JM has been in violation of the international financial reporting standard IFRS 10 in its consolidated financial statements for 2017 by not including – consolidating – tenant-owners associations during the so-called production phase. FI is issuing JM a caution and ordering the company to take corrective action in future financial statements. The correction shall be implemented no later than in the company’s half-yearly report for 2020.
The incorrect financial reporting has an impact on the consolidated financial performance and financial position, which can affect the decisions investors, creditors and other users make based on the financial statements.
FI investigated how JM AB has reported its property development through tenant-owners associations and if the reporting is in accordance with applicable regulations. As a listed company, JM is obligated to apply the international financial reporting standards adopted through the IAS Regulation in its consolidated financial statements. The investigation refers to JM's consolidated financial statements for 2017.
FI has found that JM is non-compliant with the international standard IFRS 10 Consolidated Financial Statements. JM has therefore been in violation of the IAS Regulation, which means that the consolidated financial statements for 2017 have not been prepared in accordance with the rules that apply to issuers.
FI makes the assessment that the deviations in JM's consolidated financial statements have been significant. As such, there are grounds on which to intervene against the company in the form of a caution and an order to correct in future financial statements so that the tenant-owners associations are consolidated in accordance with IFRS 10.