I.A. Hedin Bil - Annual Report 2018 1
NOTE 13 INTANGIBLE FIXED ASSETS Intangible assets
Acquisition costs Opening balance January 1, 2017 Purchase Business acquisitions Sales/disposals Conversion differences Closing balance December 31, 2017 Purchase Business acquisitions Sales/disposals Conversion differences Closing balance December 31, 2018 Accumulated depreciation Opening balance January 1, 2017 Depreciation for the year Sales/disposals Conversion differences Closing balance December 31, 2017 Depreciation for the year Sales/disposals Conversion differences Closing balance December 31, 2018 Carrying amount December 31, 2017 Carrying amount December 31, 2018 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 recovery values 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 percent (2 percent). The following cash-generating units have reported goodwill values; When calculating recovery values for cash-generating units, a discount factor of 9.5 percent (11.4 percent) 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. These calculations showed no need for impairment even with reasonable changes in assumptions. Hedin Bil, Sweden Hedin Mölndal Bil AB Hedin Performance Cars AB Total Sweden Hedin Automotive, Norway Total Norway Hedin Automotive, Belgium Total Belgium 12/31/2018 38,048 35,768 91,381 165,197 829,864 829,864 156,523 156,523 12/31/2017 33,194 30,000 91,381 154,575 777,098 777,098 55,194 782 6,845 -145 7,482 4,120 2,973 -401 14,174 285,365 -6,855 278,510 895,729 -19,250 931,673 55,194 782 1,187,939 0 -26,250 1,217,665 4,120 131,871 4,280 414,661 204,961 14,950 1,151,584 339,805 0 18,829 1,580,419 Customer relations Goodwill Total 0 -203 43 -160 -3,038 229 -2,969 7,322 11,205 -2,307 68 -2,239 -54,276 1,476 -55,039 276,271 359,622 0 931,673 1,151,584 0 -2,510 0 111 -2,399 -57,314 0 1,705 -58,008 1,215,266 1,522,411 0 I.A. HEDIN BIL AB / ANNUAL REPORT / 2018 69