AI Annual Report 2019 1
Liquidity risk Cash flow forecasts are prepared b
y the Group's operating companies and aggregated by the Group's CFO. The Group’s CFO carefully monitors current projections for the Group's liquidity reserves in order to ensure that the Group has sufficient liquidity to satisfy any requirements in current operations while at the same time maintaining sufficient flexibility in agreed credit facilities that have not been utilized to ensure that the Group does not exceed the credit limits of any of its loan facilities. The table below analyses the Group’s financial obligations distributed over the period remaining as at the year-end through to the agreed expiry date. The amounts in the table are agreed non-discounted cash flows, including future interest payments. Maturity of liabilities - Group Bond loans Liabilities to Group companies Liabilities to credit institutions Overdraft facilities Leasing liability Accounts payable Other liabilities Accrued expenses Summa Maturity of liabilities - Parent Company Bond loans Liabilities to Group companies Liabilities to credit institutions Overdraft facilities Accounts payable Total NOTE 3 ESTIMATES AND ASSESSMENTS Estimates and assessments are valued continuously. These are based on historical experience and other factors, including expectations of future events, that under current conditions may be assumed to occur. The Group makes estimates and assumptions about the future. The resulting estimates for accounting purposes will, by definition, seldom match the actual results. The estimates and assumptions that carry a significant risk of essential adjustments in reported values for assets and liabilities during the following financial year that are mentioned below. 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 13). Repurchase agreements In some car sales, the Group may occasionally commit to repurchaNOTE 4 NET SALES 1/1/201912/31/2019 Net sales distribution Vehicle sales Workshop Spare parts in automotive operations Fee and commission income Elimination Other Net sales per geographic market Sweden Norway Belgium Other EU countries 58 I.A. HEDIN BIL AB / ANNUAL REPORT / 2019 19,952,984 1,800,997 2,557,380 409,943 -2,452,538 32,616 22,301,382 15,259,135 3,203,268 3,057,293 781,686 22,301,382 1/1/201812/31/2018 19,343,807 1,499,368 2,008,495 320,258 -2,170,399 41,811 21,043,340 16,486,913 3,342,425 1,214,002 0 21,043,340 < 1 year 57,150 270,556 436,621 1,041,318 508,493 1,713,413 466,059 44,527 1-2 year 57,150 0 1,288,563 0 516,120 0 330,554 0 1-2 year > 2 year 1,542,863 350,000 187,886 0 4,316,360 0 621,204 0 4,538,137 2,192,387 7,018,313 < 1 year > 2 year 57,150 224,321 158,712 1,041,318 5,507 1,487,007 57,150 0 0 0 0 1,542,863 350,000 0 0 0 57,150 1,892,863 se 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. 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, if the value then is weaker than predicted at the time the agreement was concluded. Ongoing assessments of these vehicles' future net realizable value are made along with randomized check of the resale value of the returned cars. The cars are reported as vehicles under Tangible assets and repurchase agreements are reported under Other liabilities. Contract liabilities are in the form of cars sold with repurchase agreements, see note 22. Inventories Valuation of vehicles is made at the lower of acquisition cost and net realizable value. Net realizable value is established based on an estimated realizable value reduced by sales costs. Net realizable value was lower than acquisition cost by kSEK 26,345 (kSEK 41,153).