Certified Public Accountants
Page 5	Income Statements
Page 6	Balance sheets
Page 8	Cash flow Statements
Page 9	Accounting principles and Notes

 

 

STIGA SPORTS GROUP AB
Reg nr 556216-6347

 

Administration report

(Kronas in thousands, except for employee data)

 

General information about the company

STIGA Sports Group AB is the parent company of STIGA Sports Group. STIGA Sports Group consists of STIGA Sports Group AB with it's subsidary STIGA Sports AB and subsidaries STIGA Sports Norway AS, Oy STIGA Sports Suomi Ab, Munkhammar Fastighets AB, STIGA Sports Japan KK and STIGA Sports Beijing Co., Ltd. The group is focused on Sports and Games.

 

Operations are divided into two segments, STIGA Table Tennis and STIGA Games.

 

STIGA Table Tennis is a top supplier of table tennis equipment worldwide. Among other things, the company is a sponsor and supplier of blades for the Chinese national team.

 

STIGA Games is famous for its Snowracer and its Ice Hockey game. However, the product range consists of several other games and play products such as sleds, floor ball and badminton.

 

STIGA Sports Group owns a property in Eskilstuna in which the Group operates.

 

The company is owned by Escalade Incorporated, and the Bandstigen family.

 

Investments

 

During the past year the group made a number of investments, a new production facility was built.

Other investments were mostly in production tools.

Total investment amounts to 9 849 TSEK (28 842 TSEK).

 

	(Unaudited)
	2016	2015	2014	2013
Net sales	360 330	379 210	354 517	315 125
Operating profit	37 042	67 622	62 858	45 921
Equity ratio	74%	72%	69%	61%
Average number of employees	100	96	91	84
Total assets	344 672	335 402	301 492	272 053
Equity ratio= Adjusted equity divided by total assets.
Proposal for appropriation of profits (Kronas in thousands )
From the preceding year profits brought forward				186 108
Translation difference				924
Offset between restricted and unrestricted equity				0
Net profit for the year				28 612
Profits at the disposition of the annual general meeting				215 644
Proposed appropriation of profits
Dividend to shareholders				40 000
Profit carried forward				175 644
Total				215 644

 

 

 

 

REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS

 

Board of Directors

STIGA Sports Group AB

 

We have audited the accompanying consolidated financial statements of STIGA Sports Group AB and subsidiaries (the “Company”), which comprise the consolidated balance sheets as of December 31, 2015 and December 31, 2014 (not included herein), and the related consolidated income and cash flow statements for each of the two years in the period ended December 31, 2015, and the related notes to the financial statements.

 

Management’s responsibility for the financial statements

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in Sweden; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

 

Auditor’s responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

 

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the

 

 

 

 

reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

 

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

 

Opinion

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of STIGA Sports Group AB and subsidiaries as of December 31, 2015 and 2014, and the results of their operations and their cash flows for each of the two years in the period ended December 31, 2015 in accordance with accounting principles generally accepted in Sweden.

 

Basis of accounting

We draw attention to the Accounting Policies of the financial statements, which describes the basis of accounting. The financial statements are prepared on the basis of accounting principles generally accepted in Sweden, which differs from accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.

 

GRANT THORNTON SWEDEN AB

 

 

Eskilstuna, Sweden

20 June 2016

 

 

STIGA SPORTS GROUP AB
Reg nr 556216-6347

 

		(Unaudited)
Income statements (Kronas in thousands)	Note	2016-01-01 -2016-12-31		2015-01-01 -2015-12-31		2014-01-01 -2014-12-31
Net sales	1	360,330		379 210		354 517
Other operating income		8 087		7 801		7 031
Turnover		368 417		387 011		361 548
Goods for resale and raw materials	2	-183 072		-182 922		-173 199
Other external costs	3	-91 255		-85 371		-71 595
Personnel costs		-47 765		-43 820		-42 685
Depreciation		-9 283		-7 276		-11 211
Operating expenses		-331 375		-319 389		-298 690
Operating profit		37 042		67 622		62 858
Interest income & similar profit items	4	2 730		394		10 941
Interest expense & similar loss items	5	-914		-1 087		-1 499
Result from financial items		1 816		-693		9 442
Profit after financial items		38 858		66 929		72 300
Tax on profit for the year	6	-10 246		-17 661		-17 578
Net profit for the year		28 612		49 268		54 722

