Anders Hedin Invest Årsredovisning 1
Impairment testing of goodwill The Group examines
the existence of any impairment for goodwill, in accordance with the Group's accounting principles. The recoverable amounts of cash-generating units have been established by calculating the value in use. By necessity, these calculations include certain estimates (Note 15). Repurchase agreements In some car sales, the Group may occasionally commit to repurchase agreements, which entail a commitment to repurchase a sold vehicle at a pre-agreed residual value. This occurs primarily in conjunction with private leasing transactions. The leases are reported as operational leases in accordance with the Group's accounting principles. NOTE 4 NET SALES 1/1/2017 - 12/31/2017 Net sales distribution Car sales Workshop Spare parts in automotive operations Fee and commission income Spare parts in wholesale operations Car rental operations Construction Other Net sales per geographic market Sweden Norway EU countries 10,488,137 863,318 1,083,837 195,606 847,892 220,865 827,492 24,616 14,551,763 13,754,911 625,292 171,560 14,551,763 NOTE 5 OTHER OPERATING INCOME Rental income Contributions received Negative goodwill Trading in securities Profit on sale of fixed assets Other Total 1/1/2017 - 12/31/2017 4,939 177 20,401 0 11,486 5,628 42,631 1/1/2016 - 12/31/2016 1,627 16 19,258 32 554,002 3,056 577,991 1/1/2016 - 12/31/2016 7,935,229 748,511 885,435 151,099 763,104 204,439 0 19,084 10,706,901 10,469,326 39,399 198,176 10,706,901 The agreements entail a residual value risk in that the Group may be forced to sell pre-owned vehicles at a loss in the future in the event the value trend is weaker than predicted at the time the agreement was entered into. There is a continuous assessment of these vehicles' future net worth. The cars are reported as vehicles under Tangible assets and repurchase agreements are reported under Other liabilities. Inventories Valuation of pre-owned vehicles is made at the lower of cost and net realizable value. Net realizable value is established based on an estimated realizable value less sales costs. Net realizable value was lower than cost to the amount of SEK 42,932,000 (19,297,000). 86 ANDERS HEDIN INVEST AB / ANNUAL REPORT / 2017