I.A. Årsredovisning 2020 ENG 1
NOTE 13 INTANGIBLE FIXED ASSETS Intangible rights
Acquisition costs Opening balance 01/01/2019 Purchase Business acquisitions Sales/disposals Conversion differences Closing balance 12/31/2019 Purchase Business acquisitions Sales/disposals Conversion differences Closing balance 12/31/2020 Accumulated depreciation Opening balance 01/01/2019 Depreciation for the year Sales/disposals Conversion differences Closing balance 12/31/2019 Depreciation for the year Sales/disposals Conversion differences Closing balance 12/31/2020 Carrying amount 12/31/2019 Carrying amount 12/31/2020 Impairment testing of goodwill Goodwill is monitored by the management at Group level. Impairment testing of goodwill attributable to cash-generating units and other intangible assets is conducted annually. Estimated recoverable amount are based on the management's expectations of future earnings and cash flow. The estimated cash flows are based on five-year forecasts using estimated market trends. After the five-year period, the cash flow is based on a permanent growth rate of 2% (2%). When calculating recoverable amount for cash-generating units, a discount factor of 9.4% (9.3%) before tax has been used, based on the weighted average cost of capital (WACC) and value in use, as the basis for the recoverable amount. The recoverable amount exceeds goodwill for all cash-generating units. The following cash-generating units have reported goodwill values; Hedin Bil, Sweden Hedin Automotive, Norway Hedin Automotive, Belgium Total 12/31/2020 461,041 536,312 339,110 1,336,463 12/31/2019 461,041 607,328 352,492 1,420,861 The breakdown of cash-generating units has changed to a geographical division. Division into the cash-generating units reflects the corresponding division into operating segments. 14,174 11,665 0 -543 417 25,713 11,840 11 -4,295 -897 32,372 -40,258 522,344 Customer relations 414,661 140,550 7,391 562,602 Goodwill 1,151,584 250,315 18,962 1,420,861 Total 1,580,419 11,665 390,865 -543 26,770 2,009,176 5,027 -89,425 1,336,463 11,840 5,038 -4,295 -130,580 1,891,179 -2,969 -5,632 403 -55,039 -67,471 -579 -8,777 -6,548 2,937 2,935 -9,453 16,936 22,919 -814 -123,324 -76,210 12,541 -186,993 439,278 335,351 0 1,420,861 1,336,463 0 0 -58,008 -73,103 403 -1,393 -132,101 -82,758 2,937 15,476 -196,446 1,877,075 1,694,733 1 694 7 I.A. HEDIN BIL AB / ANNUAL REPORT / 2020 65