 

 

STIGA SPORTS GROUP AB
Reg nr 556216-6347

 

		(Unaudited)
Balance sheets (Kronas in thousands)	Note	2016-12-31		2015-12-31
Capitalized expenditure of software	7	1 743		2 145
Goodwill	8	0		0
Intangible assets		1 743		2 145
Land & Buildings	9	48 825		48 795
Machinery, equipment & tools	10	29 881		28 930
Tangible assets		78 706		77 725
Other fixed assets investments	11	5 297		4 886
Financial assets		5 297		4 886
Fixed assets		85 746		84 756
Raw materials		23 739		21 758
Goods for resale		73 866		74 805
Inventories		97605		96 563
Accounts receivable - trade		78 623		74 258
Other receivables		5 994		10 029
Other assets	12	11 486		6 102
Current receivables		96 103		90 389
Cash and cash equivalents		65 218		63 694
Current assets		258 926		250 646
ASSETS		344 672		335 402

 

 

STIGA SPORTS GROUP AB
Reg nr 556216-6347

 

		(Unaudited)
Balance sheets (Kronas in thousands, except for share data)	Note	2016-12-31		2015-12-31
Share capital (12 000 shares)		1 200		1 200
Restricted reserves		36 582		36 582
Restricted equity		37 782		37 782
Non-restricted reserves		187 032		154 840
Profit for the year		28 612		49 268
Non-restricted equity		215 644		204 108
Equity	13	253 426		241 890
Provisions for pensions		5 297		4 886
Provisions for taxes	14	10 978		10 813
Provisions		16 275		15 699
Liabilities to credit institutions	15	30 653		33 137
Long-term liabilities		30 653		33 137
Liabilities to credit institutions		2 897		3 309
Bank overdraft	16	1 486		0
Accounts payable - trade		26 704		24 655
Tax liability		0		3 487
Other liabilities		2 632		2 707
Accrued expenses	17	10 599		10 518
Current liabilities		44 318		44 676
EQUITY & LIABILITIES		344 672		335 402
Memorandum items
Property mortgages		34 575		34 575
Chattel mortgages		40 000		40 000
Capital sum insurance		4 886		4 886
Pledged assets		79 461		79 461
Other warranties		430		430
Contingent liabilities		430		430

 

 

STIGA SPORTS GROUP AB
Reg nr 556216-6347

 

		(Unaudited)
Cash flow statements (Kronas in thousands)	Note	2016-12-31		2015-12-31		2014-12-31
Net operating profit		37 042		67 622		62 858
Adjustment for items not included in cash flow
Depreciation		9 283		7 276		11 211
Other adjustments		-514		804		1 027
Interest received		2 730		394		10 941
Interest paid		-914		-1 087		-1 499
Income tax paid		-10 246		-16 518		-15 090
Cash flow from current operations
before change in working capital		37 381		58 491		69 448
Increase(-) / Reduction(+) of inventories		-1 042		-9 450		-22 219
Increase(-) / Reduction(+) of account receivables		-4 365		-10 304		16 297
Increase(-) / Reduction(+) other receivables		-1 349		-999		-3 559
lncrease(+) / Reduction(-) of account payable		2 049		1 538		-7 819
lncrease(+) / Reduction(-) other current liabilities		6		-6 318		-2 474
Change of working capital		-4 701		-25 533		-19 774
Cash flow from current operations		32 680		32 958		49 674
Investment of intangible assets		-37		-515		0
Investment of tangible assets		-9 812		-28 437		-9 109
Investment of other fixed assets investments		-411		-607		-1 452
Sale of intangible assets		0		0		0
Sale of tangible assets		0		0		235
Sale of other fixed assets investments		0		618		0
Cash flow used in investment activities		-10 260		-28 941		-10 326
Proceeds from debt issuance		0		16 975		0
Repayment of debt		-2 896		-13 500		-6 655
Dividend to shareholders		-18 000		-16 000		-12 000
Cash flow used in financing activities		-20 896		-12 525		-18 655
CASH FLOW		1 524		-8 508		20 693
Cash and cash equivalents at beginning of year		63 694		72 202		51 509
Cash and cash equivalents at end of year		65 218		63 694		72 202

 

 

STIGA SPORTS GROUP AB
Reg nr 556216-6347

 

Accounting policies

 

General Accounting policies

The annual report has been prepared in accordance with the Annual Accounts Act and general advice from the Swedish Accounting Standards Board BFNAR 2012:1 Annual accounts and consolidated accounts. The annual report has been prepared in accordance with the Annual Accounts Act and BFNAR 2012:1 Annual accounts and consolidated accounts (K3).

