Note 34 Valuation of financial assets and liabilities at fair value
Group financial instruments are valued either at accrued acquisition value or fair value depending on how the instrument is classified according to IFRS 9. Items which have been the object of valuation at fair value are unlisted shareholdings, different types of derivatives, unlisted funds and contingent consideration.
Group unlisted shareholdings are valued at fair value. The purchase price is a reasonable approximation of fair value on the balance sheet date. The fair value of the Group’s shares in unlisted funds is based on the valuation received from the managing institute. The valuation belongs to level 3 in the fair value hierarchy. However, the Group does not have access to the information about the input data used by the institute for the valuation and therefore no information about such data is given. The fair value of the Group’s contingent considerations has been calculated as the current value of the amounts expected to be paid out according to the individual contracts. The single largest Group contingent consideration will be paid out if Peab receives a certain permit for quarry operations. The valuation of the consideration is therefore dependent on how Peab judges the probability of receiving said permit. The value of this contingent consideration on the balance sheet date was SEK 22 million (22). Other contingent considerations are based on projects received and profit/loss in the acquired businesses.
When calculating the fair value of interest-bearing receivables and liabilities and interest rate swaps, future cash flows were discounted to the listed market interest for the remaining terms of maturity. Spot rates on the balance sheet date were used to calculate the fair value of currency swaps. The recognized value of non-interest-bearing asset and liability items such as accounts receivable and accounts payable with a remaining maturity of less than six months is believed to reflect the fair value. The tables below show the recognized values compared with the estimated fair value per type of financial asset and liability.
Valued at fair value via the income statement | Derivatives used in hedge accounting | Financial assets available-for-sale 1) | Accrued acquisition value 2) | Other financial liabilities | Total recognized value | Fair value | |||||||||
Group, MSEK | 2018 | 2017 | 2018 | 2017 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||
Värderade till verkligt värde via resultaträkningen | Derivat som används i säkrings-redovisning | Finansiella tillgångar som kan säljas 1) | Upplupet anskaffningsvärde 2) | Övriga finansiella skulder | Summa redovisat värde | Verkligt värde | |||||||||
Koncernen, Mkr | 2018 | 2017 | 2018 | 2017 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||
Financial assets | Finansiella tillgångar | ||||||||||||||
Other securities held as fixed assets | Andra långfristiga värdepappersinnehav | 109 | 80 | 109 | 80 | 109 | 80 | ||||||||
Interest-bearing long-term receivables | Räntebärande långfristiga fordringar | 1,445 | 1,520 | 1,445 | 1,520 | 1,449 | 1,525 | ||||||||
Other long-term receivables | Andra långfristiga fordringar | 0 | 2 | 89 | 108 | 89 | 110 | 89 | 110 | ||||||
Accounts receivable | Kundfordringar | 10,166 | 8,709 | 10,166 | 8,709 | 10,166 | 8,709 | ||||||||
Interest-bearing current receivables | Räntebärande kortfristiga fordringar | 640 | 411 | 640 | 411 | 640 | 411 | ||||||||
Prepaid expenses and accrued income | Förutbetalda kostnader och upplupna intäkter | 33 | 28 | 33 | 28 | 33 | 28 | ||||||||
Other current receivables | Övriga kortfristiga fordringar | 1 | 4 | 513 | 96 | 514 | 100 | 514 | 100 | ||||||
Liquid funds | Likvida medel | 1,376 | 595 | 1,376 | 595 | 1,376 | 595 | ||||||||
Total financial assets | Summa finansiella tillgångar | 110 | 4 | 0 | 2 | 80 | 14,262 | 11,467 | – | – | 14,372 | 11,553 | 14,376 | 11,558 | |
Financial liabilities | Finansiella skulder | ||||||||||||||
Interest-bearing long-term liabilities | Räntebärande långfristiga skulder | 5,194 | 2,573 | 5,194 | 2,573 | 5,187 | 2,573 | ||||||||
Other long-term liabilities | Övriga långfristiga skulder | 23 | 23 | 22 | 44 | 116 | 136 | 161 | 203 | 161 | 203 | ||||
Interest-bearing current liabilities | Räntebärande kortfristiga skulder | 1,818 | 1,169 | 1,818 | 1,169 | 1,818 | 1,169 | ||||||||
Accounts payable | Leverantörsskulder | 5,177 | 4,882 | 5,177 | 4,882 | 5,177 | 4,882 | ||||||||
Accrued expenses and deferred income | Upplupna kostnader och förutbetalda intäkter | 4 | 14 | 4 | 14 | 4 | 14 | ||||||||
Other current liabilities | Övriga kortfristiga skulder | 12 | 11 | 2 | 91 | 141 | 103 | 154 | 103 | 154 | |||||
Total financial liabilities | Summa finansiella skulder | 35 | 34 | 22 | 46 | – | – | – | 12,400 | 8,915 | 12,457 | 8,995 | 12,450 | 8,995 | |
Unrecognized profit/loss 3) | Oredovisade vinster/förluster 3) | 11 | 5 |
2) Financial assets classified 2017 as Accounts and loan receivables.
3) In cases where there is a difference between recognized value and fair value the valuation belongs to level 3 in the fair value hierarchy.
The effect of valuing financial instruments at fair value was included in the Group’s income statement for a total of SEK -17 million (-1). The effects stem from the market value of the outstanding currency swaps.
