NWG Annual Report 2019 - EN NWG Annual Report 2019 - EN | Page 92

NWG // FINANCIAL INFORMATION //
THE GROUP
In the Group there are tax loss carry-forwards in a number of
companies within different tax groups. In each separate case an
assessment is made, with reasonable certainty, whether or not
the loss carry-forwards will be utilized. The assessment takes
into consideration managements forecasts, historical and present
performance levels and the expiration date of the loss carry-
forwards. Based on the assessments, the loss carry-forwards are
divided into three different groups where group A represents in
full recorded loss carry-forwards, group B represents partially
recorded loss carry-forwards and group C represents loss carry-
forwards that have not been recorded at all. The distribution is
shown in the tables below.
2019
SEK million
Group
Total
loss carry-
forwards
100.0
153.0
181.7
434.6
A
B
C
Total
2018
SEK million
Group
Total
loss carry-
forwards
A
B
C
Total
108.0
127.2
138.6
373.8
Of which
Loss carry-
recognized
forwards with
tax no recorded tax
23.4
18.3
0.0
41.7
0.0
83.2
181.7
264.9
Of which
Loss carry-
recognized
forwards with
tax no recorded tax
27.1
12.3
0.0
39.4
0.0
81.3
138.6
219.9
of which not
recognized
tax
0.0
22.4
43.9
66.3
of which not
recognized
tax
0.0
21.2
34.6
55.9
Note 16 - Inventory
SEK million
Raw materials
Work in progress
Goods in transit
Finished goods
Total
092 // ANNUAL REPORT
2019
49.3
12.6
195.0
3 301.0
3 557.9
2018
40.3
14.0
222.6
2 954.0
3 230.9
Stocks consist of clothes, gift items and accessories for resale
as well as raw materials. The stock is valued by applying the
FIFO principle, at the lowest of the cost and net sales value
on the balance sheet date. Deductions are made for internal
profit made from deliveries between Group companies. There
is a low risk that the net sales value is lower than the cost in the
Corporate operating segment since much of the product range
consists of timeless basic products which are in demand season
after season. For sales within the Sports & Leisure operating
segment, orders to the factory are placed once the purchase order
has been received from the customer, which considerably reduces
the risk that the net sales value is lower than the cost. Remaining
sales are mainly made up of basic items with a limited fashion
risk. Within the Gifts & Home Furnishings operating segment,
most of the volume consists of classic, best-selling products that
in many cases have a product cycle of more than 20 years, which
limits the risk that the net sales value is lower than the cost. As of
31 December 2019, the Group’s stock has been written down with
SEK 136.7 (121.5) million. Impairment related to merchandise
on stock amounted to 4.0% (4.0%). The part of the stock which is
recorded to net sales value amounts to SEK 300.1 (303.9) million.
Note 17 - Financial instruments
and financial risk management
The fair values of interest-bearing assets and liabilities may
differ from their carrying amounts, partly as a result of changes
in market interest rates. The fair values of these assets have been
determined by discounting future cash flows using current interest
rates and exchange rates for equivalent instruments. For financial
instruments such as accounts receivable, accounts payable and
other non-interest-bearing financial assets and liabilities, which
are carried at amortized cost less any impairment losses, the fair
value is deemed to agree with the carrying amount. Financial
instruments at fair value in the balance sheet belongs to level two
and three in IFRS 13 hierarchy. The Group’s long-term borrowing
is mainly through credit facilities with long maturities but short
fixed-rate periods.