 

Consolidated financial statements

 

The consolidated financial statements have been prepared in accordance with the principles of the Accounting Standards Council's (Redovisningsrådet) recommendation RR 1:00 (Swedish GAAP), and by applying the purchase accounting method.

 

The consolidated financial statements include all subsidiaries. Foreign subsidiaries have been translated using the current method.

 

The consolidated financial statements include STIGA Sports Group AB (Parent company) and all subsidiaries (collectively, the Group) activities until December 31, 2016.

 

Subsidiaries are all companies in which the Group has power to govern financial and operating policies so as to obtain benefits. The subsidiaries are Munkhammar Fastighetsbolag AB, STIGA Sports AB, STIGA Sports Norway AS, Oy STIGA Sports Suomi Ab and STIGA Sports Beijing Co., Ltd.

 

The Group achieves and exercises controlling influence by holding the majority of votes. Special purpose companies are consolidated if the parent company has a controlling interest. All subsidiaries have been reporting date December 31 and applies the parent company's valuation principles.

 

The consolidated financial statements are presented in currency, SEK, which is also the parent company's reporting currency. Results of subsidiaries acquired or disposed of during the year are recognized from the date of acquisition to the date of the disposal of entry into force, as appropriate.

 

Amounts recognized in the financial statements of subsidiaries have been adjusted where necessary to ensure compliance with the Group's accounting policies.

 

Intercompany transactions and balance sheet items are eliminated in full on consolidation, including unrealized gains and losses on transactions between group companies. In cases where unrealized losses intercompany transfer of assets from consolidation, the group also assesses the underlying asset impairment from a group perspective.

 

Valuation principles

 

Revenues

 

Revenues is recorded at fair value of what has been received or will be received.

 

Consequently the company records revenue at nominal value (invoice amount). Deduction is made for discounts given.

Sale of goods 

 

Sale of goods is recorded when the company has transferred the material risks and benefits associated with ownership to the buyer, normally when the customer has possession of the goods.

 

Revenues from the sale of goods that do not have any substantial service obligations are recorded on delivery.

 

Interest, royalties and dividends

 

Interest income is recognised using the effective interest method.

 

Royalties are included in other operating income and are recognised on an accruals basis in accordance with the substance of the relevant agreement.

 

Other assets, provisions and liabilities are recorded at cost of acquisition unless otherwise stated below.

 

 

STIGA SPORTS GROUP AB
Org nr 556216-6347

 

Accounting policies

 

Fixed assets

 

Fixed assets are recorded at cost of acquisition less accumulated depreciation and any write-downs.

 

The assets are depreciated on a straight-line basis over the estimated useful life.

 

		(Unaudited)
Fixed assets			Group
		2016		2015
Capitalised expenditure for software		10,0%		10,0%
Goodwill		12,5%		12,5%
Buildings		1-10%		1-10%
Equipment, tools and machinery		10-20%		10-20%

 

Receivables

 

Receivables are recorded in the amounts at which they are expected to be received.

 

Inventories

 

Inventories are measured at the lower of cost of acquisition and net realisable value.

 

Inventories are stated at 97% of the aggregate cost of acquisition.

 

Receivables and liabilities in foreign currency

 

Monetary receivables and liabilities in foreign currencies have been restated at the closing rate.

 

Cash and cash equivalents

 

Cash and cash equivalents consist of cash and demand deposits at banks and other credit institutions and other short-term highly liquid investments that are readily convertible to known amounts and that are subject to insignificant risk of fluctuations in value. Such investments have a maximum maturity of three months.

 

Equity

 

Equity capital of the company consists of the following items:

 

Share capital represents the nominal value of issued and registered shares.

 

Restricted reserve is recorded when there is a requirement under the Companies Act to make provision to the statutory reserve. Retained earnings represents all earnings and equity compensation for the current and prior periods.

