| 2011/2012 | |||||||||
| Intangible assets acquired | Intangible assets developed in the Group | ||||||||
| Group | Goodwill | Supplier relationships, customer relationships and technology | Trademarks | Capitalised R&D expenses | Leases (rental) and similar rights | Software | Software | Total | |
| Accumulated cost | |||||||||
| Opening balance | 463.1 | 406.6 | 21.9 | 8.9 | 0.2 | 46.9 | 3.7 | 951.3 | |
| Acquisition of companies | 138.3 | 127.0 | 1.0 | – | – | – | – | 266.3 | |
| Investments | – | – | – | 0.8 | 0.7 | 4.5 | – | 6.0 | |
| Change in additional consideration | -0.4 | – | – | – | – | – | – | -0.4 | |
| Reclassifications | – | – | – | 0.2 | – | – | – | 0.2 | |
| Translation effect for the year | -0.5 | -0.4 | – | – | 0.0 | -0.1 | – | -1.0 | |
| Closing balance | 600.5 | 533.2 | 22.9 | 9.9 | 0.9 | 51.3 | 3.7 | 1,222.4 | |
| Accumulated amortisation | |||||||||
| Opening balance | – | -111.7 | -0.1 | -6.6 | 0.0 | -37.3 | -2.8 | -158.5 | |
| Amortisation | – | -45.5 | 0.0 | -1.2 | -0.1 | -5.1 | -0.7 | -52.6 | |
| Translation effect for the year | – | 0.4 | – | – | 0.0 | 0.1 | – | 0.5 | |
| Closing balance | – | -156.8 | -0.1 | -7.8 | -0.1 | -42.3 | -3.5 | -210.6 | |
| Carrying amount at year-end | 600.5 | 376.4 | 22.8 | 2.1 | 0.8 | 9.0 | 0.2 | 1,011.8 | |
| Carrying amount at start of year | 463.1 | 294.9 | 21.8 | 2.3 | 0.2 | 9.6 | 0.9 | 792.8 | |
| 2010/2011 | ||||||||
| Intangible assets acquired | Intangible assets developed in the Group | |||||||
| Group | Goodwill | Supplier relationships, customer relationships and technology | Trademarks | Capitalised R&D expenses | Leases (rental) and similar rights | Software | Software | Total |
| Accumulated cost | ||||||||
| Opening balance | 318.8 | 288.8 | 9.5 | 8.6 | 0.2 | 44.0 | 3.7 | 673.6 |
| Acquisition of companies | 156.1 | 126.2 | 12.4 | – | – | 0.2 | – | 294.9 |
| Investments | – | – | – | 0.6 | – | 3.3 | – | 3.9 |
| Change in additional consideration | -3.6 | – | – | – | – | – | – | -3.6 |
| Reclassifications | – | – | – | -0.3 | – | 0.2 | – | -0.1 |
| Translation effect for the year | -8.2 | -8.4 | – | – | 0.0 | -0.8 | – | -17.4 |
| Closing balance | 463.1 | 406.6 | 21.9 | 8.9 | 0.2 | 46.9 | 3.7 | 951.3 |
| Accumulated amortisation | ||||||||
| Opening balance | – | -79.9 | -0.1 | -5.6 | 0.0 | -32.4 | -2.1 | -120.1 |
| Amortisation | – | -34.4 | 0.0 | -1.0 | – | -5.5 | -0.7 | -41.6 |
| Translation effect for the year | – | 2.6 | – | – | – | 0.6 | – | 3.2 |
| Closing balance | – | -111.7 | -0.1 | -6.6 | 0.0 | -37.3 | -2.8 | -158.5 |
| Carrying amount at year-end | 463.1 | 294.9 | 21.8 | 2.3 | 0.2 | 9.6 | 0.9 | 792.8 |
| Carrying amount at start of year | 318.8 | 208.9 | 9.4 | 3.0 | 0.2 | 11.6 | 1.6 | 553.5 |
| 2011/2012 | 2010/2011 | |||
| Parent Company | Software | Total | Software | Total |
| Accumulated cost | ||||
| Opening balance | 2.6 | 2.6 | 2.2 | 2.2 |
| Investments | – | – | 0.4 | 0.4 |
| Retirement of assets | – | – | – | – |
| Closing balance | 2.6 | 2.6 | 2.6 | 2.6 |
| Accumulated amortisation | ||||
| Opening balance | -1.4 | -1.4 | -0.9 | -0.9 |
| Amortisation | -0.5 | -0.5 | -0.5 | -0.5 |
| Retirement of assets | – | – | – | – |
| Closing balance | -1.9 | -1.9 | -1.4 | -1.4 |
| Carrying amount at year-end | 0.7 | 0.7 | 1.2 | 1.2 |
| Carrying amount at start of year | 1.2 | 1.2 | 1.3 | 1.3 |
| Group | ||||
| Goodwill distributed by business area | 31 Mar 12 | 31 Mar 11 | ||
| Addtech Components | 108 | 77 | ||
| Addtech Energy & Equipment | 153 | 91 | ||
| Addtech Industrial Solutions | 136 | 138 | ||
| Addtech Life Science | 204 | 157 | ||
| Total | 601 | 463 | ||
| Pro forma according to new organisation per 1 April 2012 | ||||
| Group | ||||
| Goodwill distributed by business area | 31 Mar 12 | 31 Mar 11 | ||
| Addtech Components | 173 | 143 | ||
| Addtech Energy | 174 | 52 | ||
| Addtech Industrial Solutions | 50 | 111 | ||
| Addtech Life Science | 204 | 157 | ||
| Total | 601 | 463 | ||
The Group's recognised goodwill amounts to SEK 601 million (463). Having adopted IFRS, the Company no longer amortises goodwill but rather tests goodwill annually in accordance with IAS 36. The latest test took place in March 2012.
The Group has carried out over 60 acquisitions since 2001. Goodwill in each individual acquisition is not material for the Group. Goodwill is therefore allocated among cash-generating units, which usually correspond to the business units. Impairment testing takes place at business unit level, because the acquired business is also integrated with another Addtech business to such an extent that it is not possible to separate assets and cash flows attributable to the acquired company. Goodwill is not assessed at a higher level than segment level.
The recoverable amount was calculated based on value in use and applies a current estimate of cash flows for the coming five-year period. Assumptions were made concerning gross margin, overhead costs, working capital required and investments required based on previous experiences. As the norm, these parameters were set to correspond to the profit forecast for the next financial year 2012/2013. An annual growth rate of 2 percent (2) was assumed for the remainder of the five-year period. Where major changes are expected, the parameters were adjusted to better reflect such expectations. For cash flows beyond the five-year period, the growth rate was assumed to correspond to growth during the fifth year. Cash flows were discounted using a weighted cost of capital corresponding to roughly 12 percent (12) before tax. These calculations show that value in use significantly exceeds the carrying amount. Consequently, impairment testing indicated no impairment. The sensitivity of these calculations means that the value of goodwill will continue to be justified even if the discount rate increases by 1 percentage point or if the long-term growth rate decreases by 1 percentage point.
Each year, trademarks are tested for impairment applying the same policies as with goodwill. No events or changes in circumstances were identified that would motivate impairment testing for other intangible non-current assets that are amortised.