| 2016-03-31 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Intangible assets acquired | Intangible assets developed in the Group | |||||||
| Group | Goodwill | Supplier relationships, customer relationships and technology | Trademarks | Capitalised R&D expenses | Leases (rental) and similar rights | Software | Software | Total |
| Accumulated cost | ||||||||
| Opening balance | 903 | 983 | 23 | 16 | 1 | 67 | 4 | 1,997 |
| Acquisition of companies | 515 | 394 | – | 1 | – | 10 | – | 920 |
| Investments | – | 2 | – | 1 | 1 | 15 | – | 19 |
| Discontinued operations | -543 | -354 | -1 | – | – | -14 | – | -912 |
| Disposals and retirement of assets | – | 0 | – | 0 | – | -17 | – | -17 |
| Translation effect for the year | -19 | -24 | – | -1 | 0 | 0 | – | -44 |
| Closing balance | 856 | 1,001 | 22 | 17 | 2 | 61 | 4 | 1,963 |
| Accumulated amortisation | ||||||||
| Opening balance | – | -379 | 0 | -13 | -1 | -57 | -4 | -454 |
| Acquisition of companies | – | -8 | – | – | – | -3 | – | -11 |
| Amortisation | – | -111 | 0 | -2 | 0 | -6 | – | -119 |
| Discontinued operations | – | 101 | – | – | – | 7 | – | 108 |
| Disposals and retirement of assets | – | 0 | – | 0 | – | 3 | – | 3 |
| Translation effect for the year | – | 7 | – | 1 | 0 | 0 | – | 8 |
| Closing balance | – | -390 | 0 | -14 | -1 | -56 | -4 | -465 |
| Carrying amount at year-end | 856 | 611 | 22 | 3 | 1 | 5 | 0 | 1,498 |
| Carrying amount at start of year | 903 | 604 | 23 | 3 | 0 | 10 | 0 | 1,543 |
| 2015-03-31 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Intangible assets acquired | Intangible assets developed in the Group | |||||||
| Group | Goodwill | Supplier relationships, customer relationships and technology | Trademarks | Capitalised R&D expenses | Leases (rental) and similar rights | Software | Software | Total |
| Accumulated cost | ||||||||
| Opening balance | 785 | 813 | 23 | 16 | 1 | 60 | 4 | 1,702 |
| Acquisition of companies | 113 | 166 | – | – | – | – | – | 279 |
| Investments | 2 | 1 | – | 0 | 0 | 6 | – | 9 |
| Reclassifications | – | – | – | – | – | 1 | – | 1 |
| Translation effect for the year | 3 | 3 | – | 0 | 0 | 0 | – | 6 |
| Closing balance | 903 | 983 | 23 | 16 | 1 | 67 | 4 | 1,997 |
| Accumulated amortisation | ||||||||
| Opening balance | – | -290 | 0 | -11 | -1 | -54 | -4 | -360 |
| Amortisation | – | -87 | 0 | -2 | 0 | -3 | – | -92 |
| Translation effect for the year | – | -2 | – | 0 | 0 | 0 | – | -2 |
| Closing balance | – | -379 | 0 | -13 | -1 | -57 | -4 | -454 |
| Carrying amount at year-end | 903 | 604 | 23 | 3 | 0 | 10 | 0 | 1,543 |
| Carrying amount at start of year | 785 | 523 | 23 | 5 | 0 | 6 | 0 | 1,342 |
| 2016-03-31 | 2015-03-31 | |||
|---|---|---|---|---|
| Parent Company | Software | Total | Software | Total |
| Accumulated cost | ||||
| Opening balance | 2.8 | 2.8 | 2.8 | 2.8 |
| Investments | – | – | – | – |
| Closing balance | 2.8 | 2.8 | 2.8 | 2.8 |
| Accumulated amortisation | ||||
| Opening balance | -2.7 | -2.7 | -2.5 | -2.5 |
| Amortisation | -0.1 | -0.1 | -0.2 | -0.2 |
| Closing balance | -2.8 | -2.8 | -2.7 | -2.7 |
| Carrying amount at year-end | 0.0 | 0.0 | 0.1 | 0.1 |
| Carrying amount at start of year | 0.1 | 0.1 | 0.3 | 0.3 |
| Group | ||||
| Goodwill distributed by business area | 2016-03-31 | 2015-03-31 | ||
| Components | 288 | 252 | ||
| Energy | 307 | 251 | ||
| Industrial Process | 114 | 117 | ||
| Power Solutions | 147 | 96 | ||
| Discontinued Operations | – | 187 | ||
| Total | 856 | 903 | ||
The Group's recognised goodwill amounts to SEK 856 million (903). Having adopted IFRS, the Company no longer amortises goodwill but rather tests goodwill annually in accordance with IAS 36. The latest test took place in March 2016.
The Group has carried out over 100 acquisitions since 2001. Goodwill in each individual acquisition is not material for the Group. Goodwill is therefore allocated among cash-generating units, which correspond to the business units. Impairment testing takes place at business unit level, because the acquired business is also integrated with another Addtech business to such an extent that it is not possible to separate assets and cash flows attributable to the acquired company. Goodwill is not assessed at a higher level than segment level.
The recoverable amount was calculated based on value in use and applies a current estimate of cash flows for the coming five-year period. The profit forecast for the next financial year 2016/2017 is based on previous results and experiences. The forecast is prepared based on orders, the economy, the market situation, current wage agreements and assumptions about revenue growth, gross margins, overhead costs, working capital needs and investment needs based on past experience.An annual growth rate of 2 percent (2) was assumed for the remainder of the five-year period. For cash flows beyond the five-year period, the growth rate was assumed to correspond to growth during the fifth year. Cash flows were discounted using a weighted cost of capital corresponding to roughly 10 percent (10) before tax. These calculations show that value in use significantly exceeds the carrying amount. Consequently, impairment testing indicated no need for impairment. Impairment testing shows that no reasonable possible changes in key assumptions are expected to lead to impairment.
Each year, trademarks are tested for impairment applying the same policies as with goodwill. No events or changes in circumstances were identified that would motivate impairment testing for other intangible non-current assets that are amortised.