Note 01\tGeneral information
The Atea Group (\u201cAtea\u201d) is the leading supplier of IT infrastructure solutions in the Nordic and Baltic countries. Atea is present in seven countries \u2013 including NorwayDenmark, Sweden, Finland, Lithuania, Latvia, and Estonia
The principal activities for the Group\u2019s various business areas are described in more details in Note 4\u2013 Segment information.
Atea ASA is a public limited company that is registered and domiciled in Norway. The office address is Karvesvingen 5, OsloAtea ASA is listed on Oslo Stock Exchange and had 9,091 shareholders as of 31 December 2023, compared with 8,251 shareholders at the start of the year.
These consolidated accounts were approved by the Board of Directors on the 21 March 2024.
The financial year for Atea started on January 1, 2023, and concluded on December 31, 2023.
Note that there may be figures and percentages that do not always add up correctly due to rounding differences.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAuthorisationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f40067": { "value": "Note 01\tGeneral information
The Atea Group (\u201cAtea\u201d) is the leading supplier of IT infrastructure solutions in the Nordic and Baltic countries. Atea is present in seven countries \u2013 including NorwayDenmark, Sweden, Finland, Lithuania, Latvia, and Estonia
The principal activities for the Group\u2019s various business areas are described in more details in Note 4\u2013 Segment information.
Atea ASA is a public limited company that is registered and domiciled in Norway. The office address is Karvesvingen 5, OsloAtea ASA is listed on Oslo Stock Exchange and had 9,091 shareholders as of 31 December 2023, compared with 8,251 shareholders at the start of the year.
These consolidated accounts were approved by the Board of Directors on the 21 March 2024.
The financial year for Atea started on January 1, 2023, and concluded on December 31, 2023.
Note that there may be figures and percentages that do not always add up correctly due to rounding differences.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f40085": { "value": "IT infrastructure solutions ", "dimensions": { "concept": "ifrs-full:DescriptionOfNatureOfEntitysOperationsAndPrincipalActivities", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f40103": { "value": "NorwayDenmark, Sweden, Finland, Lithuania, Latvia, and Estonia", "dimensions": { "concept": "ifrs-full:PrincipalPlaceOfBusiness", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f40104": { "value": "Norway", "dimensions": { "concept": "ifrs-full:DomicileOfEntity", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f40105": { "value": "Norway", "dimensions": { "concept": "ifrs-full:CountryOfIncorporation", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f40144": { "value": "Atea ASA ", "dimensions": { "concept": "ifrs-full:NameOfReportingEntityOrOtherMeansOfIdentification", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f40145": { "value": "Atea ASA ", "dimensions": { "concept": "ifrs-full:NameOfParentEntity", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f40146": { "value": "Atea ASA ", "dimensions": { "concept": "ifrs-full:NameOfUltimateParentOfGroup", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f40151": { "value": "public limited company ", "dimensions": { "concept": "ifrs-full:LegalFormOfEntity", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f40166": { "value": "Karvesvingen 5, Oslo", "dimensions": { "concept": "ifrs-full:AddressOfRegisteredOfficeOfEntity", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f40257": { "value": "Note 02\tBasis of preparation
02.1 Basis of the consolidated financial statements
The consolidated financial statements of Atea have been prepared in accordance with IFRS\u00ae Accounting Standards as adopted by the EU, and include Atea ASA and subsidiaries in which Atea ASA, directly or indirectly, has a controlling interest through ownership interests or agreements. The consolidated financial statements have been prepared under the historical cost basis and modified by any revaluation of assets and liabilities at fair value through profit or loss according to the policies for the relevant areas. All the figures are presented in NOK and rounded to the closest million. Notice is given of any exceptions.
Going concern
The directors have, at the time of approving the financial statements, a reasonable expectation that the group have adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the financial statements.
02.1.1 Foreign currency translation
02.1.1.1 Functional and presentation currencies
Items included in the financial statements of each of the Atea Group\u2019s entities are measured primarily using the currency of the primary economic environment in which the entity operates (the functional currency). The consolidated financial statements are presented in Norwegian kroner (NOK), which is the functional and presentation currency of Atea ASA.
02.1.2 Transactions and balance sheet items
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement.
Goodwill and fair value adjustments arising from the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate.
The Group has reclassified Trade payables and Other current liabil-ities for 2022. Trade payables is decreased by NOK 222 million and Other current liabilities is increased by the same amount.
02.2 Adoption of new and revised International Financial Reporting Standards (IFRS\u00ae Accounting Standards)
Changes in accounting policy and disclosures
a) New and amended standards adopted by the Group
Amendments to IAS 1 \u2013 Disclosure of Accounting Policies:
The amendments are effective for annual periods beginning on or after 1 January 2023. They provide guidance and examples to help entities apply materiality judgments to accounting policy disclosures. With reference to the complete set of financial statements, informa-tion is considered material if omitting, misstating, or obscuring it could
reasonably be expected to influence decisions taken by primary users based on the information provided. The materiality judgments are reassessed at each reporting date and updated based on changed facts and Atea specific circumstances.
Amendments to IAS 1 \u2013 Pillar Two Model Rules:
The group has adopted the amendments to IAS 12 for the first time in the current year. The IASB amends the scope of IAS 12 to clarify that the Standard applies to income taxes arising from tax law enacted or substantively enacted to implement the Pillar Two model rules published by the OECD, including tax law that implements qualified domestic minimum top up taxes described in those rules.
The amendments introduce a temporary exception to the accounting requirements for deferred taxes in IAS 12, so that an entity would neither recognize nor disclose information about deferred tax assets and liabilities related to Pillar Two income taxes.
Following the amendments, the group is required to disclose that it has applied the exception and to disclose separately its current tax expense (income) related to Pillar Two income taxes.
The new framework was implemented in Norwegian law from 1. January 2024. If the effective tax rate for the entities in a particular jurisdiction is below the 15% minimum, then the Pillar 2 rules are triggered, and the group must pay a top-up tax to bring its rate up to 15%. The Group has considered the possible tax effects. Atea is not established in any tax regime where the tax rate is below 15%. At this stage, the Group does not see any significant tax effects of the Pillar 2 rules.
No other standards adopted by the Group for the first time for the financial year beginning on or after 1 January 2023 have a material impact on the Group.
b) New standards, amendments and interpretations not yet adopted
Several new standards and amendments to standards and interpreta-tions are effective for annual periods beginning on or after 1 January 2024. None of these is expected to have significant effect on the consolidated statements of the Group.
02.3 Critical accounting judgements and key sources of estimation uncertainty
The preparation of accounts in accordance with IFRS\u00ae Accounting Standards requires use of certain critical accounting estimates. In addition, the application of the Atea\u2019s accounting principles requires that the management exercise judgment that have significant effects on the amounts recognized in the financial statements. Areas that contain a high degree of such discretionary assessments, or a high degree of complexity, or areas where the assumptions and estimates are of significance to the consolidated accounts are described sepa-rately.
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circum-stances. Actual results can differ from estimates.
The key assumptions concerning the future, and other key sources of estimation uncertainty that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within the next financial year are specified below. Important and critical judgements in applying the entity\u2019s accounting policies are also specified.
The following are the critical judgements, apart from those involving estimations (which are presented separately below), that the direc-tors have made in the process of applying the group\u2019s accounting policies and that have the most significant effect on the amounts recognised in financial statements:
\u2022Revenue recognition - Note 5
\u2022Impairment of goodwill - Note 12
02.4 Significant accounting policies
Accounting policies are included in the relevant notes to the Consolidated Financial Statements.
Note 02\tBasis of preparation
02.1 Basis of the consolidated financial statements
The consolidated financial statements of Atea have been prepared in accordance with IFRS\u00ae Accounting Standards as adopted by the EU, and include Atea ASA and subsidiaries in which Atea ASA, directly or indirectly, has a controlling interest through ownership interests or agreements. The consolidated financial statements have been prepared under the historical cost basis and modified by any revaluation of assets and liabilities at fair value through profit or loss according to the policies for the relevant areas. All the figures are presented in NOK and rounded to the closest million. Notice is given of any exceptions.
Going concern
The directors have, at the time of approving the financial statements, a reasonable expectation that the group have adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the financial statements.
02.1.1 Foreign currency translation
02.1.1.1 Functional and presentation currencies
Items included in the financial statements of each of the Atea Group\u2019s entities are measured primarily using the currency of the primary economic environment in which the entity operates (the functional currency). The consolidated financial statements are presented in Norwegian kroner (NOK), which is the functional and presentation currency of Atea ASA.
02.1.2 Transactions and balance sheet items
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement.
Goodwill and fair value adjustments arising from the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate.
The Group has reclassified Trade payables and Other current liabil-ities for 2022. Trade payables is decreased by NOK 222 million and Other current liabilities is increased by the same amount.
02.2 Adoption of new and revised International Financial Reporting Standards (IFRS\u00ae Accounting Standards)
Changes in accounting policy and disclosures
a) New and amended standards adopted by the Group
Amendments to IAS 1 \u2013 Disclosure of Accounting Policies:
The amendments are effective for annual periods beginning on or after 1 January 2023. They provide guidance and examples to help entities apply materiality judgments to accounting policy disclosures. With reference to the complete set of financial statements, informa-tion is considered material if omitting, misstating, or obscuring it could
reasonably be expected to influence decisions taken by primary users based on the information provided. The materiality judgments are reassessed at each reporting date and updated based on changed facts and Atea specific circumstances.
Amendments to IAS 1 \u2013 Pillar Two Model Rules:
The group has adopted the amendments to IAS 12 for the first time in the current year. The IASB amends the scope of IAS 12 to clarify that the Standard applies to income taxes arising from tax law enacted or substantively enacted to implement the Pillar Two model rules published by the OECD, including tax law that implements qualified domestic minimum top up taxes described in those rules.
The amendments introduce a temporary exception to the accounting requirements for deferred taxes in IAS 12, so that an entity would neither recognize nor disclose information about deferred tax assets and liabilities related to Pillar Two income taxes.
Following the amendments, the group is required to disclose that it has applied the exception and to disclose separately its current tax expense (income) related to Pillar Two income taxes.
The new framework was implemented in Norwegian law from 1. January 2024. If the effective tax rate for the entities in a particular jurisdiction is below the 15% minimum, then the Pillar 2 rules are triggered, and the group must pay a top-up tax to bring its rate up to 15%. The Group has considered the possible tax effects. Atea is not established in any tax regime where the tax rate is below 15%. At this stage, the Group does not see any significant tax effects of the Pillar 2 rules.
No other standards adopted by the Group for the first time for the financial year beginning on or after 1 January 2023 have a material impact on the Group.
b) New standards, amendments and interpretations not yet adopted
Several new standards and amendments to standards and interpreta-tions are effective for annual periods beginning on or after 1 January 2024. None of these is expected to have significant effect on the consolidated statements of the Group.
02.3 Critical accounting judgements and key sources of estimation uncertainty
The preparation of accounts in accordance with IFRS\u00ae Accounting Standards requires use of certain critical accounting estimates. In addition, the application of the Atea\u2019s accounting principles requires that the management exercise judgment that have significant effects on the amounts recognized in the financial statements. Areas that contain a high degree of such discretionary assessments, or a high degree of complexity, or areas where the assumptions and estimates are of significance to the consolidated accounts are described sepa-rately.
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circum-stances. Actual results can differ from estimates.
The key assumptions concerning the future, and other key sources of estimation uncertainty that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within the next financial year are specified below. Important and critical judgements in applying the entity\u2019s accounting policies are also specified.
The following are the critical judgements, apart from those involving estimations (which are presented separately below), that the direc-tors have made in the process of applying the group\u2019s accounting policies and that have the most significant effect on the amounts recognised in financial statements:
\u2022Revenue recognition - Note 5
\u2022Impairment of goodwill - Note 12
02.4 Significant accounting policies
Accounting policies are included in the relevant notes to the Consolidated Financial Statements.
02.1 Basis of the consolidated financial statements
The consolidated financial statements of Atea have been prepared in accordance with IFRS\u00ae Accounting Standards as adopted by the EU, and include Atea ASA and subsidiaries in which Atea ASA, directly or indirectly, has a controlling interest through ownership interests or agreements. The consolidated financial statements have been prepared under the historical cost basis and modified by any revaluation of assets and liabilities at fair value through profit or loss according to the policies for the relevant areas. All the figures are presented in NOK and rounded to the closest million. Notice is given of any exceptions.
Going concern
The directors have, at the time of approving the financial statements, a reasonable expectation that the group have adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the financial statements.
02.1.1 Foreign currency translation
02.1.1.1 Functional and presentation currencies
Items included in the financial statements of each of the Atea Group\u2019s entities are measured primarily using the currency of the primary economic environment in which the entity operates (the functional currency). The consolidated financial statements are presented in Norwegian kroner (NOK), which is the functional and presentation currency of Atea ASA.
02.1.2 Transactions and balance sheet items
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement.
Goodwill and fair value adjustments arising from the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate.
The Group has reclassified Trade payables and Other current liabil-ities for 2022. Trade payables is decreased by NOK 222 million and Other current liabilities is increased by the same amount.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f40268": { "value": "02.1 Basis of the consolidated financial statements
The consolidated financial statements of Atea have been prepared in accordance with IFRS\u00ae Accounting Standards as adopted by the EU, and include Atea ASA and subsidiaries in which Atea ASA, directly or indirectly, has a controlling interest through ownership interests or agreements. ", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f40269": { "value": "02.1 Basis of the consolidated financial statements
The consolidated financial statements of Atea have been prepared in accordance with IFRS\u00ae Accounting Standards as adopted by the EU, and include Atea ASA and subsidiaries in which Atea ASA, directly or indirectly, has a controlling interest through ownership interests or agreements. The consolidated financial statements have been prepared under the historical cost basis and modified by any revaluation of assets and liabilities at fair value through profit or loss according to the policies for the relevant areas. All the figures are presented in NOK and rounded to the closest million. Notice is given of any exceptions.
Going concern
The directors have, at the time of approving the financial statements, a reasonable expectation that the group have adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the financial statements.
02.1.1 Foreign currency translation
02.1.1.1 Functional and presentation currencies
Items included in the financial statements of each of the Atea Group\u2019s entities are measured primarily using the currency of the primary economic environment in which the entity operates (the functional currency). The consolidated financial statements are presented in Norwegian kroner (NOK), which is the functional and presentation currency of Atea ASA.
02.1.2 Transactions and balance sheet items
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement.
Goodwill and fair value adjustments arising from the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate.
The Group has reclassified Trade payables and Other current liabil-ities for 2022. Trade payables is decreased by NOK 222 million and Other current liabilities is increased by the same amount.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGoingConcernExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f40442": { "value": "02.1.1 Foreign currency translation
02.1.1.1 Functional and presentation currencies
Items included in the financial statements of each of the Atea Group\u2019s entities are measured primarily using the currency of the primary economic environment in which the entity operates (the functional currency). The consolidated financial statements are presented in Norwegian kroner (NOK), which is the functional and presentation currency of Atea ASA.
02.1.2 Transactions and balance sheet items
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement.
Goodwill and fair value adjustments arising from the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate.
The Group has reclassified Trade payables and Other current liabil-ities for 2022. Trade payables is decreased by NOK 222 million and Other current liabilities is increased by the same amount.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s10_notes__6__23-1": { "value": "02.1.1 Foreign currency translation
02.1.1.1 Functional and presentation currencies
Items included in the financial statements of each of the Atea Group\u2019s entities are measured primarily using the currency of the primary economic environment in which the entity operates (the functional currency). The consolidated financial statements are presented in Norwegian kroner (NOK), which is the functional and presentation currency of Atea ASA.
02.1.2 Transactions and balance sheet items
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement.
Goodwill and fair value adjustments arising from the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate.
The Group has reclassified Trade payables and Other current liabil-ities for 2022. Trade payables is decreased by NOK 222 million and Other current liabilities is increased by the same amount.
Accounting policies
Trade payables are initially recognized at fair value. Subsequently they are measured at amortized cost using the effective interest method. Short-term payables are normally not discounted.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f40671": { "value": "02.2 Adoption of new and revised International Financial Reporting Standards (IFRS\u00ae Accounting Standards)
Changes in accounting policy and disclosures
a) New and amended standards adopted by the Group
Amendments to IAS 1 \u2013 Disclosure of Accounting Policies:
The amendments are effective for annual periods beginning on or after 1 January 2023. They provide guidance and examples to help entities apply materiality judgments to accounting policy disclosures. With reference to the complete set of financial statements, informa-tion is considered material if omitting, misstating, or obscuring it could
reasonably be expected to influence decisions taken by primary users based on the information provided. The materiality judgments are reassessed at each reporting date and updated based on changed facts and Atea specific circumstances.
Amendments to IAS 1 \u2013 Pillar Two Model Rules:
The group has adopted the amendments to IAS 12 for the first time in the current year. The IASB amends the scope of IAS 12 to clarify that the Standard applies to income taxes arising from tax law enacted or substantively enacted to implement the Pillar Two model rules published by the OECD, including tax law that implements qualified domestic minimum top up taxes described in those rules.
The amendments introduce a temporary exception to the accounting requirements for deferred taxes in IAS 12, so that an entity would neither recognize nor disclose information about deferred tax assets and liabilities related to Pillar Two income taxes.
Following the amendments, the group is required to disclose that it has applied the exception and to disclose separately its current tax expense (income) related to Pillar Two income taxes.
The new framework was implemented in Norwegian law from 1. January 2024. If the effective tax rate for the entities in a particular jurisdiction is below the 15% minimum, then the Pillar 2 rules are triggered, and the group must pay a top-up tax to bring its rate up to 15%. The Group has considered the possible tax effects. Atea is not established in any tax regime where the tax rate is below 15%. At this stage, the Group does not see any significant tax effects of the Pillar 2 rules.
No other standards adopted by the Group for the first time for the financial year beginning on or after 1 January 2023 have a material impact on the Group.
b) New standards, amendments and interpretations not yet adopted
Several new standards and amendments to standards and interpreta-tions are effective for annual periods beginning on or after 1 January 2024. None of these is expected to have significant effect on the consolidated statements of the Group.
", "dimensions": { "concept": "ifrs-full:DisclosureOfReclassificationsOrChangesInPresentationExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f41168": { "value": "02.3 Critical accounting judgements and key sources of estimation uncertainty
The preparation of accounts in accordance with IFRS\u00ae Accounting Standards requires use of certain critical accounting estimates. In addition, the application of the Atea\u2019s accounting principles requires that the management exercise judgment that have significant effects on the amounts recognized in the financial statements. Areas that contain a high degree of such discretionary assessments, or a high degree of complexity, or areas where the assumptions and estimates are of significance to the consolidated accounts are described sepa-rately.
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circum-stances. Actual results can differ from estimates.
The key assumptions concerning the future, and other key sources of estimation uncertainty that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within the next financial year are specified below. Important and critical judgements in applying the entity\u2019s accounting policies are also specified.
The following are the critical judgements, apart from those involving estimations (which are presented separately below), that the direc-tors have made in the process of applying the group\u2019s accounting policies and that have the most significant effect on the amounts recognised in financial statements:
\u2022Revenue recognition - Note 5
\u2022Impairment of goodwill - Note 12
", "dimensions": { "concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f41468": { "value": "Note 03\tFinancial risk and capital management
03.1 Financial risk factors
The Group\u2019s activities cause different financial risks: market risk (including currency risk and price risk), credit risk, liquidity risk and floating interest rate risk. The Group\u2019s overall risk management plan focuses on the unpredictability of the capital markets and attempts to minimise the potential negative effects on the Group\u2019s financial results.
03.1.1 Hedging
The Group has elected not to adopt to the hedge accounting, and the requirements for documentation regarding the approach to hedge effectiveness in IFRS\u00ae Accounting Standards 9. \u00a0\u00a0
The Group is only using Cash flow hedges. The hedging instruments are recognized in the statement of financial position and measured at fair value through the income statement.
The Group seeks to minimise the effects of these risks in the daily operations by using derivative financial instruments to hedge these risk exposures. The use of financial derivatives is governed by the Treasury policy approved by the board of directors, which provide written principles on foreign exchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments, and the investment of excess liquidity. The Group does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.
03.1.2 Market risk
The Group\u2019s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates (see below). The Group enters forward foreign exchange contracts to hedge the exchange rate risk arising mainly from purchase of goods.
Market risk exposures are measured using sensitivity analysis. There has been no change to the Group\u2019s exposure to market risks or the manner in which these risks are managed and measured.
03.1.3 Foreign exchange risk
The company has investments in foreign subsidiaries, whose net assets are exposed to foreign currency translation risk.
The Group operates internationally and is exposed to foreign exchange risk in multiple foreign currencies. This risk is particularly relevant with respect to the Swedish krone (SEK), Danish krone (DKK), Euro (EUR), and US dollar (USD). Foreign exchange risk arises from future commercial transactions, recognised assets and liabilities and net investments in foreign operations.
Foreign exchange risk arises when future commercial transactions or recognised assets or liabilities are denominated in a currency that is not the entity\u2019s functional currency. Atea main foreign currency expo-sure is from purchases of goods denominated in foreign currency. Parent company Atea ASA is exposed to foreign currency risk due to dividends from its subsidiaries.
There is a transactional risk that a company will suffer a loss due to change in currency rate in the period between accepted order and
payment to supplier, or from approving dividends and dividends being paid. Moreover, conversion risk arises in the company\u2019s balance sheet due to the translation of assets or liabilities in foreign currency.
Sensitivity analysis for currency translation risk is prepared at least once a year. Latest sensitivity analysis of balance sheet (equity) for -10 / + 10% fluctuations in foreign currency rates where the company has a net asset (or liability) exposure shows that possible effect is NOK 5 million in 2023 (NOK 155 million in 2022).
Translation risk is arising mainly from cash/overdraft, trade payables, trade receivables balances in foreign currencies.
Exchange rate exposures are managed within approved policy param-eters utilising forward foreign exchange contracts.
Outstanding committed forward foreign exchange contracts at 31 December
NOK in million | 2023 | 2022 |
Forward exchange contracts, notional amount | 2,248 | 2,267 |
Forward exchange contracts, fair value | 171 | 229 |
All outstanding forward foreign exchange contracts at 31 December 2023 have maturity in 2024.
The positions are mainly buy positions against US dollars.
03.1.4 Cash and cash equivalents
Cash includes cash in hand and deposits in bank. Cash equivalents are short-term liquid investments that can be converted into cash within three months, and which contain insignificant risk elements. Bank overdrafts are presented within interest-bearing current liabili-ties on the balance sheet. Cash restricted for use comprises cash and cash equivalents which are not available for general use by the group. For Atea, this is mainly related to pledge of separate bank accounts related to the securitization contract organized by a bank.
03.1.5 Interest rate risk management
The interest on deposits and loans has a maturity of less than 12 months. As the Group has no significant interest-bearing assets, the Group\u2019s income and operating cash flows are substantially inde-pendent of changes in market interest rates. The Group\u2019s interest rate risk arises from borrowings. Borrowings issued at floating rate of interest expose the Group\u2019s cash flow to interest rate risk.
Sensitivity analysis for interest rate risk is prepared at least once a year. Latest sensitivity analysis of balance sheet (equity) for -2 / + 2% fluctuations in interest rates where the company has a net asset (or liability) exposure shows that possible effect is NOK 18 million at 31 December 2023 (NOK 30 million at 31 December 2022). Due to low effect of interest rate changes to profit (loss), Atea accepts interest rate risk and does not use hedging instruments to mitigate it.
The Group is exposed to interest rate changes with respect to loans based on the following repricing structure:
NOK in million | 2023 | 2022 |
6 months or less | 5 | 586 |
6-12 months | - | - |
1-5 years | - | - |
More than 5 years | 588 | - |
Total | 593 | 586 |
Interest on the date of the balance sheet was as follows:
NOK in million | 2023 | 2022 |
Long-term loans | ||
EIB loan | 4.6% | 4.6% |
Short-term loans | ||
Securitization - sale of receivables | 3.8% | 3.3% |
Securitization - uncommited facility secured by receivables | 4.3% | 3.7% |
Overdraft facility | 4.2% | 4.3% |
Average weighted interest rate | 4.1% | 3.7% |
03.1.6 Credit risk management
Atea has for years had modest losses on trade debtors. New customers must be approved before they are granted credit. The responsibility for granting credit is decentralised to each operating unit. The Group has no significant concentrations of credit risk, since the customer base is large and unrelated. A major part of the customers are within the public sector.
Provisions for losses are accounted for when there are indicators of expected losses. These indicators include:
\u2022In-active accounts
\u2022Bankruptcy
\u2022Hand over accounts to debt collectors or lawyers
\u2022Formal arrangements on arrear debt
\u2022Debt ageing more than 180 days (flat rate valuation adjustment)
In addition, provision for credit losses are accounted for based on flat-rate valuation adjustments (general provision) by using a provision matrix. The amount is examined as of every closing date. The matrix is supported by historical credit loss experience of trade receivables, adjusted as appropriate to reflect current conditions and estimates of future economic conditions.
The flat-rate reduction in value for Atea Group is following:
\u2022Public sector:\tNo provision
\u2022Top 50 customers:\tIndividual (based on outstanding amount).
Flat rate valuation adjustment:
180-270 days overdue: 25%
270-360 days overdue: 50%
More than 360 days overdue:\t100%
Derivative counterparties and bank deposits are limited to high-credit-quality financial institutions.
The Group has entered into a securitization contract organized by a bank. The facility enables Atea to sell specified receivables of up to NOK 1,900 million, and customers credit risk is transferred when receivable is sold. See Note 17for more information.
Atea\u2019s concentration of credit risk is limited due to the fact that the customer base is large and unrelated.
The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.
03.1.7 Liquidity risk management
Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. Group Treasury aims to maintain flexibility in funding by keeping committed credit lines available.
Group\u2019s remaining contractual maturity for its non-derivative financial liabilities is disclosed in Note17.
Details of additional undrawn facilities that the Group has at its disposal to further reduce liquidity risk are set in Note 17and the APM Note.
03.2 Capital management
The Group manages its capital to secure the ongoing operations of the companies in the Group and to maximise the shareholders\u2019 return. This is accomplished through a healthy balance between liabilities, equity and earnings. Atea assesses its operational gearing (net
interest-bearing liabilities/operating profit before depreciation) and the Group\u2019s equity ratio on an ongoing basis.
The Group\u2019s target is to have an adjusted equity ratio\u200c1of 20% or more and maximum operational gearing of 2.5. At the end of 2023 the Group had an adjusted equity ratio of 24.4% (22.6% in 2022).
1Atea\u2019s adjusted equity ratio is defined as its equity as a percentage of its adjusted total assets. See APMfor more information.
03.1.1 Hedging
The Group has elected not to adopt to the hedge accounting, and the requirements for documentation regarding the approach to hedge effectiveness in IFRS\u00ae Accounting Standards 9. \u00a0\u00a0
The Group is only using Cash flow hedges. The hedging instruments are recognized in the statement of financial position and measured at fair value through the income statement.
The Group seeks to minimise the effects of these risks in the daily operations by using derivative financial instruments to hedge these risk exposures. The use of financial derivatives is governed by the Treasury policy approved by the board of directors, which provide written principles on foreign exchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments, and the investment of excess liquidity. The Group does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForHedgingExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s10_notes__6__28-1": { "value": "03.1.2 Market risk
The Group\u2019s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates (see below). The Group enters forward foreign exchange contracts to hedge the exchange rate risk arising mainly from purchase of goods.
Market risk exposures are measured using sensitivity analysis. There has been no change to the Group\u2019s exposure to market risks or the manner in which these risks are managed and measured.
03.1.5 Interest rate risk management
The interest on deposits and loans has a maturity of less than 12 months. As the Group has no significant interest-bearing assets, the Group\u2019s income and operating cash flows are substantially inde-pendent of changes in market interest rates. The Group\u2019s interest rate risk arises from borrowings. Borrowings issued at floating rate of interest expose the Group\u2019s cash flow to interest rate risk.
Sensitivity analysis for interest rate risk is prepared at least once a year. Latest sensitivity analysis of balance sheet (equity) for -2 / + 2% fluctuations in interest rates where the company has a net asset (or liability) exposure shows that possible effect is NOK 18 million at 31 December 2023 (NOK 30 million at 31 December 2022). Due to low effect of interest rate changes to profit (loss), Atea accepts interest rate risk and does not use hedging instruments to mitigate it.
The Group is exposed to interest rate changes with respect to loans based on the following repricing structure:
NOK in million | 2023 | 2022 |
6 months or less | 5 | 586 |
6-12 months | - | - |
1-5 years | - | - |
More than 5 years | 588 | - |
Total | 593 | 586 |
Interest on the date of the balance sheet was as follows:
NOK in million | 2023 | 2022 |
Long-term loans | ||
EIB loan | 4.6% | 4.6% |
Short-term loans | ||
Securitization - sale of receivables | 3.8% | 3.3% |
Securitization - uncommited facility secured by receivables | 4.3% | 3.7% |
Overdraft facility | 4.2% | 4.3% |
Average weighted interest rate | 4.1% | 3.7% |
Note 27\tConsideration of climate change risk
ln preparing the financial statements, the management have considered the impact of climate change.
The Atea Group follows the recommendations from the Task Force on Climate-Related Financial Disclosures (TCFD). The company reports on climate risks and opportunities annually through CDP and is currently in the process of implementing requirements of the EU\u2019s new Corporate Sustainability Reporting Directive. More information can be found in a separate TCFD report that will be publicly available on atea.com during Q2 2024.
There has been no material impact identified on the financial reporting judgements and estimates. ln particular the following areas are considered:
\u2022going concern and viability of the Group over the next three years
\u2022cash flow forecasts used in the impairment assessment of non-current assets including goodwill
\u2022carrying value of useful economic lives of property, plant, and equipment
\u2022extreme weather events such as flooding, drought, storms and heavy precipitation that could cause disruptions in the supply chain and own operations, which might lead to a finan-cial impact on Atea. This risk is assessed to be quite low since Atea operates in low-risk countries according to Intergovernmental Panel on Climate Change (IPCC) and works with many vendors, which also enables the Group to diversify its exposure to risks.
While there is currently no short- or medium-term impact expected from climate change, the management are aware of the ever-changing risks attached to climate change and will regularly assess these risks against judgements and estimates made in preparation of the Group\u2019s financial statements.
Note 28\tConsideration of natural risks, including biodiversity loss and ecosystem degradation
We are committed to integrating nature into our decision-making processes and mitigating our impact on the environment. As part of this commitment, we will be assessing our nature-related dependencies, impacts, risks, and opportunities according to the Taskforce on Nature-related Financial Disclosures (TNFD) frame-work. We will report on our progress and findings in our annual reports starting from the financial year 2025. We believe that this approach will enable us to make informed decisions that support a shift in global finan-cial flows toward sustainability.
", "dimensions": { "concept": "ifrs-full:DisclosureOfMarketRiskExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f41764": { "value": "03.1.3 Foreign exchange risk
The company has investments in foreign subsidiaries, whose net assets are exposed to foreign currency translation risk.
The Group operates internationally and is exposed to foreign exchange risk in multiple foreign currencies. This risk is particularly relevant with respect to the Swedish krone (SEK), Danish krone (DKK), Euro (EUR), and US dollar (USD). Foreign exchange risk arises from future commercial transactions, recognised assets and liabilities and net investments in foreign operations.
Foreign exchange risk arises when future commercial transactions or recognised assets or liabilities are denominated in a currency that is not the entity\u2019s functional currency. Atea main foreign currency expo-sure is from purchases of goods denominated in foreign currency. Parent company Atea ASA is exposed to foreign currency risk due to dividends from its subsidiaries.
There is a transactional risk that a company will suffer a loss due to change in currency rate in the period between accepted order and
payment to supplier, or from approving dividends and dividends being paid. Moreover, conversion risk arises in the company\u2019s balance sheet due to the translation of assets or liabilities in foreign currency.
Sensitivity analysis for currency translation risk is prepared at least once a year. Latest sensitivity analysis of balance sheet (equity) for -10 / + 10% fluctuations in foreign currency rates where the company has a net asset (or liability) exposure shows that possible effect is NOK 5 million in 2023 (NOK 155 million in 2022).
Translation risk is arising mainly from cash/overdraft, trade payables, trade receivables balances in foreign currencies.
Exchange rate exposures are managed within approved policy param-eters utilising forward foreign exchange contracts.
Outstanding committed forward foreign exchange contracts at 31 December
NOK in million | 2023 | 2022 |
Forward exchange contracts, notional amount | 2,248 | 2,267 |
Forward exchange contracts, fair value | 171 | 229 |
All outstanding forward foreign exchange contracts at 31 December 2023 have maturity in 2024.
The positions are mainly buy positions against US dollars.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEffectOfChangesInForeignExchangeRatesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f42157": { "value": "03.1.4 Cash and cash equivalents
Cash includes cash in hand and deposits in bank. Cash equivalents are short-term liquid investments that can be converted into cash within three months, and which contain insignificant risk elements. Bank overdrafts are presented within interest-bearing current liabili-ties on the balance sheet. Cash restricted for use comprises cash and cash equivalents which are not available for general use by the group. For Atea, this is mainly related to pledge of separate bank accounts related to the securitization contract organized by a bank.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f42632": { "value": "03.1.6 Credit risk management
Atea has for years had modest losses on trade debtors. New customers must be approved before they are granted credit. The responsibility for granting credit is decentralised to each operating unit. The Group has no significant concentrations of credit risk, since the customer base is large and unrelated. A major part of the customers are within the public sector.
Provisions for losses are accounted for when there are indicators of expected losses. These indicators include:
\u2022In-active accounts
\u2022Bankruptcy
\u2022Hand over accounts to debt collectors or lawyers
\u2022Formal arrangements on arrear debt
\u2022Debt ageing more than 180 days (flat rate valuation adjustment)
In addition, provision for credit losses are accounted for based on flat-rate valuation adjustments (general provision) by using a provision matrix. The amount is examined as of every closing date. The matrix is supported by historical credit loss experience of trade receivables, adjusted as appropriate to reflect current conditions and estimates of future economic conditions.
The flat-rate reduction in value for Atea Group is following:
\u2022Public sector:\tNo provision
\u2022Top 50 customers:\tIndividual (based on outstanding amount).
Flat rate valuation adjustment:
180-270 days overdue: 25%
270-360 days overdue: 50%
More than 360 days overdue:\t100%
Derivative counterparties and bank deposits are limited to high-credit-quality financial institutions.
The Group has entered into a securitization contract organized by a bank. The facility enables Atea to sell specified receivables of up to NOK 1,900 million, and customers credit risk is transferred when receivable is sold. See Note 17for more information.
Atea\u2019s concentration of credit risk is limited due to the fact that the customer base is large and unrelated.
The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCreditRiskExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f42633": { "value": "03.1.6 Credit risk management
Atea has for years had modest losses on trade debtors. New customers must be approved before they are granted credit. The responsibility for granting credit is decentralised to each operating unit. The Group has no significant concentrations of credit risk, since the customer base is large and unrelated. A major part of the customers are within the public sector.
Provisions for losses are accounted for when there are indicators of expected losses. These indicators include:
\u2022In-active accounts
\u2022Bankruptcy
\u2022Hand over accounts to debt collectors or lawyers
\u2022Formal arrangements on arrear debt
\u2022Debt ageing more than 180 days (flat rate valuation adjustment)
In addition, provision for credit losses are accounted for based on flat-rate valuation adjustments (general provision) by using a provision matrix. The amount is examined as of every closing date. The matrix is supported by historical credit loss experience of trade receivables, adjusted as appropriate to reflect current conditions and estimates of future economic conditions.
The flat-rate reduction in value for Atea Group is following:
\u2022Public sector:\tNo provision
\u2022Top 50 customers:\tIndividual (based on outstanding amount).
Flat rate valuation adjustment:
180-270 days overdue: 25%
270-360 days overdue: 50%
More than 360 days overdue:\t100%
Derivative counterparties and bank deposits are limited to high-credit-quality financial institutions.
The Group has entered into a securitization contract organized by a bank. The facility enables Atea to sell specified receivables of up to NOK 1,900 million, and customers credit risk is transferred when receivable is sold. See Note 17for more information.
Atea\u2019s concentration of credit risk is limited due to the fact that the customer base is large and unrelated.
The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAllowanceForCreditLossesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f42968": { "value": "03.1.7 Liquidity risk management
Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. Group Treasury aims to maintain flexibility in funding by keeping committed credit lines available.
Group\u2019s remaining contractual maturity for its non-derivative financial liabilities is disclosed in Note17.
Details of additional undrawn facilities that the Group has at its disposal to further reduce liquidity risk are set in Note 17and the APM Note.
03.2 Capital management
The Group manages its capital to secure the ongoing operations of the companies in the Group and to maximise the shareholders\u2019 return. This is accomplished through a healthy balance between liabilities, equity and earnings. Atea assesses its operational gearing (net
interest-bearing liabilities/operating profit before depreciation) and the Group\u2019s equity ratio on an ongoing basis.
The Group\u2019s target is to have an adjusted equity ratio\u200c1of 20% or more and maximum operational gearing of 2.5. At the end of 2023 the Group had an adjusted equity ratio of 24.4% (22.6% in 2022).
1Atea\u2019s adjusted equity ratio is defined as its equity as a percentage of its adjusted total assets. See APMfor more information.
", "dimensions": { "concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f43226": { "value": "Note 04\tSegment information
Accounting policies
Atea\u2019s business segment reporting is primarily by geography. A geographical business segment is engaged in providing products or services within a country or region that are subject to risks and returns that are different from other geographical segments.
The Group\u2019s executives (CEO/CFO) perform financial planning and business control in each geographical business segment as well as in separate shared service units that deliver products and services internally to other geographical segments.
Atea is located in 88 cities in Norway, Sweden, Denmark, Finland, and the Baltic countries of Lithuania, Latvia and Estonia, with over 8,000 employees. For management and reporting purposes, the Group is organized within these geographical areas. The performance of these geographical areas are evaluated on a regular basis by Atea\u2019s Executive team, consisting of among others the Managing Directors of each geographical segment.
In addition to the geographical areas, the Group operates Shared Services functions (Atea Logistics, Atea Global Services, Atea Group Functions, Atea Service Center AB and AppXite) and central adminis-tration. These costs are reported separately as Group Shared Service and Group cost.
Transfer prices between operating segments are on arm\u2019s length basis in a manner similar to transactions with third parties.
2023
NOK in million | Norway | Sweden | Denmark | Finland | The Baltics | Shared services | Group cost/eliminations | Total |
Gross sales | 12,162 | 20,837 | 12,009 | 4,976 | 2,027 | 8,928 | -9,001 | 51,938 |
Revenue | 8,288 | 12,845 | 8,105 | 3,788 | 1,710 | 8,799 | -8,831 | 34,704 |
Cost of sales and operating expenses | -7,826 | -12,036 | -7,788 | -3,615 | -1,551 | -8,668 | 8,712 | -32,772 |
Depreciation and amortisation | -129 | -159 | -195 | -33 | -77 | -94 | - | -688 |
Operating profit (EBIT) | 332 | 650 | 123 | 140 | 82 | 37 | -120 | 1,244 |
Net financial items | -223 | |||||||
Profit before tax | 1,021 | |||||||
Number of full-time employees at 31 December | 1,785 | 2,709 | 1,483 | 561 | 741 | 863 | 10 | 8,152 |
2022
NOK in million | Norway | Sweden | Denmark | Finland | The Baltics | Shared services | Group cost/eliminations | Total |
Gross sales | 11,362 | 19,472 | 10,214 | 3,989 | 1,605 | 8,905 | -8,883 | 46,664 |
Revenue | 8,052 | 12,663 | 7,237 | 3,059 | 1,452 | 8,791 | -8,857 | 32,397 |
Cost of sales and operating expenses | -7,549 | -11,912 | -6,969 | -2,922 | -1,330 | -8,649 | 8,744 | -30,586 |
Depreciation and amortisation | -116 | -154 | -173 | -29 | -59 | -83 | -1 | -615 |
Operating profit (EBIT) | 387 | 596 | 95 | 109 | 64 | 59 | -114 | 1,196 |
Net financial items | -112 | |||||||
Profit before tax | 1,084 | |||||||
Number of full-time employees at 31 December | 1,779 | 2,712 | 1,499 | 507 | 706 | 860 | 9 | 8,073 |
2023
NOK in million | Norway | Sweden | Denmark | Finland | The Baltics | Shared services | Group cost/eliminations | Total |
Assets | 5,942 | 5,087 | 3,422 | 938 | 959 | 6,560 | -4,274 | 18,636 |
Liabilities | 4,861 | 4,883 | 2,806 | 848 | 532 | 6,420 | -5,913 | 14,437 |
Investments to PPE and Intangible assets | 55 | 100 | 40 | 11 | 40 | 108 | 1 | 355 |
2022
NOK in million | Norway | Sweden | Denmark | Finland | The Baltics | Shared services | Group cost/eliminations | Total |
Assets | 5,596 | 5,138 | 3,233 | 1,004 | 900 | 6,142 | -4,156 | 17,858 |
Liabilities | 4,493 | 4,993 | 2,766 | 978 | 570 | 6,026 | -5,697 | 14,129 |
Investments to PPE and Intangible assets | 67 | 135 | 72 | 11 | 58 | 61 | - | 404 |
Operating revenues by category:
NOK in million | 2023 | 2022 |
1. Product revenue | 25,416 | 24,262 |
2. Services revenue | 9,288 | 8,135 |
3. Total revenue | 34,704 | 32,397 |
Note 04\tSegment information
Accounting policies
Atea\u2019s business segment reporting is primarily by geography. A geographical business segment is engaged in providing products or services within a country or region that are subject to risks and returns that are different from other geographical segments.
