JM receives a caution and an order to follow financial reporting rules

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.

Appeal to the Administrative Court

JM AB has appealed FI's decision to the Administrative Court.

Ruling by the Administrative Court

JM AB's appeal was upheld in such a way that FI's decision was revoked.

Appeal to the Administrative Court of Appeal

Finansinspektionen has appealed the ruling by the Administrative Court to the Administrative Court of Appeal.

Ruling by the Administrative Court of Appeal

• The Administrative Court of Appeal grants the appeal in part and affirms Finansinspektionen's decision to order JM AB to rectify the company's future financial statements in such a manner that the tenant-owner associations are consolidated during the production phase.
• This correction shall be completed no later than in the first financial report made public after the Administrative Court of Appeal's ruling became binding.
• The Administrative Court of Appeal rejected the appeal otherwise.

Appeal to the Supreme Administrative Court

JM has appealed the ruling of the Administrative Court of Appeal.

Decision by the Supreme Administrative Court

The Supreme Administrative Court has announced that it will not grant leave to appeal. The ruling by the Administrative Court of Appeal thus stands.