 

Employee benefits

 

Short-term benefits

 

Short-term employee benefits, such as wages, holiday pay and bonuses are employee benefits that are due within 12 months from the balance sheet date the year in which the employee earned compensation. Short-term benefits are measured at the undiscounted amount that the company expects to pay as a result of the unused entitlement.

 

Defined contribution pension plans

 

The Company pays fixed contributions to other legal persons with regard to several state plans and insurance for individual employees. The company has no legal or constructive obligations to pay further fees in addition to payment of the fixed amount recognized as an expense in the period in which the relevant service is rendered.

 

Leasing

 

All leases are recognised as an expense on a straight-line basis over the lease term.

 

Income tax

 

The reporting of income tax includes current and deferred tax.

For items reported in the income statement, the associated tax is reported in the income statement.

For items recognized directly in equity, tax is also recognized directly in equity.

 

Assessment of doubtful debts

 

Trade receivables are measured at the cash flow expected to flow to the company.

 

A detailed and objective review of all outstanding amounts is made at the balance sheet date to ensure the trade receivables are recorded on that basis.

 

 

STIGA SPORTS GROUP AB
Reg nr 556216-6347

 

Notes

 

		(Unaudited)
NOTE 1 NET SALES
		2016		2015		2014
- STIGA Table Tennis		50,5%		50,7%		51,3%
- STIGA Games		49,5%		49,3%		48,4%
- Lease of properties		0,0%		0,0%		0,3%
Sales by business area		100,0%		100,0%		100,0%
- Europe		64,2%		59,8%		62,4%
- Asia		28,0%		30,3%		28,8%
- North America		6,5%		8,5%		6,7%
- South America		0,4%		0,2%		0,8%
- Oceania		0,5%		0,7%		0,7%
- Africa		0,4%		0,5%		0,6%
Sales by geographic region		100,0%		100,0%		100,0%

 

		(Unaudited)
NOTE 2 OTHER EXTERNAL COSTS (Kronas in thousands)
		2016		2015		2014
Fees paid to auditors
- Grant Thornton Sweden AB		159		183		145
- Revico Grant Thornton OY		59		47		35
- Deloitte AS		43		51		53
- Grant Thornton Beijing Ltd		134		131		110
Audit fees		395		412		343
- Grant Thornton Sweden AB		0		21		28
Other fees		0		21		28

 

The amount of other external costs include lease payments, excluding rent for the premises, with 1 780, 1 811 and 1 076 (Thousand kronas) in the years ending 2016, 2015 and 2014 respectively.

 

		(Unaudited)
NOTE 3 PERSONNEL (Kronas in thousands, exept for employee data)
		2016		2015		2014
- Women		31		29		28
- Men		69		67		63
Average number of employees		100		96		91
- Women		1		2		0
- Men		3		3		4
Board of Directors		4		5		4
- Women		1		2		0
- Men		3		3		4
Management and Managing Directors		4		5		4

 

 

STIGA SPORTS GROUP AB
Reg nr 556216-6347

 

Notes

 

- Board of Directors & CEO*		1 918		2 831		4 516
- Other employees		32 743		29 718		26 109
Salaries & remunerations		34 661		32 549		30 625
- Pension expenses for Board of Directors & CEO		380		670		1 370
- Pension expenses for other employees		2 148		1 653		1 594
- Other social expenses		9 986		8 818		8 407
Social costs		12 514		11 141		11 371
*Bonus and similar		144		144		2 401

 

Personnel costs have been reduced by wage subsidy in the group with 836, 849 and 664 (Thousands kronas) in the years ending 2016, 2015 and 2014 respectively.

Subsidiaries have retirement benefits obligation amounting to 5 297, 4 886 and 4 279 (Thousand kronas) in the years ending 2016, 2015 and 2014 respectively which is fully reinsured by capital insurances.