The Group\u2019s executives (CEO/CFO) perform financial planning and business control in each geographical business segment as well as in separate shared service units that deliver products and services internally to other geographical segments.
Atea is located in 88 cities in Norway, Sweden, Denmark, Finland, and the Baltic countries of Lithuania, Latvia and Estonia, with over 8,000 employees. For management and reporting purposes, the Group is organized within these geographical areas. The performance of these geographical areas are evaluated on a regular basis by Atea\u2019s Executive team, consisting of among others the Managing Directors of each geographical segment.
In addition to the geographical areas, the Group operates Shared Services functions (Atea Logistics, Atea Global Services, Atea Group Functions, Atea Service Center AB and AppXite) and central adminis-tration. These costs are reported separately as Group Shared Service and Group cost.
Transfer prices between operating segments are on arm\u2019s length basis in a manner similar to transactions with third parties.
2023
NOK in million | Norway | Sweden | Denmark | Finland | The Baltics | Shared services | Group cost/eliminations | Total |
Gross sales | 12,162 | 20,837 | 12,009 | 4,976 | 2,027 | 8,928 | -9,001 | 51,938 |
Revenue | 8,288 | 12,845 | 8,105 | 3,788 | 1,710 | 8,799 | -8,831 | 34,704 |
Cost of sales and operating expenses | -7,826 | -12,036 | -7,788 | -3,615 | -1,551 | -8,668 | 8,712 | -32,772 |
Depreciation and amortisation | -129 | -159 | -195 | -33 | -77 | -94 | - | -688 |
Operating profit (EBIT) | 332 | 650 | 123 | 140 | 82 | 37 | -120 | 1,244 |
Net financial items | -223 | |||||||
Profit before tax | 1,021 | |||||||
Number of full-time employees at 31 December | 1,785 | 2,709 | 1,483 | 561 | 741 | 863 | 10 | 8,152 |
2022
NOK in million | Norway | Sweden | Denmark | Finland | The Baltics | Shared services | Group cost/eliminations | Total |
Gross sales | 11,362 | 19,472 | 10,214 | 3,989 | 1,605 | 8,905 | -8,883 | 46,664 |
Revenue | 8,052 | 12,663 | 7,237 | 3,059 | 1,452 | 8,791 | -8,857 | 32,397 |
Cost of sales and operating expenses | -7,549 | -11,912 | -6,969 | -2,922 | -1,330 | -8,649 | 8,744 | -30,586 |
Depreciation and amortisation | -116 | -154 | -173 | -29 | -59 | -83 | -1 | -615 |
Operating profit (EBIT) | 387 | 596 | 95 | 109 | 64 | 59 | -114 | 1,196 |
Net financial items | -112 | |||||||
Profit before tax | 1,084 | |||||||
Number of full-time employees at 31 December | 1,779 | 2,712 | 1,499 | 507 | 706 | 860 | 9 | 8,073 |
2023
NOK in million | Norway | Sweden | Denmark | Finland | The Baltics | Shared services | Group cost/eliminations | Total |
Assets | 5,942 | 5,087 | 3,422 | 938 | 959 | 6,560 | -4,274 | 18,636 |
Liabilities | 4,861 | 4,883 | 2,806 | 848 | 532 | 6,420 | -5,913 | 14,437 |
Investments to PPE and Intangible assets | 55 | 100 | 40 | 11 | 40 | 108 | 1 | 355 |
2022
NOK in million | Norway | Sweden | Denmark | Finland | The Baltics | Shared services | Group cost/eliminations | Total |
Assets | 5,596 | 5,138 | 3,233 | 1,004 | 900 | 6,142 | -4,156 | 17,858 |
Liabilities | 4,493 | 4,993 | 2,766 | 978 | 570 | 6,026 | -5,697 | 14,129 |
Investments to PPE and Intangible assets | 67 | 135 | 72 | 11 | 58 | 61 | - | 404 |
Operating revenues by category:
NOK in million | 2023 | 2022 |
1. Product revenue | 25,416 | 24,262 |
2. Services revenue | 9,288 | 8,135 |
3. Total revenue | 34,704 | 32,397 |
In the following table, the major revenue lines are disaggregated by geographical areas as disclosed in our segment information (Note 4and APM).
Figures are in local currency and does not include eliminations, except for Atea Group.
1. Product revenue
1.1 Hardware
Local currency in million | 2023 | 2022 | |
Norway | NOK | 5,643 | 5,600 |
Sweden | SEK | 8,842 | 9,507 |
Denmark | DKK | 3,526 | 3,669 |
Finland | EUR | 276 | 253 |
The Baltics | EUR | 93 | 96 |
Group Shared Services\u200c1 | NOK | 7,743 | 7,952 |
Atea Group | NOK | 24,130 | 23,176 |
1.2 Software
Local currency in million | 2023 | 2022 | |
Norway | NOK | 336 | 312 |
Sweden | SEK | 541 | 500 |
Denmark | DKK | 183 | 143 |
Finland | EUR | 8 | 9 |
The Baltics | EUR | 3 | 1 |
Group Shared Services\u200c1 | NOK | 5 | 4 |
Atea Group | NOK | 1,286 | 1,087 |
1Revenue from Group Shared Services are eliminated on Group level.
2. Services revenue
Local currency in million | 2023 | 2022 | |
Norway | NOK | 2,309 | 2,140 |
Sweden | SEK | 3,513 | 3,314 |
Denmark | DKK | 1,578 | 1,517 |
Finland | EUR | 48 | 42 |
The Baltics | EUR | 54 | 47 |
Group Shared Services\u200c1 | NOK | 1,051 | 834 |
Atea Group | NOK | 9,288 | 8,135 |
3. Total revenue
Local currency in million | 2023 | 2022 | |
Norway | NOK | 8,288 | 8,052 |
Sweden | SEK | 12,896 | 13,321 |
Denmark | DKK | 5,287 | 5,330 |
Finland | EUR | 332 | 303 |
The Baltics | EUR | 150 | 144 |
Group Shared Services\u200c1 | NOK | 8,799 | 8,791 |
Atea Group | NOK | 34,704 | 32,397 |
Contract balances:
The following table provides information about receivables, contract assets and contract liabilities from contracts with customers.
NOK in million | 2023 | 2022 |
Receivables, which are included in Trade receivables\u200c1 | 6,946 | 6,701 |
Contract assets\u200c2 | 291 | 329 |
Contract liabilities\u200c3 | 1,359 | 1,156 |
1See Note 14for an ageing analysis of receivables and description of the changes in receivables.
2The contract assets primarily relates to revenues accrued, but not invoiced. Contract assets are recognised for performance obligations satisfied over time, mainly from services and projects where progress is measured over time. The contract assets are transferred to Trade receivables when the rights to receive payment become uncon-ditional. The contract assets are assessed for impairment in accordance with IFRS\u00ae Accounting Standards 9.
3The contract liabilities primarily consists of advance considerations received from customers. See Note16.
Changes in the contract assets and the contract liabilities balances during the period are as follows:
NOK in million | Contract assets | Contract liabilities |
At 1 January 2023 | 329 | 1,156 |
Recognised during the year: | ||
Revenue recognised that was included in the contract liability balance at the beginning of the period | - | -966 |
Invoiced in advance | - | 1,106 |
Transfers from contract assets recognized at the beginning of the period to receivables | -84 | - |
Increases as a result of changes in the measure of progress | 31 | 3 |
Currency translation differences | 15 | 61 |
At 31 December 2023 | 291 | 1,359 |
NOK in million | Contract assets | Contract liabilities |
At 1 January 2022 | 225 | 1,296 |
Recognised during the year: | ||
Merge (+/-) internal | -1 | 5 |
Revenue recognised that was included in the contract liability balance at the beginning of the period | - | -972 |
Invoiced in advance | - | 819 |
Transfers from contract assets recognized at the beginning of the period to receivables | 73 | - |
Increases as a result of changes in the measure of progress | 29 | 10 |
Currency translation differences | 3 | -1 |
At 31 December 2022 | 329 | 1,156 |
Remaining performance obligations at year-end
The remaining performance obligations expected to be recognised in more than one year after the year end 2023, is estimated to NOK 1,400 million (NOK 1,187 million in 2022). This is mainly related to Data Center outsourcing agreements that normally can not be cancelled before the contract period of 3-years, without a significant penalty. All the other remaining performance obligations are expected to be recognised within one year.
Note 04\tSegment information
Accounting policies
Atea\u2019s business segment reporting is primarily by geography. A geographical business segment is engaged in providing products or services within a country or region that are subject to risks and returns that are different from other geographical segments.
The Group\u2019s executives (CEO/CFO) perform financial planning and business control in each geographical business segment as well as in separate shared service units that deliver products and services internally to other geographical segments.
Atea is located in 88 cities in Norway, Sweden, Denmark, Finland, and the Baltic countries of Lithuania, Latvia and Estonia, with over 8,000 employees. For management and reporting purposes, the Group is organized within these geographical areas. The performance of these geographical areas are evaluated on a regular basis by Atea\u2019s Executive team, consisting of among others the Managing Directors of each geographical segment.
In addition to the geographical areas, the Group operates Shared Services functions (Atea Logistics, Atea Global Services, Atea Group Functions, Atea Service Center AB and AppXite) and central adminis-tration. These costs are reported separately as Group Shared Service and Group cost.
Transfer prices between operating segments are on arm\u2019s length basis in a manner similar to transactions with third parties.
2023
NOK in million | Norway | Sweden | Denmark | Finland | The Baltics | Shared services | Group cost/eliminations | Total |
Gross sales | 12,162 | 20,837 | 12,009 | 4,976 | 2,027 | 8,928 | -9,001 | 51,938 |
Revenue | 8,288 | 12,845 | 8,105 | 3,788 | 1,710 | 8,799 | -8,831 | 34,704 |
Cost of sales and operating expenses | -7,826 | -12,036 | -7,788 | -3,615 | -1,551 | -8,668 | 8,712 | -32,772 |
Depreciation and amortisation | -129 | -159 | -195 | -33 | -77 | -94 | - | -688 |
Operating profit (EBIT) | 332 | 650 | 123 | 140 | 82 | 37 | -120 | 1,244 |
Net financial items | -223 | |||||||
Profit before tax | 1,021 | |||||||
Number of full-time employees at 31 December | 1,785 | 2,709 | 1,483 | 561 | 741 | 863 | 10 | 8,152 |
2022
NOK in million | Norway | Sweden | Denmark | Finland | The Baltics | Shared services | Group cost/eliminations | Total |
Gross sales | 11,362 | 19,472 | 10,214 | 3,989 | 1,605 | 8,905 | -8,883 | 46,664 |
Revenue | 8,052 | 12,663 | 7,237 | 3,059 | 1,452 | 8,791 | -8,857 | 32,397 |
Cost of sales and operating expenses | -7,549 | -11,912 | -6,969 | -2,922 | -1,330 | -8,649 | 8,744 | -30,586 |
Depreciation and amortisation | -116 | -154 | -173 | -29 | -59 | -83 | -1 | -615 |
Operating profit (EBIT) | 387 | 596 | 95 | 109 | 64 | 59 | -114 | 1,196 |
Net financial items | -112 | |||||||
Profit before tax | 1,084 | |||||||
Number of full-time employees at 31 December | 1,779 | 2,712 | 1,499 | 507 | 706 | 860 | 9 | 8,073 |
2023
NOK in million | Norway | Sweden | Denmark | Finland | The Baltics | Shared services | Group cost/eliminations | Total |
Assets | 5,942 | 5,087 | 3,422 | 938 | 959 | 6,560 | -4,274 | 18,636 |
Liabilities | 4,861 | 4,883 | 2,806 | 848 | 532 | 6,420 | -5,913 | 14,437 |
Investments to PPE and Intangible assets | 55 | 100 | 40 | 11 | 40 | 108 | 1 | 355 |
2022
NOK in million | Norway | Sweden | Denmark | Finland | The Baltics | Shared services | Group cost/eliminations | Total |
Assets | 5,596 | 5,138 | 3,233 | 1,004 | 900 | 6,142 | -4,156 | 17,858 |
Liabilities | 4,493 | 4,993 | 2,766 | 978 | 570 | 6,026 | -5,697 | 14,129 |
Investments to PPE and Intangible assets | 67 | 135 | 72 | 11 | 58 | 61 | - | 404 |
Operating revenues by category:
NOK in million | 2023 | 2022 |
1. Product revenue | 25,416 | 24,262 |
2. Services revenue | 9,288 | 8,135 |
3. Total revenue | 34,704 | 32,397 |
05.2 Costs of sales
Atea aggregates expenses within the income statement according to their nature. Costs of sales include products and services bought from suppliers and resold to customers.
Costs of sales include all direct expenses for goods and services directly connected to the sales, including freight. Direct costs related to services include leasing and outsourcing.
Critical accounting judgements and key sources of estimation uncertainty
The Group recognizes revenue from many different product groups and services. Different customer contracts contain varying terms and conditions and may include bundles of products and services.
\u201cDevice as a Service\u201d is a commercial model in which organizations procure IT solutions from a service provider at a fixed fee for use (e.g., monthly fee per user). Atea is then responsible for delivering the IT solution and maintaining an agreed service level. Atea is currently expanding its \u201cDevice as a Service\u201d offering to several new concepts such as videoconferencing, digital signage and networks.
Different revenue streams make the revenue recognition complex. The main challenge is to distinguish between sales of products (revenue recognized at a point in time) and sales of services (revenue recognized over time). The customer contracts might include a bundling of the elements above and including financing solutions.
The contracts require manual consideration and judgement of which accounting policy that is relevant for each contract. This considera-tion impacts the timing of revenue recognition.
Due to the high number and variety of contracts, the manual processes cause a risk that an inappropriate accounting policy is selected.
As a significant proportion of sales and deliveries are made close to year-end, the risk related to this manual process is especially relevant for transactions recorded close to year-end.
Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty at the reporting period that may have a signif-icant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are discussed in Note 12regarding Goodwill.
In the following table, the major revenue lines are disaggregated by geographical areas as disclosed in our segment information (Note 4and APM).
Figures are in local currency and does not include eliminations, except for Atea Group.
1. Product revenue
1.1 Hardware
Local currency in million | 2023 | 2022 | |
Norway | NOK | 5,643 | 5,600 |
Sweden | SEK | 8,842 | 9,507 |
Denmark | DKK | 3,526 | 3,669 |
Finland | EUR | 276 | 253 |
The Baltics | EUR | 93 | 96 |
Group Shared Services\u200c1 | NOK | 7,743 | 7,952 |
Atea Group | NOK | 24,130 | 23,176 |
1.2 Software
Local currency in million | 2023 | 2022 | |
Norway | NOK | 336 | 312 |
Sweden | SEK | 541 | 500 |
Denmark | DKK | 183 | 143 |
Finland | EUR | 8 | 9 |
The Baltics | EUR | 3 | 1 |
Group Shared Services\u200c1 | NOK | 5 | 4 |
Atea Group | NOK | 1,286 | 1,087 |
1Revenue from Group Shared Services are eliminated on Group level.
2. Services revenue
Local currency in million | 2023 | 2022 | |
Norway | NOK | 2,309 | 2,140 |
Sweden | SEK | 3,513 | 3,314 |
Denmark | DKK | 1,578 | 1,517 |
Finland | EUR | 48 | 42 |
The Baltics | EUR | 54 | 47 |
Group Shared Services\u200c1 | NOK | 1,051 | 834 |
Atea Group | NOK | 9,288 | 8,135 |
3. Total revenue
Local currency in million | 2023 | 2022 | |
Norway | NOK | 8,288 | 8,052 |
Sweden | SEK | 12,896 | 13,321 |
Denmark | DKK | 5,287 | 5,330 |
Finland | EUR | 332 | 303 |
The Baltics | EUR | 150 | 144 |
Group Shared Services\u200c1 | NOK | 8,799 | 8,791 |
Atea Group | NOK | 34,704 | 32,397 |
Contract balances:
The following table provides information about receivables, contract assets and contract liabilities from contracts with customers.
NOK in million | 2023 | 2022 |
Receivables, which are included in Trade receivables\u200c1 | 6,946 | 6,701 |
Contract assets\u200c2 | 291 | 329 |
Contract liabilities\u200c3 | 1,359 | 1,156 |
1See Note 14for an ageing analysis of receivables and description of the changes in receivables.
2The contract assets primarily relates to revenues accrued, but not invoiced. Contract assets are recognised for performance obligations satisfied over time, mainly from services and projects where progress is measured over time. The contract assets are transferred to Trade receivables when the rights to receive payment become uncon-ditional. The contract assets are assessed for impairment in accordance with IFRS\u00ae Accounting Standards 9.
3The contract liabilities primarily consists of advance considerations received from customers. See Note16.
Changes in the contract assets and the contract liabilities balances during the period are as follows:
NOK in million | Contract assets | Contract liabilities |
At 1 January 2023 | 329 | 1,156 |
Recognised during the year: | ||
Revenue recognised that was included in the contract liability balance at the beginning of the period | - | -966 |
Invoiced in advance | - | 1,106 |
Transfers from contract assets recognized at the beginning of the period to receivables | -84 | - |
Increases as a result of changes in the measure of progress | 31 | 3 |
Currency translation differences | 15 | 61 |
At 31 December 2023 | 291 | 1,359 |
NOK in million | Contract assets | Contract liabilities |
At 1 January 2022 | 225 | 1,296 |
Recognised during the year: | ||
Merge (+/-) internal | -1 | 5 |
Revenue recognised that was included in the contract liability balance at the beginning of the period | - | -972 |
Invoiced in advance | - | 819 |
Transfers from contract assets recognized at the beginning of the period to receivables | 73 | - |
Increases as a result of changes in the measure of progress | 29 | 10 |
Currency translation differences | 3 | -1 |
At 31 December 2022 | 329 | 1,156 |
Remaining performance obligations at year-end
The remaining performance obligations expected to be recognised in more than one year after the year end 2023, is estimated to NOK 1,400 million (NOK 1,187 million in 2022). This is mainly related to Data Center outsourcing agreements that normally can not be cancelled before the contract period of 3-years, without a significant penalty. All the other remaining performance obligations are expected to be recognised within one year.
Note 04\tSegment information
Accounting policies
Atea\u2019s business segment reporting is primarily by geography. A geographical business segment is engaged in providing products or services within a country or region that are subject to risks and returns that are different from other geographical segments.
The Group\u2019s executives (CEO/CFO) perform financial planning and business control in each geographical business segment as well as in separate shared service units that deliver products and services internally to other geographical segments.
Atea is located in 88 cities in Norway, Sweden, Denmark, Finland, and the Baltic countries of Lithuania, Latvia and Estonia, with over 8,000 employees. For management and reporting purposes, the Group is organized within these geographical areas. The performance of these geographical areas are evaluated on a regular basis by Atea\u2019s Executive team, consisting of among others the Managing Directors of each geographical segment.
In addition to the geographical areas, the Group operates Shared Services functions (Atea Logistics, Atea Global Services, Atea Group Functions, Atea Service Center AB and AppXite) and central adminis-tration. These costs are reported separately as Group Shared Service and Group cost.
Transfer prices between operating segments are on arm\u2019s length basis in a manner similar to transactions with third parties.
2023
NOK in million | Norway | Sweden | Denmark | Finland | The Baltics | Shared services | Group cost/eliminations | Total |
Gross sales | 12,162 | 20,837 | 12,009 | 4,976 | 2,027 | 8,928 | -9,001 | 51,938 |
Revenue | 8,288 | 12,845 | 8,105 | 3,788 | 1,710 | 8,799 | -8,831 | 34,704 |
Cost of sales and operating expenses | -7,826 | -12,036 | -7,788 | -3,615 | -1,551 | -8,668 | 8,712 | -32,772 |
Depreciation and amortisation | -129 | -159 | -195 | -33 | -77 | -94 | - | -688 |
Operating profit (EBIT) | 332 | 650 | 123 | 140 | 82 | 37 | -120 | 1,244 |
Net financial items | -223 | |||||||
Profit before tax | 1,021 | |||||||
Number of full-time employees at 31 December | 1,785 | 2,709 | 1,483 | 561 | 741 | 863 | 10 | 8,152 |
2022
NOK in million | Norway | Sweden | Denmark | Finland | The Baltics | Shared services | Group cost/eliminations | Total |
Gross sales | 11,362 | 19,472 | 10,214 | 3,989 | 1,605 | 8,905 | -8,883 | 46,664 |
Revenue | 8,052 | 12,663 | 7,237 | 3,059 | 1,452 | 8,791 | -8,857 | 32,397 |
Cost of sales and operating expenses | -7,549 | -11,912 | -6,969 | -2,922 | -1,330 | -8,649 | 8,744 | -30,586 |
Depreciation and amortisation | -116 | -154 | -173 | -29 | -59 | -83 | -1 | -615 |
Operating profit (EBIT) | 387 | 596 | 95 | 109 | 64 | 59 | -114 | 1,196 |
Net financial items | -112 | |||||||
Profit before tax | 1,084 | |||||||
Number of full-time employees at 31 December | 1,779 | 2,712 | 1,499 | 507 | 706 | 860 | 9 | 8,073 |
2023
NOK in million | Norway | Sweden | Denmark | Finland | The Baltics | Shared services | Group cost/eliminations | Total |
Assets | 5,942 | 5,087 | 3,422 | 938 | 959 | 6,560 | -4,274 | 18,636 |
Liabilities | 4,861 | 4,883 | 2,806 | 848 | 532 | 6,420 | -5,913 | 14,437 |
Investments to PPE and Intangible assets | 55 | 100 | 40 | 11 | 40 | 108 | 1 | 355 |
2022
NOK in million | Norway | Sweden | Denmark | Finland | The Baltics | Shared services | Group cost/eliminations | Total |
Assets | 5,596 | 5,138 | 3,233 | 1,004 | 900 | 6,142 | -4,156 | 17,858 |
Liabilities | 4,493 | 4,993 | 2,766 | 978 | 570 | 6,026 | -5,697 | 14,129 |
Investments to PPE and Intangible assets | 67 | 135 | 72 | 11 | 58 | 61 | - | 404 |
Operating revenues by category:
NOK in million | 2023 | 2022 |
1. Product revenue | 25,416 | 24,262 |
2. Services revenue | 9,288 | 8,135 |
3. Total revenue | 34,704 | 32,397 |
Note 07\tOther operating costs
NOK in million | 2023 | 2022 |
Car and travel costs | -196 | -168 |
Communication and IT costs | -504 | -402 |
Premises costs | -154 | -133 |
Marketing costs | -49 | -45 |
Bad debts | -12 | -5 |
Other income3 | 47 | 109 |
Other costs and cost reimbursement1, 2 | -53 | -7 |
Total other operating costs | -921 | -651 |
1Audit fees
The table below shows Deloitte\u2019s total charges for auditing and other services. All amounts are exclusive of VAT
NOK in million | 2023 | 2022 |
Auditor's fees | -8.6 | -8.3 |
Tax advisory services | -0.5 | -0.2 |
Total | -9.1 | -8.5 |
2Remuneration to the Board of Directors of Atea ASA
NOK 1.8 million was paid in fees to the Board of Directors of Atea ASA in 2023 (NOK 1.8 million in 2022). Fees to the Chairman of the Board amounted to NOK 500,000, fees to the employee representatives amounted to NOK 150,000 each and the rest of the Board of Directors received a fee of NOK 200,000 each.
NOK 350,000 was paid in fees to the Audit Committee of Atea ASA in 2023 (NOK 350,000 in 2022). Fees to the Chairman of the Audit Committee was NOK 150,000, and NOK 100,000 to each other two members.
3Other income
The amount includes a gain of NOK 72 million related to sale of Atea Mobile business in Norway in 2022. See Note23.
Other income of NOK 47 million in 2023 mainly consist of leasing of premises to companies controlled by Lone Sch\u00f8tt Kun\u00f8e, who is member of the Booard of Directors (NOK 18 million), see Note 26. In adition, interest invoiced to customers for late payment, (NOK 24 million).
Note 08\tNet financial items
Accounting policies
Individual financial statements of Atea ASA and its subsidiaries are prepared in the respective entities\u2019 functional currency. Functional currency is the currency of the primary economic environment in which the entity operates. The functional currency of Atea ASA is Norwegian kroner (NOK). In the individual financial statements, transactions in currencies other than the entity\u2019s functional currency are recognized by applying the exchange rate at the date of transaction. At the balance sheet date, monetary items denominated in foreign currencies are translated using the exchange rate at that date. The changes in value due to such foreign currency translations are recognized in the statement of income of the individual entity and reflected as \u201cforeign currency exchnage gain/loss\u201d in the consolidtaed statement of income for the Group.
NOK in million | 2023 | 2022 |
Interest income | 24 | 7 |
Other financial income | 0 | 1 |
Total financial income | 24 | 8 |
Interest costs on loans | -146 | -78 |
Interest costs on leases | -74 | -61 |
Foreign exchange effects | -21 | 30 |
Other financial expenses | -7 | -11 |
Total financial expenses | -247 | -121 |
Total net financial items | -223 | -112 |
Foreign exchange effects included in operating loss total NOK 21 million in 2023 (operating profit of NOK 30 million in 2022).
", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f43230": { "value": "Note 04\tSegment information
Accounting policies
Atea\u2019s business segment reporting is primarily by geography. A geographical business segment is engaged in providing products or services within a country or region that are subject to risks and returns that are different from other geographical segments.
The Group\u2019s executives (CEO/CFO) perform financial planning and business control in each geographical business segment as well as in separate shared service units that deliver products and services internally to other geographical segments.
Atea is located in 88 cities in Norway, Sweden, Denmark, Finland, and the Baltic countries of Lithuania, Latvia and Estonia, with over 8,000 employees. For management and reporting purposes, the Group is organized within these geographical areas. The performance of these geographical areas are evaluated on a regular basis by Atea\u2019s Executive team, consisting of among others the Managing Directors of each geographical segment.
In addition to the geographical areas, the Group operates Shared Services functions (Atea Logistics, Atea Global Services, Atea Group Functions, Atea Service Center AB and AppXite) and central adminis-tration. These costs are reported separately as Group Shared Service and Group cost.
Transfer prices between operating segments are on arm\u2019s length basis in a manner similar to transactions with third parties.
2023
NOK in million | Norway | Sweden | Denmark | Finland | The Baltics | Shared services | Group cost/eliminations | Total |
Gross sales | 12,162 | 20,837 | 12,009 | 4,976 | 2,027 | 8,928 | -9,001 | 51,938 |
Revenue | 8,288 | 12,845 | 8,105 | 3,788 | 1,710 | 8,799 | -8,831 | 34,704 |
Cost of sales and operating expenses | -7,826 | -12,036 | -7,788 | -3,615 | -1,551 | -8,668 | 8,712 | -32,772 |
Depreciation and amortisation | -129 | -159 | -195 | -33 | -77 | -94 | - | -688 |
Operating profit (EBIT) | 332 | 650 | 123 | 140 | 82 | 37 | -120 | 1,244 |
Net financial items | -223 | |||||||
Profit before tax | 1,021 | |||||||
Number of full-time employees at 31 December | 1,785 | 2,709 | 1,483 | 561 | 741 | 863 | 10 | 8,152 |
2022
NOK in million | Norway | Sweden | Denmark | Finland | The Baltics | Shared services | Group cost/eliminations | Total |
Gross sales | 11,362 | 19,472 | 10,214 | 3,989 | 1,605 | 8,905 | -8,883 | 46,664 |
Revenue | 8,052 | 12,663 | 7,237 | 3,059 | 1,452 | 8,791 | -8,857 | 32,397 |
Cost of sales and operating expenses | -7,549 | -11,912 | -6,969 | -2,922 | -1,330 | -8,649 | 8,744 | -30,586 |
Depreciation and amortisation | -116 | -154 | -173 | -29 | -59 | -83 | -1 | -615 |
Operating profit (EBIT) | 387 | 596 | 95 | 109 | 64 | 59 | -114 | 1,196 |
Net financial items | -112 | |||||||
Profit before tax | 1,084 | |||||||
Number of full-time employees at 31 December | 1,779 | 2,712 | 1,499 | 507 | 706 | 860 | 9 | 8,073 |
2023
NOK in million | Norway | Sweden | Denmark | Finland | The Baltics | Shared services | Group cost/eliminations | Total |
Assets | 5,942 | 5,087 | 3,422 | 938 | 959 | 6,560 | -4,274 | 18,636 |
Liabilities | 4,861 | 4,883 | 2,806 | 848 | 532 | 6,420 | -5,913 | 14,437 |
Investments to PPE and Intangible assets | 55 | 100 | 40 | 11 | 40 | 108 | 1 | 355 |
2022
NOK in million | Norway | Sweden | Denmark | Finland | The Baltics | Shared services | Group cost/eliminations | Total |
Assets | 5,596 | 5,138 | 3,233 | 1,004 | 900 | 6,142 | -4,156 | 17,858 |
Liabilities | 4,493 | 4,993 | 2,766 | 978 | 570 | 6,026 | -5,697 | 14,129 |
Investments to PPE and Intangible assets | 67 | 135 | 72 | 11 | 58 | 61 | - | 404 |
Operating revenues by category:
NOK in million | 2023 | 2022 |
1. Product revenue | 25,416 | 24,262 |
2. Services revenue | 9,288 | 8,135 |
3. Total revenue | 34,704 | 32,397 |
Note 04\tSegment information
Accounting policies
Atea\u2019s business segment reporting is primarily by geography. A geographical business segment is engaged in providing products or services within a country or region that are subject to risks and returns that are different from other geographical segments.
The Group\u2019s executives (CEO/CFO) perform financial planning and business control in each geographical business segment as well as in separate shared service units that deliver products and services internally to other geographical segments.
Atea is located in 88 cities in Norway, Sweden, Denmark, Finland, and the Baltic countries of Lithuania, Latvia and Estonia, with over 8,000 employees. For management and reporting purposes, the Group is organized within these geographical areas. The performance of these geographical areas are evaluated on a regular basis by Atea\u2019s Executive team, consisting of among others the Managing Directors of each geographical segment.
In addition to the geographical areas, the Group operates Shared Services functions (Atea Logistics, Atea Global Services, Atea Group Functions, Atea Service Center AB and AppXite) and central adminis-tration. These costs are reported separately as Group Shared Service and Group cost.
Transfer prices between operating segments are on arm\u2019s length basis in a manner similar to transactions with third parties.
2023
NOK in million | Norway | Sweden | Denmark | Finland | The Baltics | Shared services | Group cost/eliminations | Total |
Gross sales | 12,162 | 20,837 | 12,009 | 4,976 | 2,027 | 8,928 | -9,001 | 51,938 |
Revenue | 8,288 | 12,845 | 8,105 | 3,788 | 1,710 | 8,799 | -8,831 | 34,704 |
Cost of sales and operating expenses | -7,826 | -12,036 | -7,788 | -3,615 | -1,551 | -8,668 | 8,712 | -32,772 |
Depreciation and amortisation | -129 | -159 | -195 | -33 | -77 | -94 | - | -688 |
Operating profit (EBIT) | 332 | 650 | 123 | 140 | 82 | 37 | -120 | 1,244 |
Net financial items | -223 | |||||||
Profit before tax | 1,021 | |||||||
Number of full-time employees at 31 December | 1,785 | 2,709 | 1,483 | 561 | 741 | 863 | 10 | 8,152 |
2022
NOK in million | Norway | Sweden | Denmark | Finland | The Baltics | Shared services | Group cost/eliminations | Total |
Gross sales | 11,362 | 19,472 | 10,214 | 3,989 | 1,605 | 8,905 | -8,883 | 46,664 |
Revenue | 8,052 | 12,663 | 7,237 | 3,059 | 1,452 | 8,791 | -8,857 | 32,397 |
Cost of sales and operating expenses | -7,549 | -11,912 | -6,969 | -2,922 | -1,330 | -8,649 | 8,744 | -30,586 |
Depreciation and amortisation | -116 | -154 | -173 | -29 | -59 | -83 | -1 | -615 |
Operating profit (EBIT) | 387 | 596 | 95 | 109 | 64 | 59 | -114 | 1,196 |
Net financial items | -112 | |||||||
Profit before tax | 1,084 | |||||||
Number of full-time employees at 31 December | 1,779 | 2,712 | 1,499 | 507 | 706 | 860 | 9 | 8,073 |
2023
NOK in million | Norway | Sweden | Denmark | Finland | The Baltics | Shared services | Group cost/eliminations | Total |
Assets | 5,942 | 5,087 | 3,422 | 938 | 959 | 6,560 | -4,274 | 18,636 |
Liabilities | 4,861 | 4,883 | 2,806 | 848 | 532 | 6,420 | -5,913 | 14,437 |
Investments to PPE and Intangible assets | 55 | 100 | 40 | 11 | 40 | 108 | 1 | 355 |
2022
NOK in million | Norway | Sweden | Denmark | Finland | The Baltics | Shared services | Group cost/eliminations | Total |
Assets | 5,596 | 5,138 | 3,233 | 1,004 | 900 | 6,142 | -4,156 | 17,858 |
Liabilities | 4,493 | 4,993 | 2,766 | 978 | 570 | 6,026 | -5,697 | 14,129 |
Investments to PPE and Intangible assets | 67 | 135 | 72 | 11 | 58 | 61 | - | 404 |
Operating revenues by category:
NOK in million | 2023 | 2022 |
1. Product revenue | 25,416 | 24,262 |
2. Services revenue | 9,288 | 8,135 |
3. Total revenue | 34,704 | 32,397 |
12.2 Other intangible assets
Computer software and rights
Acquired computer software licences are recognized on the balance sheet based on the costs incurred to acquire and bring to use the specific software. These costs are amortized over their estimated useful lives. Costs associated with maintaining computer software programs are recognized as an expense as incurred. Costs that are directly associated with the development of identifiable and unique software or system solutions controlled by the Group, which will probably generate economic benefits related to the asset that will pass to Atea and can be measured reliably, are recognized as intangible assets. Computer software costs/solutions and rights recognized on the balance sheet are amortized over their estimated useful lives, normally 3-7 years.
Contracts and customer relationships
In connection with business combinations, contracts and customer relationships are recorded at fair value at the acquisition date. The amortization period for contracts and customer relationships is based on the period they are expected to generate cash flow, normally 4-5 years.
Impairment of non-financial assets
Assets that are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset\u2019s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units).
Critical accounting judgements and key sources of estimation uncertainty
Impairment of goodwill:
The most important estimates and assumptions that have a signif-icant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are related to impairment of goodwill. The book value of goodwill as of 31 December 2023 is NOK 4,336 million.
Sensitivity analysis indicates that even with the use of conservative estimates with regard to future cash flows and discount rates, the book value of any of the assets will not exceed the recoverable amounts. See more information above.
Recoverable amounts of cash-generating units are determined based on judgements of fair values less costs to sell or value-in-use esti-mates.
WACC (Weighted Average Cost of Capital) used\u200c2:
NOK in million | 2023 | 2022 |
Norway | 12.3% | 12.0% |
Sweden | 10.8% | 10.0% |
Denmark | 11.2% | 10.8% |
Finland | 11.4% | 11.0% |
The Baltics\u200c3 | 11.4% | 11.6% |
1Average growth rates in total for the period 2025-2028.
2At 30 September 2023.
3Volume-weighted average for Estonia, Latvia and Lithuania.
NOK in million | Goodwill | Contracts and customer relationships | Computer software and rights | Total other intangible assets |
Acquisitions | ||||
1 January 2022 | 3,942 | 299 | 1,127 | 1,427 |
Additions | ||||
Ordinary additions | - | - | 160 | 160 |
Business combinations | 107 | 50 | - | 50 |
Disposals1 | - | -2 | -70 | -72 |
Currency translation effects | 83 | 8 | 32 | 40 |
31 December 2022 | 4,132 | 355 | 1,250 | 1,605 |
Changes from prior years | - | -26 | -59 | -86 |
Additions | ||||
Ordinary additions | - | - | 190 | 190 |
Disposals1 | - | - | -7 | -7 |
Currency translation effects | 204 | 14 | 77 | 91 |
31 December 2023 | 4,336 | 343 | 1,451 | 1,794 |
Accumulated amortisation | ||||
1 January 2022 | - | -283 | -816 | -1,098 |
Amortisation | -11 | -82 | -93 | |
Disposals1 | - | 0 | 70 | 70 |
Currency translation effects | - | -7 | -25 | -32 |
31 December 2022 | - | -300 | -853 | -1,153 |
Changes from prior years | - | 26 | 59 | 86 |
Amortisation | -15 | -86 | -101 | |
Disposals1 | - | - | 7 | 7 |
Currency translation effects | - | -10 | -50 | -60 |
31 December 2023 | - | -299 | -924 | -1,222 |
Acquisition cost | 4,132 | 355 | 1,250 | 1,605 |
NOK in million | Goodwill | Contracts and customer relationships | Computer software and rights | Total other intangible assets |
Accumulated amortisation and write-downs | - | -300 | -853 | -1,153 |
Book value at 31 December 2022 | 4,132 | 55 | 397 | 452 |
Acquisition cost | 4,336 | 343 | 1,451 | 1,794 |
Accumulated amortisation and write downs | - | -299 | -924 | -1,222 |
Book value at 31 December 2023 | 4,336 | 44 | 528 | 572 |
1Gain/loss on the disposal of intangible assets accounted for insignificant amounts in 2023 and 2022.
Allocations of goodwill
NOK in million | 2023 | 2022 |
Norway | 1,148 | 1,148 |
Sweden | 720 | 671 |
Denmark | 1,792 | 1,680 |
Finland | 284 | 265 |
The Baltics | 274 | 256 |
The Group Shared Services | 119 | 111 |
Total | 4,336 | 4,132 |
The Group does not have any significant research expenses.
Development costs related to internal systems are capitalised in the balance sheet with NOK 112 million (NOK 66 million in 2022).
Note 04\tSegment information
Accounting policies
Atea\u2019s business segment reporting is primarily by geography. A geographical business segment is engaged in providing products or services within a country or region that are subject to risks and returns that are different from other geographical segments.
The Group\u2019s executives (CEO/CFO) perform financial planning and business control in each geographical business segment as well as in separate shared service units that deliver products and services internally to other geographical segments.
Atea is located in 88 cities in Norway, Sweden, Denmark, Finland, and the Baltic countries of Lithuania, Latvia and Estonia, with over 8,000 employees. For management and reporting purposes, the Group is organized within these geographical areas. The performance of these geographical areas are evaluated on a regular basis by Atea\u2019s Executive team, consisting of among others the Managing Directors of each geographical segment.
In addition to the geographical areas, the Group operates Shared Services functions (Atea Logistics, Atea Global Services, Atea Group Functions, Atea Service Center AB and AppXite) and central adminis-tration. These costs are reported separately as Group Shared Service and Group cost.
Transfer prices between operating segments are on arm\u2019s length basis in a manner similar to transactions with third parties.
2023
NOK in million | Norway | Sweden | Denmark | Finland | The Baltics | Shared services | Group cost/eliminations | Total |
Gross sales | 12,162 | 20,837 | 12,009 | 4,976 | 2,027 | 8,928 | -9,001 | 51,938 |
Revenue | 8,288 | 12,845 | 8,105 | 3,788 | 1,710 | 8,799 | -8,831 | 34,704 |
Cost of sales and operating expenses | -7,826 | -12,036 | -7,788 | -3,615 | -1,551 | -8,668 | 8,712 | -32,772 |
Depreciation and amortisation | -129 | -159 | -195 | -33 | -77 | -94 | - | -688 |
Operating profit (EBIT) | 332 | 650 | 123 | 140 | 82 | 37 | -120 | 1,244 |
Net financial items | -223 | |||||||
Profit before tax | 1,021 | |||||||
Number of full-time employees at 31 December | 1,785 | 2,709 | 1,483 | 561 | 741 | 863 | 10 | 8,152 |
2022
NOK in million | Norway | Sweden | Denmark | Finland | The Baltics | Shared services | Group cost/eliminations | Total |
Gross sales | 11,362 | 19,472 | 10,214 | 3,989 | 1,605 | 8,905 | -8,883 | 46,664 |
Revenue | 8,052 | 12,663 | 7,237 | 3,059 | 1,452 | 8,791 | -8,857 | 32,397 |
Cost of sales and operating expenses | -7,549 | -11,912 | -6,969 | -2,922 | -1,330 | -8,649 | 8,744 | -30,586 |
Depreciation and amortisation | -116 | -154 | -173 | -29 | -59 | -83 | -1 | -615 |
Operating profit (EBIT) | 387 | 596 | 95 | 109 | 64 | 59 | -114 | 1,196 |
Net financial items | -112 | |||||||
Profit before tax | 1,084 | |||||||
Number of full-time employees at 31 December | 1,779 | 2,712 | 1,499 | 507 | 706 | 860 | 9 | 8,073 |
2023
NOK in million | Norway | Sweden | Denmark | Finland | The Baltics | Shared services | Group cost/eliminations | Total |
Assets | 5,942 | 5,087 | 3,422 | 938 | 959 | 6,560 | -4,274 | 18,636 |
Liabilities | 4,861 | 4,883 | 2,806 | 848 | 532 | 6,420 | -5,913 | 14,437 |
Investments to PPE and Intangible assets | 55 | 100 | 40 | 11 | 40 | 108 | 1 | 355 |
2022
NOK in million | Norway | Sweden | Denmark | Finland | The Baltics | Shared services | Group cost/eliminations | Total |
Assets | 5,596 | 5,138 | 3,233 | 1,004 | 900 | 6,142 | -4,156 | 17,858 |
Liabilities | 4,493 | 4,993 | 2,766 | 978 | 570 | 6,026 | -5,697 | 14,129 |
Investments to PPE and Intangible assets | 67 | 135 | 72 | 11 | 58 | 61 | - | 404 |
Operating revenues by category:
NOK in million | 2023 | 2022 |
1. Product revenue | 25,416 | 24,262 |
2. Services revenue | 9,288 | 8,135 |
3. Total revenue | 34,704 | 32,397 |
Note 09\tTaxes
Accounting policies
Taxes consists of the tax payable and changes to deferred tax. Deferred tax is calculated on all taxable temporary differences, except for:
(i)\tGoodwill for which amortization is not deductible for tax purposes.
