<p>In April 2008 an official report, SOU (2008:32), was presented. In that report it was suggested</p><p>that the statutory audit for approximately 96 % of the Swedish companies was to be abolished.</p><p>The report suggests that the new regulations should apply to all limited companies that</p><p>are below two of three limits that have been suggested: a) a balance-sheet total of 41,5 million</p><p>SEK; b) a net turnover of 83 million SEK or; c) less than 50 employees. The regulations are</p><p>suggested to come into force July 1, 2010. According to the Swedish laws that regulate the</p><p>limited companies, Aktiebolagslagen 10:11, should all limited companies regardless of size</p><p>have an chartered accountant or otherwise approved. The purpose of the audit is to create a</p><p>trust towards the figures that the company shows and also to act as an assurance towards third</p><p>parties (Collis, 2003; Strenger et al, 2008). Commercial banks are one of the parties that use</p><p>the audited material in connection with granting of credits to small limited companies. The</p><p>aim of our study has been to describe and analyze the commercial bank's credit granting, and</p><p>to make a survey of what may happen with the process of credit granting and the credit</p><p>granting as such in case of an abolishment of the statutory audit. To do this we used a</p><p>qualitative research. We as researches have aimed to discuss the credit granting process and a</p><p>possible abolishment with the credit granters that are involved in the process. The study has</p><p>shown that commercial banks always use audited material in the credit granting process. The</p><p>commercial banks have a positive attitude towards the audited material and regard it as a</p><p>guarantee of quality. The study has shown that the commercial banks will not change how the</p><p>credit granting process is carried through in comparison of today. But the possibility of effects</p><p>upon credit prizing and upon choices of securities are not ruled out by the commercial banks.</p>

In April 2008 an official report, SOU (2008:32), was presented. In that report it was suggested that the statutory audit for approximately 96 % of the Swedish companies was to be abolished. The report suggests that the new regulations should apply to all limited companies that are below two of three limits that have been suggested: a) a balance-sheet total of 41,5 million SEK; b) a net turnover of 83 million SEK or; c) less than 50 employees. The regulations are suggested to come into force July 1, 2010. According to the Swedish laws that regulate the limited companies, Aktiebolagslagen 10:11, should all limited companies regardless of size have an chartered accountant or otherwise approved. The purpose of the audit is to create a trust towards the figures that the company shows and also to act as an assurance towards third parties (Collis, 2003; Strenger et al, 2008). Commercial banks are one of the parties that use the audited material in connection with granting of credits to small limited companies. The aim of our study has been to describe and analyze the commercial bank's credit granting, and to make a survey of what may happen with the process of credit granting and the credit granting as such in case of an abolishment of the statutory audit. To do this we used a qualitative research. We as researches have aimed to discuss the credit granting process and a possible abolishment with the credit granters that are involved in the process. The study has shown that commercial banks always use audited material in the credit granting process. The commercial banks have a positive attitude towards the audited material and regard it as a guarantee of quality. The study has shown that the commercial banks will not change how the credit granting process is carried through in comparison of today. But the possibility of effects upon credit prizing and upon choices of securities are not ruled out by the commercial banks.

Bakgrund: Att driva ett företag innebär att investera pengar i en framtid som är osäker men som förhoppningsvis kommer att ge en vinst. Företag behöver kapital för att kunna investera i bland annat marknadsföring, lager, forskning, utveckling och utbildning av personal. När ett företag är i behov av finansiering vänder de sig ofta till banker för att låna pengar. Banken gör en kreditbedömning för att besluta om företaget blir beviljad krediten eller inte. Vid kreditgivning vill långivare inte använda immateriella tillgångar som en säkerhet eftersom de ser immateriella tillgångar som riskfyllda.  Syfte: Syftet med denna studie är att öka kunskapen för hur banker bedömer kreditgivning till företag med en stor andel immateriella tillgångar. Metod: Vår studie genomfördes genom kvalitativa intervjuer. Vi intervjuade personer som är anställda hos Swedbank, Nordea, Handelsbanken, SEB och Länsförsäkringar. Resultat och slutsatser: Företag inom datorspelsbranschen behöver bevisa för banker att de inte är en bransch som är utsatt och löper risk för att hamna i konkurs. Bankerna är intresserade av att få tillbaka de pengar som de har lånat ut. Därför är det viktigt att visa banken en god återbetalningsförmåga oavsett vilken bransch företaget tillhör. / Background: Running a business means investing money in a future that is uncertain but which will hopefully yield a profit. Companies need capital to be able to invest in marketing, warehousing, research, development and training of staff. When a company is in need of funding, they often turn to banks to borrow money. The banks make a credit assessment to decide whether the company is granted the credit or not. When granting credit, lenders do not want to use intangible assets as collateral due to their view on intangible assets as risky. Purpose: The purpose of this study is to increase knowledge of how banks assess credit granting to companies with a large proportion of intangible assets. Method: Our study was conducted through qualitative interviews. We interviewed people who are employed by Swedbank, Nordea, Handelsbanken, SEB and Länsförsäkringar. Results &amp; conclusions: Companies in the computer game industry need to prove to banks that they are not an industry that is exposed and are at risk of falling into bankruptcy. The banks are interested in getting back the money they have lent. Therefore, it is important to show the bank a good repayment ability regardless of which industry the company belongs to.