  

		(Unaudited)
NOTE 4 INTEREST INCOME & SIMILAR PROFIT ITEMS (Kronas in thousands)
		2016		2015		2014
- Exchange gains		2 533		276		4 337
-Translation difference		0		0		5 248
- Interest income from account receivable - trade		125		48		29
- Other interest income		72		70		1 327
Interest income & similar		2 730		394		10 941

		(Unaudited)
NOTE 5 INTEREST EXPENSES & SIMILAR LOSS ITEMS (Kronas in thousands)
		2016		2015		2014
- Exchange loss		0		-64		0
-Translation difference		0		0		0
- Other interest expense		-914		-1 023		-1 499
Interest expense & similar		-914		-1 087		-1 499

		(Unaudited)
NOTE 6 TAX ON PROFIT FOR THE YEAR (Kronas in thousands)
		2016		2015		2014
- Current income tax		-10 081		-15 065		-15 972
- Deferred income tax		-165		-2 596		-1 606
Tax on profit for the year		-10 246		-17 661		-17 578

		(Unaudited)
NOTE 7 CAPITALIZED EXPENDITURE OF SOFTWARE* (Kronas in thousands)
		2016-12-31		2015-12-31
- Acquisition value brought forward		3 314		2 799
- Purchases		37		515
Accumulated acquisition value carried forward		3 351		3 314
- Amortization brought forward		-1 169		-764
- Amortization for the year		-439		-405
Accumulated amortization carried forward		-1 608		-1 169
Planned residual value carried forward		1 743		2 145

 

*Capitalized expenditure consists of the capitalized costs of ERP systems.

 

 

STIGA SPORTS GROUP AB
Reg nr 556216-6347

 

Notes

 

		(Unaudited)
NOTE 8 GOODWILL* (Kronas in thousands)
		2016-12-31		2015-12-31
- Acquisition value brought forward		124 999		124 999
Accumulated acquisition value carried forward		124 999		124 999
- Amortization brought forward		-124 999		-124 999
- Amortization for the year		0		0
Accumulated amortization carried forward		-124 999		-124 999
Planned residual value carried forward		0		0

 

* Goodwill relating to acquisition of the brand STIGA in certain products and the Games business operations.

 

The life of goodwill is expected to exceed the amortization period of eight years.

 

		((Unaudited)
NOTE 9 LAND & BUILDINGS (Kronas in thousands)
		2016-12-31		2015-12-31
- Acquisition value brought forward		59 414		44 548
- Purchases		2 306		14 866
Accumulated acquisition value carried forward		61 720		59 414
- Depreciation brought forward		-10 619		-9 096
- Depreciation for the year		-2 276		-1 523
Accumulated depreciation carried forward		-12 895		-10 619
Planned residual value carried forward		48 825		48 795
- Buildings		42 791		33 791
- Land		5 754		5 754
Assessed value (For taxation)		48 545		39 545

		(Unaudited)
NOTE 10 MACHINERY, EQUIPMENTS & TOOLS (Kronas in thousands)
		2016-12-31		2015-12-31
- Acquisition value brought forward		50 432		36 861
- Purchases		7 506		13 571
- Sales / disposals		-694		0
Accumulated acquisition value carried forward		57 244		50 432
- Depreciation brought forward		-21 502		-16 154
-Sales/disposals		603		0
- Depreciation for the year		-6 464		-5 348
Accumulated depreciation carried forward		-27 363		-21 502
Planned residual value carried forward		29 881		28 930

		(Unaudited)
NOTE 11 OTHER FIXED ASSETS INVESTMENTS (Kronas in thousand
		2016-12-31		2015-12-31
-Acquisition value brought forward		4 886		4 896
- Purchases		411		607
- Sales / disposals		0		-617
Accumulated acquisition value carried forward		5 297		4 886

 

5297, 3 102 and 2 097 (Thousand kronas) in the years ending 2016, 2015 and 2014 respectively relating to capital insurance. This is pledged to cover the provision for pensions. The market value on closing date amounted to 6 677 and 5 868 (Thousand kronas) in the years ending 2016 and 2015.

 

 

STIGA SPORTS GROUP AB
Reg nr 556216-6347

 

Notes

 

		(Unaudited)
NOTE 12 OTHER ASSETS (Kronas in thousands)
		2016-12-31		2015-12-31
- Leasing		0		191
- Other prepaid expenses		4 919		4 059
Prepaid expenses		4 919		4 250
- Royalties		1 885		983
- Other assets		4 682		869
Accrued income		6 567		1 852
Other assets		11 486		6 102

 

