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.