Note 35 Classification and valuation of financial assets and liabilities

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 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 2022 Group contingent considerations were SEK 20 million (2).

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 and commodity derivatives. 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.

Classification of financial instruments and fair value

Valued at fair value via the income statement Derivatives used in hedge accounting Accrued acquisition value Total recognized value Fair value
Group, MSEK 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021
Värderade till verkligt värde via resultaträkningen Derivat som används i säkringsredovisning Upplupet anskaffningsvärde Summa redovisat värde Verkligt värde
Koncernen, Mkr 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021
Financial assets Finansiella tillgångar
Securities held as fixed assets Långfristiga värdepappersinnehav 67 55 67 55 67 55
Interest-bearing long-term receivables Räntebärande långfristiga fordringar 1,233 1,208 1,233 1,208 1,233 1,211
Other long-term receivables Övriga långfristiga fordringar 1 0 22 69 23 69 23 69
Accounts receivable Kundfordringar 8,454 7,802 8,454 7,802 8,454 7,802
Interest-bearing current receivables Räntebärande kortfristiga fordringar 384 342 384 342 384 342
Prepaid expenses and accrued income Förutbetalda kostnader och upplupna intäkter 3 0 3 0 3 0
Other current receivables Övriga kortfristiga fordringar 10 8 3 443 748 456 756 456 756
Cash and bank Likvida medel 1,506 2,951 1,506 2,951 1,506 2,951
Total financial assets Summa finansiella tillgångar 78 63 3 – 12,045 13,120 12,126 13,183 12,126 13,186
Financial liabilities Finansiella skulder
Interest-bearing long-term liabilities Räntebärande långfristiga skulder 7,665 5,281 7,665 5,281 7,737 5,281
Interest-bearing long-term liabilities, project financing Räntebärande långfristiga skulder, projektfinansiering 440 346 440 346 440 346
Other long-term liabilities Övriga långfristiga skulder 19 0 197 188 216 188 216 188
Interest-bearing current liabilities Räntebärande kortfristiga skulder 1,897 2,386 1,897 2,386 1,897 2,386
Interest-bearing current liabilities, project financing Räntebärande kortfristiga skulder, projektfinansiering 9,802 7,003 9,802 7,003 9,802 7,003
Accounts payable Leverantörsskulder 5,131 4,992 5,131 4,992 5,131 4,992
Accrued expenses and prepaid income Upplupna kostnader och förutbetalda intäkter 14 7 14 7 14 7
Other current liabilities Övriga kortfristiga skulder 6 4 1 2 104 287 111 293 111 293
Total financial liabilities Summa finansiella skulder 25 4 1 2 25,250 20,490 25,276 20,496 25,348 20,496
Unrecognized profit/loss 1) Oredovisade vinster/förluster 1) -72 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 9 million (0). The effects of valuing unlisted shares and funds including received dividends amounted to SEK 2 million (4).

Valued at fair value via the income statement Accrued acquisition value Total recognized value Fair value
Parent company, MSEK 2022 2021 2022 2021 2022 2021 2022 2021
Värderade till verkligt värde via resultaträkningen Upplupet anskaffningsvärde Summa redovisat värde Verkligt värde
Moderbolaget, Mkr 2022 2021 2022 2021 2022 2021 2022 2021
Financial assets Finansiella tillgångar
Securities held as fixed assets Långfristiga värdepappersinnehav 0 0 0 0 0 0
Accounts receivable Kundfordringar 1 0 1 0 1 0
Current receivables Group companies Kortfristiga fordringar koncernföretag 2,274 2,271 2,274 2,271 2,274 2,271
Other current receivables Övriga kortfristiga fordringar 1 – 1 – 1
Cash and bank Likvida medel 0 0 0 0 0 0
Total financial assets Summa finansiella tillgångar 0 0 2,275 2,272 2,275 2,272 2,275 2,272
Financial liabilities Finansiella skulder
Long-term liabilities Group companies Långfristiga skulder till koncernföretag 1,500 2,281 1,500 2,281 1,500 2,281
Accounts payable Leverantörsskulder 20 20 20 20 20 20
Current liabilities Group companies Kortfristiga skulder till koncernföretag 375 269 375 269 375 269
Total financial liabilities Summa finansiella skulder – – 1,895 2,570 1,895 2,570 1,895 2,570

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
 2022 2021 2022 2021 2022 2021
Nivå 2 Nivå 3 Summa
Koncernen, Mkr 2022 2021 2022 2021 2022 2021
Financial assets Finansiella tillgångar
Securities held as fixed assets Långfristiga värdepappersinnehav 67 55 67 55
Of which unlisted shareholdings and participations Varav onoterade aktier och andelar 41 23 41 23
Of which unlisted funds Varav onoterade fonder 26 32 26 32
Other long-term receivables Övriga långfristiga fordringar 1 1 –
Of which commodity hedging with futures Varav råvarusäkring med termin 1 1 –
Other current receivables Övriga kortfristiga fordringar 13 8 13 8
Of which currency derivatives Varav valutaderivat 9 1 9 1
Of which commodity hedging with futures Varav råvarusäkring med termin 4 7 4 7
Total financial assets Summa finansiella tillgångar 14 8 67 55 81 63
Financial liabilities Finansiella skulder
Other long-term liabilities Övriga långfristiga skulder 19 19 –
Of which contingent consideration Varav villkorad köpeskilling 19 19 –
Other current liabilities Övriga kortfristiga skulder 6 4 1 2 7 6
Of which interest rate swaps Varav ränteswappar 2 – 2
Of which currency derivatives Varav valutaderivat 1 – 1
Of which commodity hedging with futures Varav råvarusäkring med termin 6 1 6 1
Of which contingent consideration Varav villkorad köpeskilling 1 2 1 2
Total financial liabilities Summa finansiella skulder 6 4 20 2 26 6

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 2022 2021 2022 2021
Långfristiga värdepappersinnehav
Onoterade fonder Onoterade aktier och andelar
Koncernen, Mkr 2022 2021 2022 2021
Opening balance Ingående balans 32 37 23 23
Investments Investeringar 2 4 18
Dividends received Erhållen utdelning -10 -12
Reported in profit/loss for the year Redovisat i årets resultat
Net finance Finansnetto 2 3
Closing balance Utgående balans 26 32 41 23

 

Contingent consideration
Group, MSEK
 2022 2021
Villkorad köpeskilling
Koncernen, Mkr 2022 2021
Opening balance Ingående balans 2 –
Aquisitions during the year Årets förvärv 19 2
Payments during the year Årets utbetalningar -1 –
Closing balance Utgående balans 20 2

 

Contingent consideration will be paid to the previous owner based on the a share of the profit as well as the outcome of certain specified projects. The contingent consideration is estimated at around SEK 20 million. No highest or lowest outcome is specified in the acquisition contract.