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Note 20 – Intangible assets

 Group 31 Dec 2021Parent Company 31 Dec 2021
SEK mGoodwillInternally developed softwareLicences and softwareWork in progressTotalGoodwillInternally developed softwareLicences and softwareWork in progressTotal
Opening balance2021049563770-1036563438
Investments for the year1 -959681-55965
Reclassification6-46-520--52-520
Divestments and disposals-8---4-12----4-4
Translation differences-1060500101
Acquisition value200105566683211042366500
          
Opening balance-62-9-330-11-412--9-231-11-251
Depreciation for the year--1-52-9-620-1-46--47
Divestments and disposals---------9-9
Translation differences70-502001-1
Accumulated depreciation55-10-387-20-4720-10-275-20-306
Carrying amount1450169463601014946194

 Group 31 Dec 2020Parent Company 31 Dec 2020
SEK mGoodwillInternally developed softwareLicences and softwareWork in progressTotalInternally developed softwareLicences and softwareWork in progressTotal
Opening balance 213 10 459 52 73410329 50 389
Investments for the year - - 2 54 56 - 1 51 52
Acquired companies 3 - - - 3 - - - -
Reclassification -6 - 45 -39 0 - 38 -38 0
Divestments and disposals - - 0 -4 -4 - - - -
Translation differences -8 - -11 0 -19 - -3 - -3
Acquisition value 202 10 495 63 770 10 365 63 438
          
Opening balance -57 -7 -2880 -352 -7 -1960 -203
Depreciation for the year - -2 -50- -52 -2 -37 - -39
Impairment for the year----11-11--11-11
Divestments and disposals - - 0 - 0 - - - -
Translation differences -5 - 8 0 3 - 2 - 2
Accumulated depreciation -62 -9 -330 -11 -412 -9 -231 -11 -251
Carrying amount 140 1 165 52 358 1 134 52 187

Impairment test for goodwill 

The Group’s goodwill of SEK 145m (140) has been identified as belonging to the cash-generating units Poland, SEK 127m, and Spain, SEK 10m, and the remaining goodwill is recognised in Italy. Goodwill was impairment tested in conjunction with the year-end accounts and no impairment requirement was identified. The Parent Companys goodwill of SEK 1m (-) is recognised in the Romanian branch. 

Goodwill is tested for impairment at least annually and when there are indications for impairment. In impairment tests, the value in use of the cash-generating units is calculated by discounting estimated future cash flows. Value in use is compared with carrying value to determine whether impairment is required.

The Group's impairment test is carried out as follows. Cash flow forecasts are based on an assessment of future collections, portfolio acquisitions, and cost and revenue development. The forecast period for gross cash collections is 15 years. Collection costs are calculated in relation to collection on portfolios, and other revenues and costs are based on established 3-year business plans. Investments are considered to be of a long-term nature and, accordingly, it is assumed that, for the period beyond the forecast period, revenues, costs and investments will increase 2 per cent in perpetuity.

The effective tax rate applied in the impairment test is the local tax rate in the relevant country. The discount rate is the weighted average cost of capital in the relevant country. The discount rate for 2021 is within the 4.7–7.3 per cent range after tax.

In this year’s Group impairment test, the value in use was deemed to exceed the carrying value of the cash-generating units Poland and Spain. There is therefore no impairment requirement.

Goodwill in the Romanian branch is depreciated over five years and is eliminated on Group. The impairment testing of goodwill is carried out pursuant to local policies. No impairment requirement was identified in the year’s impairment test.

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- Annual Report 2021 -
- Årsredovisning 2021 -