(ii)Temporary differences relating to investments in subsidiaries, associates, or joint ventures when the Group decides when the temporary differences are to be reversed and this is not expected to take place in the foreseeable future.
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recog-nised in other comprehensive income or directly in equity, in which case the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.
Deferred tax assets are recognized when there is convincing evidence that Atea will have a sufficient profit for tax purposes to utilize the tax assets. On each balance sheet date, Atea reviews its unrecorded and unrecognized tax assets. Atea recognizes deferred tax assets on its balance sheet when the conditions for recognition have been met. Correspondingly, Atea will reduce its deferred tax assets if they can no longer be utilized.
Deferred tax and deferred tax assets are measured based on the current tax rates and laws applicable to the companies in the Group where temporary differences have arisen.
Deferred tax and deferred tax assets are recognized at their nominal value and classified as a non-current asset or a long-term liability on the balance sheet.
The Group is recognising deferred tax on leasing liabilities by reflecting the linkage between the right-of-use asset and the lease liability. Deferred tax is recognised on an aggregate temporarily difference basis.
The Group does note expect any tax effects related to Pillar 2, the minimum level of taxation of profits of multinational enterprises. See Note 2.2a)for more information.
Income tax recognized in profit or loss:
NOK in million | 2023 | 2022 |
Current tax | ||
Norway | -16 | -7 |
Other countries | -203 | -178 |
Deferred tax | ||
Origination and reversal of temporary differences | 18 | 3 |
Net losses utilised | -40 | -51 |
Change in deferred tax assets due to tax losses previously unrecognized | 21 | -2 |
Total income tax expenses | -221 | -235 |
The income tax expense for the year can be reconciled to the accounting profit as follows:
NOK in million | 2023 | 2022 |
Profit before tax | 1,021 | 1,084 |
Income tax expense calculated at 22% (2022: 22%)\u200c2 | -225 | -238 |
Effect of income non-taxable and expenses non-deductible\u200c3 | -13 | -3 |
Effect of taxable interest limitation | -1 | -8 |
Effect of different tax rates of subsidiaries operating in other jurisdictions\u200c4 | 4 | 5 |
Effect of deferred tax balances due to the change in income tax rates\u200c4 | 2 | 1 |
Effect of deferred tax changes recognised in other comprehensive income or directly in equity | ||
14 | 6 | |
Total | -219 | -236 |
Adjustments recognised in the current year in relation to the current tax of prior years | -2 | 0 |
Income tax expense recognised in profit or loss | -221 | -235 |
Effective tax rate | 21.6% | 21.7% |
Income tax recognised directly in equity
NOK in million | 2023 | 2022 |
Current tax | ||
Relating to shared based compensation | 8 | 5 |
Deferred tax | ||
Relating to shared based compensation | 5 | 1 |
Total income tax expenses recognized directly in equity | 14 | 6 |
Deferred tax balances are presented in the statement of financial position as follows:
NOK in million | 31 Dec 2023 | 31 Dec 2022 |
Deferred tax assets related to carryforward losses\u200c1 | 189 | 218 |
Deferred tax assets related to temporary differences\u200c1 | 20 | -11 |
Deferred tax liabilities | -151 | -145 |
Net deferred tax assets (liabilities) | 58 | 62 |
Deferred tax assets (liabilities)
2023 | ||||||
NOK in million | Book value at 1 Jan 2023 | |||||
Recognized in P/L | Recognized in equity | |||||
Business combinations/ disposals | Currency translation differences | Book value at 31 Dec 2023 | ||||
Temporary differences | ||||||
Property, plant and equipment | 18 | -1 | - | - | 1 | 18 |
Intangible assets5 | -179 | -9 | - | - | -12 | -200 |
Inventories | 5 | 1 | - | - | 0 | 6 |
Trade and other receivables | 5 | 0 | - | - | 0 | 5 |
Provisions and accruals | 10 | 3 | - | - | 0 | 13 |
Capital gain/loss accounts | -37 | 28 | - | - | -2 | -10 |
Financial leases | 16 | 1 | - | - | 1 | 18 |
Other financial liabilities | 12 | 3 | - | - | 1 | 16 |
Other differences | -6 | -8 | 5 | - | 0 | -9 |
Total | -156 | 18 | 5 | - | -11 | -144 |
Unused tax losses and credits | ||||||
Tax loss carryforward | 226 | -40 | - | - | 3 | 189 |
Other temporary differences not recognized on the statement of financial position | -8 | 21 | - | - | - | 13 |
Deferred tax assets recognized on the statement of financial position | 218 | -19 | - | - | 3 | 202 |
Net deferred tax assets recognized on the statement of financial position | 62 | -1 | 5 | - | -8 | 58 |
Deferred tax assets (liabilities)
2022 | ||||||
NOK in million | Book value at 1 Jan 2022 | Recognized in P/L | Recognized in equity | Business combinations/ disposals | Currency translation differences | Book value at 31 Dec 2022 |
Temporary differences | ||||||
Property, plant and equipment | 26 | -9 | - | - | 1 | 18 |
Intangible assets5 | -173 | 0 | - | -3 | -3 | -179 |
Inventories | 5 | 0 | - | - | 0 | 5 |
Trade and other receivables | 4 | 0 | - | - | 0 | 5 |
Provisions and accruals | 10 | 0 | - | - | 0 | 10 |
Capital gain/loss accounts | -43 | 5 | - | - | 1 | -37 |
Financial leases | 14 | 1 | - | - | 0 | 16 |
Other financial liabilities | 6 | 6 | - | - | 0 | 12 |
Other differences | -7 | 0 | 1 | - | 0 | -6 |
Total | -158 | 3 | 1 | -3 | 0 | -156 |
Unused tax losses and credits | ||||||
Tax loss carryforward | 275 | -51 | - | - | 2 | 226 |
Other temporary differences not recognized on the statement of financial position | -6 | -2 | - | - | - | -8 |
Deferred tax assets recognized on the statement of financial position | 269 | -53 | - | - | 2 | 218 |
Net deferred tax assets recognized on the statement of financial position | 112 | -51 | 1 | -3 | 2 | 62 |
The Group\u2019s tax losses expires as follows:
NOK in million | No expiration deadline | Total at 31 Dec 2023 |
Norway | 680 | 680 |
Denmark | 125 | 125 |
Finland | 1 | 1 |
The Baltic | 2 | 2 |
Atea Service Center | 6 | 6 |
AppXite | 51 | 51 |
Total | 864 | 864 |
1Atea recognises deferred tax assets on the statement of financial position when it has been deemed adequately probable that the operations in the indvidual country will generate a taxable profit that the tax loss carry forward can be used to offset. Taking into account the historical losses and cyclical nature, future earnings are not deemed probable until the indi-vidual company has actually reported a taxable profit for a period of time. Tax loss carry forward related to interest limitation have 10 year expiration. Total amount of non-taxable interest expenses carry forward was NOK 107 million at 31 December 2023.
2The tax rate used for the 2023 reconciliations above is the corporate tax rate of 22% (2022: 22%) payable by corporate entities in Norway on taxable profits under the tax law in that jurisdiction.
3Non taxable income and non deductible expenses pursuant to the countries income tax laws.
4Nominal tax rates in 2023 by country: Norway - 22%, Sweden - 20.6%, Finland - 20%, Denmark - 22%, The Baltic - 0-15%.
Nominal tax rates in 2022 by country: Norway - 22%, Sweden - 20.6%, Finland - 20%, Denmark - 22%, The Baltic - 0-15%.
5Primarily related to depreciable excess values from business combinations.
Accounting policies
Atea\u2019s business segment reporting is primarily by geography. A geographical business segment is engaged in providing products or services within a country or region that are subject to risks and returns that are different from other geographical segments.
The Group\u2019s executives (CEO/CFO) perform financial planning and business control in each geographical business segment as well as in separate shared service units that deliver products and services internally to other geographical segments.
Atea is located in 88 cities in Norway, Sweden, Denmark, Finland, and the Baltic countries of Lithuania, Latvia and Estonia, with over 8,000 employees. For management and reporting purposes, the Group is organized within these geographical areas. The performance of these geographical areas are evaluated on a regular basis by Atea\u2019s Executive team, consisting of among others the Managing Directors of each geographical segment.
In addition to the geographical areas, the Group operates Shared Services functions (Atea Logistics, Atea Global Services, Atea Group Functions, Atea Service Center AB and AppXite) and central adminis-tration. These costs are reported separately as Group Shared Service and Group cost.
Transfer prices between operating segments are on arm\u2019s length basis in a manner similar to transactions with third parties.
05.2 Costs of sales
Atea aggregates expenses within the income statement according to their nature. Costs of sales include products and services bought from suppliers and resold to customers.
Costs of sales include all direct expenses for goods and services directly connected to the sales, including freight. Direct costs related to services include leasing and outsourcing.
Critical accounting judgements and key sources of estimation uncertainty
The Group recognizes revenue from many different product groups and services. Different customer contracts contain varying terms and conditions and may include bundles of products and services.
\u201cDevice as a Service\u201d is a commercial model in which organizations procure IT solutions from a service provider at a fixed fee for use (e.g., monthly fee per user). Atea is then responsible for delivering the IT solution and maintaining an agreed service level. Atea is currently expanding its \u201cDevice as a Service\u201d offering to several new concepts such as videoconferencing, digital signage and networks.
Different revenue streams make the revenue recognition complex. The main challenge is to distinguish between sales of products (revenue recognized at a point in time) and sales of services (revenue recognized over time). The customer contracts might include a bundling of the elements above and including financing solutions.
The contracts require manual consideration and judgement of which accounting policy that is relevant for each contract. This considera-tion impacts the timing of revenue recognition.
Due to the high number and variety of contracts, the manual processes cause a risk that an inappropriate accounting policy is selected.
As a significant proportion of sales and deliveries are made close to year-end, the risk related to this manual process is especially relevant for transactions recorded close to year-end.
Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty at the reporting period that may have a signif-icant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are discussed in Note 12regarding Goodwill.
In the following table, the major revenue lines are disaggregated by geographical areas as disclosed in our segment information (Note 4and APM).
Figures are in local currency and does not include eliminations, except for Atea Group.
1. Product revenue
1.1 Hardware
Local currency in million | 2023 | 2022 | |
Norway | NOK | 5,643 | 5,600 |
Sweden | SEK | 8,842 | 9,507 |
Denmark | DKK | 3,526 | 3,669 |
Finland | EUR | 276 | 253 |
The Baltics | EUR | 93 | 96 |
Group Shared Services\u200c1 | NOK | 7,743 | 7,952 |
Atea Group | NOK | 24,130 | 23,176 |
1.2 Software
Local currency in million | 2023 | 2022 | |
Norway | NOK | 336 | 312 |
Sweden | SEK | 541 | 500 |
Denmark | DKK | 183 | 143 |
Finland | EUR | 8 | 9 |
The Baltics | EUR | 3 | 1 |
Group Shared Services\u200c1 | NOK | 5 | 4 |
Atea Group | NOK | 1,286 | 1,087 |
1Revenue from Group Shared Services are eliminated on Group level.
2. Services revenue
Local currency in million | 2023 | 2022 | |
Norway | NOK | 2,309 | 2,140 |
Sweden | SEK | 3,513 | 3,314 |
Denmark | DKK | 1,578 | 1,517 |
Finland | EUR | 48 | 42 |
The Baltics | EUR | 54 | 47 |
Group Shared Services\u200c1 | NOK | 1,051 | 834 |
Atea Group | NOK | 9,288 | 8,135 |
3. Total revenue
Local currency in million | 2023 | 2022 | |
Norway | NOK | 8,288 | 8,052 |
Sweden | SEK | 12,896 | 13,321 |
Denmark | DKK | 5,287 | 5,330 |
Finland | EUR | 332 | 303 |
The Baltics | EUR | 150 | 144 |
Group Shared Services\u200c1 | NOK | 8,799 | 8,791 |
Atea Group | NOK | 34,704 | 32,397 |
Contract balances:
The following table provides information about receivables, contract assets and contract liabilities from contracts with customers.
NOK in million | 2023 | 2022 |
Receivables, which are included in Trade receivables\u200c1 | 6,946 | 6,701 |
Contract assets\u200c2 | 291 | 329 |
Contract liabilities\u200c3 | 1,359 | 1,156 |
1See Note 14for an ageing analysis of receivables and description of the changes in receivables.
2The contract assets primarily relates to revenues accrued, but not invoiced. Contract assets are recognised for performance obligations satisfied over time, mainly from services and projects where progress is measured over time. The contract assets are transferred to Trade receivables when the rights to receive payment become uncon-ditional. The contract assets are assessed for impairment in accordance with IFRS\u00ae Accounting Standards 9.
3The contract liabilities primarily consists of advance considerations received from customers. See Note16.
Changes in the contract assets and the contract liabilities balances during the period are as follows:
NOK in million | Contract assets | Contract liabilities |
At 1 January 2023 | 329 | 1,156 |
Recognised during the year: | ||
Revenue recognised that was included in the contract liability balance at the beginning of the period | - | -966 |
Invoiced in advance | - | 1,106 |
Transfers from contract assets recognized at the beginning of the period to receivables | -84 | - |
Increases as a result of changes in the measure of progress | 31 | 3 |
Currency translation differences | 15 | 61 |
At 31 December 2023 | 291 | 1,359 |
NOK in million | Contract assets | Contract liabilities |
At 1 January 2022 | 225 | 1,296 |
Recognised during the year: | ||
Merge (+/-) internal | -1 | 5 |
Revenue recognised that was included in the contract liability balance at the beginning of the period | - | -972 |
Invoiced in advance | - | 819 |
Transfers from contract assets recognized at the beginning of the period to receivables | 73 | - |
Increases as a result of changes in the measure of progress | 29 | 10 |
Currency translation differences | 3 | -1 |
At 31 December 2022 | 329 | 1,156 |
Remaining performance obligations at year-end
The remaining performance obligations expected to be recognised in more than one year after the year end 2023, is estimated to NOK 1,400 million (NOK 1,187 million in 2022). This is mainly related to Data Center outsourcing agreements that normally can not be cancelled before the contract period of 3-years, without a significant penalty. All the other remaining performance obligations are expected to be recognised within one year.
Note 05\tRevenue recognition, cost of sales and contract balances
Accounting policies
05.1 Revenue recognition
Revenue comprises the fair value of the consideration for the sale of goods and services, net of value-added tax, rebates, and discounts. Intercompany sales are eliminated. Revenues are not recognized unless the customer has accepted the delivery and collectability of the related receivables is reasonably assured.
05.1.1 Practical expedients
The Group has used following practical expedients:
\u2022The Group has not disclosed information about remaining performance obligations that have original expected durations of one year or less.
\u2022The Group does not disclose the amount of the transaction price allocated to the remaining performance obligations and an explanation of when the Group expects to recognise that amount as revenue for the year ended 31 December 2023.
\u2022The Group has recognized the incremental costs of obtaining contracts as an expense when incurred, if the amortization period of the assets that the Group other-wise would have recognised is one year or less.
\u2022The Group does not disclose the effects of a significant financing component if the entity expects, at contract inception, that the period between when the entity transfers a prom-ised good or service to a customer and when the customer pays for that good or service will be one year or less.\u00a0
Revenue is recognized as follows for Atea\u2019s different types of revenues:
05.1.2 Sale of products
The sale of products consists of hardware and software deliveries to an end customer. Atea recognizes revenue on a gross basis on product sales in which Atea purchases a product from a vendor and resells it to the end customer. In these contracts, Atea has primary responsibility for ensuring delivery of the specified product to the end customer and has discretion in establishing the price for the product sale.
Under the guidance from the IFRS\u00ae Accounting Standards inter-pretations committee in 2022, Atea has determined that it acts as an agent in the resale of standard software and vendor services under the principal/agent criteria in IFRS\u00ae Accounting Standards 15 \u201cRevenue from Contracts with Customers\u201d. For this reason, Atea is recognizing revenue from these products and services on a net basis (with gross invoiced sales, less costs of the resold products reported as revenue).
When reselling products, Atea recognizes revenue when a customer obtains control of the products. In a hardware sale or traditional software license sale, the customer obtains control of the products when the products are delivered. Normally, products are delivered directly from the distributor to the customer, or from our centrally located warehouse in Sweden. The products delivered are at Atea\u2019s own risk and expense, and therefore presented as gross sales in the income statement.
In a Software-as-a-service agreement, software is provided over time to an end customer from a Data Center managed or contracted by the software vendor. The customer will purchase and obtain
control of the software-as-a-service on a subscription or consump-tion basis. Revenue is therefore recognized periodically over the life of the software as a service contract. The price may contain both subscription and consumption-based offers from multiple vendors and a variety of offerings. Subscription based offers have fixed price and are billed in different models, including monthly in arrears, upfront, quarterly, and yearly. Billing cycles depend upon the type of subscription and the agreement with vendors.
Software as a service offer is sold in different pricing models, including fixed license prices locked for 36 or 12 months upon purchase, monetary commitments (upfront payment), consumption pricing/pay-as-you-go. The offers can be bundled into a single offer which may include application of different pricing models simultaneously, e.g., customer purchases a fixed fee license and consumption-based offer. As a result, such a customer would receive a single invoice for fixed license fee and the consumption amount. The transaction price is based on the desired profitability level, competition within the market and customer size. The Software as a service agreement contracts are entered for indefinite term, unless terminated by either party. The customer contracts are usually entered for the initial term of 3-year or 1-year. Nevertheless, if the subscriptions are not migrated to another provider, the contracts and corresponding billing relationship remain in force until such subscrip-tions are transferred to another provider.
Whenever the sub-contractors are used to deliver any part of the service, sub-contractors are bound by the same or similar terms of termination. The rights and responsibilities pertaining to the Software as a service agreement with the customers, are corresponding with
those of the agreements with Sub-contractors. If the customer can terminate the subscription within 30 days, the same subscription termination terms will apply to the agreement between Atea and the vendor providing such subscription.
Atea recognizes commission revenueon product sales in which Atea arranges for a product to be sold directly from the vendor to the end customer, with Atea earning a sales agent fee from the vendor for arranging the sale of the product. In these contracts, Atea does not have primary responsibility for ensuring delivery of the specified product to the end customer and does not have discretion in estab-lishing the price for the product sale. The revenue is recognized when the commission has been earned from the vendor, typically after the vendor has delivered the product to the end customer.
Atea is a dealer and a service provider. Atea does not produce any software or hardware itself. If the customer experiences errors with the products themselves, Atea has a \u201cback-to-back\u201d agreement with the supplier. This means that Atea does not make any provision for warranties in the balance sheet.
Atea does not have any obligations for returns, refunds or similar of sold products.
Atea does not have any contracts with the customers where the prices vary based on the contract terms.
05.1.3 Sale of services
05.1.3.1 Consulting services
Consulting service consists of services from Atea consultants provided on an hourly basis. Revenue is recognised when the
customer can obtain the benefits from the service, and simulta-neously receives and consumes the benefits. A customer obtains benefit of a service when the benefit from the service meets the expectations specified in the contract with the customer.
05.1.3.2 Fixed price projects
Revenue is recognised when the customer can obtain the benefits from the fixed price projects. Fixed price projects include both fixed price consulting projects and combined consulting and product deliv-eries.
In general, income is recognised when the project is finalised according to the contract and the customer can obtain the benefits from the project. Revenue may be recognised over time when one of the following criteria are met:
\u2022Customer consumes benefits as Atea performs the service.
\u2022Customer controls benefits as Atea performs the service.
\u2022The benefits of the service have no alternative use and Atea has the right to receive payment.
The percentage of completion method is used when revenue is recognised over time. The degree of completion is normally based on accrued cost for a project. This method is used, because normally it is reasonably possible to estimate the stages of project completion on an ongoing basis, based on the remaining costs to complete a project.
Earned revenue for the period is earned revenue at the balance sheet date, less earned revenue in prior periods. If the project is ongoing, income will be recognized continuously in accordance with the agree-ment, based on actual deliveries.
05.1.3.3 Service contracts
Revenue is recognised when the customer can obtain the benefits from the service contracts.
Service contracts include time-limited service & support contracts, or contracts running until termination by either party. Such revenues are normally allocated linearly over the length of the contracts. Costs related to earned service revenues are recognised as the work is performed.
05.1.3.4 Multiple element arrangements or \u201cDevice as a Service\u201d
\"Device-as-a-Service\u201d is a commercial model in which organizations procure IT solutions, including equipment and service, from a service provider at a fixed fee for use (e.g., monthly fee per user). The deliv-eries of equipment are provided with a service contract. Atea is then responsible for delivering the IT solution and maintaining an agreed service level.
When the Group delivers multiple services and/or equipment as part of one contract or arrangement, the consideration is allocated to the separate identifiable performance obligations. Our assessment shows that the combination of products and services can be unbundled and are not considered as one performance obligation. The timing of the revenue streams in the Multiple element arrangements or \u201cDevice-as-a-Service\u201d can be different. Typically, revenue from sales of the products is recognised immediately when the customer obtains control of the product, while the service element in the contract is recognised over time. Revenue is only recognized when control of the promised good or service is transferred to the customer.
The stand-alone selling prices can be identified and allocated to the different elements in the contracts.
These contracts are often supported by financing solutions from external finance institutions. Typically, the product elements in the contracts are financed by leasing from external leasing companies.
When the contracts contain a lease, the Group separates the elements of the contract that are in scope of IFRS\u00ae Accounting Standards 16 and recognizes these accordingly, see Note 18for further detail on leases. The remaining elements of the contracts are allocated to each performance obligation in scope of IFRS\u00ae Accounting Standards 15 and recognized as revenue accordingly.
05.1.3.5 Data Center outsourcing agreements
The contracts involve the day-to-day management responsibility for operating server or host platforms, including distributed servers and storage. Such revenues are normally allocated linearly over the length of the contracts. The duration of the contracts are typically 3-years with a possibility for renewal. The customer typically needs to pay a cancellation fee if the contract is cancelled before the end of the contract period.
05.1.4 Payment terms and finance components
The typical payment terms with the customers vary between 14 and 60 days. The Group does not have any significant customer contracts with finance components. When the customer contract includes a finance component, this is normally financed by an external party.
05.1.5 Revenue from customer contract with duration more than one year after the balance date
Most of the contracts with customers are with a duration less than one-year. Data Center outsourcing agreements is an exception. See below for more information.
05.2 Costs of sales
Atea aggregates expenses within the income statement according to their nature. Costs of sales include products and services bought from suppliers and resold to customers.
Costs of sales include all direct expenses for goods and services directly connected to the sales, including freight. Direct costs related to services include leasing and outsourcing.
Critical accounting judgements and key sources of estimation uncertainty
The Group recognizes revenue from many different product groups and services. Different customer contracts contain varying terms and conditions and may include bundles of products and services.
\u201cDevice as a Service\u201d is a commercial model in which organizations procure IT solutions from a service provider at a fixed fee for use (e.g., monthly fee per user). Atea is then responsible for delivering the IT solution and maintaining an agreed service level. Atea is currently expanding its \u201cDevice as a Service\u201d offering to several new concepts such as videoconferencing, digital signage and networks.
Different revenue streams make the revenue recognition complex. The main challenge is to distinguish between sales of products (revenue recognized at a point in time) and sales of services (revenue recognized over time). The customer contracts might include a bundling of the elements above and including financing solutions.
The contracts require manual consideration and judgement of which accounting policy that is relevant for each contract. This considera-tion impacts the timing of revenue recognition.
Due to the high number and variety of contracts, the manual processes cause a risk that an inappropriate accounting policy is selected.
As a significant proportion of sales and deliveries are made close to year-end, the risk related to this manual process is especially relevant for transactions recorded close to year-end.
Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty at the reporting period that may have a signif-icant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are discussed in Note 12regarding Goodwill.
In the following table, the major revenue lines are disaggregated by geographical areas as disclosed in our segment information (Note 4and APM).
Figures are in local currency and does not include eliminations, except for Atea Group.
1. Product revenue
1.1 Hardware
Local currency in million | 2023 | 2022 | |
Norway | NOK | 5,643 | 5,600 |
Sweden | SEK | 8,842 | 9,507 |
Denmark | DKK | 3,526 | 3,669 |
Finland | EUR | 276 | 253 |
The Baltics | EUR | 93 | 96 |
Group Shared Services\u200c1 | NOK | 7,743 | 7,952 |
Atea Group | NOK | 24,130 | 23,176 |
1.2 Software
Local currency in million | 2023 | 2022 | |
Norway | NOK | 336 | 312 |
Sweden | SEK | 541 | 500 |
Denmark | DKK | 183 | 143 |
Finland | EUR | 8 | 9 |
The Baltics | EUR | 3 | 1 |
Group Shared Services\u200c1 | NOK | 5 | 4 |
Atea Group | NOK | 1,286 | 1,087 |
1Revenue from Group Shared Services are eliminated on Group level.
2. Services revenue
Local currency in million | 2023 | 2022 | |
Norway | NOK | 2,309 | 2,140 |
Sweden | SEK | 3,513 | 3,314 |
Denmark | DKK | 1,578 | 1,517 |
Finland | EUR | 48 | 42 |
The Baltics | EUR | 54 | 47 |
Group Shared Services\u200c1 | NOK | 1,051 | 834 |
Atea Group | NOK | 9,288 | 8,135 |
3. Total revenue
Local currency in million | 2023 | 2022 | |
Norway | NOK | 8,288 | 8,052 |
Sweden | SEK | 12,896 | 13,321 |
Denmark | DKK | 5,287 | 5,330 |
Finland | EUR | 332 | 303 |
The Baltics | EUR | 150 | 144 |
Group Shared Services\u200c1 | NOK | 8,799 | 8,791 |
Atea Group | NOK | 34,704 | 32,397 |
Contract balances:
The following table provides information about receivables, contract assets and contract liabilities from contracts with customers.
NOK in million | 2023 | 2022 |
Receivables, which are included in Trade receivables\u200c1 | 6,946 | 6,701 |
Contract assets\u200c2 | 291 | 329 |
Contract liabilities\u200c3 | 1,359 | 1,156 |
1See Note 14for an ageing analysis of receivables and description of the changes in receivables.
2The contract assets primarily relates to revenues accrued, but not invoiced. Contract assets are recognised for performance obligations satisfied over time, mainly from services and projects where progress is measured over time. The contract assets are transferred to Trade receivables when the rights to receive payment become uncon-ditional. The contract assets are assessed for impairment in accordance with IFRS\u00ae Accounting Standards 9.
3The contract liabilities primarily consists of advance considerations received from customers. See Note16.
Changes in the contract assets and the contract liabilities balances during the period are as follows:
NOK in million | Contract assets | Contract liabilities |
At 1 January 2023 | 329 | 1,156 |
Recognised during the year: | ||
Revenue recognised that was included in the contract liability balance at the beginning of the period | - | -966 |
Invoiced in advance | - | 1,106 |
Transfers from contract assets recognized at the beginning of the period to receivables | -84 | - |
Increases as a result of changes in the measure of progress | 31 | 3 |
Currency translation differences | 15 | 61 |
At 31 December 2023 | 291 | 1,359 |
NOK in million | Contract assets | Contract liabilities |
At 1 January 2022 | 225 | 1,296 |
Recognised during the year: | ||
Merge (+/-) internal | -1 | 5 |
Revenue recognised that was included in the contract liability balance at the beginning of the period | - | -972 |
Invoiced in advance | - | 819 |
Transfers from contract assets recognized at the beginning of the period to receivables | 73 | - |
Increases as a result of changes in the measure of progress | 29 | 10 |
Currency translation differences | 3 | -1 |
At 31 December 2022 | 329 | 1,156 |
Remaining performance obligations at year-end
The remaining performance obligations expected to be recognised in more than one year after the year end 2023, is estimated to NOK 1,400 million (NOK 1,187 million in 2022). This is mainly related to Data Center outsourcing agreements that normally can not be cancelled before the contract period of 3-years, without a significant penalty. All the other remaining performance obligations are expected to be recognised within one year.
Note 05\tRevenue recognition, cost of sales and contract balances
Accounting policies
05.1 Revenue recognition
Revenue comprises the fair value of the consideration for the sale of goods and services, net of value-added tax, rebates, and discounts. Intercompany sales are eliminated. Revenues are not recognized unless the customer has accepted the delivery and collectability of the related receivables is reasonably assured.
05.1.1 Practical expedients
The Group has used following practical expedients:
\u2022The Group has not disclosed information about remaining performance obligations that have original expected durations of one year or less.
\u2022The Group does not disclose the amount of the transaction price allocated to the remaining performance obligations and an explanation of when the Group expects to recognise that amount as revenue for the year ended 31 December 2023.
\u2022The Group has recognized the incremental costs of obtaining contracts as an expense when incurred, if the amortization period of the assets that the Group other-wise would have recognised is one year or less.
\u2022The Group does not disclose the effects of a significant financing component if the entity expects, at contract inception, that the period between when the entity transfers a prom-ised good or service to a customer and when the customer pays for that good or service will be one year or less.\u00a0
Revenue is recognized as follows for Atea\u2019s different types of revenues:
05.1.2 Sale of products
The sale of products consists of hardware and software deliveries to an end customer. Atea recognizes revenue on a gross basis on product sales in which Atea purchases a product from a vendor and resells it to the end customer. In these contracts, Atea has primary responsibility for ensuring delivery of the specified product to the end customer and has discretion in establishing the price for the product sale.
Under the guidance from the IFRS\u00ae Accounting Standards inter-pretations committee in 2022, Atea has determined that it acts as an agent in the resale of standard software and vendor services under the principal/agent criteria in IFRS\u00ae Accounting Standards 15 \u201cRevenue from Contracts with Customers\u201d. For this reason, Atea is recognizing revenue from these products and services on a net basis (with gross invoiced sales, less costs of the resold products reported as revenue).
When reselling products, Atea recognizes revenue when a customer obtains control of the products. In a hardware sale or traditional software license sale, the customer obtains control of the products when the products are delivered. Normally, products are delivered directly from the distributor to the customer, or from our centrally located warehouse in Sweden. The products delivered are at Atea\u2019s own risk and expense, and therefore presented as gross sales in the income statement.
In a Software-as-a-service agreement, software is provided over time to an end customer from a Data Center managed or contracted by the software vendor. The customer will purchase and obtain
control of the software-as-a-service on a subscription or consump-tion basis. Revenue is therefore recognized periodically over the life of the software as a service contract. The price may contain both subscription and consumption-based offers from multiple vendors and a variety of offerings. Subscription based offers have fixed price and are billed in different models, including monthly in arrears, upfront, quarterly, and yearly. Billing cycles depend upon the type of subscription and the agreement with vendors.
Software as a service offer is sold in different pricing models, including fixed license prices locked for 36 or 12 months upon purchase, monetary commitments (upfront payment), consumption pricing/pay-as-you-go. The offers can be bundled into a single offer which may include application of different pricing models simultaneously, e.g., customer purchases a fixed fee license and consumption-based offer. As a result, such a customer would receive a single invoice for fixed license fee and the consumption amount. The transaction price is based on the desired profitability level, competition within the market and customer size. The Software as a service agreement contracts are entered for indefinite term, unless terminated by either party. The customer contracts are usually entered for the initial term of 3-year or 1-year. Nevertheless, if the subscriptions are not migrated to another provider, the contracts and corresponding billing relationship remain in force until such subscrip-tions are transferred to another provider.
Whenever the sub-contractors are used to deliver any part of the service, sub-contractors are bound by the same or similar terms of termination. The rights and responsibilities pertaining to the Software as a service agreement with the customers, are corresponding with
those of the agreements with Sub-contractors. If the customer can terminate the subscription within 30 days, the same subscription termination terms will apply to the agreement between Atea and the vendor providing such subscription.
Atea recognizes commission revenueon product sales in which Atea arranges for a product to be sold directly from the vendor to the end customer, with Atea earning a sales agent fee from the vendor for arranging the sale of the product. In these contracts, Atea does not have primary responsibility for ensuring delivery of the specified product to the end customer and does not have discretion in estab-lishing the price for the product sale. The revenue is recognized when the commission has been earned from the vendor, typically after the vendor has delivered the product to the end customer.
Atea is a dealer and a service provider. Atea does not produce any software or hardware itself. If the customer experiences errors with the products themselves, Atea has a \u201cback-to-back\u201d agreement with the supplier. This means that Atea does not make any provision for warranties in the balance sheet.
Atea does not have any obligations for returns, refunds or similar of sold products.
Atea does not have any contracts with the customers where the prices vary based on the contract terms.
05.1.3 Sale of services
05.1.3.1 Consulting services
Consulting service consists of services from Atea consultants provided on an hourly basis. Revenue is recognised when the
customer can obtain the benefits from the service, and simulta-neously receives and consumes the benefits. A customer obtains benefit of a service when the benefit from the service meets the expectations specified in the contract with the customer.
05.1.3.2 Fixed price projects
Revenue is recognised when the customer can obtain the benefits from the fixed price projects. Fixed price projects include both fixed price consulting projects and combined consulting and product deliv-eries.
In general, income is recognised when the project is finalised according to the contract and the customer can obtain the benefits from the project. Revenue may be recognised over time when one of the following criteria are met:
\u2022Customer consumes benefits as Atea performs the service.
\u2022Customer controls benefits as Atea performs the service.
\u2022The benefits of the service have no alternative use and Atea has the right to receive payment.
The percentage of completion method is used when revenue is recognised over time. The degree of completion is normally based on accrued cost for a project. This method is used, because normally it is reasonably possible to estimate the stages of project completion on an ongoing basis, based on the remaining costs to complete a project.
Earned revenue for the period is earned revenue at the balance sheet date, less earned revenue in prior periods. If the project is ongoing, income will be recognized continuously in accordance with the agree-ment, based on actual deliveries.
05.1.3.3 Service contracts
Revenue is recognised when the customer can obtain the benefits from the service contracts.
Service contracts include time-limited service & support contracts, or contracts running until termination by either party. Such revenues are normally allocated linearly over the length of the contracts. Costs related to earned service revenues are recognised as the work is performed.
05.1.3.4 Multiple element arrangements or \u201cDevice as a Service\u201d
\"Device-as-a-Service\u201d is a commercial model in which organizations procure IT solutions, including equipment and service, from a service provider at a fixed fee for use (e.g., monthly fee per user). The deliv-eries of equipment are provided with a service contract. Atea is then responsible for delivering the IT solution and maintaining an agreed service level.
When the Group delivers multiple services and/or equipment as part of one contract or arrangement, the consideration is allocated to the separate identifiable performance obligations. Our assessment shows that the combination of products and services can be unbundled and are not considered as one performance obligation. The timing of the revenue streams in the Multiple element arrangements or \u201cDevice-as-a-Service\u201d can be different. Typically, revenue from sales of the products is recognised immediately when the customer obtains control of the product, while the service element in the contract is recognised over time. Revenue is only recognized when control of the promised good or service is transferred to the customer.
The stand-alone selling prices can be identified and allocated to the different elements in the contracts.
These contracts are often supported by financing solutions from external finance institutions. Typically, the product elements in the contracts are financed by leasing from external leasing companies.
When the contracts contain a lease, the Group separates the elements of the contract that are in scope of IFRS\u00ae Accounting Standards 16 and recognizes these accordingly, see Note 18for further detail on leases. The remaining elements of the contracts are allocated to each performance obligation in scope of IFRS\u00ae Accounting Standards 15 and recognized as revenue accordingly.
05.1.3.5 Data Center outsourcing agreements
The contracts involve the day-to-day management responsibility for operating server or host platforms, including distributed servers and storage. Such revenues are normally allocated linearly over the length of the contracts. The duration of the contracts are typically 3-years with a possibility for renewal. The customer typically needs to pay a cancellation fee if the contract is cancelled before the end of the contract period.
05.1.4 Payment terms and finance components
The typical payment terms with the customers vary between 14 and 60 days. The Group does not have any significant customer contracts with finance components. When the customer contract includes a finance component, this is normally financed by an external party.
05.1.5 Revenue from customer contract with duration more than one year after the balance date
Most of the contracts with customers are with a duration less than one-year. Data Center outsourcing agreements is an exception. See below for more information.
05.2 Costs of sales
Atea aggregates expenses within the income statement according to their nature. Costs of sales include products and services bought from suppliers and resold to customers.
Costs of sales include all direct expenses for goods and services directly connected to the sales, including freight. Direct costs related to services include leasing and outsourcing.
Critical accounting judgements and key sources of estimation uncertainty
The Group recognizes revenue from many different product groups and services. Different customer contracts contain varying terms and conditions and may include bundles of products and services.
\u201cDevice as a Service\u201d is a commercial model in which organizations procure IT solutions from a service provider at a fixed fee for use (e.g., monthly fee per user). Atea is then responsible for delivering the IT solution and maintaining an agreed service level. Atea is currently expanding its \u201cDevice as a Service\u201d offering to several new concepts such as videoconferencing, digital signage and networks.
Different revenue streams make the revenue recognition complex. The main challenge is to distinguish between sales of products (revenue recognized at a point in time) and sales of services (revenue recognized over time). The customer contracts might include a bundling of the elements above and including financing solutions.
The contracts require manual consideration and judgement of which accounting policy that is relevant for each contract. This considera-tion impacts the timing of revenue recognition.
Due to the high number and variety of contracts, the manual processes cause a risk that an inappropriate accounting policy is selected.
As a significant proportion of sales and deliveries are made close to year-end, the risk related to this manual process is especially relevant for transactions recorded close to year-end.
Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty at the reporting period that may have a signif-icant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are discussed in Note 12regarding Goodwill.
In the following table, the major revenue lines are disaggregated by geographical areas as disclosed in our segment information (Note 4and APM).
Figures are in local currency and does not include eliminations, except for Atea Group.
1. Product revenue
1.1 Hardware
Local currency in million | 2023 | 2022 | |
Norway | NOK | 5,643 | 5,600 |
Sweden | SEK | 8,842 | 9,507 |
Denmark | DKK | 3,526 | 3,669 |
Finland | EUR | 276 | 253 |
The Baltics | EUR | 93 | 96 |
Group Shared Services\u200c1 | NOK | 7,743 | 7,952 |
Atea Group | NOK | 24,130 | 23,176 |
1.2 Software
Local currency in million | 2023 | 2022 | |
Norway | NOK | 336 | 312 |
Sweden | SEK | 541 | 500 |
Denmark | DKK | 183 | 143 |
Finland | EUR | 8 | 9 |
The Baltics | EUR | 3 | 1 |
Group Shared Services\u200c1 | NOK | 5 | 4 |
Atea Group | NOK | 1,286 | 1,087 |
1Revenue from Group Shared Services are eliminated on Group level.
2. Services revenue
Local currency in million | 2023 | 2022 | |
Norway | NOK | 2,309 | 2,140 |
Sweden | SEK | 3,513 | 3,314 |
Denmark | DKK | 1,578 | 1,517 |
Finland | EUR | 48 | 42 |
The Baltics | EUR | 54 | 47 |
Group Shared Services\u200c1 | NOK | 1,051 | 834 |
Atea Group | NOK | 9,288 | 8,135 |
3. Total revenue
Local currency in million | 2023 | 2022 | |
Norway | NOK | 8,288 | 8,052 |
Sweden | SEK | 12,896 | 13,321 |
Denmark | DKK | 5,287 | 5,330 |
Finland | EUR | 332 | 303 |
The Baltics | EUR | 150 | 144 |
Group Shared Services\u200c1 | NOK | 8,799 | 8,791 |
Atea Group | NOK | 34,704 | 32,397 |
Contract balances:
The following table provides information about receivables, contract assets and contract liabilities from contracts with customers.
NOK in million | 2023 | 2022 |
Receivables, which are included in Trade receivables\u200c1 | 6,946 | 6,701 |
Contract assets\u200c2 | 291 | 329 |
Contract liabilities\u200c3 | 1,359 | 1,156 |
1See Note 14for an ageing analysis of receivables and description of the changes in receivables.
2The contract assets primarily relates to revenues accrued, but not invoiced. Contract assets are recognised for performance obligations satisfied over time, mainly from services and projects where progress is measured over time. The contract assets are transferred to Trade receivables when the rights to receive payment become uncon-ditional. The contract assets are assessed for impairment in accordance with IFRS\u00ae Accounting Standards 9.
3The contract liabilities primarily consists of advance considerations received from customers. See Note16.
Changes in the contract assets and the contract liabilities balances during the period are as follows:
NOK in million | Contract assets | Contract liabilities |
At 1 January 2023 | 329 | 1,156 |
Recognised during the year: | ||
Revenue recognised that was included in the contract liability balance at the beginning of the period | - | -966 |
Invoiced in advance | - | 1,106 |
Transfers from contract assets recognized at the beginning of the period to receivables | -84 | - |
Increases as a result of changes in the measure of progress | 31 | 3 |
Currency translation differences | 15 | 61 |
At 31 December 2023 | 291 | 1,359 |
NOK in million | Contract assets | Contract liabilities |
At 1 January 2022 | 225 | 1,296 |
Recognised during the year: | ||
Merge (+/-) internal | -1 | 5 |
Revenue recognised that was included in the contract liability balance at the beginning of the period | - | -972 |
Invoiced in advance | - | 819 |
Transfers from contract assets recognized at the beginning of the period to receivables | 73 | - |
Increases as a result of changes in the measure of progress | 29 | 10 |
Currency translation differences | 3 | -1 |
At 31 December 2022 | 329 | 1,156 |
Remaining performance obligations at year-end
The remaining performance obligations expected to be recognised in more than one year after the year end 2023, is estimated to NOK 1,400 million (NOK 1,187 million in 2022). This is mainly related to Data Center outsourcing agreements that normally can not be cancelled before the contract period of 3-years, without a significant penalty. All the other remaining performance obligations are expected to be recognised within one year.