NOTE 13 EQUITY (Kronas in thousands)
Changes in equity		Share		Restricted		Non-rest.
		capital		reserves		reserves		Total
Amount carried forward 2014		1 200		25 307		139 196		165 703
- Adjustment between rest. and non rest. equity				5 694		-5 694		0
- Dividend to shareholders						-12 000		-12 000
- Profit for the year						54 722		54 722
Amount carried forward 2015		1 200		31 001		176 224		208 425
- Adjustment between rest. and non rest. equity				5 581		-5 581		0
- Dividend to shareholders						-16 000		-16 000
- Translation difference						197		197
- Profit for the year						49 268		49 268
Amount carried forward to 2016		1200		36 582		204 108		241 890
- Adjustment between rest. and non rest. equity				0				0
- Dividend to shareholders						-18 000		-18 000
- Translation difference						924		924
- Profit for the year						28 612		28 612
Amount carried forward to 31 December 2016 (unaudited)		1 200		36 582		215 644		253 426

 

Subsidiaries		Reg. Off.		Registration number		Share
- Munkhammar Fastighetsbolag AB (Directly owned)		Eskilstuna		556893-3252		100%
- STIGA Sports AB (Directly owned)		Eskilstuna		556448-8178		100%
-- STIGA Sports Norway AS (Indirectly owned)		Oslo		989.698.702		100%
-- Oy STIGA Sports Suomi Ab (Indirectly owned)		Helsinki		2334318-8		100%
-- STIGA Sports Beijing Co., Ltd (Indirectly owned)		Beijing		1100004501143970		100%
-- STIGA Sports Japan KK(lndirectly owned)		Tokyo		0104-01-128454		100%

 

		(Unaudited)
‘NOTE 14 PROVISIONS FOR TAXES (Kronas in thousands)
		2016-12-31		2015-12-31
- Deferred tax amounts		10 978		10 813
Provisions for taxes		10 978		10 813

 

 

STIGA SPORTS GROUP AB
Reg nr 556216-6347

 

Notes

 

		(Unaudited)
NOTE 15 LONG-TERM LIABILITIES (Kronas in thousands)
		2016-12-31		2015-12-31
- Repayment within 2 to 5 years		10 918		12 565
- Repayment after 5 years		19 735		20 572
Long-term Liabilities		30 653		33 137
Property mortgages		34 575		34 575
Chattel mortgages		40 000		40 000
Collateral for this liability and bank overdraft		74 575		74 575
		(Unaudited)
NOTE 16 BANK OVERDRAFT (Kronas in thousands)
		2016-12-31		2015-12-31
- Credit limit		40 000		40 000
- Utilized part of credit limit		1 486		0
		(Unaudited)
NOTE 17 ACCRUED LIABILITIES		2016-12-31		2015-12-31
- Pay and payroll overhead		5 965		6 318
- Commissions		3 613		3 550
- Other accrued expenses		1 021		650
Accrued expenses		10 599		10 518
Accrued liabilities		10 599		10 518

 

NOTE 18 Differences Between Swedish GAAP and US GAAP

 

The financial statements have been prepared in accordance with Swedish GAAP. Certain differences exist between Swedish GAAP applied by STIGA Sports Group AB and US GAAP that may be material to the financial information presented therein.

 

The discussion set forth below summarizes certain differences identified between Swedish GAAP applied by STIGA Sports Group AB and US GAAP. These differences, which have not been quantified, were identified as potentially having an impact on net profit or total equity. No other significant differences between Swedish GAAP and US GAAP were identified with respect to the financial statements of STIGA Sports Group AB.

 

Goodwill

Under Swedish GAAP, goodwill is amortized over an eight-year period, whereas under US GAAP, goodwill is not amortized, but rather is evaluated for impairment annually and whenever events or changes in circumstances indicate the carrying amount of goodwill may not be recoverable.

 

Foreign Currency Translation

Specifically with respect to 2014, foreign currency translation adjustments were recorded within the income statements as opposed to being recorded as a component of equity as required under US GAAP. Commencing in 2015, due to a change in Swedish GAAP foreign currency translation adjustments are recorded as a component of equity.

 

STIGA SPORTS GROUP AB
Reg nr 556216-6347

 

Notes

 

Business Combinations

Under Swedish GAAP, there were no separately identifiable intangible assets that were required to be recognized as a part of the business combination disclosed in Note 8. Under US GAAP, all separately identifiable intangible asset acquired as a part of a business combination should be recorded at the fair value on the date of acquisition and amortized over its expected useful life. Indefinite lived intangible assets are evaluated for impairment annually and whenever events or changes in circumstances indicate the carrying value may not be recoverable in accordance with US GAAP.