Note 20 – Intangible assets
| Group 31 Dec 2021 | Parent Company 31 Dec 2021 | |||||||||
| SEK m | Goodwill | Internally developed software | Licences and software | Work in progress | Total | Goodwill | Internally developed software | Licences and software | Work in progress | Total |
| Opening balance | 202 | 10 | 495 | 63 | 770 | - | 10 | 365 | 63 | 438 |
| Investments for the year | 1 | - | 9 | 59 | 68 | 1 | - | 5 | 59 | 65 |
| Reclassification | 6 | - | 46 | -52 | 0 | - | - | 52 | -52 | 0 |
| Divestments and disposals | -8 | - | - | -4 | -12 | - | - | - | -4 | -4 |
| Translation differences | -1 | 0 | 6 | 0 | 5 | 0 | 0 | 1 | 0 | 1 |
| Acquisition value | 200 | 10 | 556 | 66 | 832 | 1 | 10 | 423 | 66 | 500 |
| Opening balance | -62 | -9 | -330 | -11 | -412 | - | -9 | -231 | -11 | -251 |
| Depreciation for the year | - | -1 | -52 | -9 | -62 | 0 | -1 | -46 | - | -47 |
| Divestments and disposals | - | - | - | - | - | - | - | - | -9 | -9 |
| Translation differences | 7 | 0 | -5 | 0 | 2 | 0 | 0 | 1 | - | 1 |
| Accumulated depreciation | 55 | -10 | -387 | -20 | -472 | 0 | -10 | -275 | -20 | -306 |
| Carrying amount | 145 | 0 | 169 | 46 | 360 | 1 | 0 | 149 | 46 | 194 |
| Group 31 Dec 2020 | Parent Company 31 Dec 2020 | ||||||||
| SEK m | Goodwill | Internally developed software | Licences and software | Work in progress | Total | Internally developed software | Licences and software | Work in progress | Total |
| Opening balance | 213 | 10 | 459 | 52 | 734 | 10 | 329 | 50 | 389 |
| Investments for the year | - | - | 2 | 54 | 56 | - | 1 | 51 | 52 |
| Acquired companies | 3 | - | - | - | 3 | - | - | - | - |
| Reclassification | -6 | - | 45 | -39 | 0 | - | 38 | -38 | 0 |
| Divestments and disposals | - | - | 0 | -4 | -4 | - | - | - | - |
| Translation differences | -8 | - | -11 | 0 | -19 | - | -3 | - | -3 |
| Acquisition value | 202 | 10 | 495 | 63 | 770 | 10 | 365 | 63 | 438 |
| Opening balance | -57 | -7 | -288 | 0 | -352 | -7 | -196 | 0 | -203 |
| Depreciation for the year | - | -2 | -50 | - | -52 | -2 | -37 | - | -39 |
| Impairment for the year | - | - | - | -11 | -11 | - | - | -11 | -11 |
| Divestments and disposals | - | - | 0 | - | 0 | - | - | - | - |
| Translation differences | -5 | - | 8 | 0 | 3 | - | 2 | - | 2 |
| Accumulated depreciation | -62 | -9 | -330 | -11 | -412 | -9 | -231 | -11 | -251 |
| Carrying amount | 140 | 1 | 165 | 52 | 358 | 1 | 134 | 52 | 187 |
Impairment test for goodwill
The Group’s goodwill of SEK 145m (140) has been identified as belonging to the cash-generating units Poland, SEK 127m, and Spain, SEK 10m, and the remaining goodwill is recognised in Italy. Goodwill was impairment tested in conjunction with the year-end accounts and no impairment requirement was identified. The Parent Companys goodwill of SEK 1m (-) is recognised in the Romanian branch.
Goodwill is tested for impairment at least annually and when there are indications for impairment. In impairment tests, the value in use of the cash-generating units is calculated by discounting estimated future cash flows. Value in use is compared with carrying value to determine whether impairment is required.
The Group's impairment test is carried out as follows. Cash flow forecasts are based on an assessment of future collections, portfolio acquisitions, and cost and revenue development. The forecast period for gross cash collections is 15 years. Collection costs are calculated in relation to collection on portfolios, and other revenues and costs are based on established 3-year business plans. Investments are considered to be of a long-term nature and, accordingly, it is assumed that, for the period beyond the forecast period, revenues, costs and investments will increase 2 per cent in perpetuity.
The effective tax rate applied in the impairment test is the local tax rate in the relevant country. The discount rate is the weighted average cost of capital in the relevant country. The discount rate for 2021 is within the 4.7–7.3 per cent range after tax.
In this year’s Group impairment test, the value in use was deemed to exceed the carrying value of the cash-generating units Poland and Spain. There is therefore no impairment requirement.
Goodwill in the Romanian branch is depreciated over five years and is eliminated on Group. The impairment testing of goodwill is carried out pursuant to local policies. No impairment requirement was identified in the year’s impairment test.