05.1 Revenue recognition
Revenue comprises the fair value of the consideration for the sale of goods and services, net of value-added tax, rebates, and discounts. Intercompany sales are eliminated. Revenues are not recognized unless the customer has accepted the delivery and collectability of the related receivables is reasonably assured.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f47404": { "value": "Changes in the contract assets and the contract liabilities balances during the period are as follows:
NOK in million | Contract assets | Contract liabilities |
At 1 January 2023 | 329 | 1,156 |
Recognised during the year: | ||
Revenue recognised that was included in the contract liability balance at the beginning of the period | - | -966 |
Invoiced in advance | - | 1,106 |
Transfers from contract assets recognized at the beginning of the period to receivables | -84 | - |
Increases as a result of changes in the measure of progress | 31 | 3 |
Currency translation differences | 15 | 61 |
At 31 December 2023 | 291 | 1,359 |
NOK in million | Contract assets | Contract liabilities |
At 1 January 2022 | 225 | 1,296 |
Recognised during the year: | ||
Merge (+/-) internal | -1 | 5 |
Revenue recognised that was included in the contract liability balance at the beginning of the period | - | -972 |
Invoiced in advance | - | 819 |
Transfers from contract assets recognized at the beginning of the period to receivables | 73 | - |
Increases as a result of changes in the measure of progress | 29 | 10 |
Currency translation differences | 3 | -1 |
At 31 December 2022 | 329 | 1,156 |
Remaining performance obligations at year-end
The remaining performance obligations expected to be recognised in more than one year after the year end 2023, is estimated to NOK 1,400 million (NOK 1,187 million in 2022). This is mainly related to Data Center outsourcing agreements that normally can not be cancelled before the contract period of 3-years, without a significant penalty. All the other remaining performance obligations are expected to be recognised within one year.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInvestmentContractsLiabilitiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f47822": { "value": "Note 06\tPayroll and related costs
Accounting policies
06.1 Pension obligations
Group companies operate various pension schemes. The schemes are generally funded through payments to insurance companies. The Group companies does not have any defined benefit plans, only contribution plans. Atea has no further payment obligations once the contributions have been paid.
06.2 Share-based compensation
The group has two programs:
6.2.1 Share options
6.2.2 Employee Share Savings Program
A cost of totally NOK 64 million has been charged as an expense in the income statement in 2023 relating to shared based compensation (NOK 53 million in 2022). In addition, National Insurance contribution expenses of NOK 27 million have been charged in 2023 (NOK -19 million in 2022).
06.2.1 Share options:
Share options have been allotted to the management and selected employees. Each share option allows for the subscription of one share in Atea ASA. The fair value of the options is calculated when they are allotted and expensed over the vesting period. The maximum term of the options granted is normally 4 years. The company are using treasury shares to meet the contractual obligations of its share options. The company also retains the right to settle share options in cash based on the difference between the share price on the date of exercise and the strike price of the option contract. When employees are exercising options, Atea is settling the employees tax obligation
by withholding shares.There is no tax obligation to be settled in the balance on 31 December 2023.
Employee options at Atea represent rights for selectee employees and the management to subscribe to shares in the company at a future date at a predetermined subscription price (subscription right). To gain the rights to subscribe requires continued employment. Once the rights are gained (\u201cvested\u201d), there is no employment obligation at present.
06.2.2 Employee Share Savings Program:
Atea ASA has in 2023 established an Employee Share Savings Program which is open to all employees of the Atea Group. Under the terms of the Program, participating employees may allocate a fixed amount of their monthly after-tax salary to purchase shares in Atea ASA. As an additional incentive, participating employees will receive one \u201cbonus\u201d share for each two ordinary shares purchased under the Program after a vesting period in which the specified ordinary shares must be held. The outstanding instruments (RSU) at 31 December 2023 was 86,332 shares.
The fair value of the employee services received in exchange for the allotment of options and Employee Share Savings Program is recognized as an expense. The total amount to be expensed over the vesting period is determined by reference to the fair value of the options allotted or the Atea\u2019s obligation to issue bonus shares. On each balance sheet date, the company revises its estimates of the number of options that are expected to become exercisable or the obligation to issue bonus shares. It recognizes the impact of the revision of original estimates, if any, in the income statement, and a corresponding adjustment to equity over the remaining vesting period.
Expenses recognised for payroll and related costs are analyzed below:
NOK in million | 2023 | 2022 |
Wages and salaries to employees | -5,615 | -4,949 |
Total social security costs\u200c1 | -896 | -833 |
Share based compensation | -90 | -34 |
Pension costs | -491 | -432 |
Other personnel costs | -304 | -292 |
Total Payroll and related costs | -7,396 | -6,540 |
Average number of full time employees | 8,160 | 7,881 |
1Social security cost related to shared based compensation was NOK -27 million in 2023 (NOK 19 million in 2022).
Compensation to Executive Directors\u200c1
NOK in million | 2023 | 2022 |
Fixed salary | -29 | -24 |
One-year variable salary | -11 | -11 |
Multi-year variable salary\u200c2 | -27 | -27 |
Pension costs | -3 | -3 |
Total remuneration | -70 | -65 |
1Wages and remuneration to the CEO, CFO, Board of Directors and the employees\u2019 share option plans are described in a separate Remuneration report published at atea.com.
2Related to Share-based compensation and reflects IFRS\u00ae Accounting Standards 2 expense for outstanding stock options to the employee during period.
Share options and weighted average exercise prices are as follows for the reporting periods presented:
2023 | 2022 | |||
Number of options | ||||
Weighted average exercise price (NOK) | ||||
Number of options | ||||
Weighted average exercise price (NOK) | ||||
Outstanding at 1 Jan | 8,304,136 | 104 | 7,599,487 | 107 |
Granted | 2,393,332 | 115 | 2,254,332 | 110 |
Exercised | -2,065,883 | 91 | -911,141 | 93 |
Lapsed/terminated | -243,000 | 111 | -612,666 | 110 |
Expired | -22,250 | 90 | -25,876 | 87 |
Outstanding at 31 Dec | 8,366,335 | 104 | 8,304,136 | 104 |
Vested options | 2,018,839 | 77 | 2,428,640 | 92 |
The weighted average value of the share options granted in 2023 was NOK 34 (NOK 29 in 2022). The share options were valued by a third party according to the Black-Scholes valuation model. The conditions for exercising the different share option programmes are set for each programme on an individual basis.
Terms of the outstanding Share options are as follows:
Outstanding options | Vested options | ||||
Exercise price | Outstanding options at 31 Dec 2023 | ||||
Weighted average contractual life (Year) | Weighted average exercise price (NOK) | ||||
Vested options at 31 Dec 2023 | |||||
Weighted average exercise price (NOK) | |||||
90-100 | 1,566,332 | 0.96 | 98 | 1,566,332 | 98 |
100-110 | 2,134,332 | 2.96 | 110 | - | - |
110-120 | 2,795,339 | 3.47 | 115 | 452,507 | 115 |
120-130 | - | - | - | - | - |
130-140 | - | - | - | - | - |
140-150 | 1,870,332 | 1.96 | 146 | - | - |
Total | 8,366,335 | 2.53 | 117 | 2,018,839 | 102 |
Variables in the model for the allotment of options in 2023:
Weighted average share price at the time of allotment (NOK) | 116 |
Weighted average exercise price (NOK) | 117 |
Weighted average fair value (NOK) | 27 |
Weighted average volatility\u200c1 | 30,3% |
Weighted average risk-free interest rate | 2,8% |
Weighted average expected life (years) | 4,3 |
1The expected volatility was determined based on historical volatility with the same lifetime as the options issued. As the strike price is adjusted for dividends, this is not taken into account in the valuation.
Note 06\tPayroll and related costs
Accounting policies
06.1 Pension obligations
Group companies operate various pension schemes. The schemes are generally funded through payments to insurance companies. The Group companies does not have any defined benefit plans, only contribution plans. Atea has no further payment obligations once the contributions have been paid.
06.2 Share-based compensation
The group has two programs:
6.2.1 Share options
6.2.2 Employee Share Savings Program
A cost of totally NOK 64 million has been charged as an expense in the income statement in 2023 relating to shared based compensation (NOK 53 million in 2022). In addition, National Insurance contribution expenses of NOK 27 million have been charged in 2023 (NOK -19 million in 2022).
06.2.1 Share options:
Share options have been allotted to the management and selected employees. Each share option allows for the subscription of one share in Atea ASA. The fair value of the options is calculated when they are allotted and expensed over the vesting period. The maximum term of the options granted is normally 4 years. The company are using treasury shares to meet the contractual obligations of its share options. The company also retains the right to settle share options in cash based on the difference between the share price on the date of exercise and the strike price of the option contract. When employees are exercising options, Atea is settling the employees tax obligation
by withholding shares.There is no tax obligation to be settled in the balance on 31 December 2023.
Employee options at Atea represent rights for selectee employees and the management to subscribe to shares in the company at a future date at a predetermined subscription price (subscription right). To gain the rights to subscribe requires continued employment. Once the rights are gained (\u201cvested\u201d), there is no employment obligation at present.
06.2.2 Employee Share Savings Program:
Atea ASA has in 2023 established an Employee Share Savings Program which is open to all employees of the Atea Group. Under the terms of the Program, participating employees may allocate a fixed amount of their monthly after-tax salary to purchase shares in Atea ASA. As an additional incentive, participating employees will receive one \u201cbonus\u201d share for each two ordinary shares purchased under the Program after a vesting period in which the specified ordinary shares must be held. The outstanding instruments (RSU) at 31 December 2023 was 86,332 shares.
The fair value of the employee services received in exchange for the allotment of options and Employee Share Savings Program is recognized as an expense. The total amount to be expensed over the vesting period is determined by reference to the fair value of the options allotted or the Atea\u2019s obligation to issue bonus shares. On each balance sheet date, the company revises its estimates of the number of options that are expected to become exercisable or the obligation to issue bonus shares. It recognizes the impact of the revision of original estimates, if any, in the income statement, and a corresponding adjustment to equity over the remaining vesting period.
Expenses recognised for payroll and related costs are analyzed below:
NOK in million | 2023 | 2022 |
Wages and salaries to employees | -5,615 | -4,949 |
Total social security costs\u200c1 | -896 | -833 |
Share based compensation | -90 | -34 |
Pension costs | -491 | -432 |
Other personnel costs | -304 | -292 |
Total Payroll and related costs | -7,396 | -6,540 |
Average number of full time employees | 8,160 | 7,881 |
1Social security cost related to shared based compensation was NOK -27 million in 2023 (NOK 19 million in 2022).
Compensation to Executive Directors\u200c1
NOK in million | 2023 | 2022 |
Fixed salary | -29 | -24 |
One-year variable salary | -11 | -11 |
Multi-year variable salary\u200c2 | -27 | -27 |
Pension costs | -3 | -3 |
Total remuneration | -70 | -65 |
1Wages and remuneration to the CEO, CFO, Board of Directors and the employees\u2019 share option plans are described in a separate Remuneration report published at atea.com.
2Related to Share-based compensation and reflects IFRS\u00ae Accounting Standards 2 expense for outstanding stock options to the employee during period.
Share options and weighted average exercise prices are as follows for the reporting periods presented:
2023 | 2022 | |||
Number of options | ||||
Weighted average exercise price (NOK) | ||||
Number of options | ||||
Weighted average exercise price (NOK) | ||||
Outstanding at 1 Jan | 8,304,136 | 104 | 7,599,487 | 107 |
Granted | 2,393,332 | 115 | 2,254,332 | 110 |
Exercised | -2,065,883 | 91 | -911,141 | 93 |
Lapsed/terminated | -243,000 | 111 | -612,666 | 110 |
Expired | -22,250 | 90 | -25,876 | 87 |
Outstanding at 31 Dec | 8,366,335 | 104 | 8,304,136 | 104 |
Vested options | 2,018,839 | 77 | 2,428,640 | 92 |
The weighted average value of the share options granted in 2023 was NOK 34 (NOK 29 in 2022). The share options were valued by a third party according to the Black-Scholes valuation model. The conditions for exercising the different share option programmes are set for each programme on an individual basis.
Terms of the outstanding Share options are as follows:
Outstanding options | Vested options | ||||
Exercise price | Outstanding options at 31 Dec 2023 | ||||
Weighted average contractual life (Year) | Weighted average exercise price (NOK) | ||||
Vested options at 31 Dec 2023 | |||||
Weighted average exercise price (NOK) | |||||
90-100 | 1,566,332 | 0.96 | 98 | 1,566,332 | 98 |
100-110 | 2,134,332 | 2.96 | 110 | - | - |
110-120 | 2,795,339 | 3.47 | 115 | 452,507 | 115 |
120-130 | - | - | - | - | - |
130-140 | - | - | - | - | - |
140-150 | 1,870,332 | 1.96 | 146 | - | - |
Total | 8,366,335 | 2.53 | 117 | 2,018,839 | 102 |
Variables in the model for the allotment of options in 2023:
Weighted average share price at the time of allotment (NOK) | 116 |
Weighted average exercise price (NOK) | 117 |
Weighted average fair value (NOK) | 27 |
Weighted average volatility\u200c1 | 30,3% |
Weighted average risk-free interest rate | 2,8% |
Weighted average expected life (years) | 4,3 |
1The expected volatility was determined based on historical volatility with the same lifetime as the options issued. As the strike price is adjusted for dividends, this is not taken into account in the valuation.
Note 06\tPayroll and related costs
Accounting policies
06.1 Pension obligations
Group companies operate various pension schemes. The schemes are generally funded through payments to insurance companies. The Group companies does not have any defined benefit plans, only contribution plans. Atea has no further payment obligations once the contributions have been paid.
06.2 Share-based compensation
The group has two programs:
6.2.1 Share options
6.2.2 Employee Share Savings Program
A cost of totally NOK 64 million has been charged as an expense in the income statement in 2023 relating to shared based compensation (NOK 53 million in 2022). In addition, National Insurance contribution expenses of NOK 27 million have been charged in 2023 (NOK -19 million in 2022).
06.2.1 Share options:
Share options have been allotted to the management and selected employees. Each share option allows for the subscription of one share in Atea ASA. The fair value of the options is calculated when they are allotted and expensed over the vesting period. The maximum term of the options granted is normally 4 years. The company are using treasury shares to meet the contractual obligations of its share options. The company also retains the right to settle share options in cash based on the difference between the share price on the date of exercise and the strike price of the option contract. When employees are exercising options, Atea is settling the employees tax obligation
by withholding shares.There is no tax obligation to be settled in the balance on 31 December 2023.
Employee options at Atea represent rights for selectee employees and the management to subscribe to shares in the company at a future date at a predetermined subscription price (subscription right). To gain the rights to subscribe requires continued employment. Once the rights are gained (\u201cvested\u201d), there is no employment obligation at present.
06.2.2 Employee Share Savings Program:
Atea ASA has in 2023 established an Employee Share Savings Program which is open to all employees of the Atea Group. Under the terms of the Program, participating employees may allocate a fixed amount of their monthly after-tax salary to purchase shares in Atea ASA. As an additional incentive, participating employees will receive one \u201cbonus\u201d share for each two ordinary shares purchased under the Program after a vesting period in which the specified ordinary shares must be held. The outstanding instruments (RSU) at 31 December 2023 was 86,332 shares.
The fair value of the employee services received in exchange for the allotment of options and Employee Share Savings Program is recognized as an expense. The total amount to be expensed over the vesting period is determined by reference to the fair value of the options allotted or the Atea\u2019s obligation to issue bonus shares. On each balance sheet date, the company revises its estimates of the number of options that are expected to become exercisable or the obligation to issue bonus shares. It recognizes the impact of the revision of original estimates, if any, in the income statement, and a corresponding adjustment to equity over the remaining vesting period.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f47887": { "value": "06.2 Share-based compensation
The group has two programs:
6.2.1 Share options
6.2.2 Employee Share Savings Program
A cost of totally NOK 64 million has been charged as an expense in the income statement in 2023 relating to shared based compensation (NOK 53 million in 2022). In addition, National Insurance contribution expenses of NOK 27 million have been charged in 2023 (NOK -19 million in 2022).
06.2.1 Share options:
Share options have been allotted to the management and selected employees. Each share option allows for the subscription of one share in Atea ASA. The fair value of the options is calculated when they are allotted and expensed over the vesting period. The maximum term of the options granted is normally 4 years. The company are using treasury shares to meet the contractual obligations of its share options. The company also retains the right to settle share options in cash based on the difference between the share price on the date of exercise and the strike price of the option contract. When employees are exercising options, Atea is settling the employees tax obligation
by withholding shares.There is no tax obligation to be settled in the balance on 31 December 2023.
Employee options at Atea represent rights for selectee employees and the management to subscribe to shares in the company at a future date at a predetermined subscription price (subscription right). To gain the rights to subscribe requires continued employment. Once the rights are gained (\u201cvested\u201d), there is no employment obligation at present.
06.2.2 Employee Share Savings Program:
Atea ASA has in 2023 established an Employee Share Savings Program which is open to all employees of the Atea Group. Under the terms of the Program, participating employees may allocate a fixed amount of their monthly after-tax salary to purchase shares in Atea ASA. As an additional incentive, participating employees will receive one \u201cbonus\u201d share for each two ordinary shares purchased under the Program after a vesting period in which the specified ordinary shares must be held. The outstanding instruments (RSU) at 31 December 2023 was 86,332 shares.
The fair value of the employee services received in exchange for the allotment of options and Employee Share Savings Program is recognized as an expense. The total amount to be expensed over the vesting period is determined by reference to the fair value of the options allotted or the Atea\u2019s obligation to issue bonus shares. On each balance sheet date, the company revises its estimates of the number of options that are expected to become exercisable or the obligation to issue bonus shares. It recognizes the impact of the revision of original estimates, if any, in the income statement, and a corresponding adjustment to equity over the remaining vesting period.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSharebasedPaymentTransactionsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f47888": { "value": "06.2 Share-based compensation
The group has two programs:
6.2.1 Share options
6.2.2 Employee Share Savings Program
A cost of totally NOK 64 million has been charged as an expense in the income statement in 2023 relating to shared based compensation (NOK 53 million in 2022). In addition, National Insurance contribution expenses of NOK 27 million have been charged in 2023 (NOK -19 million in 2022).
06.2.1 Share options:
Share options have been allotted to the management and selected employees. Each share option allows for the subscription of one share in Atea ASA. The fair value of the options is calculated when they are allotted and expensed over the vesting period. The maximum term of the options granted is normally 4 years. The company are using treasury shares to meet the contractual obligations of its share options. The company also retains the right to settle share options in cash based on the difference between the share price on the date of exercise and the strike price of the option contract. When employees are exercising options, Atea is settling the employees tax obligation
by withholding shares.There is no tax obligation to be settled in the balance on 31 December 2023.
Employee options at Atea represent rights for selectee employees and the management to subscribe to shares in the company at a future date at a predetermined subscription price (subscription right). To gain the rights to subscribe requires continued employment. Once the rights are gained (\u201cvested\u201d), there is no employment obligation at present.
06.2.2 Employee Share Savings Program:
Atea ASA has in 2023 established an Employee Share Savings Program which is open to all employees of the Atea Group. Under the terms of the Program, participating employees may allocate a fixed amount of their monthly after-tax salary to purchase shares in Atea ASA. As an additional incentive, participating employees will receive one \u201cbonus\u201d share for each two ordinary shares purchased under the Program after a vesting period in which the specified ordinary shares must be held. The outstanding instruments (RSU) at 31 December 2023 was 86,332 shares.
The fair value of the employee services received in exchange for the allotment of options and Employee Share Savings Program is recognized as an expense. The total amount to be expensed over the vesting period is determined by reference to the fair value of the options allotted or the Atea\u2019s obligation to issue bonus shares. On each balance sheet date, the company revises its estimates of the number of options that are expected to become exercisable or the obligation to issue bonus shares. It recognizes the impact of the revision of original estimates, if any, in the income statement, and a corresponding adjustment to equity over the remaining vesting period.
Expenses recognised for payroll and related costs are analyzed below:
NOK in million | 2023 | 2022 |
Wages and salaries to employees | -5,615 | -4,949 |
Total social security costs\u200c1 | -896 | -833 |
Share based compensation | -90 | -34 |
Pension costs | -491 | -432 |
Other personnel costs | -304 | -292 |
Total Payroll and related costs | -7,396 | -6,540 |
Average number of full time employees | 8,160 | 7,881 |
1Social security cost related to shared based compensation was NOK -27 million in 2023 (NOK 19 million in 2022).
Compensation to Executive Directors\u200c1
NOK in million | 2023 | 2022 |
Fixed salary | -29 | -24 |
One-year variable salary | -11 | -11 |
Multi-year variable salary\u200c2 | -27 | -27 |
Pension costs | -3 | -3 |
Total remuneration | -70 | -65 |
1Wages and remuneration to the CEO, CFO, Board of Directors and the employees\u2019 share option plans are described in a separate Remuneration report published at atea.com.
2Related to Share-based compensation and reflects IFRS\u00ae Accounting Standards 2 expense for outstanding stock options to the employee during period.
Share options and weighted average exercise prices are as follows for the reporting periods presented:
2023 | 2022 | |||
Number of options | ||||
Weighted average exercise price (NOK) | ||||
Number of options | ||||
Weighted average exercise price (NOK) | ||||
Outstanding at 1 Jan | 8,304,136 | 104 | 7,599,487 | 107 |
Granted | 2,393,332 | 115 | 2,254,332 | 110 |
Exercised | -2,065,883 | 91 | -911,141 | 93 |
Lapsed/terminated | -243,000 | 111 | -612,666 | 110 |
Expired | -22,250 | 90 | -25,876 | 87 |
Outstanding at 31 Dec | 8,366,335 | 104 | 8,304,136 | 104 |
Vested options | 2,018,839 | 77 | 2,428,640 | 92 |
The weighted average value of the share options granted in 2023 was NOK 34 (NOK 29 in 2022). The share options were valued by a third party according to the Black-Scholes valuation model. The conditions for exercising the different share option programmes are set for each programme on an individual basis.
Terms of the outstanding Share options are as follows:
Outstanding options | Vested options | ||||
Exercise price | Outstanding options at 31 Dec 2023 | ||||
Weighted average contractual life (Year) | Weighted average exercise price (NOK) | ||||
Vested options at 31 Dec 2023 | |||||
Weighted average exercise price (NOK) | |||||
90-100 | 1,566,332 | 0.96 | 98 | 1,566,332 | 98 |
100-110 | 2,134,332 | 2.96 | 110 | - | - |
110-120 | 2,795,339 | 3.47 | 115 | 452,507 | 115 |
120-130 | - | - | - | - | - |
130-140 | - | - | - | - | - |
140-150 | 1,870,332 | 1.96 | 146 | - | - |
Total | 8,366,335 | 2.53 | 117 | 2,018,839 | 102 |
Variables in the model for the allotment of options in 2023:
Weighted average share price at the time of allotment (NOK) | 116 |
Weighted average exercise price (NOK) | 117 |
Weighted average fair value (NOK) | 27 |
Weighted average volatility\u200c1 | 30,3% |
Weighted average risk-free interest rate | 2,8% |
Weighted average expected life (years) | 4,3 |
1The expected volatility was determined based on historical volatility with the same lifetime as the options issued. As the strike price is adjusted for dividends, this is not taken into account in the valuation.
Compensation to Executive Directors\u200c1
NOK in million | 2023 | 2022 |
Fixed salary | -29 | -24 |
One-year variable salary | -11 | -11 |
Multi-year variable salary\u200c2 | -27 | -27 |
Pension costs | -3 | -3 |
Total remuneration | -70 | -65 |
1Wages and remuneration to the CEO, CFO, Board of Directors and the employees\u2019 share option plans are described in a separate Remuneration report published at atea.com.
2Related to Share-based compensation and reflects IFRS\u00ae Accounting Standards 2 expense for outstanding stock options to the employee during period.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutKeyManagementPersonnelExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f49323": { "value": "Note 07\tOther operating costs
NOK in million | 2023 | 2022 |
Car and travel costs | -196 | -168 |
Communication and IT costs | -504 | -402 |
Premises costs | -154 | -133 |
Marketing costs | -49 | -45 |
Bad debts | -12 | -5 |
Other income3 | 47 | 109 |
Other costs and cost reimbursement1, 2 | -53 | -7 |
Total other operating costs | -921 | -651 |
1Audit fees
The table below shows Deloitte\u2019s total charges for auditing and other services. All amounts are exclusive of VAT
NOK in million | 2023 | 2022 |
Auditor's fees | -8.6 | -8.3 |
Tax advisory services | -0.5 | -0.2 |
Total | -9.1 | -8.5 |
2Remuneration to the Board of Directors of Atea ASA
NOK 1.8 million was paid in fees to the Board of Directors of Atea ASA in 2023 (NOK 1.8 million in 2022). Fees to the Chairman of the Board amounted to NOK 500,000, fees to the employee representatives amounted to NOK 150,000 each and the rest of the Board of Directors received a fee of NOK 200,000 each.
NOK 350,000 was paid in fees to the Audit Committee of Atea ASA in 2023 (NOK 350,000 in 2022). Fees to the Chairman of the Audit Committee was NOK 150,000, and NOK 100,000 to each other two members.
3Other income
The amount includes a gain of NOK 72 million related to sale of Atea Mobile business in Norway in 2022. See Note23.
Other income of NOK 47 million in 2023 mainly consist of leasing of premises to companies controlled by Lone Sch\u00f8tt Kun\u00f8e, who is member of the Booard of Directors (NOK 18 million), see Note 26. In adition, interest invoiced to customers for late payment, (NOK 24 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingExpenseExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f49325": { "value": "Note 07\tOther operating costs
NOK in million | 2023 | 2022 |
Car and travel costs | -196 | -168 |
Communication and IT costs | -504 | -402 |
Premises costs | -154 | -133 |
Marketing costs | -49 | -45 |
Bad debts | -12 | -5 |
Other income3 | 47 | 109 |
Other costs and cost reimbursement1, 2 | -53 | -7 |
Total other operating costs | -921 | -651 |
1Audit fees
The table below shows Deloitte\u2019s total charges for auditing and other services. All amounts are exclusive of VAT
NOK in million | 2023 | 2022 |
Auditor's fees | -8.6 | -8.3 |
Tax advisory services | -0.5 | -0.2 |
Total | -9.1 | -8.5 |
2Remuneration to the Board of Directors of Atea ASA
NOK 1.8 million was paid in fees to the Board of Directors of Atea ASA in 2023 (NOK 1.8 million in 2022). Fees to the Chairman of the Board amounted to NOK 500,000, fees to the employee representatives amounted to NOK 150,000 each and the rest of the Board of Directors received a fee of NOK 200,000 each.
NOK 350,000 was paid in fees to the Audit Committee of Atea ASA in 2023 (NOK 350,000 in 2022). Fees to the Chairman of the Audit Committee was NOK 150,000, and NOK 100,000 to each other two members.
3Other income
The amount includes a gain of NOK 72 million related to sale of Atea Mobile business in Norway in 2022. See Note23.
Other income of NOK 47 million in 2023 mainly consist of leasing of premises to companies controlled by Lone Sch\u00f8tt Kun\u00f8e, who is member of the Booard of Directors (NOK 18 million), see Note 26. In adition, interest invoiced to customers for late payment, (NOK 24 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesByNatureExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f49326": { "value": "Note 07\tOther operating costs
NOK in million | 2023 | 2022 |
Car and travel costs | -196 | -168 |
Communication and IT costs | -504 | -402 |
Premises costs | -154 | -133 |
Marketing costs | -49 | -45 |
Bad debts | -12 | -5 |
Other income3 | 47 | 109 |
Other costs and cost reimbursement1, 2 | -53 | -7 |
Total other operating costs | -921 | -651 |
1Audit fees
The table below shows Deloitte\u2019s total charges for auditing and other services. All amounts are exclusive of VAT
NOK in million | 2023 | 2022 |
Auditor's fees | -8.6 | -8.3 |
Tax advisory services | -0.5 | -0.2 |
Total | -9.1 | -8.5 |
2Remuneration to the Board of Directors of Atea ASA
NOK 1.8 million was paid in fees to the Board of Directors of Atea ASA in 2023 (NOK 1.8 million in 2022). Fees to the Chairman of the Board amounted to NOK 500,000, fees to the employee representatives amounted to NOK 150,000 each and the rest of the Board of Directors received a fee of NOK 200,000 each.
NOK 350,000 was paid in fees to the Audit Committee of Atea ASA in 2023 (NOK 350,000 in 2022). Fees to the Chairman of the Audit Committee was NOK 150,000, and NOK 100,000 to each other two members.
3Other income
The amount includes a gain of NOK 72 million related to sale of Atea Mobile business in Norway in 2022. See Note23.
Other income of NOK 47 million in 2023 mainly consist of leasing of premises to companies controlled by Lone Sch\u00f8tt Kun\u00f8e, who is member of the Booard of Directors (NOK 18 million), see Note 26. In adition, interest invoiced to customers for late payment, (NOK 24 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralAndAdministrativeExpenseExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f49327": { "value": "Note 07\tOther operating costs
NOK in million | 2023 | 2022 |
Car and travel costs | -196 | -168 |
Communication and IT costs | -504 | -402 |
Premises costs | -154 | -133 |
Marketing costs | -49 | -45 |
Bad debts | -12 | -5 |
Other income3 | 47 | 109 |
Other costs and cost reimbursement1, 2 | -53 | -7 |
Total other operating costs | -921 | -651 |
1Audit fees
The table below shows Deloitte\u2019s total charges for auditing and other services. All amounts are exclusive of VAT
NOK in million | 2023 | 2022 |
Auditor's fees | -8.6 | -8.3 |
Tax advisory services | -0.5 | -0.2 |
Total | -9.1 | -8.5 |
2Remuneration to the Board of Directors of Atea ASA
NOK 1.8 million was paid in fees to the Board of Directors of Atea ASA in 2023 (NOK 1.8 million in 2022). Fees to the Chairman of the Board amounted to NOK 500,000, fees to the employee representatives amounted to NOK 150,000 each and the rest of the Board of Directors received a fee of NOK 200,000 each.
NOK 350,000 was paid in fees to the Audit Committee of Atea ASA in 2023 (NOK 350,000 in 2022). Fees to the Chairman of the Audit Committee was NOK 150,000, and NOK 100,000 to each other two members.
3Other income
The amount includes a gain of NOK 72 million related to sale of Atea Mobile business in Norway in 2022. See Note23.
Other income of NOK 47 million in 2023 mainly consist of leasing of premises to companies controlled by Lone Sch\u00f8tt Kun\u00f8e, who is member of the Booard of Directors (NOK 18 million), see Note 26. In adition, interest invoiced to customers for late payment, (NOK 24 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExpenseExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f49328": { "value": "Note 07\tOther operating costs
NOK in million | 2023 | 2022 |
Car and travel costs | -196 | -168 |
Communication and IT costs | -504 | -402 |
Premises costs | -154 | -133 |
Marketing costs | -49 | -45 |
Bad debts | -12 | -5 |
Other income3 | 47 | 109 |
Other costs and cost reimbursement1, 2 | -53 | -7 |
Total other operating costs | -921 | -651 |
1Audit fees
The table below shows Deloitte\u2019s total charges for auditing and other services. All amounts are exclusive of VAT
NOK in million | 2023 | 2022 |
Auditor's fees | -8.6 | -8.3 |
Tax advisory services | -0.5 | -0.2 |
Total | -9.1 | -8.5 |
2Remuneration to the Board of Directors of Atea ASA
NOK 1.8 million was paid in fees to the Board of Directors of Atea ASA in 2023 (NOK 1.8 million in 2022). Fees to the Chairman of the Board amounted to NOK 500,000, fees to the employee representatives amounted to NOK 150,000 each and the rest of the Board of Directors received a fee of NOK 200,000 each.
NOK 350,000 was paid in fees to the Audit Committee of Atea ASA in 2023 (NOK 350,000 in 2022). Fees to the Chairman of the Audit Committee was NOK 150,000, and NOK 100,000 to each other two members.
3Other income
The amount includes a gain of NOK 72 million related to sale of Atea Mobile business in Norway in 2022. See Note23.
Other income of NOK 47 million in 2023 mainly consist of leasing of premises to companies controlled by Lone Sch\u00f8tt Kun\u00f8e, who is member of the Booard of Directors (NOK 18 million), see Note 26. In adition, interest invoiced to customers for late payment, (NOK 24 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f49505": { "value": "NOK in million | 2023 | 2022 |
Auditor's fees | -8.6 | -8.3 |
Tax advisory services | -0.5 | -0.2 |
Total | -9.1 | -8.5 |
Note 08\tNet financial items
Accounting policies
Individual financial statements of Atea ASA and its subsidiaries are prepared in the respective entities\u2019 functional currency. Functional currency is the currency of the primary economic environment in which the entity operates. The functional currency of Atea ASA is Norwegian kroner (NOK). In the individual financial statements, transactions in currencies other than the entity\u2019s functional currency are recognized by applying the exchange rate at the date of transaction. At the balance sheet date, monetary items denominated in foreign currencies are translated using the exchange rate at that date. The changes in value due to such foreign currency translations are recognized in the statement of income of the individual entity and reflected as \u201cforeign currency exchnage gain/loss\u201d in the consolidtaed statement of income for the Group.
NOK in million | 2023 | 2022 |
Interest income | 24 | 7 |
Other financial income | 0 | 1 |
Total financial income | 24 | 8 |
Interest costs on loans | -146 | -78 |
Interest costs on leases | -74 | -61 |
Foreign exchange effects | -21 | 30 |
Other financial expenses | -7 | -11 |
Total financial expenses | -247 | -121 |
Total net financial items | -223 | -112 |
Foreign exchange effects included in operating loss total NOK 21 million in 2023 (operating profit of NOK 30 million in 2022).
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f49787": { "value": "Note 08\tNet financial items
Accounting policies
Individual financial statements of Atea ASA and its subsidiaries are prepared in the respective entities\u2019 functional currency. Functional currency is the currency of the primary economic environment in which the entity operates. The functional currency of Atea ASA is Norwegian kroner (NOK). In the individual financial statements, transactions in currencies other than the entity\u2019s functional currency are recognized by applying the exchange rate at the date of transaction. At the balance sheet date, monetary items denominated in foreign currencies are translated using the exchange rate at that date. The changes in value due to such foreign currency translations are recognized in the statement of income of the individual entity and reflected as \u201cforeign currency exchnage gain/loss\u201d in the consolidtaed statement of income for the Group.
NOK in million | 2023 | 2022 |
Interest income | 24 | 7 |
Other financial income | 0 | 1 |
Total financial income | 24 | 8 |
Interest costs on loans | -146 | -78 |
Interest costs on leases | -74 | -61 |
Foreign exchange effects | -21 | 30 |
Other financial expenses | -7 | -11 |
Total financial expenses | -247 | -121 |
Total net financial items | -223 | -112 |
Foreign exchange effects included in operating loss total NOK 21 million in 2023 (operating profit of NOK 30 million in 2022).
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExpenseExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f49788": { "value": "Note 08\tNet financial items
Accounting policies
Individual financial statements of Atea ASA and its subsidiaries are prepared in the respective entities\u2019 functional currency. Functional currency is the currency of the primary economic environment in which the entity operates. The functional currency of Atea ASA is Norwegian kroner (NOK). In the individual financial statements, transactions in currencies other than the entity\u2019s functional currency are recognized by applying the exchange rate at the date of transaction. At the balance sheet date, monetary items denominated in foreign currencies are translated using the exchange rate at that date. The changes in value due to such foreign currency translations are recognized in the statement of income of the individual entity and reflected as \u201cforeign currency exchnage gain/loss\u201d in the consolidtaed statement of income for the Group.
NOK in million | 2023 | 2022 |
Interest income | 24 | 7 |
Other financial income | 0 | 1 |
Total financial income | 24 | 8 |
Interest costs on loans | -146 | -78 |
Interest costs on leases | -74 | -61 |
Foreign exchange effects | -21 | 30 |
Other financial expenses | -7 | -11 |
Total financial expenses | -247 | -121 |
Total net financial items | -223 | -112 |
Foreign exchange effects included in operating loss total NOK 21 million in 2023 (operating profit of NOK 30 million in 2022).
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExpenseExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f49789": { "value": "Note 08\tNet financial items
Accounting policies
Individual financial statements of Atea ASA and its subsidiaries are prepared in the respective entities\u2019 functional currency. Functional currency is the currency of the primary economic environment in which the entity operates. The functional currency of Atea ASA is Norwegian kroner (NOK). In the individual financial statements, transactions in currencies other than the entity\u2019s functional currency are recognized by applying the exchange rate at the date of transaction. At the balance sheet date, monetary items denominated in foreign currencies are translated using the exchange rate at that date. The changes in value due to such foreign currency translations are recognized in the statement of income of the individual entity and reflected as \u201cforeign currency exchnage gain/loss\u201d in the consolidtaed statement of income for the Group.
NOK in million | 2023 | 2022 |
Interest income | 24 | 7 |
Other financial income | 0 | 1 |
Total financial income | 24 | 8 |
Interest costs on loans | -146 | -78 |
Interest costs on leases | -74 | -61 |
Foreign exchange effects | -21 | 30 |
Other financial expenses | -7 | -11 |
Total financial expenses | -247 | -121 |
Total net financial items | -223 | -112 |
Foreign exchange effects included in operating loss total NOK 21 million in 2023 (operating profit of NOK 30 million in 2022).
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceCostExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f49790": { "value": "Note 08\tNet financial items
Accounting policies
Individual financial statements of Atea ASA and its subsidiaries are prepared in the respective entities\u2019 functional currency. Functional currency is the currency of the primary economic environment in which the entity operates. The functional currency of Atea ASA is Norwegian kroner (NOK). In the individual financial statements, transactions in currencies other than the entity\u2019s functional currency are recognized by applying the exchange rate at the date of transaction. At the balance sheet date, monetary items denominated in foreign currencies are translated using the exchange rate at that date. The changes in value due to such foreign currency translations are recognized in the statement of income of the individual entity and reflected as \u201cforeign currency exchnage gain/loss\u201d in the consolidtaed statement of income for the Group.
NOK in million | 2023 | 2022 |
Interest income | 24 | 7 |
Other financial income | 0 | 1 |
Total financial income | 24 | 8 |
Interest costs on loans | -146 | -78 |
Interest costs on leases | -74 | -61 |
Foreign exchange effects | -21 | 30 |
Other financial expenses | -7 | -11 |
Total financial expenses | -247 | -121 |
Total net financial items | -223 | -112 |
Foreign exchange effects included in operating loss total NOK 21 million in 2023 (operating profit of NOK 30 million in 2022).
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f49791": { "value": "Note 08\tNet financial items
Accounting policies
Individual financial statements of Atea ASA and its subsidiaries are prepared in the respective entities\u2019 functional currency. Functional currency is the currency of the primary economic environment in which the entity operates. The functional currency of Atea ASA is Norwegian kroner (NOK). In the individual financial statements, transactions in currencies other than the entity\u2019s functional currency are recognized by applying the exchange rate at the date of transaction. At the balance sheet date, monetary items denominated in foreign currencies are translated using the exchange rate at that date. The changes in value due to such foreign currency translations are recognized in the statement of income of the individual entity and reflected as \u201cforeign currency exchnage gain/loss\u201d in the consolidtaed statement of income for the Group.
NOK in million | 2023 | 2022 |
Interest income | 24 | 7 |
Other financial income | 0 | 1 |
Total financial income | 24 | 8 |
Interest costs on loans | -146 | -78 |
Interest costs on leases | -74 | -61 |
Foreign exchange effects | -21 | 30 |
Other financial expenses | -7 | -11 |
Total financial expenses | -247 | -121 |
Total net financial items | -223 | -112 |
Foreign exchange effects included in operating loss total NOK 21 million in 2023 (operating profit of NOK 30 million in 2022).
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestExpenseExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f49798": { "value": "Accounting policies
Individual financial statements of Atea ASA and its subsidiaries are prepared in the respective entities\u2019 functional currency. Functional currency is the currency of the primary economic environment in which the entity operates. The functional currency of Atea ASA is Norwegian kroner (NOK). In the individual financial statements, transactions in currencies other than the entity\u2019s functional currency are recognized by applying the exchange rate at the date of transaction. At the balance sheet date, monetary items denominated in foreign currencies are translated using the exchange rate at that date. The changes in value due to such foreign currency translations are recognized in the statement of income of the individual entity and reflected as \u201cforeign currency exchnage gain/loss\u201d in the consolidtaed statement of income for the Group.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f50134": { "value": "Note 09\tTaxes
Accounting policies
Taxes consists of the tax payable and changes to deferred tax. Deferred tax is calculated on all taxable temporary differences, except for:
(i)\tGoodwill for which amortization is not deductible for tax purposes.
(ii)Temporary differences relating to investments in subsidiaries, associates, or joint ventures when the Group decides when the temporary differences are to be reversed and this is not expected to take place in the foreseeable future.
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recog-nised in other comprehensive income or directly in equity, in which case the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.
Deferred tax assets are recognized when there is convincing evidence that Atea will have a sufficient profit for tax purposes to utilize the tax assets. On each balance sheet date, Atea reviews its unrecorded and unrecognized tax assets. Atea recognizes deferred tax assets on its balance sheet when the conditions for recognition have been met. Correspondingly, Atea will reduce its deferred tax assets if they can no longer be utilized.
Deferred tax and deferred tax assets are measured based on the current tax rates and laws applicable to the companies in the Group where temporary differences have arisen.