<p> </p><p>This study concerns the implications of the discretion in the cut-off point in the accounting method for research and development. Our research problem targets the issues to reduce the existing research gap:</p><ul><li>- "Does the choice of accounting method for research and development matter when a creditor evaluates a company for a credit granting decision?"</li><li>- "How does the accounting method for research and development matter in a credit granting decision?"</li></ul><p>Our study aims to answer these questions by investigating and analyzing the credit granting assessment and by interviewing creditors at the major banks in Sweden. Fictitious case scenarios provide in-depth information about how the accounting methods matter for a credit granting decision.</p><p>We develop this study by gathering existing material regarding accounting standards, the accounting method and the credit granting assessment. Previous studies about credit granting and the accounting methods supplement the theoretical material.</p><p>The approach to this study is a hermeneutic approach that tries to grasp the entire picture of the respondents' opinion about the accounting methods. To gain detailed and extensive information from the respondents, we use a qualitative research with semi-structured interviews. The research sample consists of experienced creditors at the largest banks in Sweden. This is to ensure relevant and informative answers on our questions. We utilise the four case scenarios to encourage the respondents to elaborate upon the accounting methods for R&D. This provides detailed knowledge about how the accounting methods matter for a credit granting decision.</p><p>The respondent states that abnormal values in the R&D account are suspicious and that investigation and adjustments of these values occurs if necessary. From this summarised statement, we draw the conclusion that the accounting methods for R&D matter in a credit granting decision. However, we also establish that other factors are more influential on the decision. Furthermore, we find that the creditors examine the content of the R&D account because the methods and its content have different impact on the financial statements. The expense method indicates a negative impact on the credit granting decision if the company cannot carry the costs, while the recognition method gives an appearance of stronger financial statements. However, the recognition method also gives rise to suspicions if the company relies on previous achievements. We conclude that depending on the amount of R&D both methods can be perceived as an advantage and a disadvantage for a credit granting decision, however, our main finding suggests that a revaluation of the abnormal values in the R&D account occurs.</p><p>From the support of our findings, we believe that our research has accomplished the objective of the study and we therefore believe that we have contributed to the existing knowledge in the subject.</p><p> </p>

