What does it mean?
The annual report (årsredovisning) is the housing cooperative's yearly financial report presented at the annual general meeting. It includes an income statement, balance sheet, cash flow analysis, management report, and auditor's report. The annual report is a crucial document to review before buying a cooperative apartment.
Key things to examine include the association's debt level (debt per sqm), interest rate sensitivity, maintenance plan, liquidity, and whether fees cover ongoing costs. An association with high debt per square meter (above SEK 10,000/sqm is considered high) may need to significantly increase fees if interest rates rise. Also check whether the association has an updated maintenance plan and sufficient reserved funds for future renovations.
Key Points
- Annual financial report — presented at annual general meeting
- Contains income statement, balance sheet, cash flow, and auditor's report
- Check debt per sqm — above SEK 10,000/sqm is considered high
- Verify maintenance plan is updated and funded
- Fees should cover ongoing costs without the association running a deficit
Practical Tip
Always request the last three annual reports before buying a cooperative apartment — a single report doesn't give the full picture. Look at the trend: are debts increasing? Have fees been raised often? Are there planned renovations that could affect the fee?
Legal Basis: Housing Cooperative Act (1991:614) and Annual Accounts Act (1995:1554)