Note 16

Leases
The effect on the group from the transition to IFRS 16 Leases is described in note 1 Accounting and valuation principles. The method chosen by the Group for the transition to IFRS 16 means that comparative figures are not recalculated. The transition effect from previous accounting standard to IFRS 16 is described in the tables below. Future minimum lease payments amounting to 564 MSEK at the end of March 2019 have been discounted with the incremental borrowing rate. At the transition to IFRS 16 a weighted average incremental borrowing rate of 1 percent was used. Leases for which the underlying asset is of low value and short term-leases have been exempted and extension periods have been added. The opening lease liability with IFRS 16 in the beginning of April 2019 amounted to 558 MSEK. At the end of 2019/2020, the lease liability amounted to 627 MSEK whereof 169 were short-term and 458 long-term. The average remaining lease term at the end of March 2020 was 34 months. The Group’s right-of-use assets relate primarily to leased premises, vehicles, and other leases (e.g. leases of production equipment, office equipment, and other assets not considered individually significant). Depreciation on right-of-use assets is specified in note 8 Depreciation/ amortisation. Interest expense on lease liabilities amounted to 8 MSEK in the financial year 2019/2020. In addition to the interest expense, the cash flow statement was affected by instalment on the lease liability, amounting to 162 MSEK. The effect from low-value and short-term leases is not included in these amounts.

Operating leases Group Parent Company Parent Company
Addtech as leasee 2018/2019 2019/2020 2018/2019
Lease payments
Lease payments made during the financial year 169 6 5
of which variable payments 2
Future minimum lease payments under non-cancellable contracts fall due as follows:
Within one year 148 1 5
Later than one year and within five years 369 0 3
Five years or later 102
Total 619 1 8
Significant operating leases primarily constitute rental contracts for premises in which the Group conducts business.
Group
2019/2020
Transition from IAS 17 to IFRS 16
Total future minimum lease payments 31 March 2019 619
Total future minimum lease payments 31 March 2019 Adjustment* -55
Discount at incremental borrowing rate -23
Less leases shorter than 12 months -28
Less low-value leases -3
Add extension option 60
Financial leses 31 March 2019 12
Other -24
Add lease liability 1 April 2019 558
*Due to an extensive contract review in connection with the transition to IFRS 16, and after the figures were established in the annual report for 2018/2019, we noted that the operational leasing reported according to IAS 17 deviated from actual operational leasing for a number of companies. As a result, the figures have been adjusted compared with the previous year.
3/31/2020
Group Premises Vehicles Other Total
Accumulated cost
Opening balance (acc. to IAS 17) - - - -
Change in accounting principles 477 57 24 558
Acquisition of companies 40 0 1 41
Additional rights-of-use 144 33 8 185
Leases ended -8 -2 -1 -11
Reclassifications 4 1 0 5
Translation effect for the year 657 89 32 778
Closing balance
Accumulated depreciation and impairment losses - - - -
Opening balance (acc. to IAS 17) -6 0 0 -6
Acquisition of companies -114 -30 -7 -151
Amortisation 2 2 1 5
Leases ended 0 0 0 0
Closing balance -118 -28 -6 -152
Carrying amount at year-end 539 61 26 626
Carrying amount at start of year - - - -
Group
2019/2020
Förfallostruktur leasingskulder 31/30 2020
Within one year 174
1-2 years 145
2-5 years 261
Later than 5 years 70
Total undiscounted lease payments 650
Reported amount 627