Note 22 – Leasing
The Group’s lease contracts mainly comprise leased premises, with a small share of lease contracts covering vehicles, equipment and furniture and IT hardware. All right-of-use assets are reported in Tangible assets in the balance sheet.
| group 31 dec 2021 | Group 31 dec 2020 | |||||
| SEK m | Leased premises | Other right-of-use assets | Total | Leased premises | Other right-of-use assets | Total |
| Opening balance | 257 | 19 | 276 | 235 | 19 | 254 |
| Investments for the year | -22 | 5 | -17 | 39 | 2 | 41 |
| Divestments and disposals | 0 | 0 | 0 | -5 | -1 | -6 |
| Translation differences | 7 | 0 | 7 | -12 | -1 | -13 |
| Acquisition value | 242 | 24 | 266 | 257 | 19 | 276 |
| Opening balance | -71 | -11 | -82 | -38 | -7 | -45 |
| Depreciation for the year | -39 | -5 | -44 | -41 | -6 | -47 |
| Divestments and disposals | 0 | 0 | 0 | 5 | 1 | 6 |
| Translation differences | -3 | 0 | -3 | 3 | 1 | 4 |
| Accumulated depreciation | -113 | -16 | -129 | -71 | -11 | -82 |
| Carrying value | 129 | 8 | 137 | 186 | 8 | 194 |
The year’s investments in right-of-use assets pertain to new acquisitions and to additional amounts resulting from reviewing existing lease liabili- ties when lease contracts are extended or prematurely terminated.
As at 31 December 2021 the Group has not entered into any material leases that are not reported in the balance sheet. As at 31 December 2020 the Group did not entered into any material leases that are not reported in the balance sheet.
Lease liabilities are reported in Other liabilities in the balance sheet and totalled SEK 144m (204) at 31 December 2021. A maturity analysis of lease liabilities is presented in note 17, "Maturity analysis".
Total cash flow for lease liabilities during the year was SEK 52m.
Amounts reported in the income statement
| Group | ||
| SEK m | 2021 | 2020 |
| Depreciation of right-of-use assets | -44 | -47 |
| Interest expense related to lease liabilities | -6 | -7 |
| Costs related to short-term leases | 1 | 0 |
| Costs related to low-value leases | 1 | 0 |
| Total | -48 | -54 |
Interest expense related to lease liabilities is reported in note 4 "Net interest income". Depreciation of right-of-use assets is reported in Depreciation and amortisation of tangible and intangible assets. Costs related to short-term and low-value leases are reported in General administrative expenses.
Parent company
Hoist Finance AB (publ) has decided to apply the exceptions in RFR 2 in Parent company accounting. The accounting standard IFRS 16, in force from 1 January 2019, is therefore not applied by the Parent Company.
All Parent company leases are reported according to the rules for operating leases. There are no leases classified as finance leases.
The Parent company’s lease expenses totalled SEK 34m (27) during the year. No variable fees were charged to net profit for the year.
The Parent Company’s obligations under operating lease agreements are presented below.
| Parent Company | ||
| SEK m | 31 Dec 2021 | 31 Dec 2020 |
| Payment obligations under noncancellable lease contracts | ||
| Within 1 year | 32 | 27 |
| Years 1–5 | 79 | 98 |
| Year 5 and thereafter | 15 | 26 |
| Total | 126 | 151 |