Note 22 – Leasing
The Group’s lease contracts mainly comprise leased premises, with a small share of lease contracts covering vehicles, equipment and furniture and IT hardware. All right-of-use assets are reported in Tangible assets in the balance sheet.
|Group 31 dec 2020||Group 31 dec 2019|
|SEK m||Leased premises||Other right-of-use assets||Total||Leased premises||Other right-of-use assets||Total|
|Transition to IFRS 16||-||-||-||161||12||173|
|Investments for the year||39||2||41||69||6||75|
|Divestments and disposals||-5||-1||-6||-||-||-|
|Depreciation for the year||-41||-6||-47||-38||-7||-45|
|Divestments and disposals||5||1||6||-||-||-|
The year’s investments in right-of-use assets pertain to new acquisitions and to additional amounts resulting from reviewing existing lease liabili- ties when lease contracts are extended or prematurely terminated.
As at 31 December 2020 the Group has not entered into any material leases that are not reported in the balance sheet. In addition to lease contracts reported in the balance sheet at 31 December 2019, the Group also had leases in which the right-of-use asset was not accessible until the following financial year. Obligation under these contracts amounted to SEK 18m at 31 December 2019.
Lease liabilities are reported in Other liabilities in the balance sheet and totalled SEK 204m (212) at 31 December 2020. A maturity analysis of lease liabilities is presented in note 17, "Maturity analysis".
Total cash flow for lease liabilities during the year was SEK 51m.
The effects of transition to IFRS 16 are presented in the Accounting Principles section.
Amounts reported in the income statement
|Group 31 dec 2020|
|Depreciation of right-of-use assets||-47||-45|
|Interest expense related to lease liabilities||-7||-6|
|Costs related to short-term leases||0||-3|
|Costs related to low-value leases||0||0|
Interest expense related to lease liabilities is reported in note 4 "Net interest income". Depreciation of right-of-use assets is reported in Depreciation and amortisation of tangible and intangible assets. Costs related to short-term and low-value leases are reported in General administrative expenses.
Hoist Finance AB (publ) has decided to apply the exceptions in RFR 2 in Parent company accounting. The new accounting standard IFRS 16, in force from 1 January 2019, is therefore not applied by the Parent Company.
All Parent company leases are reported according to the rules for operating leases. There are no leases classified as finance leases.
The Parent company’s lease expenses totalled SEK 27m (30) during the year. No variable fees were charged to net profit for the year.
The Parent Company’s obligations under operating lease agreements are presented below.
|SEK m||31 Dec 2020||31 Dec 2019|
|Payment obligations under noncancellable lease contracts|
|Within 1 year||27||24|
|Year 5 and thereafter||26||48|