| 2022-12-31 Group |
Goodwill | Supplier relationships | Customer relationships | Technology | Capitalised development | Software | Other intangible asset | Total | |
|---|---|---|---|---|---|---|---|---|---|
| Accumulated cost | |||||||||
| Opening balance | 5,323 | 3,560 | 75 | 395 | 232 | 216 | 11 | 9,812 | |
| Acquisitions | 7 | 4 | – | – | – | – | 1 | 12 | |
| Investments | – | – | – | 1 | 49 | 31 | – | 81 | |
| Reclassifications | – | – | – | – | -1 | -2 | -0 | -3 | |
| Divestments and disposals | – | – | – | – | – | -1 | – | -1 | |
| Translation effect | -17 | -15 | -0 | -2 | -3 | -1 | -0 | -38 | |
| Closing balance | 5,313 | 3,549 | 75 | 394 | 277 | 243 | 12 | 9,863 | |
| Accumulated amortisation and impairment losses | |||||||||
| Opening balance | -10 | -910 | -24 | -163 | -95 | -164 | -6 | -1,372 | |
| Amortisation | – | -355 | -8 | -43 | -16 | -21 | -1 | -444 | |
| Impairment | – | -21 | – | -25 | -60 | – | – | -106 | |
| Reclassifications | – | – | – | – | 1 | 1 | 0 | 2 | |
| Divestments and disposals | – | – | – | – | – | 1 | – | 1 | |
| Translation effect | -0 | 17 | 0 | 2 | 2 | 0 | 0 | 21 | |
| Closing balance | -10 | -1,269 | -32 | -229 | -168 | -183 | -7 | -1,898 | |
| Carrying amount at year-end | 5,303 | 2,280 | 43 | 165 | 109 | 60 | 5 | 7,965 | |
| Carrying amount at start of year | 5,313 | 2,650 | 51 | 232 | 137 | 52 | 5 | 8,440 | |
| 2022-12-31 Group |
Goodwill | Supplier relationships | Customer relationships | Technology | Capitalised development | Software | Other intangible asset | Total | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Accumulated cost | ||||||||||
| Opening balance | 4,538 | 2,776 | 71 | 342 | 184 | 141 | 4 | 8,056 | ||
| Acquisitions | 414 | 536 | – | 40 | – | 48 | 6 | 1,044 | ||
| Investments | – | – | – | 1 | 45 | 21 | – | 67 | ||
| Reclassifications | – | – | – | – | – | – | – | – | ||
| Divestments and disposals | – | – | – | – | – | -3 | – | -3 | ||
| Translation effect | 371 | 248 | 4 | 12 | 3 | 9 | 1 | 648 | ||
| Closing balance | 5,323 | 3,560 | 75 | 395 | 232 | 216 | 11 | 9,812 | ||
| Accumulated amortisation and impairment losses | ||||||||||
| Opening balance | -10 | -542 | -15 | -119 | -80 | -96 | -3 | -865 | ||
| Acquisitions | – | – | – | – | – | -44 | -2 | -46 | ||
| Amortisation | 0 | -329 | -8 | -40 | -12 | -23 | -1 | -413 | ||
| Reclassifications | – | – | – | – | – | 0 | – | 0 | ||
| Divestments and disposals | – | – | – | – | – | 3 | 1 | 4 | ||
| Translation effect | 0 | -39 | -1 | -4 | -3 | -4 | -1 | -52 | ||
| Closing balance | -10 | -910 | -24 | -163 | -95 | -164 | -6 | -1,372 | ||
| Carrying amount at year-end | 5,313 | 2,650 | 51 | 232 | 137 | 52 | 5 | 8,440 | ||
| Carrying amount at start of year | 4,528 | 2,234 | 56 | 223 | 104 | 45 | 1 | 7,191 | ||
| Goodwill distributed by business area | 2023-12-31 | 2022-12-31 |
|---|---|---|
| Labtech | 612 | 614 |
| Medtech | 4,691 | 4,699 |
| Total | 5,303 | 5,313 |
| 2023-12-31 | 2022-12-31 | |||
|---|---|---|---|---|
| Parent company | Software | Total | Software | Total |
| Accumulated cost | ||||
| Opening balance | 1 | 1 | 1 | 1 |
| At year-end | 1 | 1 | 1 | 1 |
| Accumulated amortisation | ||||
| Opening balance | -1 | -1 | -1 | -1 |
| Depreciation and amortisation | 0 | 0 | 0 | 0 |
| Closing balance | -1 | -1 | -1 | -1 |
| Carrying amount at year-end | 0 | 0 | 0 | 0 |
| Carrying amount at start of year | 0 | 0 | 0 | 0 |
Accounting principle
Goodwill represents the difference between the acquisition value in the event of a business combination and the fair value of acquired assets, assumed liabilities and contingent liabilities and is reported as an intangible asset with an indefinite useful life. Goodwill is valued at acquisition value minus any accumulated write-downs. Goodwill is allocated to cash-generating units and is not written off but is tested annually for impairment.
Supplier relations, customer relations and technology are valued in connection with business acquisitions at fair value. AddLife applies a model where an average historical customer acquisition cost, alternatively the present value of expected future cash flows, is used to value these.
Intangible assets other than goodwill are reported at acquisition value after deductions for accumulated depreciation and write-downs. Depreciation mainly takes place on a straight-line basis and is based on the assets' useful periods, which are reviewed annually. Periods of use are based on historical experience of using similar assets, areas of use and also other specific characteristics of the asset. Depreciation is included in cost of goods sold, sales or administration costs depending on where in the business the assets are used.
Expenditure for development, in which the results of research or other knowledge are applied to achieve new or improved products or processes, is recognised as an asset in the balance sheet if the product is technically and commercially viable and the company has sufficient resources to complete development and subsequently use or sell the intangible asset. Other development expenditure is expensed as it is incurred.
Amortisation is charged primarily on a straight line basis and is based on the useful lives of the asset.
| Useful life | |
| Supplier and customer relations | 10 years |
| Software | 3-5 years |
| Technology | 5-15 years |
| Capitalised development | 5-10 years |
| Goodwill | indefinite |
Impairment testing of goodwill
AddLife's reported goodwill as of 31 December 2023 amounts to SEK 5,303 million (5,313). Goodwill is tested for impairment at least annually. If there is an indication that an asset has decreased in value, such an assessment is made more often. When AddLife carries out an acquisition, the acquired business is integrated into the group to such an extent that it is not possible to distinguish assets and cash flows per company, whereby an impairment test is performed on the cash flow generating units which are made up of the business areas. The recovery value has been calculated based on the value in use, which is calculated using discounted cash flows. Assumptions have been made about net sales, gross margin, overhead level, working capital needs and investment needs based on previous experience. The parameters have been set based on the group's budget for the next fiscal year 2024 for each business area, which has been approved by the Board of Directors.
For cash flows beyond the budget period, a growth rate of 2 percent (2) per year for Labtech and 3 percent (2) per year for Medtech has been assumed. Calculated residual value at the end of the useful life is included in the value in use. Cash flows were discounted using a weighted cost of capital corresponding 10.1 percent (8.4) before tax. These calculations show that value in use significantly exceeds the carrying amount. Consequently, impairment testing indicated no impairment. No reasonable possible changes in key assumptions are expected to lead to impairment.