NWG // FINANCIAL INFORMATION //
THE GROUP
Note 26 - Disclosures related to COVID-19
Accounting policies
In connection with the COVID-19 crisis , companies within the Group have taken part of the support packages that governments around the world have issued . This note contains information about the government support that the Group has received and their financial impact . Grants received are not recognized until there is reasonable assurance that the Group will be able to meet the conditions associated with the grants , and that the grants will be able to be received . A government loan is initially measured at fair value less transaction costs and after the initial valuation measured at amortized cost by applying the effective interest method . If there is a possibility to receive loan forgiveness , an assessment is performed to determine whether it is reasonable certain that the Group will meet the requirements to receive a loan forgiveness . If the assessment is that there is reasonable assurance that the Group will meet the requirements , the government loan will be recognized as other operating income in the Group ยด s consolidated income statement . During the year , some Group companies have received rent concessions and in those cases the Group has applied the rent concession practical expedient introduced in IFRS 16 in response to the COVID-19 pandemic . The rent concessions are recorded as variable leasing payments .
Government grants
The Group has received government grants , mainly related to temporary lay-offs , in several countries . Employees reduce their working hours , but can keep main part of their salary and the employer temporary receives government grants to cover main part of the personnel costs for the employees . During the second quarter of 2021 , the Group received confirmation that most of the government loans that the Group ' s American companies had previously received were forgiven . Confirmation that the remaining part were forgiven was received during the third quarter of the same year and all PPP loans have thus been forgiven . The forgiveness of the loans is considered to constitute government grants and is therefore reported as other operating income . In total , the loans forgiven amounts to SEK 44.2 million . The table below contains information on total received grants that are recorded as other operating income and grants that are received , but recorded as other liabilities as they relate to costs that have not yet occurred .
Deferment of payment of taxes and social charges
In some countries , the Group has been granted a deferral of payment of taxes and social charges . As of 31 December , all taxes and social charges have been paid .
Government loans
The Group has chosen to use the opportunity to obtain government loans in the US ( PPP loans ) and in France and UK . The Group has during 2021 received notice that all of the previously granted government loans in the US has been forgiven . The loan forgiveness is recognized as other operating income . For the government loans in France and UK , there are no forgiveness options . The table below contains information on the remaining government loans received .
2022 2021 Other liabilities 0.0 0.0
|
2022 |
2021 |
Long-term interest-bearing liabilities |
3.2 |
4.6 |
Short-term interest-bearing liabilities |
0.5 |
0.6 |
3.8 5.2
2022 2021
Other operating income |
0.5 |
61.9 |
Other liabilities |
0.0 |
0.3 |
108 // ANNUAL REPORT