NWG // FINANCIAL INFORMATION //
THE GROUP
Note 7 - Remuneration to auditors
SEK million |
2020 |
2019 |
Audit assignment |
|
|
Ernst & Young |
5.1 |
5.3 |
Other |
4.5 |
5.5 |
Audit work outside audit assignment |
0.8 |
0.7 |
Tax consultancy |
1.1 |
1.2 |
Total |
11.5 |
12.7 |
Note 8 - Intangible fixed assets
Accounting policies
The Group ´ s intangible assets consist of goodwill , trademarks , computer software and other intangible fixed assets . Other intangible fixed assets primarily consist of customer relations . The intangible assets are recognized as cost less accumulated amortization and , where applicable , accumulated impairment losses . Subsequent expenditure for an intangible asset is added to the carrying amount or recognized as a separate asset , depending on which is suitable , only when it is probable that future economic benefits associated with the asset will accrue to the Group and the cost of the asset can be reliably measured . Other expenditure is expensed as incurred .
Goodwill arises in connection with business combinations where the consideration transferred exceeds the fair value of the acquired net assets . Trademarks and customer relations can be identified and arise in connection with business combinations and are measured at fair value at the time of the acquisition . Computer software consists of acquired assets and internally developed assets .
Product development for the Group mainly comprises design and development of new collections as well as development of new product variants within the existing product range . Such development generally does not meet the criteria for recognition in the balance sheet and is in those cases expensed on a current basis . All other expenditures during the research phase as well as development expenditures not meeting the capitalization criteria are charged to the income statement when incurred .
Expenditures related to internally developed intangible assets , excluding goodwill , which emerge during the development phase are capitalized only when in management ’ s judgement it is probable that they will result in future economic benefits for the Group and the expenditures during the development phase can be reliably measured . The cost of an internally developed asset includes direct manufacturing expenditures and a portion of indirect expenses attributable to the actual asset . Amortization begins when the asset is available for use and is reported on a straight-line basis over the expected useful life of the asset .
Computer software 15-33 % Other intangible fixed assets * 5-10 % * Primarily consist of customer relations
Intangible fixed assets with finite useful lives are amortized on a straight-line basis over that period . For intangible assets with indefinite useful lives , impairment tests are performed annually , as well as if there are any indications of impairment during the year . New Wave Group ’ s assessment is that both goodwill and trademarks have indefinite useful lives . The useful lives for trademarks are assessed to be indefinite because they are well established strategic trademarks in respective markets which the Group intends to maintain and develop further . The trademarks with larger book values value are well-known trademarks , such as Orrefors and Kosta Boda within Gifts & Home Furnishings as well as mainly Cutter & Buck within Sports & Leisure . The value of the Group ' s goodwill and trademarks , which are based on local currency and can give rise to currency translation effects in the consolidated financial statements , have been allocated between the cash-generating units they are considered to belong to . These units are also the Group ´ s operating segments . In order to assess whether there are indications of impairment , the recoverable amount needs to be determined by a calculation of the respective cash-generating unit ' s value in use . If the carrying amount of the tested cashgenerating unit exceeds the calculated recoverable amount , the difference is recognized as an impairment loss .
082 // ANNUAL REPORT