Deferred tax and deferred tax assets are recognized at their nominal value and classified as a non-current asset or a long-term liability on the balance sheet.
The Group is recognising deferred tax on leasing liabilities by reflecting the linkage between the right-of-use asset and the lease liability. Deferred tax is recognised on an aggregate temporarily difference basis.
The Group does note expect any tax effects related to Pillar 2, the minimum level of taxation of profits of multinational enterprises. See Note 2.2a)for more information.
Income tax recognized in profit or loss:
NOK in million | 2023 | 2022 |
Current tax | ||
Norway | -16 | -7 |
Other countries | -203 | -178 |
Deferred tax | ||
Origination and reversal of temporary differences | 18 | 3 |
Net losses utilised | -40 | -51 |
Change in deferred tax assets due to tax losses previously unrecognized | 21 | -2 |
Total income tax expenses | -221 | -235 |
The income tax expense for the year can be reconciled to the accounting profit as follows:
NOK in million | 2023 | 2022 |
Profit before tax | 1,021 | 1,084 |
Income tax expense calculated at 22% (2022: 22%)\u200c2 | -225 | -238 |
Effect of income non-taxable and expenses non-deductible\u200c3 | -13 | -3 |
Effect of taxable interest limitation | -1 | -8 |
Effect of different tax rates of subsidiaries operating in other jurisdictions\u200c4 | 4 | 5 |
Effect of deferred tax balances due to the change in income tax rates\u200c4 | 2 | 1 |
Effect of deferred tax changes recognised in other comprehensive income or directly in equity | ||
14 | 6 | |
Total | -219 | -236 |
Adjustments recognised in the current year in relation to the current tax of prior years | -2 | 0 |
Income tax expense recognised in profit or loss | -221 | -235 |
Effective tax rate | 21.6% | 21.7% |
Income tax recognised directly in equity
NOK in million | 2023 | 2022 |
Current tax | ||
Relating to shared based compensation | 8 | 5 |
Deferred tax | ||
Relating to shared based compensation | 5 | 1 |
Total income tax expenses recognized directly in equity | 14 | 6 |
Deferred tax balances are presented in the statement of financial position as follows:
NOK in million | 31 Dec 2023 | 31 Dec 2022 |
Deferred tax assets related to carryforward losses\u200c1 | 189 | 218 |
Deferred tax assets related to temporary differences\u200c1 | 20 | -11 |
Deferred tax liabilities | -151 | -145 |
Net deferred tax assets (liabilities) | 58 | 62 |
Deferred tax assets (liabilities)
2023 | ||||||
NOK in million | Book value at 1 Jan 2023 | |||||
Recognized in P/L | Recognized in equity | |||||
Business combinations/ disposals | Currency translation differences | Book value at 31 Dec 2023 | ||||
Temporary differences | ||||||
Property, plant and equipment | 18 | -1 | - | - | 1 | 18 |
Intangible assets5 | -179 | -9 | - | - | -12 | -200 |
Inventories | 5 | 1 | - | - | 0 | 6 |
Trade and other receivables | 5 | 0 | - | - | 0 | 5 |
Provisions and accruals | 10 | 3 | - | - | 0 | 13 |
Capital gain/loss accounts | -37 | 28 | - | - | -2 | -10 |
Financial leases | 16 | 1 | - | - | 1 | 18 |
Other financial liabilities | 12 | 3 | - | - | 1 | 16 |
Other differences | -6 | -8 | 5 | - | 0 | -9 |
Total | -156 | 18 | 5 | - | -11 | -144 |
Unused tax losses and credits | ||||||
Tax loss carryforward | 226 | -40 | - | - | 3 | 189 |
Other temporary differences not recognized on the statement of financial position | -8 | 21 | - | - | - | 13 |
Deferred tax assets recognized on the statement of financial position | 218 | -19 | - | - | 3 | 202 |
Net deferred tax assets recognized on the statement of financial position | 62 | -1 | 5 | - | -8 | 58 |
Deferred tax assets (liabilities)
2022 | ||||||
NOK in million | Book value at 1 Jan 2022 | Recognized in P/L | Recognized in equity | Business combinations/ disposals | Currency translation differences | Book value at 31 Dec 2022 |
Temporary differences | ||||||
Property, plant and equipment | 26 | -9 | - | - | 1 | 18 |
Intangible assets5 | -173 | 0 | - | -3 | -3 | -179 |
Inventories | 5 | 0 | - | - | 0 | 5 |
Trade and other receivables | 4 | 0 | - | - | 0 | 5 |
Provisions and accruals | 10 | 0 | - | - | 0 | 10 |
Capital gain/loss accounts | -43 | 5 | - | - | 1 | -37 |
Financial leases | 14 | 1 | - | - | 0 | 16 |
Other financial liabilities | 6 | 6 | - | - | 0 | 12 |
Other differences | -7 | 0 | 1 | - | 0 | -6 |
Total | -158 | 3 | 1 | -3 | 0 | -156 |
Unused tax losses and credits | ||||||
Tax loss carryforward | 275 | -51 | - | - | 2 | 226 |
Other temporary differences not recognized on the statement of financial position | -6 | -2 | - | - | - | -8 |
Deferred tax assets recognized on the statement of financial position | 269 | -53 | - | - | 2 | 218 |
Net deferred tax assets recognized on the statement of financial position | 112 | -51 | 1 | -3 | 2 | 62 |
The Group\u2019s tax losses expires as follows:
NOK in million | No expiration deadline | Total at 31 Dec 2023 |
Norway | 680 | 680 |
Denmark | 125 | 125 |
Finland | 1 | 1 |
The Baltic | 2 | 2 |
Atea Service Center | 6 | 6 |
AppXite | 51 | 51 |
Total | 864 | 864 |
1Atea recognises deferred tax assets on the statement of financial position when it has been deemed adequately probable that the operations in the indvidual country will generate a taxable profit that the tax loss carry forward can be used to offset. Taking into account the historical losses and cyclical nature, future earnings are not deemed probable until the indi-vidual company has actually reported a taxable profit for a period of time. Tax loss carry forward related to interest limitation have 10 year expiration. Total amount of non-taxable interest expenses carry forward was NOK 107 million at 31 December 2023.
2The tax rate used for the 2023 reconciliations above is the corporate tax rate of 22% (2022: 22%) payable by corporate entities in Norway on taxable profits under the tax law in that jurisdiction.
3Non taxable income and non deductible expenses pursuant to the countries income tax laws.
4Nominal tax rates in 2023 by country: Norway - 22%, Sweden - 20.6%, Finland - 20%, Denmark - 22%, The Baltic - 0-15%.
Nominal tax rates in 2022 by country: Norway - 22%, Sweden - 20.6%, Finland - 20%, Denmark - 22%, The Baltic - 0-15%.
5Primarily related to depreciable excess values from business combinations.
Note 09\tTaxes
Accounting policies
Taxes consists of the tax payable and changes to deferred tax. Deferred tax is calculated on all taxable temporary differences, except for:
(i)\tGoodwill for which amortization is not deductible for tax purposes.
(ii)Temporary differences relating to investments in subsidiaries, associates, or joint ventures when the Group decides when the temporary differences are to be reversed and this is not expected to take place in the foreseeable future.
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recog-nised in other comprehensive income or directly in equity, in which case the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.
Deferred tax assets are recognized when there is convincing evidence that Atea will have a sufficient profit for tax purposes to utilize the tax assets. On each balance sheet date, Atea reviews its unrecorded and unrecognized tax assets. Atea recognizes deferred tax assets on its balance sheet when the conditions for recognition have been met. Correspondingly, Atea will reduce its deferred tax assets if they can no longer be utilized.
Deferred tax and deferred tax assets are measured based on the current tax rates and laws applicable to the companies in the Group where temporary differences have arisen.
Deferred tax and deferred tax assets are recognized at their nominal value and classified as a non-current asset or a long-term liability on the balance sheet.
The Group is recognising deferred tax on leasing liabilities by reflecting the linkage between the right-of-use asset and the lease liability. Deferred tax is recognised on an aggregate temporarily difference basis.
The Group does note expect any tax effects related to Pillar 2, the minimum level of taxation of profits of multinational enterprises. See Note 2.2a)for more information.
Income tax recognized in profit or loss:
NOK in million | 2023 | 2022 |
Current tax | ||
Norway | -16 | -7 |
Other countries | -203 | -178 |
Deferred tax | ||
Origination and reversal of temporary differences | 18 | 3 |
Net losses utilised | -40 | -51 |
Change in deferred tax assets due to tax losses previously unrecognized | 21 | -2 |
Total income tax expenses | -221 | -235 |
The income tax expense for the year can be reconciled to the accounting profit as follows:
NOK in million | 2023 | 2022 |
Profit before tax | 1,021 | 1,084 |
Income tax expense calculated at 22% (2022: 22%)\u200c2 | -225 | -238 |
Effect of income non-taxable and expenses non-deductible\u200c3 | -13 | -3 |
Effect of taxable interest limitation | -1 | -8 |
Effect of different tax rates of subsidiaries operating in other jurisdictions\u200c4 | 4 | 5 |
Effect of deferred tax balances due to the change in income tax rates\u200c4 | 2 | 1 |
Effect of deferred tax changes recognised in other comprehensive income or directly in equity | ||
14 | 6 | |
Total | -219 | -236 |
Adjustments recognised in the current year in relation to the current tax of prior years | -2 | 0 |
Income tax expense recognised in profit or loss | -221 | -235 |
Effective tax rate | 21.6% | 21.7% |
Income tax recognised directly in equity
NOK in million | 2023 | 2022 |
Current tax | ||
Relating to shared based compensation | 8 | 5 |
Deferred tax | ||
Relating to shared based compensation | 5 | 1 |
Total income tax expenses recognized directly in equity | 14 | 6 |
Deferred tax balances are presented in the statement of financial position as follows:
NOK in million | 31 Dec 2023 | 31 Dec 2022 |
Deferred tax assets related to carryforward losses\u200c1 | 189 | 218 |
Deferred tax assets related to temporary differences\u200c1 | 20 | -11 |
Deferred tax liabilities | -151 | -145 |
Net deferred tax assets (liabilities) | 58 | 62 |
Deferred tax assets (liabilities)
2023 | ||||||
NOK in million | Book value at 1 Jan 2023 | |||||
Recognized in P/L | Recognized in equity | |||||
Business combinations/ disposals | Currency translation differences | Book value at 31 Dec 2023 | ||||
Temporary differences | ||||||
Property, plant and equipment | 18 | -1 | - | - | 1 | 18 |
Intangible assets5 | -179 | -9 | - | - | -12 | -200 |
Inventories | 5 | 1 | - | - | 0 | 6 |
Trade and other receivables | 5 | 0 | - | - | 0 | 5 |
Provisions and accruals | 10 | 3 | - | - | 0 | 13 |
Capital gain/loss accounts | -37 | 28 | - | - | -2 | -10 |
Financial leases | 16 | 1 | - | - | 1 | 18 |
Other financial liabilities | 12 | 3 | - | - | 1 | 16 |
Other differences | -6 | -8 | 5 | - | 0 | -9 |
Total | -156 | 18 | 5 | - | -11 | -144 |
Unused tax losses and credits | ||||||
Tax loss carryforward | 226 | -40 | - | - | 3 | 189 |
Other temporary differences not recognized on the statement of financial position | -8 | 21 | - | - | - | 13 |
Deferred tax assets recognized on the statement of financial position | 218 | -19 | - | - | 3 | 202 |
Net deferred tax assets recognized on the statement of financial position | 62 | -1 | 5 | - | -8 | 58 |
Deferred tax assets (liabilities)
2022 | ||||||
NOK in million | Book value at 1 Jan 2022 | Recognized in P/L | Recognized in equity | Business combinations/ disposals | Currency translation differences | Book value at 31 Dec 2022 |
Temporary differences | ||||||
Property, plant and equipment | 26 | -9 | - | - | 1 | 18 |
Intangible assets5 | -173 | 0 | - | -3 | -3 | -179 |
Inventories | 5 | 0 | - | - | 0 | 5 |
Trade and other receivables | 4 | 0 | - | - | 0 | 5 |
Provisions and accruals | 10 | 0 | - | - | 0 | 10 |
Capital gain/loss accounts | -43 | 5 | - | - | 1 | -37 |
Financial leases | 14 | 1 | - | - | 0 | 16 |
Other financial liabilities | 6 | 6 | - | - | 0 | 12 |
Other differences | -7 | 0 | 1 | - | 0 | -6 |
Total | -158 | 3 | 1 | -3 | 0 | -156 |
Unused tax losses and credits | ||||||
Tax loss carryforward | 275 | -51 | - | - | 2 | 226 |
Other temporary differences not recognized on the statement of financial position | -6 | -2 | - | - | - | -8 |
Deferred tax assets recognized on the statement of financial position | 269 | -53 | - | - | 2 | 218 |
Net deferred tax assets recognized on the statement of financial position | 112 | -51 | 1 | -3 | 2 | 62 |
The Group\u2019s tax losses expires as follows:
NOK in million | No expiration deadline | Total at 31 Dec 2023 |
Norway | 680 | 680 |
Denmark | 125 | 125 |
Finland | 1 | 1 |
The Baltic | 2 | 2 |
Atea Service Center | 6 | 6 |
AppXite | 51 | 51 |
Total | 864 | 864 |
1Atea recognises deferred tax assets on the statement of financial position when it has been deemed adequately probable that the operations in the indvidual country will generate a taxable profit that the tax loss carry forward can be used to offset. Taking into account the historical losses and cyclical nature, future earnings are not deemed probable until the indi-vidual company has actually reported a taxable profit for a period of time. Tax loss carry forward related to interest limitation have 10 year expiration. Total amount of non-taxable interest expenses carry forward was NOK 107 million at 31 December 2023.
2The tax rate used for the 2023 reconciliations above is the corporate tax rate of 22% (2022: 22%) payable by corporate entities in Norway on taxable profits under the tax law in that jurisdiction.
3Non taxable income and non deductible expenses pursuant to the countries income tax laws.
4Nominal tax rates in 2023 by country: Norway - 22%, Sweden - 20.6%, Finland - 20%, Denmark - 22%, The Baltic - 0-15%.
Nominal tax rates in 2022 by country: Norway - 22%, Sweden - 20.6%, Finland - 20%, Denmark - 22%, The Baltic - 0-15%.
5Primarily related to depreciable excess values from business combinations.
Note 09\tTaxes
Accounting policies
Taxes consists of the tax payable and changes to deferred tax. Deferred tax is calculated on all taxable temporary differences, except for:
(i)\tGoodwill for which amortization is not deductible for tax purposes.
(ii)Temporary differences relating to investments in subsidiaries, associates, or joint ventures when the Group decides when the temporary differences are to be reversed and this is not expected to take place in the foreseeable future.
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recog-nised in other comprehensive income or directly in equity, in which case the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.
Deferred tax assets are recognized when there is convincing evidence that Atea will have a sufficient profit for tax purposes to utilize the tax assets. On each balance sheet date, Atea reviews its unrecorded and unrecognized tax assets. Atea recognizes deferred tax assets on its balance sheet when the conditions for recognition have been met. Correspondingly, Atea will reduce its deferred tax assets if they can no longer be utilized.
Deferred tax and deferred tax assets are measured based on the current tax rates and laws applicable to the companies in the Group where temporary differences have arisen.
Deferred tax and deferred tax assets are recognized at their nominal value and classified as a non-current asset or a long-term liability on the balance sheet.
The Group is recognising deferred tax on leasing liabilities by reflecting the linkage between the right-of-use asset and the lease liability. Deferred tax is recognised on an aggregate temporarily difference basis.
The Group does note expect any tax effects related to Pillar 2, the minimum level of taxation of profits of multinational enterprises. See Note 2.2a)for more information.
Income tax recognized in profit or loss:
NOK in million | 2023 | 2022 |
Current tax | ||
Norway | -16 | -7 |
Other countries | -203 | -178 |
Deferred tax | ||
Origination and reversal of temporary differences | 18 | 3 |
Net losses utilised | -40 | -51 |
Change in deferred tax assets due to tax losses previously unrecognized | 21 | -2 |
Total income tax expenses | -221 | -235 |
The income tax expense for the year can be reconciled to the accounting profit as follows:
NOK in million | 2023 | 2022 |
Profit before tax | 1,021 | 1,084 |
Income tax expense calculated at 22% (2022: 22%)\u200c2 | -225 | -238 |
Effect of income non-taxable and expenses non-deductible\u200c3 | -13 | -3 |
Effect of taxable interest limitation | -1 | -8 |
Effect of different tax rates of subsidiaries operating in other jurisdictions\u200c4 | 4 | 5 |
Effect of deferred tax balances due to the change in income tax rates\u200c4 | 2 | 1 |
Effect of deferred tax changes recognised in other comprehensive income or directly in equity | ||
14 | 6 | |
Total | -219 | -236 |
Adjustments recognised in the current year in relation to the current tax of prior years | -2 | 0 |
Income tax expense recognised in profit or loss | -221 | -235 |
Effective tax rate | 21.6% | 21.7% |
Income tax recognised directly in equity
NOK in million | 2023 | 2022 |
Current tax | ||
Relating to shared based compensation | 8 | 5 |
Deferred tax | ||
Relating to shared based compensation | 5 | 1 |
Total income tax expenses recognized directly in equity | 14 | 6 |
Deferred tax balances are presented in the statement of financial position as follows:
NOK in million | 31 Dec 2023 | 31 Dec 2022 |
Deferred tax assets related to carryforward losses\u200c1 | 189 | 218 |
Deferred tax assets related to temporary differences\u200c1 | 20 | -11 |
Deferred tax liabilities | -151 | -145 |
Net deferred tax assets (liabilities) | 58 | 62 |
Deferred tax assets (liabilities)
2023 | ||||||
NOK in million | Book value at 1 Jan 2023 | |||||
Recognized in P/L | Recognized in equity | |||||
Business combinations/ disposals | Currency translation differences | Book value at 31 Dec 2023 | ||||
Temporary differences | ||||||
Property, plant and equipment | 18 | -1 | - | - | 1 | 18 |
Intangible assets5 | -179 | -9 | - | - | -12 | -200 |
Inventories | 5 | 1 | - | - | 0 | 6 |
Trade and other receivables | 5 | 0 | - | - | 0 | 5 |
Provisions and accruals | 10 | 3 | - | - | 0 | 13 |
Capital gain/loss accounts | -37 | 28 | - | - | -2 | -10 |
Financial leases | 16 | 1 | - | - | 1 | 18 |
Other financial liabilities | 12 | 3 | - | - | 1 | 16 |
Other differences | -6 | -8 | 5 | - | 0 | -9 |
Total | -156 | 18 | 5 | - | -11 | -144 |
Unused tax losses and credits | ||||||
Tax loss carryforward | 226 | -40 | - | - | 3 | 189 |
Other temporary differences not recognized on the statement of financial position | -8 | 21 | - | - | - | 13 |
Deferred tax assets recognized on the statement of financial position | 218 | -19 | - | - | 3 | 202 |
Net deferred tax assets recognized on the statement of financial position | 62 | -1 | 5 | - | -8 | 58 |
Deferred tax assets (liabilities)
2022 | ||||||
NOK in million | Book value at 1 Jan 2022 | Recognized in P/L | Recognized in equity | Business combinations/ disposals | Currency translation differences | Book value at 31 Dec 2022 |
Temporary differences | ||||||
Property, plant and equipment | 26 | -9 | - | - | 1 | 18 |
Intangible assets5 | -173 | 0 | - | -3 | -3 | -179 |
Inventories | 5 | 0 | - | - | 0 | 5 |
Trade and other receivables | 4 | 0 | - | - | 0 | 5 |
Provisions and accruals | 10 | 0 | - | - | 0 | 10 |
Capital gain/loss accounts | -43 | 5 | - | - | 1 | -37 |
Financial leases | 14 | 1 | - | - | 0 | 16 |
Other financial liabilities | 6 | 6 | - | - | 0 | 12 |
Other differences | -7 | 0 | 1 | - | 0 | -6 |
Total | -158 | 3 | 1 | -3 | 0 | -156 |
Unused tax losses and credits | ||||||
Tax loss carryforward | 275 | -51 | - | - | 2 | 226 |
Other temporary differences not recognized on the statement of financial position | -6 | -2 | - | - | - | -8 |
Deferred tax assets recognized on the statement of financial position | 269 | -53 | - | - | 2 | 218 |
Net deferred tax assets recognized on the statement of financial position | 112 | -51 | 1 | -3 | 2 | 62 |
The Group\u2019s tax losses expires as follows:
NOK in million | No expiration deadline | Total at 31 Dec 2023 |
Norway | 680 | 680 |
Denmark | 125 | 125 |
Finland | 1 | 1 |
The Baltic | 2 | 2 |
Atea Service Center | 6 | 6 |
AppXite | 51 | 51 |
Total | 864 | 864 |
1Atea recognises deferred tax assets on the statement of financial position when it has been deemed adequately probable that the operations in the indvidual country will generate a taxable profit that the tax loss carry forward can be used to offset. Taking into account the historical losses and cyclical nature, future earnings are not deemed probable until the indi-vidual company has actually reported a taxable profit for a period of time. Tax loss carry forward related to interest limitation have 10 year expiration. Total amount of non-taxable interest expenses carry forward was NOK 107 million at 31 December 2023.
2The tax rate used for the 2023 reconciliations above is the corporate tax rate of 22% (2022: 22%) payable by corporate entities in Norway on taxable profits under the tax law in that jurisdiction.
3Non taxable income and non deductible expenses pursuant to the countries income tax laws.
4Nominal tax rates in 2023 by country: Norway - 22%, Sweden - 20.6%, Finland - 20%, Denmark - 22%, The Baltic - 0-15%.
Nominal tax rates in 2022 by country: Norway - 22%, Sweden - 20.6%, Finland - 20%, Denmark - 22%, The Baltic - 0-15%.
5Primarily related to depreciable excess values from business combinations.
Accounting policies
Taxes consists of the tax payable and changes to deferred tax. Deferred tax is calculated on all taxable temporary differences, except for:
(i)\tGoodwill for which amortization is not deductible for tax purposes.
(ii)Temporary differences relating to investments in subsidiaries, associates, or joint ventures when the Group decides when the temporary differences are to be reversed and this is not expected to take place in the foreseeable future.
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recog-nised in other comprehensive income or directly in equity, in which case the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.
Deferred tax assets are recognized when there is convincing evidence that Atea will have a sufficient profit for tax purposes to utilize the tax assets. On each balance sheet date, Atea reviews its unrecorded and unrecognized tax assets. Atea recognizes deferred tax assets on its balance sheet when the conditions for recognition have been met. Correspondingly, Atea will reduce its deferred tax assets if they can no longer be utilized.
Deferred tax and deferred tax assets are measured based on the current tax rates and laws applicable to the companies in the Group where temporary differences have arisen.
Deferred tax and deferred tax assets are recognized at their nominal value and classified as a non-current asset or a long-term liability on the balance sheet.
The Group is recognising deferred tax on leasing liabilities by reflecting the linkage between the right-of-use asset and the lease liability. Deferred tax is recognised on an aggregate temporarily difference basis.
The Group does note expect any tax effects related to Pillar 2, the minimum level of taxation of profits of multinational enterprises. See Note 2.2a)for more information.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f50145": { "value": "Accounting policies
Taxes consists of the tax payable and changes to deferred tax. Deferred tax is calculated on all taxable temporary differences, except for:
(i)\tGoodwill for which amortization is not deductible for tax purposes.
(ii)Temporary differences relating to investments in subsidiaries, associates, or joint ventures when the Group decides when the temporary differences are to be reversed and this is not expected to take place in the foreseeable future.
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recog-nised in other comprehensive income or directly in equity, in which case the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.
Deferred tax assets are recognized when there is convincing evidence that Atea will have a sufficient profit for tax purposes to utilize the tax assets. On each balance sheet date, Atea reviews its unrecorded and unrecognized tax assets. Atea recognizes deferred tax assets on its balance sheet when the conditions for recognition have been met. Correspondingly, Atea will reduce its deferred tax assets if they can no longer be utilized.
Deferred tax and deferred tax assets are measured based on the current tax rates and laws applicable to the companies in the Group where temporary differences have arisen.
Deferred tax and deferred tax assets are recognized at their nominal value and classified as a non-current asset or a long-term liability on the balance sheet.
The Group is recognising deferred tax on leasing liabilities by reflecting the linkage between the right-of-use asset and the lease liability. Deferred tax is recognised on an aggregate temporarily difference basis.
The Group does note expect any tax effects related to Pillar 2, the minimum level of taxation of profits of multinational enterprises. See Note 2.2a)for more information.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f52423": { "value": "Note 10\tEarnings per share
Basic
Basic earnings per share is calculated by dividing the profit attributable to shareholders of the Company by the weighted average number of ordinary shares in issue during the year.
NOK in million | 2023 | 2022 |
Profit for the period | 800 | 848 |
Weighted average number of outstanding shares (in million) | 111 | 111 |
Basic earnings per share (NOK) | 7.22 | 7.62 |
Diluted
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. The Company\u2019s dilutive potential ordinary shares are share options issued. A calculation is done to determine the number of shares that could have been acquired at fair value (determined as the average annual market share price of the Company\u2019s shares) based on the monetary value of the subscription rights attached to outstanding share options. The number of shares calculated as above is compared with the number of shares that would have been issued assuming the exercise of the share options.
NOK in million | 2023 | 2022 |
Profit for the period | 800 | 848 |
Weighted average number of outstanding shares (in million) | 112 | 112 |
Diluted earnings per share (NOK) | 7.14 | 7.55 |
Note 11\tProperty, plant and equipment
Accounting policies
Recognition
Property, plant, and equipment are stated at historical cost less depreciation. Historical cost includes expenses that are directly attributable to the acquisition of the items. Costs are included in the asset\u2019s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will pass to Atea and the cost of the item can be measured reliably.
Depreciation is calculated using the straight-line method to allocate their cost over their estimated useful lives as follows:
(i)\tBuildings, 20-30 years
(ii)\tLand, No depreciation
(iii)\tVehicles & office machines, 3-5 years
(iv)\tFurniture and fittings, 3-10 years
(v)\tComputer equipment, 3-5 years
The assets\u2019 residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. An asset\u2019s carrying amount is written down immediately to its recoverable amount if the asset\u2019s carrying amount is greater than its estimated recoverable amount.
Repair and maintenance costs are charged to the income statement during the financial period in which they are incurred. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount.
NOK in million | Buildings and property | Vehicles and office machines | Furniture and fittings | Computer equipment | Total |
Acquisition cost | |||||
1 January 2022 | 63 | 132 | 318 | 1,552 | 2,066 |
Additions | 1 | 6 | 29 | 217 | 252 |
Disposals\u200c1 | - | -5 | -22 | -115 | -142 |
Currency translation effects | 2 | 7 | -2 | 48 | 55 |
31 December 2022 | 66 | 139 | 324 | 1,702 | 2,232 |
Additions | 1 | 0 | 17 | 135 | 154 |
Disposals\u200c1 | - | -10 | -2 | -222 | -234 |
Currency translation effects | 3 | 9 | 20 | 94 | 126 |
31 December 2023 | 70 | 139 | 359 | 1,709 | 2,277 |
NOK in million | Buildings and property | ||||
Vehicles and office machines | |||||
Furniture and fittings | Computer equipment | ||||
Total | |||||
Accumulated depreciation | |||||
1 January 2022 | -35 | -124 | -198 | -1,217 | -1,574 |
Depreciation | -3 | -6 | -32 | -169 | -210 |
Disposals\u200c1 | 0 | 4 | 21 | 114 | 139 |
Currency translation effects | -1 | -6 | -1 | -40 | -47 |
31 December 2022 | -38 | -132 | -209 | -1,312 | -1,691 |
Depreciation | -3 | 0 | -30 | -176 | -209 |
Disposals\u200c1 | - | 11 | 2 | 220 | 233 |
Currency translation effects | -1 | -9 | -12 | -74 | -96 |
31 December 2023 | -43 | -130 | -249 | -1,341 | -1,763 |
Acquisition cost | 66 | 139 | 324 | 1,702 | 2,232 |
Accumulated depreciation and write downs | -38 | -132 | -209 | -1,312 | -1,691 |
Book value at 31 December 2022 | 28 | 7 | 115 | 391 | 541 |
Acquisition cost | 70 | 139 | 359 | 1,709 | 2,277 |
Accumulated depreciation and write downs | -43 | -130 | -249 | -1,341 | -1,763 |
Book value at 31 December 2023 | 28 | 9 | 109 | 368 | 514 |
1Gain/loss on the disposal of property, plant and equipment accounted for insignificant amounts in 2023 and 2022.
Note 11\tProperty, plant and equipment
Accounting policies
Recognition
Property, plant, and equipment are stated at historical cost less depreciation. Historical cost includes expenses that are directly attributable to the acquisition of the items. Costs are included in the asset\u2019s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will pass to Atea and the cost of the item can be measured reliably.
Depreciation is calculated using the straight-line method to allocate their cost over their estimated useful lives as follows:
(i)\tBuildings, 20-30 years
(ii)\tLand, No depreciation
(iii)\tVehicles & office machines, 3-5 years
(iv)\tFurniture and fittings, 3-10 years
(v)\tComputer equipment, 3-5 years
The assets\u2019 residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. An asset\u2019s carrying amount is written down immediately to its recoverable amount if the asset\u2019s carrying amount is greater than its estimated recoverable amount.
Repair and maintenance costs are charged to the income statement during the financial period in which they are incurred. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount.
NOK in million | Buildings and property | Vehicles and office machines | Furniture and fittings | Computer equipment | Total |
Acquisition cost | |||||
1 January 2022 | 63 | 132 | 318 | 1,552 | 2,066 |
Additions | 1 | 6 | 29 | 217 | 252 |
Disposals\u200c1 | - | -5 | -22 | -115 | -142 |
Currency translation effects | 2 | 7 | -2 | 48 | 55 |
31 December 2022 | 66 | 139 | 324 | 1,702 | 2,232 |
Additions | 1 | 0 | 17 | 135 | 154 |
Disposals\u200c1 | - | -10 | -2 | -222 | -234 |
Currency translation effects | 3 | 9 | 20 | 94 | 126 |
31 December 2023 | 70 | 139 | 359 | 1,709 | 2,277 |
NOK in million | Buildings and property | ||||
Vehicles and office machines | |||||
Furniture and fittings | Computer equipment | ||||
Total | |||||
Accumulated depreciation | |||||
1 January 2022 | -35 | -124 | -198 | -1,217 | -1,574 |
Depreciation | -3 | -6 | -32 | -169 | -210 |
Disposals\u200c1 | 0 | 4 | 21 | 114 | 139 |
Currency translation effects | -1 | -6 | -1 | -40 | -47 |
31 December 2022 | -38 | -132 | -209 | -1,312 | -1,691 |
Depreciation | -3 | 0 | -30 | -176 | -209 |
Disposals\u200c1 | - | 11 | 2 | 220 | 233 |
Currency translation effects | -1 | -9 | -12 | -74 | -96 |
31 December 2023 | -43 | -130 | -249 | -1,341 | -1,763 |
Acquisition cost | 66 | 139 | 324 | 1,702 | 2,232 |
Accumulated depreciation and write downs | -38 | -132 | -209 | -1,312 | -1,691 |
Book value at 31 December 2022 | 28 | 7 | 115 | 391 | 541 |
Acquisition cost | 70 | 139 | 359 | 1,709 | 2,277 |
Accumulated depreciation and write downs | -43 | -130 | -249 | -1,341 | -1,763 |
Book value at 31 December 2023 | 28 | 9 | 109 | 368 | 514 |
1Gain/loss on the disposal of property, plant and equipment accounted for insignificant amounts in 2023 and 2022.
21.2 Amortized cost
The asset is measured at the amount recognized at initial recognition minus principal repayments, plus or minus the cumulative amortiza-tion of any difference between that initial amount and the maturity amount, and any loss allowance. Interest income is calculated using the effective interest method and is recognized in profit and loss. Changes in fair value are recognized in profit and loss when the asset is derecognized or reclassified.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDepreciationAndAmortisationExpenseExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f52701": { "value": "Accounting policies
Recognition
Property, plant, and equipment are stated at historical cost less depreciation. Historical cost includes expenses that are directly attributable to the acquisition of the items. Costs are included in the asset\u2019s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will pass to Atea and the cost of the item can be measured reliably.
Depreciation is calculated using the straight-line method to allocate their cost over their estimated useful lives as follows:
(i)\tBuildings, 20-30 years
(ii)\tLand, No depreciation
(iii)\tVehicles & office machines, 3-5 years
(iv)\tFurniture and fittings, 3-10 years
(v)\tComputer equipment, 3-5 years
The assets\u2019 residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. An asset\u2019s carrying amount is written down immediately to its recoverable amount if the asset\u2019s carrying amount is greater than its estimated recoverable amount.
Repair and maintenance costs are charged to the income statement during the financial period in which they are incurred. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentPropertyExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f52702": { "value": "Accounting policies
Recognition
Property, plant, and equipment are stated at historical cost less depreciation. Historical cost includes expenses that are directly attributable to the acquisition of the items. Costs are included in the asset\u2019s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will pass to Atea and the cost of the item can be measured reliably.
Depreciation is calculated using the straight-line method to allocate their cost over their estimated useful lives as follows:
(i)\tBuildings, 20-30 years
(ii)\tLand, No depreciation
(iii)\tVehicles & office machines, 3-5 years
(iv)\tFurniture and fittings, 3-10 years
(v)\tComputer equipment, 3-5 years
The assets\u2019 residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. An asset\u2019s carrying amount is written down immediately to its recoverable amount if the asset\u2019s carrying amount is greater than its estimated recoverable amount.
Repair and maintenance costs are charged to the income statement during the financial period in which they are incurred. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f52703": { "value": "Accounting policies
Recognition
Property, plant, and equipment are stated at historical cost less depreciation. Historical cost includes expenses that are directly attributable to the acquisition of the items. Costs are included in the asset\u2019s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will pass to Atea and the cost of the item can be measured reliably.
Depreciation is calculated using the straight-line method to allocate their cost over their estimated useful lives as follows:
(i)\tBuildings, 20-30 years
(ii)\tLand, No depreciation
(iii)\tVehicles & office machines, 3-5 years
(iv)\tFurniture and fittings, 3-10 years
(v)\tComputer equipment, 3-5 years
The assets\u2019 residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. An asset\u2019s carrying amount is written down immediately to its recoverable amount if the asset\u2019s carrying amount is greater than its estimated recoverable amount.
Repair and maintenance costs are charged to the income statement during the financial period in which they are incurred. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f53644": { "value": "Note 12\tGoodwill and intangible assets
Accounting policies
12.1 Goodwill
Atea\u2019s goodwill is material. No impairment loss (or reversal) has been recognised during current and the previous year.
Goodwill represents the excess of the cost of acquisition over the fair value of Atea\u2019s share of the net identifiable assets of the acquired business at the time of the acquisition. Goodwill is tested annually for impairment, or more frequently when there is an indication that the unit may be impaired and carried at cost less accumulated impairment losses. An impairment loss recognised for goodwill is not reversed in a subsequent period. Goodwill is allocated to the relevant cash-gen-erating units for the purpose of impairment testing. Each of those cash-generating units represents the lowest levels for which there are separately identifiable cash flows. Gains and losses on the sale of business interests include the carrying amount of goodwill relating to the entity sold.
Goodwill impairment test
Goodwill and other assets are allocated to the Group\u2019s cash-gener-ating units. Atea allocates goodwill to the actual country of operation (segment) where the operations are located.
Goodwill has an indefinite useful life and is not amortised, but impair-ment losses are recognised if the recoverable amount is less than the book value.
Recoverable amounts for cash-generating units are estimated based on calculating the asset\u2019s value in use. Cash flow forecasts are used based on the budget for revenues, product/service mix, profit margins, costs and capital employment. Revenue growth for 2024 is based on budget approved by the Board of Directors and growth estimates for 2025-2028 varies between 1.1% and 8.9%\u200c1based on management estimates and expected market growth in every country. Cash flows beyond these five years are based on an expected growth rate of 0.5% - 1.3% for an indefinite period (deter-mined primarily by external market analyses).
Discount rates represent the current market assessment of the risks specific to each cash-generating unit, taking into consideration the time value of money and individual risks of the underlying assets that have not been incorporated in the cash flow estimates. The discount rate calculation is based on the specific circumstances of the Group and its operating segments and is derived from its Weighted Average Cost of Capital (WACC). The WACC rates used in discounting the future cash flows are based on a 10-year government bond rate in the respective countries, adjusted for weighted average interest margin on external Group facilities. A market risk premium and a country risk premium is added. The discount rates also take into account the gearing, corporate tax rate, and asset beta.The cost of equity is derived from the expected return on investment by the Group\u2019s inves-tors. The cost of debt is based on the interest-bearing borrowings the Group is obliged to service. Segment-specific risk is incorporated by applying beta factor. Adjustments to the discount rate are made
to factor in the specific amount and timing of the future tax flows in order to reflect a pre-tax discount rate.
The Group has assessed whether expected useful lives of non-cur-rent assets and estimated residual values are effected because of climate risks. The Group has not identified any indicator that exist that non-financial assets are impaired as a result of climate risk or Paris agreement measures. See Note 27for more information.
Sensitivity analysis:
In addition to impairment testing using the base case assumptions above,\u00a0few separate sensitivity analyses were performed for each cash-generating units:
\u2013a discount rate analysis where the discount rate was increased\u00a0by 3% due to adjusted estimates on market premium and credit risk,
\u2013revenue growth is 1- 5% below estimated growth in 2025-2028.
\u2013EBITDA margin is 0.25% below estimated growth in 2025-2028.
The EBITDA margin is the most sensitive parameter in the impairment test. The goodwill related to the operations in Denmark is the most critical for possible impairment based on historical results.
Management believes that any other reasonably possible change in the key assumptions above, will not cause the aggregate carrying amount to exceed the aggregate recoverable amount of any of the cash generating units.
12.2 Other intangible assets
Computer software and rights
Acquired computer software licences are recognized on the balance sheet based on the costs incurred to acquire and bring to use the specific software. These costs are amortized over their estimated useful lives. Costs associated with maintaining computer software programs are recognized as an expense as incurred. Costs that are directly associated with the development of identifiable and unique software or system solutions controlled by the Group, which will probably generate economic benefits related to the asset that will pass to Atea and can be measured reliably, are recognized as intangible assets. Computer software costs/solutions and rights recognized on the balance sheet are amortized over their estimated useful lives, normally 3-7 years.
Contracts and customer relationships
In connection with business combinations, contracts and customer relationships are recorded at fair value at the acquisition date. The amortization period for contracts and customer relationships is based on the period they are expected to generate cash flow, normally 4-5 years.
Impairment of non-financial assets
Assets that are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset\u2019s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units).
Critical accounting judgements and key sources of estimation uncertainty
Impairment of goodwill:
The most important estimates and assumptions that have a signif-icant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are related to impairment of goodwill. The book value of goodwill as of 31 December 2023 is NOK 4,336 million.
Sensitivity analysis indicates that even with the use of conservative estimates with regard to future cash flows and discount rates, the book value of any of the assets will not exceed the recoverable amounts. See more information above.
Recoverable amounts of cash-generating units are determined based on judgements of fair values less costs to sell or value-in-use esti-mates.
WACC (Weighted Average Cost of Capital) used\u200c2:
NOK in million | 2023 | 2022 |
Norway | 12.3% | 12.0% |
Sweden | 10.8% | 10.0% |
Denmark | 11.2% | 10.8% |
Finland | 11.4% | 11.0% |
The Baltics\u200c3 | 11.4% | 11.6% |
1Average growth rates in total for the period 2025-2028.
2At 30 September 2023.
3Volume-weighted average for Estonia, Latvia and Lithuania.
NOK in million | Goodwill | Contracts and customer relationships | Computer software and rights | Total other intangible assets |
Acquisitions | ||||
1 January 2022 | 3,942 | 299 | 1,127 | 1,427 |
Additions | ||||
Ordinary additions | - | - | 160 | 160 |
Business combinations | 107 | 50 | - | 50 |
Disposals1 | - | -2 | -70 | -72 |
Currency translation effects | 83 | 8 | 32 | 40 |
31 December 2022 | 4,132 | 355 | 1,250 | 1,605 |
Changes from prior years | - | -26 | -59 | -86 |
Additions | ||||
Ordinary additions | - | - | 190 | 190 |
Disposals1 | - | - | -7 | -7 |
Currency translation effects | 204 | 14 | 77 | 91 |
31 December 2023 | 4,336 | 343 | 1,451 | 1,794 |
Accumulated amortisation | ||||
1 January 2022 | - | -283 | -816 | -1,098 |
Amortisation | -11 | -82 | -93 | |
Disposals1 | - | 0 | 70 | 70 |
Currency translation effects | - | -7 | -25 | -32 |
31 December 2022 | - | -300 | -853 | -1,153 |
Changes from prior years | - | 26 | 59 | 86 |
Amortisation | -15 | -86 | -101 | |
Disposals1 | - | - | 7 | 7 |
Currency translation effects | - | -10 | -50 | -60 |
31 December 2023 | - | -299 | -924 | -1,222 |
Acquisition cost | 4,132 | 355 | 1,250 | 1,605 |
NOK in million | Goodwill | Contracts and customer relationships | Computer software and rights | Total other intangible assets |
Accumulated amortisation and write-downs | - | -300 | -853 | -1,153 |
Book value at 31 December 2022 | 4,132 | 55 | 397 | 452 |
Acquisition cost | 4,336 | 343 | 1,451 | 1,794 |
Accumulated amortisation and write downs | - | -299 | -924 | -1,222 |
Book value at 31 December 2023 | 4,336 | 44 | 528 | 572 |
1Gain/loss on the disposal of intangible assets accounted for insignificant amounts in 2023 and 2022.
