Sweater with Wavy Edging

How to knit the sweater with wavy edging:
Sizes: EU 34/36 (44/46) – UK 6/8 (16/18) – US 2/4 (12/14)
Materials:
550 (650) g yarn (100% cotton, 90 m/50 g ≈ 98 yd/1.76 oz); straight and circular needles size 5 mm (US 8).
Ribbing Pattern: alternately 1 knit stitch, 1 purl stitch.
Lace Pattern: number of stitches divisible by 26 + 1 + 2 edge stitches.
Work according to the chart, which shows right side rows only.
On wrong-side rows, work the stitches as they appear, purl the yarn overs.
Begin with 1 edge stitch and the stitches before the pattern repeat, repeat the pattern repeat, end with the stitches after the pattern repeat and 1 edge stitch.
Work rows 1 to 30 once, then repeat rows 31 to 34 throughout.
Gauge: 22 stitches and 24.5 rows = 10 x 10 cm (4 x 4 in).
Back:
Cast on 107 (133) stitches and work in Lace Pattern.
After 58 cm = 142 rows (61 cm = 150 rows) / 22.8 in (24 in) from cast-on edge, for the neckline bind off the middle 49 (53) stitches and finish both sides separately.
After 60 cm = 146 rows (63 cm = 154 rows) / 23.6 in (24.8 in) from cast-on edge, bind off the remaining 29 (40) shoulder stitches on each side.
Front:
Work as for the Back, but with a deeper neckline.
For this, after 53 cm = 130 rows (56 cm = 138 rows) / 20.9 in (22 in) from cast-on edge, bind off the middle 49 (53) stitches.
Sleeves:
Cast on 55 stitches and work in Lace Pattern.
At the same time, for sleeve shaping from the cast-on edge increase alternately in every 8th and 6th row 14 times (in every 6th row 4 times and in every 4th row 17 times) 1 stitch on each side = 83 (97) stitches, incorporating the increased stitches into the pattern.
After 41.5 cm = 102 rows (39 cm = 96 rows) / 16.3 in (15.4 in) from cast-on edge, bind off all stitches.

Finishing:
Sew the shoulder seams.
Pick up 150 (158) stitches along the neckline with circular needles and work in Ribbing Pattern.
Make sure that at each corner of the front and back neckline there is 1 knit stitch (= corner stitch).
For shaping, in every 2nd round 4 times slip the corner stitch together with the previous stitch as if to knit, knit the next stitch, then pass the slipped stitches over.
Bind off the remaining 118 (126) stitches in pattern after 9 rounds.
Set in sleeves, work side seams and sleeve seams.