Addnode Group Annual Report 2015 | Page 69

ANNUAL REPORT Notes

Provisions and financial liabilities at 31 December 2015 ( SEK m )

Within 1 year

Falls due for payment

Between 1 and 2 years

Between 2 and 5 years

After more than

5 years

and the differences between the reported provision and the actual outcome are to be recognised in the consolidated income statement . This means that future revaluations of reported provisions may significantly affect consolidated earnings , both positively and negatively , in coming years .

The carrying amount of deferred tax assets pertaining to tax loss carryforwards is based on an assessment of the opportunities to settle the loss carryforward against taxable surpluses in future taxation ( see Note 13 ). In order to utilise the loss carryforwards , taxable surpluses must arise in future years and the tax code must permit offsetting of loss carryforwards against taxable surpluses . In Sweden , there is currently no time limitation for when loss carryforwards may be utilised . If the legal opportunities to offset loss carryforwards against taxable surplus were to change in the future , it could impact the value of deferred tax assets pertaining to loss carryforwards .

Provisions and financial liabilities at 31 December 2014 ( SEK m )

Within 1 year

Falls due for payment

Between 1 and 2 years

Between 2 and 5 years

After more than

5 years

NOTE 39 RELATED PARTY DISCLOSURES

DERIVATIVE INSTRUMENTS The Group had no outstanding forward exchange contracts or other held or issued derivative instruments on 31 December 2015 or 31 December 2014 .

MEASUREMENT OF FAIR VALUE No financial assets or liabilities are recognised at a value that considerably deviates from their fair value .

NOTE 38 IMPORTANT ESTIMATES AND ASSESSMENTS FOR ACCOUNTING PURPOSES

Carrying amounts are based partly on assessments and estimates . This applies mainly to the regular impairment testing of goodwill and other acquisition-related intangible assets ( see Note 16 ). The carrying amounts of these assets are affected by changes in applied discount rates as well as by assessments of future trends in prices , costs and demand for the products and services that form the basis of the cash flow prognostications .

For certain company acquisitions , contingent consideration ( earn-out payments ) may account for a large portion of the total consideration for the acquired company and may also amount to considerable sums . Contingent consideration is normally dependent on the future earnings performance and / or the revenue performance for the acquired company . At the time of acquisition , provisions for estimated contingent consideration are recognised based on forecasts on the future revenue and earnings performance of the acquired companies ( see Notes 27 and 35 ). According to IFRS 3 , subsequent revaluations of provisions for contingent consideration

On 31 December 2015 , Vidinova AB ’ s ownership amounted to 24.4 per cent ( 25.0 ) of the share capital and 26.8 per cent ( 27.2 ) of the votes in Addnode Group AB ( publ ). The principal owner of Vidinova AB is Dick Hasselström , who is also a director on Addnode Group ’ s board . In 2015 and 2014 , Vidinova AB leased a workplace at a subsidiary of Addnode Group AB and paid rent of SEK 48 thousand ( 48 ) per year . The subsidiary also re-invoiced a cost of SEK 16 thousand ( 15 ) to Vidinova AB . Other than this , no transactions were made between companies in the Group in which Vidinova AB is the Parent Company and the companies in the Group in which Addnode Group AB ( publ ) is the Parent Company .

On 31 December 2015 , Aretro Capital Group AB ’ s ownership amounted to 12.4 per cent ( 12.9 ) of the share capital and 23.6 per cent ( 24.0 ) of the votes in Addnode Group AB ( publ ). Aretro Capital Group AB is jointly owned by Staffan Hanstorp and Jonas Gejer . Staffan Hanstorp is President and CEO of Addnode Group AB . Jonas Gejer is CEO of TechniaTranscat AB och President of Product Lifecycle Management business area . No transactions have been made between Aretro Capital Group AB and companies in the Group in which Addnode Group AB ( publ ) is the Parent Company .

Group

Remuneration of the Board of Directors and senior executives :

2015 2014

Salaries and other short-term employment benefits ( see also description in Note 5 ) 17,489 18,884

Total 17,489 18,884

SALES TO AND PURCHASES FROM OTHER COMPANIES IN ADDNODE GROUP For the Parent Company Addnode Group AB ( publ ), 100 per cent ( 100 ) of the net sales for the year and 23 per cent ( 22 ) of purchases for the year pertained to own subsidiaries . For sales and purchases between Group companies , the same policies apply for pricing as in transactions with external parties .

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