| 2017-03-31 | ||||||||
|---|---|---|---|---|---|---|---|---|
| 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 | 856 | 1,001 | 22 | 17 | 2 | 61 | 4 | 1,963 |
| Acquisition of companies | 226 | 242 | – | – | – | – | – | 468 |
| Investments | – | 1 | – | 1 | – | 2 | – | 4 |
| Reclassifications | – | – | – | – | -1 | – | – | -1 |
| Translation effect for the year | 19 | 24 | – | 0 | -1 | 2 | – | 44 |
| Closing balance | 1,101 | 1,268 | 22 | 18 | 0 | 65 | 4 | 2,478 |
| Accumulated amortisation | ||||||||
| Opening balance | – | -390 | 0 | -14 | -1 | -56 | -4 | -465 |
| Amortisation | – | -108 | – | -1 | 0 | -3 | – | -112 |
| Reclassifications | – | – | – | – | 1 | – | – | 1 |
| Translation effect for the year | – | -9 | – | 0 | 0 | -1 | – | -10 |
| Closing balance | – | -507 | 0 | -15 | 0 | -60 | -4 | -586 |
| Carrying amount at year-end | 1,101 | 761 | 22 | 3 | 0 | 5 | 0 | 1,892 |
| Carrying amount at start of year | 856 | 611 | 22 | 3 | 1 | 5 | 0 | 1,498 |
| 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 |
| 2017-03-31 | 2016-03-31 | |||
|---|---|---|---|---|
| Parent Company | Software | Total | Software | Total |
| Accumulated cost | ||||
| Opening balance | 2.8 | 2.8 | 2.8 | 2.8 |
| Closing balance | 2.8 | 2.8 | 2.8 | 2.8 |
| Accumulated amortisation | ||||
| Opening balance | -2.8 | -2.8 | -2.7 | -2.7 |
| Amortisation | 0.0 | 0.0 | -0.1 | -0.1 |
| Closing balance | -2.8 | -2.8 | -2.8 | -2.8 |
| Carrying amount at year-end | 0.0 | 0.0 | 0.0 | 0.0 |
| Carrying amount at start of year | 0.0 | 0.0 | 0.1 | 0.1 |
| Group | ||||
| Goodwill distributed by business area | 2017-03-31 | 2016-03-31 | ||
| Components | 429 | 288 | ||
| Energy | 358 | 307 | ||
| Industrial Process | 165 | 114 | ||
| Power Solutions | 149 | 147 | ||
| Total | 1,101 | 856 | ||
The Group's recognised goodwill amounts to SEK 1,101 million (856), allocated as above to the units where impairment testing is performed. Goodwill is not monitored internally at a level lower than the business areas, and impairment testing is therefore performed at that level. The business areas accord with the Group's operating segments. Impairment testing took place most recently in March 2017.
The recoverable amount was based on value in use, calculated from a current estimate of cash flows in the year ahead. Forecast earnings and investments in working capital and non-current assets for the next financial year, 2017/2018, are based on previous outcomes and experiences. The forecast is produced on the basis of a relatively detailed budgeting process for the various parts of Group. The major components of the cash flow are sales, the various operating costs and investments in working capital and non-current assets.
The sales forecast is based on judgements taking into account factors such as order bookings, the general economy and the market situation. The forecast for operating costs is based on current pay agreements and previous years’ levels of gross margins and overheads, adapted to expectations for the year ahead taking into account factors as referred to for the sales forecast. Anticipated investments in working capital and non-current assets are linked to the growth in sales.
Since the businesses are deemed to be in a phase that is representative of the long-term perspective, the cash flow from the first forecast year is extrapolated by a long-term growth rate of 2 per cent (2) per year for all business areas. 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 impairment. The margin for impairment is considerable for all business areas and it is not judged that any possible changes in important assumptions that may reasonably expected to lead to impairment.
Each year, trademarks are tested for impairment, applying the same policies as for goodwill. No events or changes in circumstances were identified that would motivate impairment testing for other intangible non-current assets that are amortised.