<p>Nedgångar i världsekonomin med påföljande likviditetsproblem hos företag har medfört negativa konsekvenser för banker, vilket skapade behov av effektiv kreditriskhantering. För att förhindra stora kreditförluster försöker banker ständigt minimera sina risker vid kreditgivning genom att identifiera fallgropar.</p><p>Syftet är att undersöka vilka faktorer som bidrar till kreditförluster och belysa hur Nordea kan minimera risker vid kreditgivning utifrån dessa faktorer.</p><p>Datainsamling skedde via granskning av litteratur och en fallstudie. Studieobjektet var affärsbanken Nordea där det genomfördes flera intervjuer med kreditansvariga på en regional nivå. För att ta reda på utvecklingen av kreditvolym inom Sverige sammanställdes data utifrån kreditgivningsstatistik från Nordea Hypotek AB.</p><p>Enligt teorin är kreditförluster beroende av direkta och indirekta faktorer. Medan de direkta faktorerna kan påverkas av en kreditanalytiker ligger de indirekta faktorer utanför dennes inflytande. Det kan konstateras att Nordea har lyckats minimera kreditrisker i avsevärd grad med reservation för vissa förbättringar och att de faktorer som förorsakar förluster har banken klarat av att hålla under kontroll.</p><p>Bankens grundläggande strategi i riskhanteringen är att använda sig av förnuftig kreditgivning. Samtliga respondenter har betonat vikten av att göra grundliga utredningar vid nya kreditansökningar samt frekventa uppföljningar vid en föraning på betalsvårigheter hos befintliga kredittagare. Genom dessa rutiner kan banken fånga upp problematiska affärstransaktioner och förebygga uppkomsten av kreditförluster.</p> / <p>Turbulence in the world economy with following liquidity problem in enterprises has lead to negative consequences for banks that creates a need for effective credit risk management. To prevent significant credit losses, banks tries constantly to minimize their risks in credit granting through identifying pitfalls.</p><p>The purpose is to investigate the factors that contribute to the credit losses and illustrate how Nordea can minimize risks in credit granting.</p><p>Data were gathered from the literature review and a case study. The object of study is the Swedish Business Bank Nordea where several credit managers has been interviewed at the regional level. To obtain a volume of credit development in Sweden, gathered the credit granting statistics of the source of Nordea Hypotek AB.</p><p>According to the theory credit losses are depending on direct and indirect factors. While direct factors can be affected by a credit analyst, indirect factors are outside of his influence. It can be stated that Nordea has been succeed in minimizing of risks at the considerable degree, with reservation for some improvements, and that some factors that cause losses the bank manage to keep under control.</p><p>Bank´s fundamental strategy in risk management is to use reasonable credit granting. All of respondents have stressed the importance of thorough inquiry on new credit application and frequent following up suspicions of payment difficulties with existing borrowers. Through these routines can bank capture problematic business transactions and prevent appearance of credit losses.</p>

<p>Purpose: To investigate whether or not the credit granters believe the quality in audits will deteriorate after the abolishment of statutory audit and, if that is the case, how the abolishment will strike the purpose and goal of accounting.</p><p>Approach: To answer our purpose we carried out a literature study to later implement interviews with four granters of credits specialised in business accounts.</p><p>Findings: The process of credit granting will not change after the abolishment of statutory audit for companies still using audit reports. Though, for other companies the process will change dramatically since the lean time of the process will increase. Higher demands will be put on these companies since the reliability in the economic information will decrease when it is no longer being reviewed in the same sense. Though, the credit granters believe that some form of substitute for audit will be demanded in order for the companies to be granted credits from the bank.</p>

<p>The new accounting standards IFRS and IAS was implemented in January 2005, the purpose was to harmonize accounting standards world wide. As a result of these new rules the real estate companies are allowed to appraise real estates assets at market value. It has long been debated whether this appraisal fulfils the requirements for relevance, reliability and comparability.</p><p>The paper attends to how banks control the information given by the real estate companies in the process of credit granting. As an introduction we describe the purpose of accounting and the problematic´s about appraisals with market values. Further on there is a discussion on which factors are taken into consideration when banks grant credits.</p><p>The study is built on interviews at three different commercial banks. At each bank one bank advisor was interviewed, the respondent were given specific questions and at the same time were free to speak openly about the subject.</p><p>In conclusion all banks focus on the real estates companies ability to repay the bank credits with revenues from the investment. With the focus on reimbursement banks will minimize the risk of credit losses and thereby decrease the risk of history repeating itself with new bank crisis. Besides the ability to repay credits banks also consider the fact’s, who is leading the company and how this owner has conduct prior businesses. In comparison whit theory and empirics all banks, in there credit granting process, fulfil the requirements for relevance, reliability and comparability. In summary the banks do not consider real estates valued at market prices as a problem in there assessments.</p>

