Note 45 New IFRSs 2019

IFRS 16 Leases

IFRS 16 Leases replace IAS 17 Leases as of 1 January 2019. IFRS 16 will basically require Peab as a lessee to report all leasing contracts as assets and liabilities on the balance sheet, representing the right to use the leased asset respectively the obligation to pay leasing fees. Regarding leasing contracts, depreciation of the leasing asset and interest costs on the leasing liability are recognized in the income statement. Peab does not believe this will have any material effect on profit before tax. Affected leases primarily cover rent for offices and other premises, leaseholds, land rentals and vehicles.

When changing over to the new standard Peab has elected the modified retroactive method with the alternative to let the right-of-use asset be measured at the amount of the lease liability at the changeover with adjustments for any prepaid or accrued leasing fees. The elected changeover method does not require recalculating comparable periods.

Right-of-use leases shorter than 12 months or which end within 12 months from the changeover date are classified as current leases and therefore are not included in liabilities or right-of-use assets. In addition, Peab has elected not to recognize leases for which the underlying asset has a low value as a right-of-use asset respectively a lease liability.

Existing finance leases that were previously reported according to IAS 17 Leases have been reclassified according to IFRS 16 and are recognized at the amounts they were recognized on the immediate day prior to application of the new standard.

An incremental borrowing rate has been determined per country, right-of-use period and type of asset as of 1 January 2019.

Effects of the changeover to IFRS 16 are given below.

 

Report on Group balance sheet in summary, 2018-12-31 respectively 2019-01-01

Group, MSEK Reported balance sheet 2018-12-31 Adjustment IFRS 16
2019-01-01		 Adjusted balance sheet 2019-01-01
Koncernen, Mkr Rapporterad balansräkning 2018-12-31 Justering IFRS 16
2019-01-01		 Justerad balansräkning 2019-01-01
Assets Tillgångar
Intangible assets Immateriella anläggningstillgångar 2,250 2,250
Tangible assets Materiella anläggningstillgångar 5,741 618 6,359
Investment property Förvaltningsfastigheter 589 53 642
Interest-bearing long-term receivables Räntebärande långfristiga fordringar 1,445 1,445
Other financial fixed assets Övriga finansiella tillgångar 1,292 1,292
Total fixed assets Summa anläggningstillgångar 11,317 671 11,988
Project and development properties Projekt- och exploateringsfastigheter 9,685 206 9,891
Inventories Varulager 441 441
Interest-bearing current receivables Räntebärande kortfristiga fordringar 640 640
Other current receivables Övriga kortfristiga fordringar 13,857 -27 13,830
Liquid funds Likvida medel 1,376 1,376
Total current assets Summa omsättningstillgångar 25,999 179 26,178
Total assets Summa tillgångar 37,316 850 38,166
Equity and liabilities Eget kapital och skulder
Equity Eget kapital 11,348 – 11,348
Liabilities Skulder
Interest-bearing long-term liabilities Räntebärande långfristiga skulder 5,194 702 5,896
Deferred tax liabilities Uppskjuten skatteskuld 123 123
Other long-term liabilities Övriga långfristiga skulder 977 977
Total long-term liabilities Summa långfristiga skulder 6,294 702 6,996
Interest-bearing current liabilities Räntebärande kortfristiga skulder 1,818 148 1,966
Other current liabilities Övriga kortfristiga skulder 17,856 17,856
Total current liabilities Summa kortfristiga skulder 19,674 148 19,822
Total liabilities Summa skulder 25,968 850 26,818
Total equity and liabilities Summa eget kapital och skulder 37,316 850 38,166