Allocations of goodwill
NOK in million | 2023 | 2022 |
Norway | 1,148 | 1,148 |
Sweden | 720 | 671 |
Denmark | 1,792 | 1,680 |
Finland | 284 | 265 |
The Baltics | 274 | 256 |
The Group Shared Services | 119 | 111 |
Total | 4,336 | 4,132 |
The Group does not have any significant research expenses.
Development costs related to internal systems are capitalised in the balance sheet with NOK 112 million (NOK 66 million in 2022).
Note 12\tGoodwill and intangible assets
Accounting policies
12.1 Goodwill
Atea\u2019s goodwill is material. No impairment loss (or reversal) has been recognised during current and the previous year.
Goodwill represents the excess of the cost of acquisition over the fair value of Atea\u2019s share of the net identifiable assets of the acquired business at the time of the acquisition. Goodwill is tested annually for impairment, or more frequently when there is an indication that the unit may be impaired and carried at cost less accumulated impairment losses. An impairment loss recognised for goodwill is not reversed in a subsequent period. Goodwill is allocated to the relevant cash-gen-erating units for the purpose of impairment testing. Each of those cash-generating units represents the lowest levels for which there are separately identifiable cash flows. Gains and losses on the sale of business interests include the carrying amount of goodwill relating to the entity sold.
Goodwill impairment test
Goodwill and other assets are allocated to the Group\u2019s cash-gener-ating units. Atea allocates goodwill to the actual country of operation (segment) where the operations are located.
Goodwill has an indefinite useful life and is not amortised, but impair-ment losses are recognised if the recoverable amount is less than the book value.
Recoverable amounts for cash-generating units are estimated based on calculating the asset\u2019s value in use. Cash flow forecasts are used based on the budget for revenues, product/service mix, profit margins, costs and capital employment. Revenue growth for 2024 is based on budget approved by the Board of Directors and growth estimates for 2025-2028 varies between 1.1% and 8.9%\u200c1based on management estimates and expected market growth in every country. Cash flows beyond these five years are based on an expected growth rate of 0.5% - 1.3% for an indefinite period (deter-mined primarily by external market analyses).
Discount rates represent the current market assessment of the risks specific to each cash-generating unit, taking into consideration the time value of money and individual risks of the underlying assets that have not been incorporated in the cash flow estimates. The discount rate calculation is based on the specific circumstances of the Group and its operating segments and is derived from its Weighted Average Cost of Capital (WACC). The WACC rates used in discounting the future cash flows are based on a 10-year government bond rate in the respective countries, adjusted for weighted average interest margin on external Group facilities. A market risk premium and a country risk premium is added. The discount rates also take into account the gearing, corporate tax rate, and asset beta.The cost of equity is derived from the expected return on investment by the Group\u2019s inves-tors. The cost of debt is based on the interest-bearing borrowings the Group is obliged to service. Segment-specific risk is incorporated by applying beta factor. Adjustments to the discount rate are made
to factor in the specific amount and timing of the future tax flows in order to reflect a pre-tax discount rate.
The Group has assessed whether expected useful lives of non-cur-rent assets and estimated residual values are effected because of climate risks. The Group has not identified any indicator that exist that non-financial assets are impaired as a result of climate risk or Paris agreement measures. See Note 27for more information.
Sensitivity analysis:
In addition to impairment testing using the base case assumptions above,\u00a0few separate sensitivity analyses were performed for each cash-generating units:
\u2013a discount rate analysis where the discount rate was increased\u00a0by 3% due to adjusted estimates on market premium and credit risk,
\u2013revenue growth is 1- 5% below estimated growth in 2025-2028.
\u2013EBITDA margin is 0.25% below estimated growth in 2025-2028.
The EBITDA margin is the most sensitive parameter in the impairment test. The goodwill related to the operations in Denmark is the most critical for possible impairment based on historical results.
Management believes that any other reasonably possible change in the key assumptions above, will not cause the aggregate carrying amount to exceed the aggregate recoverable amount of any of the cash generating units.
12.2 Other intangible assets
Computer software and rights
Acquired computer software licences are recognized on the balance sheet based on the costs incurred to acquire and bring to use the specific software. These costs are amortized over their estimated useful lives. Costs associated with maintaining computer software programs are recognized as an expense as incurred. Costs that are directly associated with the development of identifiable and unique software or system solutions controlled by the Group, which will probably generate economic benefits related to the asset that will pass to Atea and can be measured reliably, are recognized as intangible assets. Computer software costs/solutions and rights recognized on the balance sheet are amortized over their estimated useful lives, normally 3-7 years.
Contracts and customer relationships
In connection with business combinations, contracts and customer relationships are recorded at fair value at the acquisition date. The amortization period for contracts and customer relationships is based on the period they are expected to generate cash flow, normally 4-5 years.
Impairment of non-financial assets
Assets that are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset\u2019s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units).
Critical accounting judgements and key sources of estimation uncertainty
Impairment of goodwill:
The most important estimates and assumptions that have a signif-icant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are related to impairment of goodwill. The book value of goodwill as of 31 December 2023 is NOK 4,336 million.
Sensitivity analysis indicates that even with the use of conservative estimates with regard to future cash flows and discount rates, the book value of any of the assets will not exceed the recoverable amounts. See more information above.
Recoverable amounts of cash-generating units are determined based on judgements of fair values less costs to sell or value-in-use esti-mates.
WACC (Weighted Average Cost of Capital) used\u200c2:
NOK in million | 2023 | 2022 |
Norway | 12.3% | 12.0% |
Sweden | 10.8% | 10.0% |
Denmark | 11.2% | 10.8% |
Finland | 11.4% | 11.0% |
The Baltics\u200c3 | 11.4% | 11.6% |
1Average growth rates in total for the period 2025-2028.
2At 30 September 2023.
3Volume-weighted average for Estonia, Latvia and Lithuania.
NOK in million | Goodwill | Contracts and customer relationships | Computer software and rights | Total other intangible assets |
Acquisitions | ||||
1 January 2022 | 3,942 | 299 | 1,127 | 1,427 |
Additions | ||||
Ordinary additions | - | - | 160 | 160 |
Business combinations | 107 | 50 | - | 50 |
Disposals1 | - | -2 | -70 | -72 |
Currency translation effects | 83 | 8 | 32 | 40 |
31 December 2022 | 4,132 | 355 | 1,250 | 1,605 |
Changes from prior years | - | -26 | -59 | -86 |
Additions | ||||
Ordinary additions | - | - | 190 | 190 |
Disposals1 | - | - | -7 | -7 |
Currency translation effects | 204 | 14 | 77 | 91 |
31 December 2023 | 4,336 | 343 | 1,451 | 1,794 |
Accumulated amortisation | ||||
1 January 2022 | - | -283 | -816 | -1,098 |
Amortisation | -11 | -82 | -93 | |
Disposals1 | - | 0 | 70 | 70 |
Currency translation effects | - | -7 | -25 | -32 |
31 December 2022 | - | -300 | -853 | -1,153 |
Changes from prior years | - | 26 | 59 | 86 |
Amortisation | -15 | -86 | -101 | |
Disposals1 | - | - | 7 | 7 |
Currency translation effects | - | -10 | -50 | -60 |
31 December 2023 | - | -299 | -924 | -1,222 |
Acquisition cost | 4,132 | 355 | 1,250 | 1,605 |
NOK in million | Goodwill | Contracts and customer relationships | Computer software and rights | Total other intangible assets |
Accumulated amortisation and write-downs | - | -300 | -853 | -1,153 |
Book value at 31 December 2022 | 4,132 | 55 | 397 | 452 |
Acquisition cost | 4,336 | 343 | 1,451 | 1,794 |
Accumulated amortisation and write downs | - | -299 | -924 | -1,222 |
Book value at 31 December 2023 | 4,336 | 44 | 528 | 572 |
1Gain/loss on the disposal of intangible assets accounted for insignificant amounts in 2023 and 2022.
Allocations of goodwill
NOK in million | 2023 | 2022 |
Norway | 1,148 | 1,148 |
Sweden | 720 | 671 |
Denmark | 1,792 | 1,680 |
Finland | 284 | 265 |
The Baltics | 274 | 256 |
The Group Shared Services | 119 | 111 |
Total | 4,336 | 4,132 |
The Group does not have any significant research expenses.
Development costs related to internal systems are capitalised in the balance sheet with NOK 112 million (NOK 66 million in 2022).
Note 12\tGoodwill and intangible assets
Accounting policies
12.1 Goodwill
Atea\u2019s goodwill is material. No impairment loss (or reversal) has been recognised during current and the previous year.
Goodwill represents the excess of the cost of acquisition over the fair value of Atea\u2019s share of the net identifiable assets of the acquired business at the time of the acquisition. Goodwill is tested annually for impairment, or more frequently when there is an indication that the unit may be impaired and carried at cost less accumulated impairment losses. An impairment loss recognised for goodwill is not reversed in a subsequent period. Goodwill is allocated to the relevant cash-gen-erating units for the purpose of impairment testing. Each of those cash-generating units represents the lowest levels for which there are separately identifiable cash flows. Gains and losses on the sale of business interests include the carrying amount of goodwill relating to the entity sold.
Goodwill impairment test
Goodwill and other assets are allocated to the Group\u2019s cash-gener-ating units. Atea allocates goodwill to the actual country of operation (segment) where the operations are located.
Goodwill has an indefinite useful life and is not amortised, but impair-ment losses are recognised if the recoverable amount is less than the book value.
Recoverable amounts for cash-generating units are estimated based on calculating the asset\u2019s value in use. Cash flow forecasts are used based on the budget for revenues, product/service mix, profit margins, costs and capital employment. Revenue growth for 2024 is based on budget approved by the Board of Directors and growth estimates for 2025-2028 varies between 1.1% and 8.9%\u200c1based on management estimates and expected market growth in every country. Cash flows beyond these five years are based on an expected growth rate of 0.5% - 1.3% for an indefinite period (deter-mined primarily by external market analyses).
Discount rates represent the current market assessment of the risks specific to each cash-generating unit, taking into consideration the time value of money and individual risks of the underlying assets that have not been incorporated in the cash flow estimates. The discount rate calculation is based on the specific circumstances of the Group and its operating segments and is derived from its Weighted Average Cost of Capital (WACC). The WACC rates used in discounting the future cash flows are based on a 10-year government bond rate in the respective countries, adjusted for weighted average interest margin on external Group facilities. A market risk premium and a country risk premium is added. The discount rates also take into account the gearing, corporate tax rate, and asset beta.The cost of equity is derived from the expected return on investment by the Group\u2019s inves-tors. The cost of debt is based on the interest-bearing borrowings the Group is obliged to service. Segment-specific risk is incorporated by applying beta factor. Adjustments to the discount rate are made
to factor in the specific amount and timing of the future tax flows in order to reflect a pre-tax discount rate.
The Group has assessed whether expected useful lives of non-cur-rent assets and estimated residual values are effected because of climate risks. The Group has not identified any indicator that exist that non-financial assets are impaired as a result of climate risk or Paris agreement measures. See Note 27for more information.
Sensitivity analysis:
In addition to impairment testing using the base case assumptions above,\u00a0few separate sensitivity analyses were performed for each cash-generating units:
\u2013a discount rate analysis where the discount rate was increased\u00a0by 3% due to adjusted estimates on market premium and credit risk,
\u2013revenue growth is 1- 5% below estimated growth in 2025-2028.
\u2013EBITDA margin is 0.25% below estimated growth in 2025-2028.
The EBITDA margin is the most sensitive parameter in the impairment test. The goodwill related to the operations in Denmark is the most critical for possible impairment based on historical results.
Management believes that any other reasonably possible change in the key assumptions above, will not cause the aggregate carrying amount to exceed the aggregate recoverable amount of any of the cash generating units.
12.2 Other intangible assets
Computer software and rights
Acquired computer software licences are recognized on the balance sheet based on the costs incurred to acquire and bring to use the specific software. These costs are amortized over their estimated useful lives. Costs associated with maintaining computer software programs are recognized as an expense as incurred. Costs that are directly associated with the development of identifiable and unique software or system solutions controlled by the Group, which will probably generate economic benefits related to the asset that will pass to Atea and can be measured reliably, are recognized as intangible assets. Computer software costs/solutions and rights recognized on the balance sheet are amortized over their estimated useful lives, normally 3-7 years.
Contracts and customer relationships
In connection with business combinations, contracts and customer relationships are recorded at fair value at the acquisition date. The amortization period for contracts and customer relationships is based on the period they are expected to generate cash flow, normally 4-5 years.
Impairment of non-financial assets
Assets that are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset\u2019s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units).
Critical accounting judgements and key sources of estimation uncertainty
Impairment of goodwill:
The most important estimates and assumptions that have a signif-icant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are related to impairment of goodwill. The book value of goodwill as of 31 December 2023 is NOK 4,336 million.
Sensitivity analysis indicates that even with the use of conservative estimates with regard to future cash flows and discount rates, the book value of any of the assets will not exceed the recoverable amounts. See more information above.
Recoverable amounts of cash-generating units are determined based on judgements of fair values less costs to sell or value-in-use esti-mates.
WACC (Weighted Average Cost of Capital) used\u200c2:
NOK in million | 2023 | 2022 |
Norway | 12.3% | 12.0% |
Sweden | 10.8% | 10.0% |
Denmark | 11.2% | 10.8% |
Finland | 11.4% | 11.0% |
The Baltics\u200c3 | 11.4% | 11.6% |
1Average growth rates in total for the period 2025-2028.
2At 30 September 2023.
3Volume-weighted average for Estonia, Latvia and Lithuania.
NOK in million | Goodwill | Contracts and customer relationships | Computer software and rights | Total other intangible assets |
Acquisitions | ||||
1 January 2022 | 3,942 | 299 | 1,127 | 1,427 |
Additions | ||||
Ordinary additions | - | - | 160 | 160 |
Business combinations | 107 | 50 | - | 50 |
Disposals1 | - | -2 | -70 | -72 |
Currency translation effects | 83 | 8 | 32 | 40 |
31 December 2022 | 4,132 | 355 | 1,250 | 1,605 |
Changes from prior years | - | -26 | -59 | -86 |
Additions | ||||
Ordinary additions | - | - | 190 | 190 |
Disposals1 | - | - | -7 | -7 |
Currency translation effects | 204 | 14 | 77 | 91 |
31 December 2023 | 4,336 | 343 | 1,451 | 1,794 |
Accumulated amortisation | ||||
1 January 2022 | - | -283 | -816 | -1,098 |
Amortisation | -11 | -82 | -93 | |
Disposals1 | - | 0 | 70 | 70 |
Currency translation effects | - | -7 | -25 | -32 |
31 December 2022 | - | -300 | -853 | -1,153 |
Changes from prior years | - | 26 | 59 | 86 |
Amortisation | -15 | -86 | -101 | |
Disposals1 | - | - | 7 | 7 |
Currency translation effects | - | -10 | -50 | -60 |
31 December 2023 | - | -299 | -924 | -1,222 |
Acquisition cost | 4,132 | 355 | 1,250 | 1,605 |
NOK in million | Goodwill | Contracts and customer relationships | Computer software and rights | Total other intangible assets |
Accumulated amortisation and write-downs | - | -300 | -853 | -1,153 |
Book value at 31 December 2022 | 4,132 | 55 | 397 | 452 |
Acquisition cost | 4,336 | 343 | 1,451 | 1,794 |
Accumulated amortisation and write downs | - | -299 | -924 | -1,222 |
Book value at 31 December 2023 | 4,336 | 44 | 528 | 572 |
1Gain/loss on the disposal of intangible assets accounted for insignificant amounts in 2023 and 2022.
Allocations of goodwill
NOK in million | 2023 | 2022 |
Norway | 1,148 | 1,148 |
Sweden | 720 | 671 |
Denmark | 1,792 | 1,680 |
Finland | 284 | 265 |
The Baltics | 274 | 256 |
The Group Shared Services | 119 | 111 |
Total | 4,336 | 4,132 |
The Group does not have any significant research expenses.
Development costs related to internal systems are capitalised in the balance sheet with NOK 112 million (NOK 66 million in 2022).
Note 12\tGoodwill and intangible assets
Accounting policies
12.1 Goodwill
Atea\u2019s goodwill is material. No impairment loss (or reversal) has been recognised during current and the previous year.
Goodwill represents the excess of the cost of acquisition over the fair value of Atea\u2019s share of the net identifiable assets of the acquired business at the time of the acquisition. Goodwill is tested annually for impairment, or more frequently when there is an indication that the unit may be impaired and carried at cost less accumulated impairment losses. An impairment loss recognised for goodwill is not reversed in a subsequent period. Goodwill is allocated to the relevant cash-gen-erating units for the purpose of impairment testing. Each of those cash-generating units represents the lowest levels for which there are separately identifiable cash flows. Gains and losses on the sale of business interests include the carrying amount of goodwill relating to the entity sold.
Goodwill impairment test
Goodwill and other assets are allocated to the Group\u2019s cash-gener-ating units. Atea allocates goodwill to the actual country of operation (segment) where the operations are located.
Goodwill has an indefinite useful life and is not amortised, but impair-ment losses are recognised if the recoverable amount is less than the book value.
Recoverable amounts for cash-generating units are estimated based on calculating the asset\u2019s value in use. Cash flow forecasts are used based on the budget for revenues, product/service mix, profit margins, costs and capital employment. Revenue growth for 2024 is based on budget approved by the Board of Directors and growth estimates for 2025-2028 varies between 1.1% and 8.9%\u200c1based on management estimates and expected market growth in every country. Cash flows beyond these five years are based on an expected growth rate of 0.5% - 1.3% for an indefinite period (deter-mined primarily by external market analyses).
Discount rates represent the current market assessment of the risks specific to each cash-generating unit, taking into consideration the time value of money and individual risks of the underlying assets that have not been incorporated in the cash flow estimates. The discount rate calculation is based on the specific circumstances of the Group and its operating segments and is derived from its Weighted Average Cost of Capital (WACC). The WACC rates used in discounting the future cash flows are based on a 10-year government bond rate in the respective countries, adjusted for weighted average interest margin on external Group facilities. A market risk premium and a country risk premium is added. The discount rates also take into account the gearing, corporate tax rate, and asset beta.The cost of equity is derived from the expected return on investment by the Group\u2019s inves-tors. The cost of debt is based on the interest-bearing borrowings the Group is obliged to service. Segment-specific risk is incorporated by applying beta factor. Adjustments to the discount rate are made
to factor in the specific amount and timing of the future tax flows in order to reflect a pre-tax discount rate.
The Group has assessed whether expected useful lives of non-cur-rent assets and estimated residual values are effected because of climate risks. The Group has not identified any indicator that exist that non-financial assets are impaired as a result of climate risk or Paris agreement measures. See Note 27for more information.
Sensitivity analysis:
In addition to impairment testing using the base case assumptions above,\u00a0few separate sensitivity analyses were performed for each cash-generating units:
\u2013a discount rate analysis where the discount rate was increased\u00a0by 3% due to adjusted estimates on market premium and credit risk,
\u2013revenue growth is 1- 5% below estimated growth in 2025-2028.
\u2013EBITDA margin is 0.25% below estimated growth in 2025-2028.
The EBITDA margin is the most sensitive parameter in the impairment test. The goodwill related to the operations in Denmark is the most critical for possible impairment based on historical results.
Management believes that any other reasonably possible change in the key assumptions above, will not cause the aggregate carrying amount to exceed the aggregate recoverable amount of any of the cash generating units.
12.2 Other intangible assets
Computer software and rights
Acquired computer software licences are recognized on the balance sheet based on the costs incurred to acquire and bring to use the specific software. These costs are amortized over their estimated useful lives. Costs associated with maintaining computer software programs are recognized as an expense as incurred. Costs that are directly associated with the development of identifiable and unique software or system solutions controlled by the Group, which will probably generate economic benefits related to the asset that will pass to Atea and can be measured reliably, are recognized as intangible assets. Computer software costs/solutions and rights recognized on the balance sheet are amortized over their estimated useful lives, normally 3-7 years.
Contracts and customer relationships
In connection with business combinations, contracts and customer relationships are recorded at fair value at the acquisition date. The amortization period for contracts and customer relationships is based on the period they are expected to generate cash flow, normally 4-5 years.
Impairment of non-financial assets
Assets that are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset\u2019s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units).
Critical accounting judgements and key sources of estimation uncertainty
Impairment of goodwill:
The most important estimates and assumptions that have a signif-icant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are related to impairment of goodwill. The book value of goodwill as of 31 December 2023 is NOK 4,336 million.
Sensitivity analysis indicates that even with the use of conservative estimates with regard to future cash flows and discount rates, the book value of any of the assets will not exceed the recoverable amounts. See more information above.
Recoverable amounts of cash-generating units are determined based on judgements of fair values less costs to sell or value-in-use esti-mates.
WACC (Weighted Average Cost of Capital) used\u200c2:
NOK in million | 2023 | 2022 |
Norway | 12.3% | 12.0% |
Sweden | 10.8% | 10.0% |
Denmark | 11.2% | 10.8% |
Finland | 11.4% | 11.0% |
The Baltics\u200c3 | 11.4% | 11.6% |
1Average growth rates in total for the period 2025-2028.
2At 30 September 2023.
3Volume-weighted average for Estonia, Latvia and Lithuania.
NOK in million | Goodwill | Contracts and customer relationships | Computer software and rights | Total other intangible assets |
Acquisitions | ||||
1 January 2022 | 3,942 | 299 | 1,127 | 1,427 |
Additions | ||||
Ordinary additions | - | - | 160 | 160 |
Business combinations | 107 | 50 | - | 50 |
Disposals1 | - | -2 | -70 | -72 |
Currency translation effects | 83 | 8 | 32 | 40 |
31 December 2022 | 4,132 | 355 | 1,250 | 1,605 |
Changes from prior years | - | -26 | -59 | -86 |
Additions | ||||
Ordinary additions | - | - | 190 | 190 |
Disposals1 | - | - | -7 | -7 |
Currency translation effects | 204 | 14 | 77 | 91 |
31 December 2023 | 4,336 | 343 | 1,451 | 1,794 |
Accumulated amortisation | ||||
1 January 2022 | - | -283 | -816 | -1,098 |
Amortisation | -11 | -82 | -93 | |
Disposals1 | - | 0 | 70 | 70 |
Currency translation effects | - | -7 | -25 | -32 |
31 December 2022 | - | -300 | -853 | -1,153 |
Changes from prior years | - | 26 | 59 | 86 |
Amortisation | -15 | -86 | -101 | |
Disposals1 | - | - | 7 | 7 |
Currency translation effects | - | -10 | -50 | -60 |
31 December 2023 | - | -299 | -924 | -1,222 |
Acquisition cost | 4,132 | 355 | 1,250 | 1,605 |
NOK in million | Goodwill | Contracts and customer relationships | Computer software and rights | Total other intangible assets |
Accumulated amortisation and write-downs | - | -300 | -853 | -1,153 |
Book value at 31 December 2022 | 4,132 | 55 | 397 | 452 |
Acquisition cost | 4,336 | 343 | 1,451 | 1,794 |
Accumulated amortisation and write downs | - | -299 | -924 | -1,222 |
Book value at 31 December 2023 | 4,336 | 44 | 528 | 572 |
1Gain/loss on the disposal of intangible assets accounted for insignificant amounts in 2023 and 2022.
Allocations of goodwill
NOK in million | 2023 | 2022 |
Norway | 1,148 | 1,148 |
Sweden | 720 | 671 |
Denmark | 1,792 | 1,680 |
Finland | 284 | 265 |
The Baltics | 274 | 256 |
The Group Shared Services | 119 | 111 |
Total | 4,336 | 4,132 |
The Group does not have any significant research expenses.
Development costs related to internal systems are capitalised in the balance sheet with NOK 112 million (NOK 66 million in 2022).
Note 12\tGoodwill and intangible assets
Accounting policies
12.1 Goodwill
Atea\u2019s goodwill is material. No impairment loss (or reversal) has been recognised during current and the previous year.
Goodwill represents the excess of the cost of acquisition over the fair value of Atea\u2019s share of the net identifiable assets of the acquired business at the time of the acquisition. Goodwill is tested annually for impairment, or more frequently when there is an indication that the unit may be impaired and carried at cost less accumulated impairment losses. An impairment loss recognised for goodwill is not reversed in a subsequent period. Goodwill is allocated to the relevant cash-gen-erating units for the purpose of impairment testing. Each of those cash-generating units represents the lowest levels for which there are separately identifiable cash flows. Gains and losses on the sale of business interests include the carrying amount of goodwill relating to the entity sold.
Goodwill impairment test
Goodwill and other assets are allocated to the Group\u2019s cash-gener-ating units. Atea allocates goodwill to the actual country of operation (segment) where the operations are located.
Goodwill has an indefinite useful life and is not amortised, but impair-ment losses are recognised if the recoverable amount is less than the book value.
Recoverable amounts for cash-generating units are estimated based on calculating the asset\u2019s value in use. Cash flow forecasts are used based on the budget for revenues, product/service mix, profit margins, costs and capital employment. Revenue growth for 2024 is based on budget approved by the Board of Directors and growth estimates for 2025-2028 varies between 1.1% and 8.9%\u200c1based on management estimates and expected market growth in every country. Cash flows beyond these five years are based on an expected growth rate of 0.5% - 1.3% for an indefinite period (deter-mined primarily by external market analyses).
Discount rates represent the current market assessment of the risks specific to each cash-generating unit, taking into consideration the time value of money and individual risks of the underlying assets that have not been incorporated in the cash flow estimates. The discount rate calculation is based on the specific circumstances of the Group and its operating segments and is derived from its Weighted Average Cost of Capital (WACC). The WACC rates used in discounting the future cash flows are based on a 10-year government bond rate in the respective countries, adjusted for weighted average interest margin on external Group facilities. A market risk premium and a country risk premium is added. The discount rates also take into account the gearing, corporate tax rate, and asset beta.The cost of equity is derived from the expected return on investment by the Group\u2019s inves-tors. The cost of debt is based on the interest-bearing borrowings the Group is obliged to service. Segment-specific risk is incorporated by applying beta factor. Adjustments to the discount rate are made
to factor in the specific amount and timing of the future tax flows in order to reflect a pre-tax discount rate.
The Group has assessed whether expected useful lives of non-cur-rent assets and estimated residual values are effected because of climate risks. The Group has not identified any indicator that exist that non-financial assets are impaired as a result of climate risk or Paris agreement measures. See Note 27for more information.
Sensitivity analysis:
In addition to impairment testing using the base case assumptions above,\u00a0few separate sensitivity analyses were performed for each cash-generating units:
\u2013a discount rate analysis where the discount rate was increased\u00a0by 3% due to adjusted estimates on market premium and credit risk,
\u2013revenue growth is 1- 5% below estimated growth in 2025-2028.
\u2013EBITDA margin is 0.25% below estimated growth in 2025-2028.
The EBITDA margin is the most sensitive parameter in the impairment test. The goodwill related to the operations in Denmark is the most critical for possible impairment based on historical results.
Management believes that any other reasonably possible change in the key assumptions above, will not cause the aggregate carrying amount to exceed the aggregate recoverable amount of any of the cash generating units.
12.2 Other intangible assets
Computer software and rights
Acquired computer software licences are recognized on the balance sheet based on the costs incurred to acquire and bring to use the specific software. These costs are amortized over their estimated useful lives. Costs associated with maintaining computer software programs are recognized as an expense as incurred. Costs that are directly associated with the development of identifiable and unique software or system solutions controlled by the Group, which will probably generate economic benefits related to the asset that will pass to Atea and can be measured reliably, are recognized as intangible assets. Computer software costs/solutions and rights recognized on the balance sheet are amortized over their estimated useful lives, normally 3-7 years.
Contracts and customer relationships
In connection with business combinations, contracts and customer relationships are recorded at fair value at the acquisition date. The amortization period for contracts and customer relationships is based on the period they are expected to generate cash flow, normally 4-5 years.
Impairment of non-financial assets
Assets that are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset\u2019s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units).
Critical accounting judgements and key sources of estimation uncertainty
Impairment of goodwill:
The most important estimates and assumptions that have a signif-icant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are related to impairment of goodwill. The book value of goodwill as of 31 December 2023 is NOK 4,336 million.
Sensitivity analysis indicates that even with the use of conservative estimates with regard to future cash flows and discount rates, the book value of any of the assets will not exceed the recoverable amounts. See more information above.
Recoverable amounts of cash-generating units are determined based on judgements of fair values less costs to sell or value-in-use esti-mates.
WACC (Weighted Average Cost of Capital) used\u200c2:
NOK in million | 2023 | 2022 |
Norway | 12.3% | 12.0% |
Sweden | 10.8% | 10.0% |
Denmark | 11.2% | 10.8% |
Finland | 11.4% | 11.0% |
The Baltics\u200c3 | 11.4% | 11.6% |
1Average growth rates in total for the period 2025-2028.
2At 30 September 2023.
3Volume-weighted average for Estonia, Latvia and Lithuania.
NOK in million | Goodwill | Contracts and customer relationships | Computer software and rights | Total other intangible assets |
Acquisitions | ||||
1 January 2022 | 3,942 | 299 | 1,127 | 1,427 |
Additions | ||||
Ordinary additions | - | - | 160 | 160 |
Business combinations | 107 | 50 | - | 50 |
Disposals1 | - | -2 | -70 | -72 |
Currency translation effects | 83 | 8 | 32 | 40 |
31 December 2022 | 4,132 | 355 | 1,250 | 1,605 |
Changes from prior years | - | -26 | -59 | -86 |
Additions | ||||
Ordinary additions | - | - | 190 | 190 |
Disposals1 | - | - | -7 | -7 |
Currency translation effects | 204 | 14 | 77 | 91 |
31 December 2023 | 4,336 | 343 | 1,451 | 1,794 |
Accumulated amortisation | ||||
1 January 2022 | - | -283 | -816 | -1,098 |
Amortisation | -11 | -82 | -93 | |
Disposals1 | - | 0 | 70 | 70 |
Currency translation effects | - | -7 | -25 | -32 |
31 December 2022 | - | -300 | -853 | -1,153 |
Changes from prior years | - | 26 | 59 | 86 |
Amortisation | -15 | -86 | -101 | |
Disposals1 | - | - | 7 | 7 |
Currency translation effects | - | -10 | -50 | -60 |
31 December 2023 | - | -299 | -924 | -1,222 |
Acquisition cost | 4,132 | 355 | 1,250 | 1,605 |
NOK in million | Goodwill | Contracts and customer relationships | Computer software and rights | Total other intangible assets |
Accumulated amortisation and write-downs | - | -300 | -853 | -1,153 |
Book value at 31 December 2022 | 4,132 | 55 | 397 | 452 |
Acquisition cost | 4,336 | 343 | 1,451 | 1,794 |
Accumulated amortisation and write downs | - | -299 | -924 | -1,222 |
Book value at 31 December 2023 | 4,336 | 44 | 528 | 572 |
1Gain/loss on the disposal of intangible assets accounted for insignificant amounts in 2023 and 2022.
Allocations of goodwill
NOK in million | 2023 | 2022 |
Norway | 1,148 | 1,148 |
Sweden | 720 | 671 |
Denmark | 1,792 | 1,680 |
Finland | 284 | 265 |
The Baltics | 274 | 256 |
The Group Shared Services | 119 | 111 |
Total | 4,336 | 4,132 |
The Group does not have any significant research expenses.
Development costs related to internal systems are capitalised in the balance sheet with NOK 112 million (NOK 66 million in 2022).
12.1 Goodwill
Atea\u2019s goodwill is material. No impairment loss (or reversal) has been recognised during current and the previous year.
Goodwill represents the excess of the cost of acquisition over the fair value of Atea\u2019s share of the net identifiable assets of the acquired business at the time of the acquisition. Goodwill is tested annually for impairment, or more frequently when there is an indication that the unit may be impaired and carried at cost less accumulated impairment losses. An impairment loss recognised for goodwill is not reversed in a subsequent period. Goodwill is allocated to the relevant cash-gen-erating units for the purpose of impairment testing. Each of those cash-generating units represents the lowest levels for which there are separately identifiable cash flows. Gains and losses on the sale of business interests include the carrying amount of goodwill relating to the entity sold.
Goodwill impairment test
Goodwill and other assets are allocated to the Group\u2019s cash-gener-ating units. Atea allocates goodwill to the actual country of operation (segment) where the operations are located.
Goodwill has an indefinite useful life and is not amortised, but impair-ment losses are recognised if the recoverable amount is less than the book value.
Recoverable amounts for cash-generating units are estimated based on calculating the asset\u2019s value in use. Cash flow forecasts are used based on the budget for revenues, product/service mix, profit margins, costs and capital employment. Revenue growth for 2024 is based on budget approved by the Board of Directors and growth estimates for 2025-2028 varies between 1.1% and 8.9%\u200c1based on management estimates and expected market growth in every country. Cash flows beyond these five years are based on an expected growth rate of 0.5% - 1.3% for an indefinite period (deter-mined primarily by external market analyses).
Discount rates represent the current market assessment of the risks specific to each cash-generating unit, taking into consideration the time value of money and individual risks of the underlying assets that have not been incorporated in the cash flow estimates. The discount rate calculation is based on the specific circumstances of the Group and its operating segments and is derived from its Weighted Average Cost of Capital (WACC). The WACC rates used in discounting the future cash flows are based on a 10-year government bond rate in the respective countries, adjusted for weighted average interest margin on external Group facilities. A market risk premium and a country risk premium is added. The discount rates also take into account the gearing, corporate tax rate, and asset beta.The cost of equity is derived from the expected return on investment by the Group\u2019s inves-tors. The cost of debt is based on the interest-bearing borrowings the Group is obliged to service. Segment-specific risk is incorporated by applying beta factor. Adjustments to the discount rate are made
to factor in the specific amount and timing of the future tax flows in order to reflect a pre-tax discount rate.
The Group has assessed whether expected useful lives of non-cur-rent assets and estimated residual values are effected because of climate risks. The Group has not identified any indicator that exist that non-financial assets are impaired as a result of climate risk or Paris agreement measures. See Note 27for more information.
Sensitivity analysis:
In addition to impairment testing using the base case assumptions above,\u00a0few separate sensitivity analyses were performed for each cash-generating units:
\u2013a discount rate analysis where the discount rate was increased\u00a0by 3% due to adjusted estimates on market premium and credit risk,
\u2013revenue growth is 1- 5% below estimated growth in 2025-2028.
\u2013EBITDA margin is 0.25% below estimated growth in 2025-2028.
The EBITDA margin is the most sensitive parameter in the impairment test. The goodwill related to the operations in Denmark is the most critical for possible impairment based on historical results.
Management believes that any other reasonably possible change in the key assumptions above, will not cause the aggregate carrying amount to exceed the aggregate recoverable amount of any of the cash generating units.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGoodwillExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f55686": { "value": "Note 13\tInventories
Accounting policies
Goods purchased for resale are valued at the lower of historical cost or net realizable value. The net realizable value is the estimated sales price under ordinary operations less the cost of sales. The historical cost is calculated by means of the first-in, first-out principle (FIFO).
Atea also keeps inventory to cover the spare parts needed in connection with service agreements. The spare parts inventory is recognized at lower of cost and net realisable value. Spare parts are written-down over the average length of the service contracts.
NOK in million | 2023 | 2022 |
Cost of inventories | 827 | 1,245 |
Accumulated provisions for write-downs | -42 | -46 |
Book value at 31 December | 785 | 1,198 |
Provision for write-downs at 1 January | -46 | -40 |
Additional provisions | -11 | -11 |
Used provisions | 17 | 5 |
Foreign exchange effects on inventory write-downs | -2 | 0 |
Provision for write-downs at 31 December | -42 | -46 |
Write-down of inventories recognised as an expense and included in Cost of sales | 11 | 9 |
Inventories recognised as an expense during the period | -21,389 | -20,219 |
Accounting policies
Goods purchased for resale are valued at the lower of historical cost or net realizable value. The net realizable value is the estimated sales price under ordinary operations less the cost of sales. The historical cost is calculated by means of the first-in, first-out principle (FIFO).
Atea also keeps inventory to cover the spare parts needed in connection with service agreements. The spare parts inventory is recognized at lower of cost and net realisable value. Spare parts are written-down over the average length of the service contracts.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForMeasuringInventories", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f55978": { "value": "Note 14\tTrade and other receivables
Accounting policies
Trade receivables, including deferred revenue, are recognized at nominal amount. The interest element is disregarded if it is insignifi-cant. The group applies the IFRS\u00ae Accounting Standards 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables and contract assets. The Group is considering the risk or probability that a credit loss occurs, even if the possibility of a credit loss occurs is very low.
Historically, the loss on trade receivables has been very low. See Note 3for more information.
NOK in million | 2023 | 2022 |
Trade receivables | 6,973 | 6,720 |
Provisions for bad debts | -27 | -19 |
Net book value of trade receivables | 6,946 | 6,701 |
Prepaid expenses | 975 | 1,088 |
Accrued revenue (Contract assets, Note5) | 291 | 329 |
Other current receivables | 924 | 900 |
Other receivables | 2,191 | 2,318 |
Total trade and other receivables | 9,137 | 9,018 |
Other long-term receivables | 182 | 135 |
Total other long-term receivables | 182 | 135 |
Provisions for bad debts at 1 January | -19 | -18 |
Additional provisions | -9 | -1 |
Used provisions | 1 | 2 |
Amount collected during the year | 1 | -1 |
Foreign exchange effect on bad debts | -1 | 0 |
Provisions for bad debts at 31 December | -27 | -19 |
There is no concentration of credit risk with respect to trade receiv-ables, as the Group has a large number of customers spread across several countries. Maximum exposure to trade receivables corre-sponds to NOK 6,973 million (NOK 6,720 million in 2022).
As of 31 December 2023, Atea subsidiaries in Norway, Sweden, Denmark sold receivables of NOK 1,872 million under the securiti-zation facility (NOK 1,859 million at the end of 2022). The maximum balance of accounts receivable which may be sold at any time during the term of contract is NOK 1,900 million. See Note 17for more infor-mation.
As of 31 December 2023 the Group can borrow up to NOK 1,100 million through a securitization facility secured by receivables. Trade receivables up to this limit are pledged as security for revolving credit facility. See Note 17and Note 25for additional information.
The Group has recognised a loss of NOK 12 million related to trade receivables in 2023 (NOK 5 million in 2022). See Note 7for more information.
See otherwise Note 3.1.6with regard to credit risk.
Maturity analysis for trade receivables not due
NOK in million | 2023 | 2022 |
Non-due < 30 | 5,816 | 5,557 |
Non-due 31-90 | 406 | 629 |
Non-due > 91 | 40 | 8 |
Total | 6,262 | 6,194 |
Maturity analysis for trade receivables due
NOK in million | 2023 | 2022 |
Overdue < 30 | 627 | 467 |
Overdue 31-90 | 76 | 35 |
Overdue > 91 | 8 | 23 |
Total | 711 | 525 |
Note 14\tTrade and other receivables
Accounting policies
Trade receivables, including deferred revenue, are recognized at nominal amount. The interest element is disregarded if it is insignifi-cant. The group applies the IFRS\u00ae Accounting Standards 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables and contract assets. The Group is considering the risk or probability that a credit loss occurs, even if the possibility of a credit loss occurs is very low.
Historically, the loss on trade receivables has been very low. See Note 3for more information.
NOK in million | 2023 | 2022 |
Trade receivables | 6,973 | 6,720 |
Provisions for bad debts | -27 | -19 |
Net book value of trade receivables | 6,946 | 6,701 |
Prepaid expenses | 975 | 1,088 |
Accrued revenue (Contract assets, Note5) | 291 | 329 |
Other current receivables | 924 | 900 |
Other receivables | 2,191 | 2,318 |
Total trade and other receivables | 9,137 | 9,018 |
Other long-term receivables | 182 | 135 |
Total other long-term receivables | 182 | 135 |
Provisions for bad debts at 1 January | -19 | -18 |
Additional provisions | -9 | -1 |
Used provisions | 1 | 2 |
Amount collected during the year | 1 | -1 |
Foreign exchange effect on bad debts | -1 | 0 |
Provisions for bad debts at 31 December | -27 | -19 |
There is no concentration of credit risk with respect to trade receiv-ables, as the Group has a large number of customers spread across several countries. Maximum exposure to trade receivables corre-sponds to NOK 6,973 million (NOK 6,720 million in 2022).
As of 31 December 2023, Atea subsidiaries in Norway, Sweden, Denmark sold receivables of NOK 1,872 million under the securiti-zation facility (NOK 1,859 million at the end of 2022). The maximum balance of accounts receivable which may be sold at any time during the term of contract is NOK 1,900 million. See Note 17for more infor-mation.
As of 31 December 2023 the Group can borrow up to NOK 1,100 million through a securitization facility secured by receivables. Trade receivables up to this limit are pledged as security for revolving credit facility. See Note 17and Note 25for additional information.
The Group has recognised a loss of NOK 12 million related to trade receivables in 2023 (NOK 5 million in 2022). See Note 7for more information.
See otherwise Note 3.1.6with regard to credit risk.
Maturity analysis for trade receivables not due
NOK in million | 2023 | 2022 |
Non-due < 30 | 5,816 | 5,557 |
Non-due 31-90 | 406 | 629 |
Non-due > 91 | 40 | 8 |
Total | 6,262 | 6,194 |
Maturity analysis for trade receivables due
NOK in million | 2023 | 2022 |
Overdue < 30 | 627 | 467 |
Overdue 31-90 | 76 | 35 |
Overdue > 91 | 8 | 23 |
Total | 711 | 525 |
Note 14\tTrade and other receivables
Accounting policies
Trade receivables, including deferred revenue, are recognized at nominal amount. The interest element is disregarded if it is insignifi-cant. The group applies the IFRS\u00ae Accounting Standards 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables and contract assets. The Group is considering the risk or probability that a credit loss occurs, even if the possibility of a credit loss occurs is very low.
