AI Annual Report 2019 1
Bonus from suppliers Bonuses from suppliers on so
ld cars are reported as a reduced cost of commodities. Leasing The Group as lessor For the lessor, the concept financial and operational leasing remains. Leasing in which a material proportion of the risks and benefits of ownership are retained by the lessor are classified as operational leases. Payments made for the leasing period are expensed on a straight-line basis in the Income Statement during the term of the lease. In financial leasing, the financial risks and benefits attributable to ownership are transferred to the lessee. The Group as lessee At January 1, 2019, IFRS 16 Leases replaced the present policies in IAS 17. The standard describes how the assets and liabilities due to the leasing agreement should be accounted in the balance sheet of the lessee. The same policies should be applied on operational leases and financial leases. All leasing agreements with maturity later than 12 months should be reported in the balance sheet and the lease payments should be reported as depreciation apart from the interest cost. The debt corresponds to the discounted present value of the future lease payments until the contract expires. I.A. Hedin Bil has chosen the modified retroactive method and 2018 will not be recalculated. The simplification approach that the right-of-use asset (before adjustments for any advance payments) should correspond to the lease liability has been applied in the transition, and the simplification rule for definition of a lease has been applied, which means that all components in a lease have been regarded as a lease component. The exceptions for not reporting short-term leases and assets of low value have also been applied. The opening balance of the leasing liability and the right-of-use asset amounted to MSEK 4,496 for the existing leasing agreements. The largest part of the leasing agreements relates to properties, which refers to the facilities where Hedin Bil conducts its business. The effect of the adjustments made during the transition to IFRS 16 is presented below, see summary of the Consolidated Income statement and the Consolidated Balance sheet; CONSOLIDATED INCOME STATEMENT Amount in kSEK Operating income Goods for resale Other external expenses Employee benefit expenses Depreciation and amortization of tangible and intangible fixed assets Operating profit/loss Financial income and expenses Profit/loss before tax Taxes Net profit/loss for the period CONSOLIDATED BALANCE SHEET Amount in kSEK Intangible assets Tangible assets Financial assets Total fixed assets Total current assets TOTAL ASSETS Equity Interest-bearing, non-current liabilities Other non-current liabilities Interest-bearing, current liabilities Other current liabilities TOTAL EQUITY AND LIABILITIES 1/1/201912/31/2019 excl IFRS 16 22,327,229 -17,719,997 -1,596,702 -2,022,859 -663,961 323,710 -144,577 179,133 -51,300 127,833 Adjustments IFRS16 0 568,654 -532,157 36,497 -67,676 -31,179 6,654 -24,525 1/1/2019 - 12/31/2019 incl IFRS 16 22,327,229 -17,719,997 -1,028,048 -2,022,859 -1,196,118 360,207 -212,253 147,954 -44,646 103,308 12/31/2019 excl IFRS 16 1,877,075 2,750,251 64,095 4,691,421 4,822,334 9,513,755 955,466 1,678,055 1,866,149 1,430,739 3,583,346 9,513,755 Adjustments IFRS16 4,812,725 6,654 4,819,379 -10,180 4,809,199 -24,438 4,332,659 500,978 4,809,199 12/31/2019 incl IFRS 16 1,877,075 7,562,976 70,749 9,510,800 4,812,154 14,322,954 931,028 6,010,714 1,866,149 1,931,717 3,583,346 14,322,954 56 I.A. HEDIN BIL AB / ANNUAL REPORT / 2019