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Note 20 – Intangible assets

 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
 Group 31 Dec 2019Parent Company 31 Dec 2019
SEK mGoodwillInternally developed softwareLicences and softwareWork in progressTotalInternally developed softwareLicences and softwareWork in progressTotal
Opening balance2101034712268910210122342
Investments for the year--84149-23840
Acquired through merger------8-8
Reclassification--112-1120-109-1090
Divestments and disposals---1-2-3--1--1
Translation differences3--73-1-1-10
Acquisition value21310459527341032950389
          
Opening balance-57-5-240--302-5-160--165
Depreciation for the year--2-54--56-2-36--38
Divestments and disposals--1-1-1-1
Translation differences0-5-5--1--1
Accumulated depreciation-57-7-288--352-7-196--203
Carrying amount156317152382313350186

Impairment test for goodwill

The Group’s goodwill of SEK 140m (156) has been identified as belonging to the cash-generating units Poland, SEK 127m, and Spain, SEK 10m. The remaining SEK 3m of goodwill is recognised locally in subsidiary Hoist Italia S.r.l. Goodwill was impairment tested in conjunction with the year-end accounts and no write-down requirement was identified.

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.

Cash flow forecasts are based on an assessment of future collections, portfolio acquisitions, and cost and revenue development.

The Group's impairment test is carried out as follows. 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 2019 is within the 4–6 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.

The impairment testing of goodwill in subsidiary Hoist Italia S.r.l. is carried out pursuant to local policies. No write-down requirement was identified in the year’s impairment test.

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- Annual Report 2020 -
- Årsredovisning 2020 -