Historically, the loss on trade receivables has been very low. See Note 3for more information.
NOK in million | 2023 | 2022 |
Trade receivables | 6,973 | 6,720 |
Provisions for bad debts | -27 | -19 |
Net book value of trade receivables | 6,946 | 6,701 |
Prepaid expenses | 975 | 1,088 |
Accrued revenue (Contract assets, Note5) | 291 | 329 |
Other current receivables | 924 | 900 |
Other receivables | 2,191 | 2,318 |
Total trade and other receivables | 9,137 | 9,018 |
Other long-term receivables | 182 | 135 |
Total other long-term receivables | 182 | 135 |
Provisions for bad debts at 1 January | -19 | -18 |
Additional provisions | -9 | -1 |
Used provisions | 1 | 2 |
Amount collected during the year | 1 | -1 |
Foreign exchange effect on bad debts | -1 | 0 |
Provisions for bad debts at 31 December | -27 | -19 |
There is no concentration of credit risk with respect to trade receiv-ables, as the Group has a large number of customers spread across several countries. Maximum exposure to trade receivables corre-sponds to NOK 6,973 million (NOK 6,720 million in 2022).
As of 31 December 2023, Atea subsidiaries in Norway, Sweden, Denmark sold receivables of NOK 1,872 million under the securiti-zation facility (NOK 1,859 million at the end of 2022). The maximum balance of accounts receivable which may be sold at any time during the term of contract is NOK 1,900 million. See Note 17for more infor-mation.
As of 31 December 2023 the Group can borrow up to NOK 1,100 million through a securitization facility secured by receivables. Trade receivables up to this limit are pledged as security for revolving credit facility. See Note 17and Note 25for additional information.
The Group has recognised a loss of NOK 12 million related to trade receivables in 2023 (NOK 5 million in 2022). See Note 7for more information.
See otherwise Note 3.1.6with regard to credit risk.
Maturity analysis for trade receivables not due
NOK in million | 2023 | 2022 |
Non-due < 30 | 5,816 | 5,557 |
Non-due 31-90 | 406 | 629 |
Non-due > 91 | 40 | 8 |
Total | 6,262 | 6,194 |
Maturity analysis for trade receivables due
NOK in million | 2023 | 2022 |
Overdue < 30 | 627 | 467 |
Overdue 31-90 | 76 | 35 |
Overdue > 91 | 8 | 23 |
Total | 711 | 525 |
Note 14\tTrade and other receivables
Accounting policies
Trade receivables, including deferred revenue, are recognized at nominal amount. The interest element is disregarded if it is insignifi-cant. The group applies the IFRS\u00ae Accounting Standards 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables and contract assets. The Group is considering the risk or probability that a credit loss occurs, even if the possibility of a credit loss occurs is very low.
Historically, the loss on trade receivables has been very low. See Note 3for more information.
NOK in million | 2023 | 2022 |
Trade receivables | 6,973 | 6,720 |
Provisions for bad debts | -27 | -19 |
Net book value of trade receivables | 6,946 | 6,701 |
Prepaid expenses | 975 | 1,088 |
Accrued revenue (Contract assets, Note5) | 291 | 329 |
Other current receivables | 924 | 900 |
Other receivables | 2,191 | 2,318 |
Total trade and other receivables | 9,137 | 9,018 |
Other long-term receivables | 182 | 135 |
Total other long-term receivables | 182 | 135 |
Provisions for bad debts at 1 January | -19 | -18 |
Additional provisions | -9 | -1 |
Used provisions | 1 | 2 |
Amount collected during the year | 1 | -1 |
Foreign exchange effect on bad debts | -1 | 0 |
Provisions for bad debts at 31 December | -27 | -19 |
There is no concentration of credit risk with respect to trade receiv-ables, as the Group has a large number of customers spread across several countries. Maximum exposure to trade receivables corre-sponds to NOK 6,973 million (NOK 6,720 million in 2022).
As of 31 December 2023, Atea subsidiaries in Norway, Sweden, Denmark sold receivables of NOK 1,872 million under the securiti-zation facility (NOK 1,859 million at the end of 2022). The maximum balance of accounts receivable which may be sold at any time during the term of contract is NOK 1,900 million. See Note 17for more infor-mation.
As of 31 December 2023 the Group can borrow up to NOK 1,100 million through a securitization facility secured by receivables. Trade receivables up to this limit are pledged as security for revolving credit facility. See Note 17and Note 25for additional information.
The Group has recognised a loss of NOK 12 million related to trade receivables in 2023 (NOK 5 million in 2022). See Note 7for more information.
See otherwise Note 3.1.6with regard to credit risk.
Maturity analysis for trade receivables not due
NOK in million | 2023 | 2022 |
Non-due < 30 | 5,816 | 5,557 |
Non-due 31-90 | 406 | 629 |
Non-due > 91 | 40 | 8 |
Total | 6,262 | 6,194 |
Maturity analysis for trade receivables due
NOK in million | 2023 | 2022 |
Overdue < 30 | 627 | 467 |
Overdue 31-90 | 76 | 35 |
Overdue > 91 | 8 | 23 |
Total | 711 | 525 |
Note 14\tTrade and other receivables
Accounting policies
Trade receivables, including deferred revenue, are recognized at nominal amount. The interest element is disregarded if it is insignifi-cant. The group applies the IFRS\u00ae Accounting Standards 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables and contract assets. The Group is considering the risk or probability that a credit loss occurs, even if the possibility of a credit loss occurs is very low.
Historically, the loss on trade receivables has been very low. See Note 3for more information.
NOK in million | 2023 | 2022 |
Trade receivables | 6,973 | 6,720 |
Provisions for bad debts | -27 | -19 |
Net book value of trade receivables | 6,946 | 6,701 |
Prepaid expenses | 975 | 1,088 |
Accrued revenue (Contract assets, Note5) | 291 | 329 |
Other current receivables | 924 | 900 |
Other receivables | 2,191 | 2,318 |
Total trade and other receivables | 9,137 | 9,018 |
Other long-term receivables | 182 | 135 |
Total other long-term receivables | 182 | 135 |
Provisions for bad debts at 1 January | -19 | -18 |
Additional provisions | -9 | -1 |
Used provisions | 1 | 2 |
Amount collected during the year | 1 | -1 |
Foreign exchange effect on bad debts | -1 | 0 |
Provisions for bad debts at 31 December | -27 | -19 |
There is no concentration of credit risk with respect to trade receiv-ables, as the Group has a large number of customers spread across several countries. Maximum exposure to trade receivables corre-sponds to NOK 6,973 million (NOK 6,720 million in 2022).
As of 31 December 2023, Atea subsidiaries in Norway, Sweden, Denmark sold receivables of NOK 1,872 million under the securiti-zation facility (NOK 1,859 million at the end of 2022). The maximum balance of accounts receivable which may be sold at any time during the term of contract is NOK 1,900 million. See Note 17for more infor-mation.
As of 31 December 2023 the Group can borrow up to NOK 1,100 million through a securitization facility secured by receivables. Trade receivables up to this limit are pledged as security for revolving credit facility. See Note 17and Note 25for additional information.
The Group has recognised a loss of NOK 12 million related to trade receivables in 2023 (NOK 5 million in 2022). See Note 7for more information.
See otherwise Note 3.1.6with regard to credit risk.
Maturity analysis for trade receivables not due
NOK in million | 2023 | 2022 |
Non-due < 30 | 5,816 | 5,557 |
Non-due 31-90 | 406 | 629 |
Non-due > 91 | 40 | 8 |
Total | 6,262 | 6,194 |
Maturity analysis for trade receivables due
NOK in million | 2023 | 2022 |
Overdue < 30 | 627 | 467 |
Overdue 31-90 | 76 | 35 |
Overdue > 91 | 8 | 23 |
Total | 711 | 525 |
Accounting policies
Trade receivables, including deferred revenue, are recognized at nominal amount. The interest element is disregarded if it is insignifi-cant. The group applies the IFRS\u00ae Accounting Standards 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables and contract assets. The Group is considering the risk or probability that a credit loss occurs, even if the possibility of a credit loss occurs is very low.
Historically, the loss on trade receivables has been very low. See Note 3for more information.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f56732": { "value": "Note 15\tShare capital and premium, options and shareholders
Accounting policies
Own Shares
Own shares represent the shares of the parent company Atea ASA that are held in treasury or by the employee benefit trust. Own shares are recorded at cost and deducted from equity. Atea ASA holds 1,233,053 own shares at 31 December 2023 (1,786,498 at 31 December 2022).
The company has used own shares in order to fullfill their obligation related to shared based compensation. See Note 6.
Shares and share capital
In 2023 the nominal value of shares was NOK 1 per share. All the shares issued by the company are fully paid.
Number of shares | Share capital | |||||
NOK in million, except number of shares | Issued | Treasury shares | Issued | Treasury shares | Share premium | Total paid-in equity |
At 1 January 2022 | 112,130,609 | -608,567 | 112 | -1 | 546 | 657 |
Issue of Share capital | 253,484 | - | 0 | - | 23 | 23 |
Changes related to own shares | - | -1,177,931 | - | -1 | - | -1 |
At 31 December 2022 | 112,384,093 | -1,786,498 | 112 | -2 | 569 | 680 |
At 1 January 2023 | 112,384,093 | -1,786,498 | 112 | -2 | 569 | 680 |
Changes related to own shares | - | 553,445 | - | 1 | - | 1 |
At 31 December 2023 | 112,384,093 | -1,233,053 | 112 | -1 | 569 | 680 |
10 largest shareholders at 31 December 2023\u200c1
Shareholder | Shares | % |
Systemintegration APS2 | 31,391,063 | 27.9% |
Folketrygdfondet | 8,210,886 | 7.3% |
State Street Bank and Trust Co.3 | 5,927,724 | 5.3% |
State Street Bank and Trust Co.3 | 3,984,978 | 3.5% |
Verdipapirfond Odin Norden | 3,656,029 | 3.3% |
State Street Bank and Trust Co.3 | 2,739,448 | 2.4% |
RBC Investor Services Trust3 | 2,657,864 | 2.4% |
State Street Bank and Trust Co.3 | 2,611,742 | 2.3% |
Verdipapirfond Odin Norge | 2,287,192 | 2.0% |
Danske Capital | 1,769,982 | 1.6% |
Other | 47,147,185 | 42.0% |
Total number of shares | 112,384,093 | 100.0% |
Number of shareholders: | 9,091 | |
Percentage of foreign shareholders: | 67% |
1Source: Verdipapirsentralen.
2Includes shares held by Lone Sch\u00f8tt Kun\u00f8e.
3Includes client nominee accounts.
Note 15\tShare capital and premium, options and shareholders
Accounting policies
Own Shares
Own shares represent the shares of the parent company Atea ASA that are held in treasury or by the employee benefit trust. Own shares are recorded at cost and deducted from equity. Atea ASA holds 1,233,053 own shares at 31 December 2023 (1,786,498 at 31 December 2022).
The company has used own shares in order to fullfill their obligation related to shared based compensation. See Note 6.
Shares and share capital
In 2023 the nominal value of shares was NOK 1 per share. All the shares issued by the company are fully paid.
Number of shares | Share capital | |||||
NOK in million, except number of shares | Issued | Treasury shares | Issued | Treasury shares | Share premium | Total paid-in equity |
At 1 January 2022 | 112,130,609 | -608,567 | 112 | -1 | 546 | 657 |
Issue of Share capital | 253,484 | - | 0 | - | 23 | 23 |
Changes related to own shares | - | -1,177,931 | - | -1 | - | -1 |
At 31 December 2022 | 112,384,093 | -1,786,498 | 112 | -2 | 569 | 680 |
At 1 January 2023 | 112,384,093 | -1,786,498 | 112 | -2 | 569 | 680 |
Changes related to own shares | - | 553,445 | - | 1 | - | 1 |
At 31 December 2023 | 112,384,093 | -1,233,053 | 112 | -1 | 569 | 680 |
10 largest shareholders at 31 December 2023\u200c1
Shareholder | Shares | % |
Systemintegration APS2 | 31,391,063 | 27.9% |
Folketrygdfondet | 8,210,886 | 7.3% |
State Street Bank and Trust Co.3 | 5,927,724 | 5.3% |
State Street Bank and Trust Co.3 | 3,984,978 | 3.5% |
Verdipapirfond Odin Norden | 3,656,029 | 3.3% |
State Street Bank and Trust Co.3 | 2,739,448 | 2.4% |
RBC Investor Services Trust3 | 2,657,864 | 2.4% |
State Street Bank and Trust Co.3 | 2,611,742 | 2.3% |
Verdipapirfond Odin Norge | 2,287,192 | 2.0% |
Danske Capital | 1,769,982 | 1.6% |
Other | 47,147,185 | 42.0% |
Total number of shares | 112,384,093 | 100.0% |
Number of shareholders: | 9,091 | |
Percentage of foreign shareholders: | 67% |
1Source: Verdipapirsentralen.
2Includes shares held by Lone Sch\u00f8tt Kun\u00f8e.
3Includes client nominee accounts.
Note 15\tShare capital and premium, options and shareholders
Accounting policies
Own Shares
Own shares represent the shares of the parent company Atea ASA that are held in treasury or by the employee benefit trust. Own shares are recorded at cost and deducted from equity. Atea ASA holds 1,233,053 own shares at 31 December 2023 (1,786,498 at 31 December 2022).
The company has used own shares in order to fullfill their obligation related to shared based compensation. See Note 6.
Shares and share capital
In 2023 the nominal value of shares was NOK 1 per share. All the shares issued by the company are fully paid.
Number of shares | Share capital | |||||
NOK in million, except number of shares | Issued | Treasury shares | Issued | Treasury shares | Share premium | Total paid-in equity |
At 1 January 2022 | 112,130,609 | -608,567 | 112 | -1 | 546 | 657 |
Issue of Share capital | 253,484 | - | 0 | - | 23 | 23 |
Changes related to own shares | - | -1,177,931 | - | -1 | - | -1 |
At 31 December 2022 | 112,384,093 | -1,786,498 | 112 | -2 | 569 | 680 |
At 1 January 2023 | 112,384,093 | -1,786,498 | 112 | -2 | 569 | 680 |
Changes related to own shares | - | 553,445 | - | 1 | - | 1 |
At 31 December 2023 | 112,384,093 | -1,233,053 | 112 | -1 | 569 | 680 |
10 largest shareholders at 31 December 2023\u200c1
Shareholder | Shares | % |
Systemintegration APS2 | 31,391,063 | 27.9% |
Folketrygdfondet | 8,210,886 | 7.3% |
State Street Bank and Trust Co.3 | 5,927,724 | 5.3% |
State Street Bank and Trust Co.3 | 3,984,978 | 3.5% |
Verdipapirfond Odin Norden | 3,656,029 | 3.3% |
State Street Bank and Trust Co.3 | 2,739,448 | 2.4% |
RBC Investor Services Trust3 | 2,657,864 | 2.4% |
State Street Bank and Trust Co.3 | 2,611,742 | 2.3% |
Verdipapirfond Odin Norge | 2,287,192 | 2.0% |
Danske Capital | 1,769,982 | 1.6% |
Other | 47,147,185 | 42.0% |
Total number of shares | 112,384,093 | 100.0% |
Number of shareholders: | 9,091 | |
Percentage of foreign shareholders: | 67% |
1Source: Verdipapirsentralen.
2Includes shares held by Lone Sch\u00f8tt Kun\u00f8e.
3Includes client nominee accounts.
Accounting policies
Own Shares
Own shares represent the shares of the parent company Atea ASA that are held in treasury or by the employee benefit trust. Own shares are recorded at cost and deducted from equity. Atea ASA holds 1,233,053 own shares at 31 December 2023 (1,786,498 at 31 December 2022).
The company has used own shares in order to fullfill their obligation related to shared based compensation. See Note 6.
Shares and share capital
In 2023 the nominal value of shares was NOK 1 per share. All the shares issued by the company are fully paid.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTreasurySharesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s10_notes__6__115-1": { "value": "Note 16\tTrade payables and other current liabilities
Accounting policies
Trade payables are initially recognized at fair value. Subsequently they are measured at amortized cost using the effective interest method. Short-term payables are normally not discounted.
NOK in million | 2023 | 2022 |
Trade payables\u200c1 | 8,045 | 7,878 |
Public fees payable | 935 | 945 |
Prepayments from customers (Contract liabilities, Note 5) | 892 | 845 |
Accrued holiday payments | 660 | 581 |
Deferred income (Contract liabilities, Note 5) | 310 | 311 |
Other accr. expenses (products & services)\u200c1 | 409 | 451 |
Other financial liabilities | 53 | 26 |
Other current liabilities | 456 | 514 |
Total other current liabilities | 3,715 | 3,672 |
Total trade payables and other current liabilities | 11,760 | 11,550 |
Maturity analysis trade payable:
NOK in million | 2023 | 2022 |
Due < 30 | 5,960 | 5,705 |
Due 31-90 | 2,041 | 2,001 |
Due > 91 | 44 | 173 |
Total | 8,045 | 7,878 |
1Trade payables and Other current liabilities have been restated for 2022. See Note 2.1.2.
Note 19\tChanges in financial liabilities
NOK in million | Other long term loans | Long-term interest-bearing liabilities | Current interest-bearing liabilities | Long term leasing liabilities | Current leasing liabilities | Total |
Balance at 1 January 2023 | 17 | - | -586 | -1,055 | -363 | -1,987 |
Proceeds from overdraft/uncommitted securitization facility | - | -588 | -2,636 | - | - | -3,224 |
Repayments of overdraft/uncommitted securitization facility | - | - | 3,275 | - | - | 3,275 |
Lease payments | - | - | - | -7 | 350 | 343 |
Other cash payments | -2 | - | 5 | - | - | 3 |
Deferred interest expenses | - | - | - | - | - | - |
Lease contracts - non-cash items | - | - | - | - | -386 | -386 |
Other non-cash items | - | - | -59 | 7 | 0 | -52 |
Currency effect | 1 | - | -5 | -38 | -18 | -61 |
Balance at 31 December 2023 | 15 | -588 | -5 | -1,093 | -418 | -2,089 |
NOK in million | Other long term loans | |||||
Long-term interest-bearing liabilities | Current interest-bearing liabilities | |||||
Long term leasing liabilities | Current leasing liabilities | |||||
Total | ||||||
Balance at 1 January 2022 | 29 | -475 | -8 | -1,038 | -355 | -1,848 |
Proceeds from overdraft/uncommitted securitization facility | - | - | -4,923 | - | - | -4,923 |
Repayments of overdraft/uncommitted securitization facility | - | - | 4,847 | - | - | 4,847 |
Lease payments | - | - | - | 17 | 341 | 358 |
Other cash payments | -13 | - | 5 | - | - | -8 |
Deferred interest expenses | - | - | -1 | - | - | -1 |
Lease contracts - non-cash items | - | - | - | - | -356 | -356 |
Other non-cash items | - | 475 | -505 | -27 | 11 | -46 |
Currency effect | 0 | - | 0 | -7 | -4 | -10 |
Balance at 31 December 2022 | 17 | - | -586 | -1,055 | -363 | -1,987 |
Note 16\tTrade payables and other current liabilities
Accounting policies
Trade payables are initially recognized at fair value. Subsequently they are measured at amortized cost using the effective interest method. Short-term payables are normally not discounted.
NOK in million | 2023 | 2022 |
Trade payables\u200c1 | 8,045 | 7,878 |
Public fees payable | 935 | 945 |
Prepayments from customers (Contract liabilities, Note 5) | 892 | 845 |
Accrued holiday payments | 660 | 581 |
Deferred income (Contract liabilities, Note 5) | 310 | 311 |
Other accr. expenses (products & services)\u200c1 | 409 | 451 |
Other financial liabilities | 53 | 26 |
Other current liabilities | 456 | 514 |
Total other current liabilities | 3,715 | 3,672 |
Total trade payables and other current liabilities | 11,760 | 11,550 |
Maturity analysis trade payable:
NOK in million | 2023 | 2022 |
Due < 30 | 5,960 | 5,705 |
Due 31-90 | 2,041 | 2,001 |
Due > 91 | 44 | 173 |
Total | 8,045 | 7,878 |
1Trade payables and Other current liabilities have been restated for 2022. See Note 2.1.2.
Note 17\tFinancial liabilities
Accounting policies
Financial liabilities are recognized at fair value when the loan is disbursed, net of the transaction costs incurred. Transaction costs are charged as an expense over the term of the loan (effective interest rate). Financial liabilities are classified as current liabilities unless there exists an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date. According to IFRS\u00ae Accounting Standards 9, the financial liabilities are measured at amortised cost.
NOK in million | 2023 | 2022 |
Long-term borrowings | ||
EIB loan | 588 | - |
Long-term interest-bearing borrowings | 588 | - |
Current borrowings | ||
EIB loan | - | 475 |
Uncommitted securitization facility | - | 95 |
Overdraft facility secured by receivables | - | 11 |
Other | 5 | 5 |
Interest-bearing current liabilities | 5 | 586 |
Total liabilities excluding leasing | 593 | 586 |
Securitization
Atea has a securitization contract organized by a bank, consisting of 2 facilities. The first facility enables Atea to sell specified receivables of up to NOK 1,900 million. The second facility is an uncommitted revolving credit facility of NOK 1,100 million secured by other receiv-ables.\u00a0The facilities were extended at the end of 2021 for the next
three years term, and has an implicit discount rate of IBOR 3M + 0.60%. Atea has not utilised the second facility as of 31 December 2023 (facility utilised amounting NOK 95 million at the end of 2022).
In the securitization program, receivables are transferred in a \u201ctrue sale\u201d to a bankruptcy-remote special purpose vehicle (SPV). This delinks the performance of the receivables (mostly public sector) from the credit quality of Atea and its subsidiaries. The cash flow from selling receivables is recognized under Cash flow from operational activities. The change in the revolving credit facility is recognized as Cash flow from financing activities.
EIB loan
Atea ASA has entered into an unsecured loan agreement for NOK 588 million with the European Investment Bank in May 2023. The loan has a term of 6 years, and a rate of interest of NIBOR 6M + 1.148%.
Overdraft facility
The Group has an overdraft facility of NOK 300 million provided by Nordea Denmark, Benchmark of Nordea bank Abp. None of this facility had been utilised at 31 December 2023 (the facility used amounted NOK 11 million at the end of 2022). Amounts drawn on this facility are cash and cash equivalents. The facility has standard terms and conditions for this type of financing.
Money market line
The Group had a uncommitted money market line of NOK 600 million provided by a Nordea Denmark, Benchmark of Nordea bank Abp at the end of 2023. None of this facility had been utilised at 31 December 2023 and 31 December 2022. Amounts drawn on this
facility are classified as short-term debt. The facility has standard terms and conditions for this type of financing.
Supplier financing
Atea Group entered into a temporary uncommitted revolving trade finance facility with the amount of up to USD 110 million with Deutsche Bank in May 2023, under which Deutsche Bank extended payables to one vendor on behalf of Atea ASA and its subsidiaries at a rate of interest of CME SOFR + 2.00%. The facility was terminated in November, 2023.
Payment extensions under the trade finance facility are reported on the balance sheet as interest-bearing current liabilities. On the cash flow statement, payment extensions under the trade finance facility are treated as a credit line and reported as Cash Flow from Financing Activities when drawn and when repaid. The Group does not have any payment extensions in the balance at 31 December 2023.
Financial covenant
The financial covenant which applies to the above EIB loan facility and the Nordea facilities is a Leverage Ratio for the Group of 2.5x. Leverage Ratio means the ratio of net interest-bearing Debt to EBITDA. EBITDA in this calculation is pro forma, i.e. adjusted for acquisition of businesses, and sale of existing business units in the Group. The financial covenant is measured end of each quarter. The Group is compliant with the covenant at the balance date (see Note 20and APM Note).
See Note 25for disclosure of asset pledged under financing contracts.
Maturity analysis for loans 2023\u200c1
NOK in million | Less than 1 month | 1-3 months | 3 months to 1 year | 1-5 years | Total |
Long-term financing | 2 | 5 | 20 | 710 | 737 |
Short-term financing | 5 | - | - | - | 5 |
Total | 7 | 5 | 20 | 710 | 742 |
Maturity analysis for loans 2022\u200c1
NOK in million | Less than 1 month | 1-3 months | 3 months to 1 year | 1-5 years | Total |
Long-term financing | 2 | 4 | 479 | - | 486 |
Short-term financing | 111 | - | - | - | 111 |
Total | 113 | 4 | 479 | - | 597 |
1Includes interest payable.
Loan facilities:
NOK in million | 2023 | 2022 |
Long term | ||
Unsecured EIB loan | 588 | - |
-of which utilised | 588 | - |
Short term | ||
Unsecured EIB loan | - | 475 |
-of which utilised | - | 475 |
Uncommited securitization facility | 1,100 | 1,100 |
-of which utilised | - | 95 |
Overdraft facility | 300 | 300 |
-of which utilised | - | 11 |
Money market line | 600 | 600 |
-of which utilised | - | - |
Note 17\tFinancial liabilities
Accounting policies
Financial liabilities are recognized at fair value when the loan is disbursed, net of the transaction costs incurred. Transaction costs are charged as an expense over the term of the loan (effective interest rate). Financial liabilities are classified as current liabilities unless there exists an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date. According to IFRS\u00ae Accounting Standards 9, the financial liabilities are measured at amortised cost.
NOK in million | 2023 | 2022 |
Long-term borrowings | ||
EIB loan | 588 | - |
Long-term interest-bearing borrowings | 588 | - |
Current borrowings | ||
EIB loan | - | 475 |
Uncommitted securitization facility | - | 95 |
Overdraft facility secured by receivables | - | 11 |
Other | 5 | 5 |
Interest-bearing current liabilities | 5 | 586 |
Total liabilities excluding leasing | 593 | 586 |
Securitization
Atea has a securitization contract organized by a bank, consisting of 2 facilities. The first facility enables Atea to sell specified receivables of up to NOK 1,900 million. The second facility is an uncommitted revolving credit facility of NOK 1,100 million secured by other receiv-ables.\u00a0The facilities were extended at the end of 2021 for the next
three years term, and has an implicit discount rate of IBOR 3M + 0.60%. Atea has not utilised the second facility as of 31 December 2023 (facility utilised amounting NOK 95 million at the end of 2022).
In the securitization program, receivables are transferred in a \u201ctrue sale\u201d to a bankruptcy-remote special purpose vehicle (SPV). This delinks the performance of the receivables (mostly public sector) from the credit quality of Atea and its subsidiaries. The cash flow from selling receivables is recognized under Cash flow from operational activities. The change in the revolving credit facility is recognized as Cash flow from financing activities.
EIB loan
Atea ASA has entered into an unsecured loan agreement for NOK 588 million with the European Investment Bank in May 2023. The loan has a term of 6 years, and a rate of interest of NIBOR 6M + 1.148%.
Overdraft facility
The Group has an overdraft facility of NOK 300 million provided by Nordea Denmark, Benchmark of Nordea bank Abp. None of this facility had been utilised at 31 December 2023 (the facility used amounted NOK 11 million at the end of 2022). Amounts drawn on this facility are cash and cash equivalents. The facility has standard terms and conditions for this type of financing.
Money market line
The Group had a uncommitted money market line of NOK 600 million provided by a Nordea Denmark, Benchmark of Nordea bank Abp at the end of 2023. None of this facility had been utilised at 31 December 2023 and 31 December 2022. Amounts drawn on this
facility are classified as short-term debt. The facility has standard terms and conditions for this type of financing.
Supplier financing
Atea Group entered into a temporary uncommitted revolving trade finance facility with the amount of up to USD 110 million with Deutsche Bank in May 2023, under which Deutsche Bank extended payables to one vendor on behalf of Atea ASA and its subsidiaries at a rate of interest of CME SOFR + 2.00%. The facility was terminated in November, 2023.
Payment extensions under the trade finance facility are reported on the balance sheet as interest-bearing current liabilities. On the cash flow statement, payment extensions under the trade finance facility are treated as a credit line and reported as Cash Flow from Financing Activities when drawn and when repaid. The Group does not have any payment extensions in the balance at 31 December 2023.
Financial covenant
The financial covenant which applies to the above EIB loan facility and the Nordea facilities is a Leverage Ratio for the Group of 2.5x. Leverage Ratio means the ratio of net interest-bearing Debt to EBITDA. EBITDA in this calculation is pro forma, i.e. adjusted for acquisition of businesses, and sale of existing business units in the Group. The financial covenant is measured end of each quarter. The Group is compliant with the covenant at the balance date (see Note 20and APM Note).
See Note 25for disclosure of asset pledged under financing contracts.
Maturity analysis for loans 2023\u200c1
NOK in million | Less than 1 month | 1-3 months | 3 months to 1 year | 1-5 years | Total |
Long-term financing | 2 | 5 | 20 | 710 | 737 |
Short-term financing | 5 | - | - | - | 5 |
Total | 7 | 5 | 20 | 710 | 742 |
Maturity analysis for loans 2022\u200c1
NOK in million | Less than 1 month | 1-3 months | 3 months to 1 year | 1-5 years | Total |
Long-term financing | 2 | 4 | 479 | - | 486 |
Short-term financing | 111 | - | - | - | 111 |
Total | 113 | 4 | 479 | - | 597 |
1Includes interest payable.
Loan facilities:
NOK in million | 2023 | 2022 |
Long term | ||
Unsecured EIB loan | 588 | - |
-of which utilised | 588 | - |
Short term | ||
Unsecured EIB loan | - | 475 |
-of which utilised | - | 475 |
Uncommited securitization facility | 1,100 | 1,100 |
-of which utilised | - | 95 |
Overdraft facility | 300 | 300 |
-of which utilised | - | 11 |
Money market line | 600 | 600 |
-of which utilised | - | - |
Accounting policies
Financial liabilities are recognized at fair value when the loan is disbursed, net of the transaction costs incurred. Transaction costs are charged as an expense over the term of the loan (effective interest rate). Financial liabilities are classified as current liabilities unless there exists an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date. According to IFRS\u00ae Accounting Standards 9, the financial liabilities are measured at amortised cost.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f58891": { "value": "Note 18\tLeases
Accounting policies
Atea as a lessee
The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially meas-ured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commence-ment date, plus any initial direct costs incurred.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease, or if that rate cannot be readily determined, the Groups incremental borrowing rate (IBR). The Group does not have any variable lease payments. The Group includes an extension of the contracts in the lease valuation if it is reasonably certain that the Group will extend the contracts. From practical perspective and to avoid mistakes single discount rate will be used to portfolio of leases. Different IBR were estimated for portfolios based on economic environment. IBR for the different portfolios is based on information about credit spreads which the Group believes are relevant to compare with an interest rate that would be achieved when financing similar assets. IBR will be calcu-lated separately on contact by contract basis for leases which do not fit to portfolios.
Short term leases and leases of low-value assets:
The Group has elected not to recognise the right-of-use assets and liabilities for short-term leases of equipment and low value assets with an underlying value of USD 5,000 or less when they are new. This is not related to Financial sub-leases.
The Group did not make any adjustments in lease terms or modi-fication of lease contracts during the periods presented that have significantly affected the lease liability and corresponding right-of-use assets.
The nature of the lessee\u2019s leasing activities
The Group leases different kind of assets. The main amounts are related to leases of office buildings and cars. The lease of offices typically run for a period of 5-12 years. The lease of cars typically run for a period of 3-5 years. The Group does not have any leasing contracts with variable payment terms.
Practical expedients applied
Leases with a lease term of 12 months or shorter, except Financial subleases, will not be capitalised.
Low-value leases, meaning mainly office equipment with an under-lying value of USD 5,000 or less when they are new, will not be capitalised. This is not related to Financial subleases.
Contracts with extension options
Some leases of premises contain extension options exercisable by the Group. The extension options held are exercisable only by the Group, and not by the lessors. The Group includes an extension of
the contracts in the lease valuation if it is reasonably certain that the Group will extend the contracts.
Subleasing
The Group is subleasing products to the customers as part of the regular operations. In addition, some of its properties are subleased under operating and finance leases. As of 31 December 2023, the Group had a net present value of NOK 106 million recognised in the Financial position as sublease contracts (NOK 82 million as of 31 December 2022). The residual value obligation of leases is disclosed in Note 25Commitments.
Atea as a lessor\u00a0
The \u201cDevice as a service\u201d contracts (see Note 5.1.3.4) include a financial lease with the customer who obtains a right to use the devices. The contracts are often supported by financing solutions from external finance institutions. Typically, the product elements in the contracts are financed by leasing from external leasing compa-nies. The leasing arrangement can either be a direct agreement between the customer and the leasing company, or an agreement between Atea and the customer, supported by a separate lease agreement between the leasing company and Atea. In the latter, Atea sells the devices to the leasing company and leases them back with an obligation or a right to buy back at the end of the lease term. This transaction is, for accounting purposes, classified as a financing transaction (secured borrowing) and the Group does not recognize revenue, cost, or sales profit. In the first case (leasing agreement directly between the leasing company and the customer), the Group is not a part of the agreement and does not recognize the lease. See Note 5for more information.
The information about leases for which the Group is a lessee is presented below:
Right-of-use assets
NOK in million | ROU, Buildings and property | ROU, Computer equipment | ROU, Motor vehicles | ROU, Office machines | Total right-of-use assets |
Acquisition cost | |||||
1 January 2022 | 1,315 | 280 | 376 | 2 | 1,972 |
Ordinary additions | 262 | 13 | 102 | - | 377 |
Revaluation decrease | -6 | -30 | -87 | - | -122 |
Currency translation effects | 9 | 4 | 3 | 0 | 16 |
31 December 2022 | 1,580 | 268 | 394 | 2 | 2,243 |
Ordinary additions | 175 | 35 | 162 | - | 371 |
Revaluation decrease | -13 | -24 | -115 | - | -152 |
Currency translation effects | 67 | 7 | 25 | 0 | 99 |
31 December 2023 | 1,808 | 285 | 465 | 2 | 2,561 |
Accumulated depreciation | |||||
1 January 2022 | -351 | -233 | -187 | -1 | -772 |
Depreciation | -186 | -25 | -107 | -1 | -319 |
Eliminated on revaluation | 2 | 30 | 80 | - | 112 |
Currency translation effects | -7 | -3 | -1 | 0 | -12 |
31 December 2022 | -542 | -232 | -215 | -2 | -990 |
Depreciation | -213 | -22 | -121 | 0 | -356 |
Eliminated on revaluation | 12 | 24 | 103 | - | 139 |
Currency translation effects | -20 | -6 | -13 | 0 | -39 |
31 December 2023 | -764 | -235 | -246 | -2 | -1,247 |
NOK in million | ROU, Buildings and property | ROU, Computer equipment | ROU, Motor vehicles | ROU, Office machines | Total right-of-use assets |
Acquisition cost | 1,580 | 268 | 394 | 2 | 2,243 |
Accumulated depreciation and write downs | -542 | -232 | -215 | -2 | -990 |
Book value 31 December 2022 | 1,037 | 36 | 179 | 0 | 1,253 |
Acquisition cost | 1,808 | 285 | 465 | 2 | 2,561 |
Accumulated depreciation and write downs | -764 | -235 | -246 | -2 | -1,247 |
Book value 31 December 2023 | 1,044 | 50 | 220 | 0 | 1,314 |
Lease liabilities
Maturity analysis - contractual undiscounted cash flows to be paid after reporting date.
NOK in million | 2023 | 2022 |
Less than one year | -451 | -416 |
One to five years | -942 | -765 |
More than five years | -303 | -437 |
Total undiscounted lease liabilities at 31 December | -1,697 | -1,618 |
Lease liabilities included in the Consolidated statement of financial position at 31 December | -1,511 | -1,418 |
Current | -418 | -363 |
Non-current | -1,093 | -1,055 |
Atea as a lessor - age distribution operational lease
Maturity analysis - contractual undiscounted lease payments to be received after reporting date\u200c1.
NOK in million | 2023 | 2022 |
Less than one year | 11 | 8 |
One to two years | - | 0 |
Total | 11 | 8 |
1Mainly related to operating subleasing of premises.
Atea as a lessor - age distribution financial lease
Maturity analysis - contractual undiscounted lease payments to be received after reporting date\u200c2.
NOK in million | 2023 | 2022 |
Less than one year | 61 | 46 |
One to two years | 39 | 23 |
Two to three years | 9 | 10 |
Three to four years | 1 | 5 |
Total undiscounted lease receivable | 111 | 84 |
Unearned finance income | -5 | -2 |
Net investement in the lease | 106 | 82 |
2Mainly related to financial subleasing of products to customers.
Amounts recognised in the Consolidated income statement
NOK in million | 2023 | 2022 |
Profit on subleasing transactions\u200c3 | 2 | 1 |
Income from subleasing right-of-use assets\u200c4 | 10 | 8 |
Expenses relating to short-term leases\u200c5 | -15 | -19 |
Expenses relating to leases of low-value assets\u200c6 | -15 | -11 |
Interest expense, leasing\u200c7,\u200c8 | -68 | -58 |
Interest income, subleasing\u200c9 | 6 | 4 |
Interest expenses, subleasing\u200c9 | -6 | -4 |
3Atea is subleasing products to the costomers as part of the regular operations. The Group recognizes revenue and the Cost of sales when the underlying assets are available for use by the customer.
4Related to operating subleasing of premises.
5A lease that at the commencement date has a lease term of 12 months or less.
6Operating lease of assets with a value below USD 5,000 not included in 3) above.
7Interest expenses on Finance lease liabilities.
8Interest paid for lease liabilities is included in Interest paid in Net cash flow from operational activities in the Consolidated Statement of Cash flow.
9Mainly related to interest income and expenses related to subleasing of products to the customers.
Amounts recognized in the Consolidated statement of cash flow
NOK in million | 2023 | 2022 |
Total cash outflow from leases | -362 | -315 |
Accounting policies
Atea as a lessee
The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially meas-ured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commence-ment date, plus any initial direct costs incurred.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease, or if that rate cannot be readily determined, the Groups incremental borrowing rate (IBR). The Group does not have any variable lease payments. The Group includes an extension of the contracts in the lease valuation if it is reasonably certain that the Group will extend the contracts. From practical perspective and to avoid mistakes single discount rate will be used to portfolio of leases. Different IBR were estimated for portfolios based on economic environment. IBR for the different portfolios is based on information about credit spreads which the Group believes are relevant to compare with an interest rate that would be achieved when financing similar assets. IBR will be calcu-lated separately on contact by contract basis for leases which do not fit to portfolios.
Short term leases and leases of low-value assets:
The Group has elected not to recognise the right-of-use assets and liabilities for short-term leases of equipment and low value assets with an underlying value of USD 5,000 or less when they are new. This is not related to Financial sub-leases.
The Group did not make any adjustments in lease terms or modi-fication of lease contracts during the periods presented that have significantly affected the lease liability and corresponding right-of-use assets.
The nature of the lessee\u2019s leasing activities
The Group leases different kind of assets. The main amounts are related to leases of office buildings and cars. The lease of offices typically run for a period of 5-12 years. The lease of cars typically run for a period of 3-5 years. The Group does not have any leasing contracts with variable payment terms.
Practical expedients applied
Leases with a lease term of 12 months or shorter, except Financial subleases, will not be capitalised.
Low-value leases, meaning mainly office equipment with an under-lying value of USD 5,000 or less when they are new, will not be capitalised. This is not related to Financial subleases.
Contracts with extension options
Some leases of premises contain extension options exercisable by the Group. The extension options held are exercisable only by the Group, and not by the lessors. The Group includes an extension of
the contracts in the lease valuation if it is reasonably certain that the Group will extend the contracts.
Subleasing
The Group is subleasing products to the customers as part of the regular operations. In addition, some of its properties are subleased under operating and finance leases. As of 31 December 2023, the Group had a net present value of NOK 106 million recognised in the Financial position as sublease contracts (NOK 82 million as of 31 December 2022). The residual value obligation of leases is disclosed in Note 25Commitments.
