A N N UA L R E P O R T
Notes
REPORTING FOR OPERATING SEGMENTS
Operating segments are reported in a manner consistent with
the internal reporting provided to the chief operating decisionmaker. The chief operating decision-maker is the function that is
responsible for allocating resources and assessing the performance
of the operating segments. For the Group, this function has been
identified as the President of the Parent Company.
Board (RFR). The recommendation entails that legal entities whose
securities are listed on a Swedish stock exchange on the balance
sheet date are, as a main rule, to apply the IFRSs used in the
consolidated financial statements along with certain exemptions
and additions stated in the recommendation.
The accounting policies and calculation methods for the Parent
Company are unchanged compared with the preceding year.
Financial instruments, such as long-term securities holdings,
are measured at fair value. Changes in fair value are recognised
in accordance with the same principles as for the Group (see the
description above). Participations in Group companies are recognised
at cost less any impairment. The cost of participations in Group
companies includes transaction costs that arose in conjunction with
the acquisition. Contingent consideration is recognised as a part
of cost if it is probable that such consideration will be paid. Any
revaluations of estimated contingent consideration in subsequent
periods is recognised as a change in the cost of participations in
Group companies. Provisions for estimated contingent consideration
in foreign currency may in certain cases be treated in the accounts
as a hedge of net investments in foreign operations. The Parent
Company then recognises the provisions at the exchange rate in
effect on the acquisition date until they are settled, at which point
realised exchange rate differences are recognised as a change in the
cost of participations in Group companies. Other assets and liabilities
are recognised at historical cost less depreciation/amortisation
and any impairment. Dividends received and Group contributions
received are recognised as financial income.
All leases, irrespective of whether they are operating or finance
leases, are recognised in the Parent Company as rental agreements
(operating leases).
DISCONTINUED OPERATIONS
When an independent line of business or a significant operation that is
conducted in a geographical area is discontinued, all of the revenues
and expenses, including capital gains/losses, of the discontinued line
of business or operation are recognised as profit from discontinued
operations on a separate line in the consolidated income statement,
in accordance with IFRS 5. A split is also made in the statement of
cash flows between continuing and discontinued operations.
STATEMENT OF CASH FLOWS,
AND CASH AND CASH EQUIVALENTS
The statement of cash flows is prepared in accordance with the
indirect method. The reported cash flows include only transactions
that involve cash inflows and outflows.
Cash and cash equivalents include cash, bank balances and
short-term investments with a remaining term of less than three
months from the acquisition date.
PARENT COMPANY
The Parent Company’s accounts are prepared in accordance with
the Swedish Annual Accounts Act and recommendation RFR 2
Accounting for Legal Entities from the Swedish Financial Reporting
NOTE 2 OPERATING SEGMENTS
The Group’s operations are organised and governed based on the
business areas Design Management, Product Lifecycle Management
(PLM), Process Management and Content Management, which make
up the Group’s operating segments. The segment breakdown is
based on the Group’s products and services. No changes were made
in the segment breakdown or calculation of segment results in 2015.
Company management used revenue, EBITA and operating
profit to make decisions on the allocation of resources, performance
analyses and assessments of the performance of the segments.
Financial income, financial expenses and income tax are handled
at the Group level. Segments are reported according to the same
accounting policies as the Group. The difference between the
amount of the segment’s operating profit and consolidated profit
before tax, except for items in the column “Elimination/other” above,
pertains to financial income SEK 2.5 m (4.2) and financial expenses
of SEK –3.9 m (–2.9).
Design Management sells IT solutions for design and
construction. Product Lifecycle Management offers IT solutions
for product information. The operations of Process Management
are focused on IT solutions for document and case management
in municipal administrations and authorities. Content Management
offers IT solutions for public websites, collaboration solutions and
customer service. Central work pertains to market communication,
financial reporting and control, financing, tax issues, business
development and company acquisitions.
A breakdown of the Group’s net sales by the various types of
revenue is provided in Note 3. All of the business areas receive
revenue from consulting services, licences, software, and support and
maintenance services, although the share of revenue from each type
of revenue varies between the business areas. Design Management
and Product Lifecycle Management receive revenue primarily from
support and maintenance services. For Process Management and
Content Management, consulting services are the primary revenue
stream. Revenue for central units primarily pertains to invoicing to
subsidiaries for services performed. Transactions between business
areas are normally conducted in accordance with normal commercial
terms, which also apply for external parties.
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