Nedgångar i världsekonomin med påföljande likviditetsproblem hos företag har medfört negativa konsekvenser för banker, vilket skapade behov av effektiv kreditriskhantering. För att förhindra stora kreditförluster försöker banker ständigt minimera sina risker vid kreditgivning genom att identifiera fallgropar. Syftet är att undersöka vilka faktorer som bidrar till kreditförluster och belysa hur Nordea kan minimera risker vid kreditgivning utifrån dessa faktorer. Datainsamling skedde via granskning av litteratur och en fallstudie. Studieobjektet var affärsbanken Nordea där det genomfördes flera intervjuer med kreditansvariga på en regional nivå. För att ta reda på utvecklingen av kreditvolym inom Sverige sammanställdes data utifrån kreditgivningsstatistik från Nordea Hypotek AB. Enligt teorin är kreditförluster beroende av direkta och indirekta faktorer. Medan de direkta faktorerna kan påverkas av en kreditanalytiker ligger de indirekta faktorer utanför dennes inflytande. Det kan konstateras att Nordea har lyckats minimera kreditrisker i avsevärd grad med reservation för vissa förbättringar och att de faktorer som förorsakar förluster har banken klarat av att hålla under kontroll. Bankens grundläggande strategi i riskhanteringen är att använda sig av förnuftig kreditgivning. Samtliga respondenter har betonat vikten av att göra grundliga utredningar vid nya kreditansökningar samt frekventa uppföljningar vid en föraning på betalsvårigheter hos befintliga kredittagare. Genom dessa rutiner kan banken fånga upp problematiska affärstransaktioner och förebygga uppkomsten av kreditförluster. / Turbulence in the world economy with following liquidity problem in enterprises has lead to negative consequences for banks that creates a need for effective credit risk management. To prevent significant credit losses, banks tries constantly to minimize their risks in credit granting through identifying pitfalls. The purpose is to investigate the factors that contribute to the credit losses and illustrate how Nordea can minimize risks in credit granting. Data were gathered from the literature review and a case study. The object of study is the Swedish Business Bank Nordea where several credit managers has been interviewed at the regional level. To obtain a volume of credit development in Sweden, gathered the credit granting statistics of the source of Nordea Hypotek AB. According to the theory credit losses are depending on direct and indirect factors. While direct factors can be affected by a credit analyst, indirect factors are outside of his influence. It can be stated that Nordea has been succeed in minimizing of risks at the considerable degree, with reservation for some improvements, and that some factors that cause losses the bank manage to keep under control. Bank´s fundamental strategy in risk management is to use reasonable credit granting. All of respondents have stressed the importance of thorough inquiry on new credit application and frequent following up suspicions of payment difficulties with existing borrowers. Through these routines can bank capture problematic business transactions and prevent appearance of credit losses.

The new accounting standards IFRS and IAS was implemented in January 2005, the purpose was to harmonize accounting standards world wide. As a result of these new rules the real estate companies are allowed to appraise real estates assets at market value. It has long been debated whether this appraisal fulfils the requirements for relevance, reliability and comparability. The paper attends to how banks control the information given by the real estate companies in the process of credit granting. As an introduction we describe the purpose of accounting and the problematic´s about appraisals with market values. Further on there is a discussion on which factors are taken into consideration when banks grant credits. The study is built on interviews at three different commercial banks. At each bank one bank advisor was interviewed, the respondent were given specific questions and at the same time were free to speak openly about the subject. In conclusion all banks focus on the real estates companies ability to repay the bank credits with revenues from the investment. With the focus on reimbursement banks will minimize the risk of credit losses and thereby decrease the risk of history repeating itself with new bank crisis. Besides the ability to repay credits banks also consider the fact’s, who is leading the company and how this owner has conduct prior businesses. In comparison whit theory and empirics all banks, in there credit granting process, fulfil the requirements for relevance, reliability and comparability. In summary the banks do not consider real estates valued at market prices as a problem in there assessments.

Purpose: To investigate whether or not the credit granters believe the quality in audits will deteriorate after the abolishment of statutory audit and, if that is the case, how the abolishment will strike the purpose and goal of accounting. Approach: To answer our purpose we carried out a literature study to later implement interviews with four granters of credits specialised in business accounts. Findings: The process of credit granting will not change after the abolishment of statutory audit for companies still using audit reports. Though, for other companies the process will change dramatically since the lean time of the process will increase. Higher demands will be put on these companies since the reliability in the economic information will decrease when it is no longer being reviewed in the same sense. Though, the credit granters believe that some form of substitute for audit will be demanded in order for the companies to be granted credits from the bank.