Valued at fair value via the income statement | Accrued acquisition value 1) | Other financial liabilities | Total recognized value | Fair value | |||||||
Parent company, MSEK | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |
Värderade till verkligt värde via resultaträkningen | Upplupet anskaffningsvärde 1) | Övriga finansiella skulder | Summa redovisat värde | Verkligt värde | |||||||
Moderbolaget, Mkr | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |
Financial assets | Finansiella tillgångar | ||||||||||
Other securities held as fixed assets | Andra långfristiga värdepappersinnehav | 0 | 0 | 0 | |||||||
Accounts receivable | Kundfordringar | 0 | 1 | 0 | 1 | 0 | 1 | ||||
Current receivables Group companies | Kortfristiga fordringar koncernföretag | 2,736 | 3,472 | 2,736 | 3,472 | 2,736 | 3,472 | ||||
Total financial assets | Summa finansiella tillgångar | 0 | – | 2,736 | 3,473 | – | – | 2,736 | 3,473 | 2,736 | 3,473 |
Financial liabilities | Finansiella skulder | ||||||||||
Long-term liabilities Group companies | Långfristiga skulder till koncernföretag | 3,883 | 6,326 | 3,883 | 6,326 | 3,883 | 6,326 | ||||
Accounts payable | Leverantörsskulder | 31 | 25 | 31 | 25 | 31 | 25 | ||||
Current liabilities Group companies | Kortfristiga skulder till koncernföretag | 59 | 347 | 59 | 347 | 59 | 347 | ||||
Total financial liabilities | Summa finansiella skulder | – | – | – | – | 3,973 | 6,698 | 3,973 | 6,698 | 3,973 | 6,698 |
Fair value
Measurement of fair value is based on a three-level hierarchy.
Level 1: prices that reflect quoted prices on an active market for identical assets
Level 2: based on direct or indirect observable inputs not included in level 1
Level 3: based on inputs unobservable to the market
The table below shows the allocated level of financial assets and financial liabilities recognized as fair value in the Group balance sheet.
Level 2 | Level 3 | Total | |||||
Group, MSEK | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |
Nivå 2 | Nivå 3 | Summa | |||||
Koncernen, Mkr | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |
Financial assets | Finansiella tillgångar | ||||||
Other securities held as fixed assets | Andra långfristiga värdepappersinnehav | 109 | 59 | 109 | 59 | ||
Whereof shareholding in unlisted company | Varav onoterade aktier | 20 | 20 | – | |||
Whereof investment in unlisted funds | Varav onoterade fonder | 89 | 59 | 89 | 59 | ||
Other long-term receivables | Andra långfristiga fordringar | 2 | – | 2 | |||
Whereof commodity hedging with futures | Varav råvarusäkring med termin | 2 | – | 2 | |||
Other current receivables | Övriga kortfristiga fordringar | 1 | 4 | 1 | 4 | ||
Whereof currency derivatives | Varav valutaderivat | 1 | 4 | 1 | 4 | ||
Total financial assets | Summa finansiella tillgångar | 1 | 6 | 109 | 59 | 110 | 65 |
Financial liabilities | Finansiella skulder | ||||||
Other long-term liabilities | Övriga långfristiga skulder | 22 | 44 | 23 | 23 | 45 | 67 |
Whereof interest rate swaps | Varav ränteswappar | 18 | 44 | 18 | 44 | ||
Whereof commodity hedging with futures | Varav råvarusäkring med termin | 4 | 4 | – | |||
Whereof contingent consideration | Varav villkorad köpeskilling | 23 | 23 | 23 | 23 | ||
Other current liabilities | Övriga kortfristiga skulder | 1 | 2 | 11 | 11 | 12 | 13 |
Whereof currency derivatives | Varav valutaderivat | 1 | 2 | 1 | 2 | ||
Whereof contingent consideration | Varav villkorad köpeskilling | 11 | 11 | 11 | 11 | ||
Total financial liabilities | Summa finansiella skulder | 23 | 46 | 34 | 34 | 57 | 80 |
The tables below shows reconciliation between the opening and closing balance for assets and liabilities included in level 3.
Unlisted shares 1) | Unlisted funds | |||
Group, MSEK | 2018 | 2018 | 2017 | |
Onoterade aktier 1) | Onoterade fonder | |||
Koncernen, Mkr | 2018 | 2018 | 2017 | |
Opening balance | Ingående balans | 21 | 59 | 54 |
Investments during the year | Investeringar under året | – | 19 | 17 |
Sales during the year | Försäljningar under året | -12 | – | – |
Repayment during the year | Återbetalningar under året | – | – | -14 |
Dividends received | Erhållen utdelning | – | -3 | -1 |
Reported in profit/loss for the year 2) | Redovisat i årets resultat 2) | 11 | 14 | -2 |
Reported in other comprehensive income | Redovisat i övrigt totalresultat | – | – | 5 |
Closing balance | Utgående balans | 20 | 89 | 59 |
2) Recognized in net financial items.
Contingent consideration | |||
Group, MSEK | 2018 | 2017 | |
Villkorad köpeskilling | |||
Koncernen, Mkr | 2018 | 2017 | |
Opening balance | Ingående balans | 34 | 23 |
Acquisitions for the year | Årets förvärv | 2 | 11 |
Payments during the year | Årets utbetalningar | -3 | – |
Reported in profit/loss for the year: | Redovisat i årets resultat: | ||
Other operating costs | Övriga rörelsekostnader | 1 | – |
Interest expense (discount) 1) | Räntekostnad (diskontering) 1) | 0 | 0 |
Reported in other comprehensive income | Redovisat i övrigt totalresultat | 0 | – |
Closing balance | Utgående balans | 34 | 34 |
The contingent consideration will amount to at least SEK 3 million and at most SEK 40 million.