Note 35 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 and participations, 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 amount expected to be paid according to each respective contract. At the end of 2020 Group contingent considerations were SEK – million (1).

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 rate 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 to the estimated fair value per type of financial asset and liability.

 

Valued at fair value via the income statement Derivatives used in hedge accounting Accrued acquisition value Other financial liabilities Total recognized value Fair value
Group, MSEK 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019
Värderade till verkligt värde via resultaträkningen Derivat som används i säkringsredovisning Upplupet anskaffningsvärde Övriga finansiella skulder Summa redovisat värde Verkligt värde
Koncernen, Mkr 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019
Financial assets Finansiella tillgångar
Securities held as fixed assets Långfristiga värdepappersinnehav 60 82 60 82 60 82
Interest-bearing long-term receivables Räntebärande långfristiga fordringar 1,257 1,086 1,257 1,086 1,259 1,089
Other long-term receivables Övriga långfristiga fordringar 72 10 72 10 72 10
Accounts receivable Kundfordringar 7,482 8,893 7,482 8,893 7,482 8,893
Interest-bearing current receivables Räntebärande kortfristiga fordringar 85 144 85 144 85 144
Prepaid expenses and accrued income Förutbetalda kostnader och upplupna intäkter 2 9 2 9 2 9
Other current receivables Övriga kortfristiga fordringar 5 0 510 229 515 229 515 229
Liquid funds Likvida medel 968 373 968 373 968 373
Total financial assets Summa finansiella tillgångar 65 82 – – 10,376 10,744 – – 10,441 10,826 10,443 10,829
Financial liabilities Finansiella skulder
Interest-bearing long-term liabilities Räntebärande långfristiga skulder 4,289 3,803 4,289 3,803 4,289 3,803
Interest-bearing long-term liabilities, project financing Räntebärande långfristiga skulder, projektfinansiering 75 326 75 326 75 326
Other long-term liabilities Övriga långfristiga skulder 0 8 13 80 59 88 72 88 72
Interest-bearing current liabilities Räntebärande kortfristiga skulder 2,647 3,011 2,647 3,011 2,647 3,011
Interest-bearing current liabilities, project financing Räntebärande kortfristiga skulder, projektfinansiering 4,981 7,637 4,981 7,637 4,981 7,637
Accounts payable Leverantörsskulder 4,687 4,295 4,687 4,295 4,687 4,295
Accrued expenses and deferred income Upplupna kostnader och förutbetalda intäkter 6 10 6 10 6 10
Other current liabilities Övriga kortfristiga skulder 4 4 115 258 119 262 119 262
Total financial liabilities Summa finansiella skulder 4 4 8 13 – – 16,880 19,399 16,892 19,416 16,892 19,416
Unrecognized profit/loss 1) Oredovisade vinster/förluster 1) 2 3

 

1) In all 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 currency swaps at fair value was included in the Group’s income statement for a total of SEK 0 million (-4). The effects of valuing unlisted shares and funds including received dividends amounted to SEK 0 million (16).

Valued at fair value via the income statement Accrued acquisition value Other financial liabilities Total recognized value Fair value
Parent company, MSEK 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019
Värderade till verkligt värde via resultaträkningen Upplupet anskaffningsvärde Övriga finansiella skulder Summa redovisat värde Verkligt värde
Moderbolaget, Mkr 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019
Financial assets Finansiella tillgångar
Securities held as fixed assets Långfristiga värdepappersinnehav 0 0 0 0 0 0
Accounts receivable Kundfordringar 0 1 0 1 0 1
Current receivables Group companies Kortfristiga fordringar koncernföretag 1,655 2,479 1,655 2,479 1,655 2,479
Other current receivables Övriga kortfristiga fordringar 3 3 – 3 –
Total financial assets Summa finansiella tillgångar 0 0 1,658 2,480 – – 1,658 2,480 1,658 2,480
Financial liabilities Finansiella skulder
Long-term liabilities Group companies Långfristiga skulder till koncernföretag 2,697 2,791 2,697 2,791 2,697 2,791
Accounts payable Leverantörsskulder 36 32 36 32 36 32
Current liabilities Group companies Kortfristiga skulder till koncernföretag 129 404 129 404 129 404
Total financial liabilities Summa finansiella skulder – – – – 2,862 3,227 2,862 3,227 2,862 3,227

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 at fair value in the Group balance sheet.

    Level 2
 Level 3
 Total
Group, MSEK
   2020 2019 2020 2019 2020 2019
    Nivå 2 Nivå 3 Summa
Koncernen, Mkr 2020 2019 2020 2019 2020 2019
Financial assets Finansiella tillgångar
Securities held as fixed assets Långfristiga värdepappersinnehav 60 82 60 82
   Whereof unlisted shareholdings and participations      Varav onoterade aktier och andelar 23 24 23 24
   Whereof unlisted funds      Varav onoterade fonder 37 58 37 58
Other current receivables Övriga kortfristiga fordringar 5 0 5 0
   Whereof currency derivatives      Varav valutaderivat 0 – 0
   Whereof commodity hedging with futures      Varav råvarusäkring med termin 5 0 5 0
Total financial assets Summa finansiella tillgångar 5 0 60 82 65 82
Financial liabilities Finansiella skulder
Other long-term liabilities Övriga långfristiga skulder 8 13 8 13
   Whereof interest rate swaps      Varav ränteswappar 8 13 8 13
Other current liabilities Övriga kortfristiga skulder 4 3 1 4 4
   Whereof currency derivatives      Varav valutaderivat 2 2 2 2
   Whereof commodity hedging with futures      Varav råvarusäkring med termin 2 1 2 1
   Whereof contingent consideration      Varav villkorad köpeskilling 1 – 1
Total financial liabilities Summa finansiella skulder 12 16 – 1 12 17

The tables below shows reconciliation between the opening and closing balance for assets and liabilities included in level 3.

Securities held as fixed assets
Unlisted funds Unlisted shares and participations
Group, MSEK Dec 31, 2020 Dec 31, 2019 Dec 31, 2020 Dec 31, 2019
Långfristiga värdepappersinnehav
Onoterade fonder Onoterade aktier och andelar
Koncernen, Mkr 31 dec 2020 31 dec 2019 31 dec 2020 31 dec 2019
Opening balance Ingående balans 58 89 24 25
Investments Investeringar 4 9
Sales Försäljningar -1 -1
Dividends received Erhållen utdelning -21 -55
Reported in profit/loss for the period Redovisat i periodens resultat
   Net finance    Finansnetto -4 15
Reported in other comprehensive income Redovisat i övrigt totalresultat 0 0
Closing balance Utgående balans 37 58 23 24

 

    Contingent consideration
Group, MSEK
   Dec 31, 2020 Dec 31, 2019
    Villkorad köpeskilling
Koncernen, Mkr 31 dec 2020 31 dec 2019
Opening balance Ingående balans 1 34
Payments during the year Årets utbetalningar -1 -31
Reported in profit/loss for the year: Redovisat i årets resultat:
   Other operating costs (+) / other operating income (-)      Övriga rörelsekostnader (+) / övriga rörelseintäkter (-) -3
   Interest expense (discount) 1)      Räntekostnad (diskontering) 1) 1
Reported in other comprehensive income Redovisat i övrigt totalresultat 0
Closing balance Utgående balans – 1

 

1) Recognized in net financial items.