Atea as a lessor\u00a0
The \u201cDevice as a service\u201d contracts (see Note 5.1.3.4) include a financial lease with the customer who obtains a right to use the devices. The contracts are often supported by financing solutions from external finance institutions. Typically, the product elements in the contracts are financed by leasing from external leasing compa-nies. The leasing arrangement can either be a direct agreement between the customer and the leasing company, or an agreement between Atea and the customer, supported by a separate lease agreement between the leasing company and Atea. In the latter, Atea sells the devices to the leasing company and leases them back with an obligation or a right to buy back at the end of the lease term. This transaction is, for accounting purposes, classified as a financing transaction (secured borrowing) and the Group does not recognize revenue, cost, or sales profit. In the first case (leasing agreement directly between the leasing company and the customer), the Group is not a part of the agreement and does not recognize the lease. See Note 5for more information.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s10_notes__6__125-1": { "value": "Note 19\tChanges in financial liabilities
NOK in million | Other long term loans | Long-term interest-bearing liabilities | Current interest-bearing liabilities | Long term leasing liabilities | Current leasing liabilities | Total |
Balance at 1 January 2023 | 17 | - | -586 | -1,055 | -363 | -1,987 |
Proceeds from overdraft/uncommitted securitization facility | - | -588 | -2,636 | - | - | -3,224 |
Repayments of overdraft/uncommitted securitization facility | - | - | 3,275 | - | - | 3,275 |
Lease payments | - | - | - | -7 | 350 | 343 |
Other cash payments | -2 | - | 5 | - | - | 3 |
Deferred interest expenses | - | - | - | - | - | - |
Lease contracts - non-cash items | - | - | - | - | -386 | -386 |
Other non-cash items | - | - | -59 | 7 | 0 | -52 |
Currency effect | 1 | - | -5 | -38 | -18 | -61 |
Balance at 31 December 2023 | 15 | -588 | -5 | -1,093 | -418 | -2,089 |
NOK in million | Other long term loans | |||||
Long-term interest-bearing liabilities | Current interest-bearing liabilities | |||||
Long term leasing liabilities | Current leasing liabilities | |||||
Total | ||||||
Balance at 1 January 2022 | 29 | -475 | -8 | -1,038 | -355 | -1,848 |
Proceeds from overdraft/uncommitted securitization facility | - | - | -4,923 | - | - | -4,923 |
Repayments of overdraft/uncommitted securitization facility | - | - | 4,847 | - | - | 4,847 |
Lease payments | - | - | - | 17 | 341 | 358 |
Other cash payments | -13 | - | 5 | - | - | -8 |
Deferred interest expenses | - | - | -1 | - | - | -1 |
Lease contracts - non-cash items | - | - | - | - | -356 | -356 |
Other non-cash items | - | 475 | -505 | -27 | 11 | -46 |
Currency effect | 0 | - | 0 | -7 | -4 | -10 |
Balance at 31 December 2022 | 17 | - | -586 | -1,055 | -363 | -1,987 |
Note 21\tClassifications of financial instruments
Accounting policies
21.1 Financial instruments\u00a0\u00a0
Atea\u2019s financial instruments include cash and cash equivalents, trade receivables, other receivables, subleasing receivables, investments and marketable securities, derivative contracts, trade payables, long term interest-bearing liabilities, current interest-bearing liabilities, long-term subleasing liabilities, short-term subleasing liabilities, long-term leasing liabilities, current leasing liabilities, other financial liabilities, other long-term liabilities and other current liabilities.
Atea classifies financial instruments in the category below.
21.2 Amortized cost
The asset is measured at the amount recognized at initial recognition minus principal repayments, plus or minus the cumulative amortiza-tion of any difference between that initial amount and the maturity amount, and any loss allowance. Interest income is calculated using the effective interest method and is recognized in profit and loss. Changes in fair value are recognized in profit and loss when the asset is derecognized or reclassified.
21.3 Fair Value Through the statement of Other Comprehensive Income (FVTOCI)
Under\u00a0FVTOCI, changes\u00a0in\u00a0fair\u00a0value\u00a0are not reported as part of\u00a0Profit for the period. Instead, they are reported as part of \u2018Comprehensive Income.\u2019
The Group has entered into a securitization contract organized by a bank. This facility enables Atea to sell specified receivables. See Note 17. The Group consider that the business model for Trade receivables changed from collecting contractual cash flow, to realise the value of the trade receivables through sale. This has changed the assessment of Trade receivables. The classification of the financial instrument, \u2018Trade receivables\u2019 has changed from Amortized cost to Fair Value Through the statement of Profit and Loss.
21.4 Fair Value Through the statement of Profit and Loss (FVTPL)
Under\u00a0FVTPL, changes\u00a0in\u00a0fair\u00a0value\u00a0are reported as part of\u00a0the \u2018Consolidated income statement for the period\u2019.
21.5 Financial instruments related to \u201cDevice as a service\u201d contracts
In relation to the \u201cDevice as a service\u201d contracts, see Note 5, Atea enters into financial lease agreements with the customer and obtains secured borrowing from the leasing company. In these cases, the Group derecognize the lease receivables on the customer as the receivables, including all credit risk, are transferred to the leasing company as settlement for Atea\u2019s liability to the leasing company.
2023:
NOK in million | FVTOCI | Amortised cost | Fair value\u200c1 |
Financial assets | |||
Trade receivables | 6,946 | 6,946 | |
Other receivables\u200c2 | 908 | 908 | |
Cash and cash equivalents | 1,587 | 1,587 | |
Derivative contracts | 16 | ||
Financial liabilities | |||
Long-term leasing liabilities | 1,093 | 1,093 | |
Other long-term liabilities\u200c3 | 168 | 168 | |
Trade payables | 8,045 | 8,045 | |
Current interest bearing liabilities | 5 | 5 | |
Current leasing liabilities | 418 | 418 | |
Other financial liabilities | 23 | 23 | |
Derivative contracts | 30 |
1Book value is a reasonable estimate of fair value in cases where these numbers are identical.
2Less prepaid expenses and accrued revenue.
3Less other provision.
2022:
NOK in million | FVTOCI | Amortised cost | Fair value\u200c1 |
Financial assets | |||
Trade receivables | 6,701 | 6,701 | |
Other receivables\u200c2 | 933 | 933 | |
Cash and cash equivalents | 922 | 922 | |
Derivative contracts | 4 | 4 | |
Financial liabilities | |||
Long-term leasing liabilities | 1,055 | 1,055 | |
Other long-term liabilities\u200c3 | 116 | 116 | |
Trade payables | 7,878 | 7,878 | |
Current interest bearing liabilities | 586 | 586 | |
Current leasing liabilities | 363 | 363 | |
Other financial liabilities | 17 | 17 | |
Derivative contracts | 9 |
1Book value is a reasonable estimate of fair value in cases where these numbers are identical.
2Less prepaid expenses and accrued revenue.
3Less other provision.
Note 20\tProvisions
NOK in million | Restructuring | Legal and tax claims | Losses on fixed price contracts | Other provision for obligations | Total |
At 1 January 2023 | 2 | 7 | 2 | 39 | 50 |
Recognised during the year: | |||||
Additional provision during the year | 8 | - | 1 | 18 | 27 |
Used during the year | -4 | -8 | - | -13 | -25 |
Currency translation effects | 0 | 0 | - | 3 | 3 |
At 31 December 2023 | 6 | - | 2 | 47 | 55 |
NOK in million | Restructuring | Legal and tax claims | Losses on fixed price contracts | Other provision for obligations | |
Total | |||||
At 1 January 2022 | 5 | 2 | 1 | 19 | 27 |
Recognised during the year: | |||||
Additional provision during the year | 3 | 5 | - | 22 | 30 |
Used during the year | -7 | - | 0 | -2 | -8 |
Currency translation effects | 0 | 0 | - | 1 | 1 |
At 31 December 2022 | 2 | 7 | 2 | 39 | 50 |
Note 20\tProvisions
NOK in million | Restructuring | Legal and tax claims | Losses on fixed price contracts | Other provision for obligations | Total |
At 1 January 2023 | 2 | 7 | 2 | 39 | 50 |
Recognised during the year: | |||||
Additional provision during the year | 8 | - | 1 | 18 | 27 |
Used during the year | -4 | -8 | - | -13 | -25 |
Currency translation effects | 0 | 0 | - | 3 | 3 |
At 31 December 2023 | 6 | - | 2 | 47 | 55 |
NOK in million | Restructuring | Legal and tax claims | Losses on fixed price contracts | Other provision for obligations | |
Total | |||||
At 1 January 2022 | 5 | 2 | 1 | 19 | 27 |
Recognised during the year: | |||||
Additional provision during the year | 3 | 5 | - | 22 | 30 |
Used during the year | -7 | - | 0 | -2 | -8 |
Currency translation effects | 0 | 0 | - | 1 | 1 |
At 31 December 2022 | 2 | 7 | 2 | 39 | 50 |
Note 20\tProvisions
NOK in million | Restructuring | Legal and tax claims | Losses on fixed price contracts | Other provision for obligations | Total |
At 1 January 2023 | 2 | 7 | 2 | 39 | 50 |
Recognised during the year: | |||||
Additional provision during the year | 8 | - | 1 | 18 | 27 |
Used during the year | -4 | -8 | - | -13 | -25 |
Currency translation effects | 0 | 0 | - | 3 | 3 |
At 31 December 2023 | 6 | - | 2 | 47 | 55 |
NOK in million | Restructuring | Legal and tax claims | Losses on fixed price contracts | Other provision for obligations | |
Total | |||||
At 1 January 2022 | 5 | 2 | 1 | 19 | 27 |
Recognised during the year: | |||||
Additional provision during the year | 3 | 5 | - | 22 | 30 |
Used during the year | -7 | - | 0 | -2 | -8 |
Currency translation effects | 0 | 0 | - | 1 | 1 |
At 31 December 2022 | 2 | 7 | 2 | 39 | 50 |
Note 20\tProvisions
NOK in million | Restructuring | Legal and tax claims | Losses on fixed price contracts | Other provision for obligations | Total |
At 1 January 2023 | 2 | 7 | 2 | 39 | 50 |
Recognised during the year: | |||||
Additional provision during the year | 8 | - | 1 | 18 | 27 |
Used during the year | -4 | -8 | - | -13 | -25 |
Currency translation effects | 0 | 0 | - | 3 | 3 |
At 31 December 2023 | 6 | - | 2 | 47 | 55 |
NOK in million | Restructuring | Legal and tax claims | Losses on fixed price contracts | Other provision for obligations | |
Total | |||||
At 1 January 2022 | 5 | 2 | 1 | 19 | 27 |
Recognised during the year: | |||||
Additional provision during the year | 3 | 5 | - | 22 | 30 |
Used during the year | -7 | - | 0 | -2 | -8 |
Currency translation effects | 0 | 0 | - | 1 | 1 |
At 31 December 2022 | 2 | 7 | 2 | 39 | 50 |
Note 20\tProvisions
NOK in million | Restructuring | Legal and tax claims | Losses on fixed price contracts | Other provision for obligations | Total |
At 1 January 2023 | 2 | 7 | 2 | 39 | 50 |
Recognised during the year: | |||||
Additional provision during the year | 8 | - | 1 | 18 | 27 |
Used during the year | -4 | -8 | - | -13 | -25 |
Currency translation effects | 0 | 0 | - | 3 | 3 |
At 31 December 2023 | 6 | - | 2 | 47 | 55 |
NOK in million | Restructuring | Legal and tax claims | Losses on fixed price contracts | Other provision for obligations | |
Total | |||||
At 1 January 2022 | 5 | 2 | 1 | 19 | 27 |
Recognised during the year: | |||||
Additional provision during the year | 3 | 5 | - | 22 | 30 |
Used during the year | -7 | - | 0 | -2 | -8 |
Currency translation effects | 0 | 0 | - | 1 | 1 |
At 31 December 2022 | 2 | 7 | 2 | 39 | 50 |
Note 20\tProvisions
NOK in million | Restructuring | Legal and tax claims | Losses on fixed price contracts | Other provision for obligations | Total |
At 1 January 2023 | 2 | 7 | 2 | 39 | 50 |
Recognised during the year: | |||||
Additional provision during the year | 8 | - | 1 | 18 | 27 |
Used during the year | -4 | -8 | - | -13 | -25 |
Currency translation effects | 0 | 0 | - | 3 | 3 |
At 31 December 2023 | 6 | - | 2 | 47 | 55 |
NOK in million | Restructuring | Legal and tax claims | Losses on fixed price contracts | Other provision for obligations | |
Total | |||||
At 1 January 2022 | 5 | 2 | 1 | 19 | 27 |
Recognised during the year: | |||||
Additional provision during the year | 3 | 5 | - | 22 | 30 |
Used during the year | -7 | - | 0 | -2 | -8 |
Currency translation effects | 0 | 0 | - | 1 | 1 |
At 31 December 2022 | 2 | 7 | 2 | 39 | 50 |
Note 21\tClassifications of financial instruments
Accounting policies
21.1 Financial instruments\u00a0\u00a0
Atea\u2019s financial instruments include cash and cash equivalents, trade receivables, other receivables, subleasing receivables, investments and marketable securities, derivative contracts, trade payables, long term interest-bearing liabilities, current interest-bearing liabilities, long-term subleasing liabilities, short-term subleasing liabilities, long-term leasing liabilities, current leasing liabilities, other financial liabilities, other long-term liabilities and other current liabilities.
Atea classifies financial instruments in the category below.
21.2 Amortized cost
The asset is measured at the amount recognized at initial recognition minus principal repayments, plus or minus the cumulative amortiza-tion of any difference between that initial amount and the maturity amount, and any loss allowance. Interest income is calculated using the effective interest method and is recognized in profit and loss. Changes in fair value are recognized in profit and loss when the asset is derecognized or reclassified.
21.3 Fair Value Through the statement of Other Comprehensive Income (FVTOCI)
Under\u00a0FVTOCI, changes\u00a0in\u00a0fair\u00a0value\u00a0are not reported as part of\u00a0Profit for the period. Instead, they are reported as part of \u2018Comprehensive Income.\u2019
The Group has entered into a securitization contract organized by a bank. This facility enables Atea to sell specified receivables. See Note 17. The Group consider that the business model for Trade receivables changed from collecting contractual cash flow, to realise the value of the trade receivables through sale. This has changed the assessment of Trade receivables. The classification of the financial instrument, \u2018Trade receivables\u2019 has changed from Amortized cost to Fair Value Through the statement of Profit and Loss.
21.4 Fair Value Through the statement of Profit and Loss (FVTPL)
Under\u00a0FVTPL, changes\u00a0in\u00a0fair\u00a0value\u00a0are reported as part of\u00a0the \u2018Consolidated income statement for the period\u2019.
21.5 Financial instruments related to \u201cDevice as a service\u201d contracts
In relation to the \u201cDevice as a service\u201d contracts, see Note 5, Atea enters into financial lease agreements with the customer and obtains secured borrowing from the leasing company. In these cases, the Group derecognize the lease receivables on the customer as the receivables, including all credit risk, are transferred to the leasing company as settlement for Atea\u2019s liability to the leasing company.
Note 21\tClassifications of financial instruments
Accounting policies
21.1 Financial instruments\u00a0\u00a0
Atea\u2019s financial instruments include cash and cash equivalents, trade receivables, other receivables, subleasing receivables, investments and marketable securities, derivative contracts, trade payables, long term interest-bearing liabilities, current interest-bearing liabilities, long-term subleasing liabilities, short-term subleasing liabilities, long-term leasing liabilities, current leasing liabilities, other financial liabilities, other long-term liabilities and other current liabilities.
Atea classifies financial instruments in the category below.
21.2 Amortized cost
The asset is measured at the amount recognized at initial recognition minus principal repayments, plus or minus the cumulative amortiza-tion of any difference between that initial amount and the maturity amount, and any loss allowance. Interest income is calculated using the effective interest method and is recognized in profit and loss. Changes in fair value are recognized in profit and loss when the asset is derecognized or reclassified.
21.3 Fair Value Through the statement of Other Comprehensive Income (FVTOCI)
Under\u00a0FVTOCI, changes\u00a0in\u00a0fair\u00a0value\u00a0are not reported as part of\u00a0Profit for the period. Instead, they are reported as part of \u2018Comprehensive Income.\u2019
The Group has entered into a securitization contract organized by a bank. This facility enables Atea to sell specified receivables. See Note 17. The Group consider that the business model for Trade receivables changed from collecting contractual cash flow, to realise the value of the trade receivables through sale. This has changed the assessment of Trade receivables. The classification of the financial instrument, \u2018Trade receivables\u2019 has changed from Amortized cost to Fair Value Through the statement of Profit and Loss.
21.4 Fair Value Through the statement of Profit and Loss (FVTPL)
Under\u00a0FVTPL, changes\u00a0in\u00a0fair\u00a0value\u00a0are reported as part of\u00a0the \u2018Consolidated income statement for the period\u2019.
21.5 Financial instruments related to \u201cDevice as a service\u201d contracts
In relation to the \u201cDevice as a service\u201d contracts, see Note 5, Atea enters into financial lease agreements with the customer and obtains secured borrowing from the leasing company. In these cases, the Group derecognize the lease receivables on the customer as the receivables, including all credit risk, are transferred to the leasing company as settlement for Atea\u2019s liability to the leasing company.
2023:
NOK in million | FVTOCI | Amortised cost | Fair value\u200c1 |
Financial assets | |||
Trade receivables | 6,946 | 6,946 | |
Other receivables\u200c2 | 908 | 908 | |
Cash and cash equivalents | 1,587 | 1,587 | |
Derivative contracts | 16 | ||
Financial liabilities | |||
Long-term leasing liabilities | 1,093 | 1,093 | |
Other long-term liabilities\u200c3 | 168 | 168 | |
Trade payables | 8,045 | 8,045 | |
Current interest bearing liabilities | 5 | 5 | |
Current leasing liabilities | 418 | 418 | |
Other financial liabilities | 23 | 23 | |
Derivative contracts | 30 |
1Book value is a reasonable estimate of fair value in cases where these numbers are identical.
2Less prepaid expenses and accrued revenue.
3Less other provision.
2022:
NOK in million | FVTOCI | Amortised cost | Fair value\u200c1 |
Financial assets | |||
Trade receivables | 6,701 | 6,701 | |
Other receivables\u200c2 | 933 | 933 | |
Cash and cash equivalents | 922 | 922 | |
Derivative contracts | 4 | 4 | |
Financial liabilities | |||
Long-term leasing liabilities | 1,055 | 1,055 | |
Other long-term liabilities\u200c3 | 116 | 116 | |
Trade payables | 7,878 | 7,878 | |
Current interest bearing liabilities | 586 | 586 | |
Current leasing liabilities | 363 | 363 | |
Other financial liabilities | 17 | 17 | |
Derivative contracts | 9 |
1Book value is a reasonable estimate of fair value in cases where these numbers are identical.
2Less prepaid expenses and accrued revenue.
3Less other provision.
Note 21\tClassifications of financial instruments
Accounting policies
21.1 Financial instruments\u00a0\u00a0
Atea\u2019s financial instruments include cash and cash equivalents, trade receivables, other receivables, subleasing receivables, investments and marketable securities, derivative contracts, trade payables, long term interest-bearing liabilities, current interest-bearing liabilities, long-term subleasing liabilities, short-term subleasing liabilities, long-term leasing liabilities, current leasing liabilities, other financial liabilities, other long-term liabilities and other current liabilities.
Atea classifies financial instruments in the category below.
21.2 Amortized cost
The asset is measured at the amount recognized at initial recognition minus principal repayments, plus or minus the cumulative amortiza-tion of any difference between that initial amount and the maturity amount, and any loss allowance. Interest income is calculated using the effective interest method and is recognized in profit and loss. Changes in fair value are recognized in profit and loss when the asset is derecognized or reclassified.
21.3 Fair Value Through the statement of Other Comprehensive Income (FVTOCI)
Under\u00a0FVTOCI, changes\u00a0in\u00a0fair\u00a0value\u00a0are not reported as part of\u00a0Profit for the period. Instead, they are reported as part of \u2018Comprehensive Income.\u2019
The Group has entered into a securitization contract organized by a bank. This facility enables Atea to sell specified receivables. See Note 17. The Group consider that the business model for Trade receivables changed from collecting contractual cash flow, to realise the value of the trade receivables through sale. This has changed the assessment of Trade receivables. The classification of the financial instrument, \u2018Trade receivables\u2019 has changed from Amortized cost to Fair Value Through the statement of Profit and Loss.
21.4 Fair Value Through the statement of Profit and Loss (FVTPL)
Under\u00a0FVTPL, changes\u00a0in\u00a0fair\u00a0value\u00a0are reported as part of\u00a0the \u2018Consolidated income statement for the period\u2019.
21.5 Financial instruments related to \u201cDevice as a service\u201d contracts
In relation to the \u201cDevice as a service\u201d contracts, see Note 5, Atea enters into financial lease agreements with the customer and obtains secured borrowing from the leasing company. In these cases, the Group derecognize the lease receivables on the customer as the receivables, including all credit risk, are transferred to the leasing company as settlement for Atea\u2019s liability to the leasing company.
2023:
NOK in million | FVTOCI | Amortised cost | Fair value\u200c1 |
Financial assets | |||
Trade receivables | 6,946 | 6,946 | |
Other receivables\u200c2 | 908 | 908 | |
Cash and cash equivalents | 1,587 | 1,587 | |
Derivative contracts | 16 | ||
Financial liabilities | |||
Long-term leasing liabilities | 1,093 | 1,093 | |
Other long-term liabilities\u200c3 | 168 | 168 | |
Trade payables | 8,045 | 8,045 | |
Current interest bearing liabilities | 5 | 5 | |
Current leasing liabilities | 418 | 418 | |
Other financial liabilities | 23 | 23 | |
Derivative contracts | 30 |
1Book value is a reasonable estimate of fair value in cases where these numbers are identical.
2Less prepaid expenses and accrued revenue.
3Less other provision.
2022:
NOK in million | FVTOCI | Amortised cost | Fair value\u200c1 |
Financial assets | |||
Trade receivables | 6,701 | 6,701 | |
Other receivables\u200c2 | 933 | 933 | |
Cash and cash equivalents | 922 | 922 | |
Derivative contracts | 4 | 4 | |
Financial liabilities | |||
Long-term leasing liabilities | 1,055 | 1,055 | |
Other long-term liabilities\u200c3 | 116 | 116 | |
Trade payables | 7,878 | 7,878 | |
Current interest bearing liabilities | 586 | 586 | |
Current leasing liabilities | 363 | 363 | |
Other financial liabilities | 17 | 17 | |
Derivative contracts | 9 |
1Book value is a reasonable estimate of fair value in cases where these numbers are identical.
2Less prepaid expenses and accrued revenue.
3Less other provision.
Note 21\tClassifications of financial instruments
Accounting policies
21.1 Financial instruments\u00a0\u00a0
Atea\u2019s financial instruments include cash and cash equivalents, trade receivables, other receivables, subleasing receivables, investments and marketable securities, derivative contracts, trade payables, long term interest-bearing liabilities, current interest-bearing liabilities, long-term subleasing liabilities, short-term subleasing liabilities, long-term leasing liabilities, current leasing liabilities, other financial liabilities, other long-term liabilities and other current liabilities.
Atea classifies financial instruments in the category below.
21.2 Amortized cost
The asset is measured at the amount recognized at initial recognition minus principal repayments, plus or minus the cumulative amortiza-tion of any difference between that initial amount and the maturity amount, and any loss allowance. Interest income is calculated using the effective interest method and is recognized in profit and loss. Changes in fair value are recognized in profit and loss when the asset is derecognized or reclassified.
21.3 Fair Value Through the statement of Other Comprehensive Income (FVTOCI)
Under\u00a0FVTOCI, changes\u00a0in\u00a0fair\u00a0value\u00a0are not reported as part of\u00a0Profit for the period. Instead, they are reported as part of \u2018Comprehensive Income.\u2019
The Group has entered into a securitization contract organized by a bank. This facility enables Atea to sell specified receivables. See Note 17. The Group consider that the business model for Trade receivables changed from collecting contractual cash flow, to realise the value of the trade receivables through sale. This has changed the assessment of Trade receivables. The classification of the financial instrument, \u2018Trade receivables\u2019 has changed from Amortized cost to Fair Value Through the statement of Profit and Loss.
21.4 Fair Value Through the statement of Profit and Loss (FVTPL)
Under\u00a0FVTPL, changes\u00a0in\u00a0fair\u00a0value\u00a0are reported as part of\u00a0the \u2018Consolidated income statement for the period\u2019.
21.5 Financial instruments related to \u201cDevice as a service\u201d contracts
In relation to the \u201cDevice as a service\u201d contracts, see Note 5, Atea enters into financial lease agreements with the customer and obtains secured borrowing from the leasing company. In these cases, the Group derecognize the lease receivables on the customer as the receivables, including all credit risk, are transferred to the leasing company as settlement for Atea\u2019s liability to the leasing company.
2023:
NOK in million | FVTOCI | Amortised cost | Fair value\u200c1 |
Financial assets | |||
Trade receivables | 6,946 | 6,946 | |
Other receivables\u200c2 | 908 | 908 | |
Cash and cash equivalents | 1,587 | 1,587 | |
Derivative contracts | 16 | ||
Financial liabilities | |||
Long-term leasing liabilities | 1,093 | 1,093 | |
Other long-term liabilities\u200c3 | 168 | 168 | |
Trade payables | 8,045 | 8,045 | |
Current interest bearing liabilities | 5 | 5 | |
Current leasing liabilities | 418 | 418 | |
Other financial liabilities | 23 | 23 | |
Derivative contracts | 30 |
1Book value is a reasonable estimate of fair value in cases where these numbers are identical.
2Less prepaid expenses and accrued revenue.
3Less other provision.
2022:
NOK in million | FVTOCI | Amortised cost | Fair value\u200c1 |
Financial assets | |||
Trade receivables | 6,701 | 6,701 | |
Other receivables\u200c2 | 933 | 933 | |
Cash and cash equivalents | 922 | 922 | |
Derivative contracts | 4 | 4 | |
Financial liabilities | |||
Long-term leasing liabilities | 1,055 | 1,055 | |
Other long-term liabilities\u200c3 | 116 | 116 | |
Trade payables | 7,878 | 7,878 | |
Current interest bearing liabilities | 586 | 586 | |
Current leasing liabilities | 363 | 363 | |
Other financial liabilities | 17 | 17 | |
Derivative contracts | 9 |
1Book value is a reasonable estimate of fair value in cases where these numbers are identical.
2Less prepaid expenses and accrued revenue.
3Less other provision.
21.3 Fair Value Through the statement of Other Comprehensive Income (FVTOCI)
Under\u00a0FVTOCI, changes\u00a0in\u00a0fair\u00a0value\u00a0are not reported as part of\u00a0Profit for the period. Instead, they are reported as part of \u2018Comprehensive Income.\u2019
The Group has entered into a securitization contract organized by a bank. This facility enables Atea to sell specified receivables. See Note 17. The Group consider that the business model for Trade receivables changed from collecting contractual cash flow, to realise the value of the trade receivables through sale. This has changed the assessment of Trade receivables. The classification of the financial instrument, \u2018Trade receivables\u2019 has changed from Amortized cost to Fair Value Through the statement of Profit and Loss.
21.4 Fair Value Through the statement of Profit and Loss (FVTPL)
Under\u00a0FVTPL, changes\u00a0in\u00a0fair\u00a0value\u00a0are reported as part of\u00a0the \u2018Consolidated income statement for the period\u2019.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s10_notes__6__144-1": { "value": "Note 22\tCorporate structure of the Atea Group
NOK in million | From date | Local currency | Voting rights/ownership (%) | Primary activity |
Holding | ||||
Atea ASA | NOK | Listed | Holding | |
Norway | ||||
Atea AS | NOK | 100% | IT infrastructure | |
Atea Finans AS | NOK | 100% | Leasing | |
Sweden | ||||
Atea Holding AB | SEK | 100% | Holding | |
Atea Sverige AB | SEK | 100% | IT infrastructure | |
Atea Finans AB | SEK | 100% | Leasing | |
Denmark | ||||
Atea Danmark Holding A/S | DKK | 100% | Holding | |
Atea A/S | DKK | 100% | IT infrastructure | |
Atea Inc | USD | 100% | IT infrastructure | |
Atea Finans A/S | DKK | 100% | Leasing | |
Finland | ||||
Atea Holding Oy | EUR | 100% | Holding | |
Atea Oy | EUR | 100% | IT infrastructure | |
BCC Finland Oy | EUR | 100% | IT infrastructure | |
Atea Finance Finland Oy | EUR | 100% | Leasing | |
Gambit Labs Oy | EUR | 100% | Consulting | |
Gambit Fuser Oy | EUR | 100% | Consulting | |
Gambit Quantic Oy | EUR | 100% | Consulting | |
Topnordic Finland Oy | EUR | 100% | IT infrastructure | |
NOK in million | From date | Local currency | Voting rights/ownership (%) | |
Primary activity | ||||
The Baltics | ||||
Atea Baltic UAB | EUR | 100% | Holding | |
Atea UAB | EUR | 100% | IT infrastructure | |
Atea AS | EUR | 100% | IT infrastructure | |
Atea Finance O\u00dc | EUR | 100% | Leasing | |
Atea Finance Lithuania UAB | EUR | 100% | Leasing | |
Solver UAB | EUR | 100% | IT infrastructure | |
EIT Sprendimai UAB | EUR | 100% | IT infrastructure | |
BMK UAB | EUR | 100% | IT infrastructure | |
Baltnetos Komunikacijos UAB | EUR | 100% | IT infrastructure | |
CRC SIA | EUR | 100% | IT infrastructure | |
Atea SIA | EUR | 100% | IT infrastructure | |
AppXite | ||||
AppXite SIA | EUR | 100% | Software distribution | |
AppXite AS | NOK | 100% | Software distribution | |
AppXite AB | SEK | 100% | Software distribution | |
AppXite B.V. | EUR | 100% | Software distribution | |
AppXite S.R.L. | EUR | 100% | Software distribution | |
AppXite ApS | DKK | 100% | Software distribution | |
AppXite Oy | EUR | 100% | Software distribution | |
Group Shared Services | ||||
Atea Logistics AB | SEK | 100% | Group Shared Services | |
Atea Global Services AB | SEK | 100% | Group Shared Services | |
Atea Global Services SIA | EUR | 100% | Group Shared Services | |
Atea Service Center AB | SEK | 100% | Securitization contract management | |
Atea Group Functions A/S | DKK | 100% | Group Shared Services |
Note 23\tBusiness combinations and other business initiatives
Accounting policies
Atea uses the acquisition method to account for the acquisition of subsidiaries. Consideration for the acquisition of subsidiaries is meas-ured at the fair value of the transferred assets, obligations assumed, and equity instruments issued. The fair value of any assets or obli-gations that are contingent on the agreement is also included in the consideration. Identifiable assets and liabilities are recognized at fair value on the acquisition date. Expenses related to business combina-tions are recognized when they are incurred. Correspondingly, if there were to be a discrepancy between the estimated fair value based on the conditional settlement and fair value, and this cannot be attributed to new information on the fair value or more than 12 months passing from the takeover, the difference shall be recognized in the income statement.
There were no business combinations or business initatives in 2023.
Gambit Group
On 1 April 2022 Atea acquired 100% of the outstanding shares in Gambit Group. Gambit Group consist of Gambit Labs Oy AB and two subsidiaries.
Gambit Group is an IT services provider with headquarter in Vaasa, Finland. The acquisition will strengthen Atea\u2019s position within informa-tion management solutions, including data analytics, machine learning and related system development.
Gambit Group had revenue of approximately EUR 4 million in the fiscal year ending March 2022.
Human IT
On 1 September 2022 Atea acquired the IT consulting operations of Human IT Sverige AB in southern and western Sweden.
The acquisition will strengthen Atea\u2019s ability to support its customers on projects involving digital transformation and cloud integration.
The acquisition only included a transfer of contracts for consultants and customers. No legal companies, facilities, administration or other overhead costs were included in the acquisition.The employees and customer contracts have been directly integrated into the Atea Sweden organization.
The acquired operations of Human IT had revenue of approximately SEK 60 million in 2021.
Allocation of purchase price
Both transactions qualify as a business as defined in IFRS\u00ae Accounting Standards 3 Business Combination. Due to the high knowledge and low capital requirements for operating an IT sales and consulting organi-zation, acquisitions within this sector will typically result in a goodwill balance.
The goodwill balance represents the surplus of the purchase price compared with the accounting value of the net fixed and intangible assets of the acquired business.
Acquisition costs of NOK 2.5 million related to the two business combi-nations are included in operating costs in the Consolidated income statement The fair values have been determined on provisional basis at the end of the reporting period.
Details of the purchase consideration, the net assets acquired and goodwill in 2022 are as follows:
NOK in million | Gambit Group | Human IT | Total |
Acquisition date | 01-Apr-22 | 01-Sep-22 | |
Country | Finland | Sweden | |
Voting rights/ownership interest | 100% | 2 | |
Purchase consideration: | |||
Cash payment | 73.9 | 28.2 | 102.2 |
Contingent consideration and deferred payments1 | 22.4 | 1.7 | 24.1 |
Total purchase consideration | 96.4 | 29.9 | 126.3 |
Fair value of assets and liabilities (see table below) | 19.3 | -0.1 | 19.1 |
Goodwill | 77.1 | 30.0 | 107.1 |
1Consideration that is dependent on future results and sellers employees being employed, is recognized as an obligation based on the fair value at the time of acquisition.
2The aquisition was related to consulting operations and not the legal company.
The fair value of assets and liabilities recognized as a result of the acquisition in 2022 are as follows:
NOK in million | Gambit Group | Human IT | Total |
Contracts and customer relationships | 11.0 | 3.8 | 14.8 |
Property, plant and equipment | 0.4 | - | 0.4 |
Trade receivables | 7.8 | - | 7.8 |
Other receivables | 1.8 | 0.0 | 1.8 |
Cash and cash equivalents | 15.9 | - | 15.9 |
Total asset | 36.9 | 3.9 | 40.8 |
Deferred tax liabilities | -2.2 | -0.8 | -3.0 |
Trade payables | -0.8 | - | -0.8 |
Other current liabilities and provisions | -14.6 | -3.2 | -17.8 |
Total liabilities | -17.6 | -4.0 | -21.6 |
Net assets acquired | 19.3 | -0.1 | 19.1 |
Acquisition of KMD customer agreements
In December 2022, Atea Denmark finalized an agreement to acquire customer contracts from KMD relating to the hardware and infrastructure software business. The acquisition cost of NOK 35.2 million is recognized as intangible assets. This transaction does not qualify as a business combination as defined in IFRS\u00ae Accounting Standards 3.
The contracts are for customers in Denmark. As part of the agreement, Atea hired 24 KMD employees.
Net cash payments in connection with the acquisitions are as follows:
NOK in million | Gambit Group | Human IT | KMD | Total |
Consideration paid in cash at date of acquisition | 73.9 | 28.2 | 35.2 | 137.4 |
Cash and cash equivalents in acquired companies | -15.9 | - | - | -15.9 |
Net cash payments for the acquisitions | 58.1 | 28.2 | 35.2 | 121.5 |
If all acquired entities had been consolidated from 1 January 2022, the consolidated pro forma income statements for 2022 would show revenue and profit as follows:
NOK in million | Full year 2022 |
Operating revenue | 32,443 |
Operating profit/loss (EBIT) | 1,198 |
The financial performance from the acquisition date to the end of 2022 for the acquired companies is considered to be immaterial from a Group perspective.
Other business initiatives
Sale of mobile service provider business
In April 2022, Atea Norway entered an agreement to sell Atea Mobil, its mobile service provider business, to Nortel AS for a price of NOK 72.5 million. The amount was paid in Q2 2022.
Note 22\tCorporate structure of the Atea Group
NOK in million | From date | Local currency | Voting rights/ownership (%) | Primary activity |
Holding | ||||
Atea ASA | NOK | Listed | Holding | |
Norway | ||||
Atea AS | NOK | 100% | IT infrastructure | |
Atea Finans AS | NOK | 100% | Leasing | |
Sweden | ||||
Atea Holding AB | SEK | 100% | Holding | |
Atea Sverige AB | SEK | 100% | IT infrastructure | |
Atea Finans AB | SEK | 100% | Leasing | |
Denmark | ||||
Atea Danmark Holding A/S | DKK | 100% | Holding | |
Atea A/S | DKK | 100% | IT infrastructure | |
Atea Inc | USD | 100% | IT infrastructure | |
Atea Finans A/S | DKK | 100% | Leasing | |
Finland | ||||
Atea Holding Oy | EUR | 100% | Holding | |
Atea Oy | EUR | 100% | IT infrastructure | |
BCC Finland Oy | EUR | 100% | IT infrastructure | |
Atea Finance Finland Oy | EUR | 100% | Leasing | |
Gambit Labs Oy | EUR | 100% | Consulting | |
Gambit Fuser Oy | EUR | 100% | Consulting | |
Gambit Quantic Oy | EUR | 100% | Consulting | |
Topnordic Finland Oy | EUR | 100% | IT infrastructure | |
NOK in million | From date | Local currency | Voting rights/ownership (%) | |
Primary activity | ||||
The Baltics | ||||
Atea Baltic UAB | EUR | 100% | Holding | |
Atea UAB | EUR | 100% | IT infrastructure | |
Atea AS | EUR | 100% | IT infrastructure | |
Atea Finance O\u00dc | EUR | 100% | Leasing | |
Atea Finance Lithuania UAB | EUR | 100% | Leasing | |
Solver UAB | EUR | 100% | IT infrastructure | |
EIT Sprendimai UAB | EUR | 100% | IT infrastructure | |
BMK UAB | EUR | 100% | IT infrastructure | |
Baltnetos Komunikacijos UAB | EUR | 100% | IT infrastructure | |
CRC SIA | EUR | 100% | IT infrastructure | |
Atea SIA | EUR | 100% | IT infrastructure | |
AppXite | ||||
AppXite SIA | EUR | 100% | Software distribution | |
AppXite AS | NOK | 100% | Software distribution | |
AppXite AB | SEK | 100% | Software distribution | |
AppXite B.V. | EUR | 100% | Software distribution | |
AppXite S.R.L. | EUR | 100% | Software distribution | |
AppXite ApS | DKK | 100% | Software distribution | |
AppXite Oy | EUR | 100% | Software distribution | |
Group Shared Services | ||||
Atea Logistics AB | SEK | 100% | Group Shared Services | |
Atea Global Services AB | SEK | 100% | Group Shared Services | |
Atea Global Services SIA | EUR | 100% | Group Shared Services | |
Atea Service Center AB | SEK | 100% | Securitization contract management | |
Atea Group Functions A/S | DKK | 100% | Group Shared Services |
Accounting policies
Atea uses the acquisition method to account for the acquisition of subsidiaries. Consideration for the acquisition of subsidiaries is meas-ured at the fair value of the transferred assets, obligations assumed, and equity instruments issued. The fair value of any assets or obli-gations that are contingent on the agreement is also included in the consideration. Identifiable assets and liabilities are recognized at fair value on the acquisition date. Expenses related to business combina-tions are recognized when they are incurred. Correspondingly, if there were to be a discrepancy between the estimated fair value based on the conditional settlement and fair value, and this cannot be attributed to new information on the fair value or more than 12 months passing from the takeover, the difference shall be recognized in the income statement.
There were no business combinations or business initatives in 2023.
Gambit Group
On 1 April 2022 Atea acquired 100% of the outstanding shares in Gambit Group. Gambit Group consist of Gambit Labs Oy AB and two subsidiaries.
Gambit Group is an IT services provider with headquarter in Vaasa, Finland. The acquisition will strengthen Atea\u2019s position within informa-tion management solutions, including data analytics, machine learning and related system development.
Gambit Group had revenue of approximately EUR 4 million in the fiscal year ending March 2022.
Human IT
On 1 September 2022 Atea acquired the IT consulting operations of Human IT Sverige AB in southern and western Sweden.
The acquisition will strengthen Atea\u2019s ability to support its customers on projects involving digital transformation and cloud integration.
The acquisition only included a transfer of contracts for consultants and customers. No legal companies, facilities, administration or other overhead costs were included in the acquisition.The employees and customer contracts have been directly integrated into the Atea Sweden organization.
The acquired operations of Human IT had revenue of approximately SEK 60 million in 2021.
Allocation of purchase price
Both transactions qualify as a business as defined in IFRS\u00ae Accounting Standards 3 Business Combination. Due to the high knowledge and low capital requirements for operating an IT sales and consulting organi-zation, acquisitions within this sector will typically result in a goodwill balance.
The goodwill balance represents the surplus of the purchase price compared with the accounting value of the net fixed and intangible assets of the acquired business.
Acquisition costs of NOK 2.5 million related to the two business combi-nations are included in operating costs in the Consolidated income statement The fair values have been determined on provisional basis at the end of the reporting period.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f63833": { "value": "Accounting policies
Atea uses the acquisition method to account for the acquisition of subsidiaries. Consideration for the acquisition of subsidiaries is meas-ured at the fair value of the transferred assets, obligations assumed, and equity instruments issued. The fair value of any assets or obli-gations that are contingent on the agreement is also included in the consideration. Identifiable assets and liabilities are recognized at fair value on the acquisition date. Expenses related to business combina-tions are recognized when they are incurred. Correspondingly, if there were to be a discrepancy between the estimated fair value based on the conditional settlement and fair value, and this cannot be attributed to new information on the fair value or more than 12 months passing from the takeover, the difference shall be recognized in the income statement.
There were no business combinations or business initatives in 2023.
Gambit Group
On 1 April 2022 Atea acquired 100% of the outstanding shares in Gambit Group. Gambit Group consist of Gambit Labs Oy AB and two subsidiaries.
Gambit Group is an IT services provider with headquarter in Vaasa, Finland. The acquisition will strengthen Atea\u2019s position within informa-tion management solutions, including data analytics, machine learning and related system development.
Gambit Group had revenue of approximately EUR 4 million in the fiscal year ending March 2022.
Human IT
On 1 September 2022 Atea acquired the IT consulting operations of Human IT Sverige AB in southern and western Sweden.
The acquisition will strengthen Atea\u2019s ability to support its customers on projects involving digital transformation and cloud integration.
The acquisition only included a transfer of contracts for consultants and customers. No legal companies, facilities, administration or other overhead costs were included in the acquisition.The employees and customer contracts have been directly integrated into the Atea Sweden organization.
The acquired operations of Human IT had revenue of approximately SEK 60 million in 2021.
Allocation of purchase price
Both transactions qualify as a business as defined in IFRS\u00ae Accounting Standards 3 Business Combination. Due to the high knowledge and low capital requirements for operating an IT sales and consulting organi-zation, acquisitions within this sector will typically result in a goodwill balance.
The goodwill balance represents the surplus of the purchase price compared with the accounting value of the net fixed and intangible assets of the acquired business.
Acquisition costs of NOK 2.5 million related to the two business combi-nations are included in operating costs in the Consolidated income statement The fair values have been determined on provisional basis at the end of the reporting period.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsAndGoodwillExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f65161": { "value": "Note 24\tContingent liabilities and assets
Ordinary course of business
The Group has contingent liabilities in respect of bank and other guar-antees and other matters arising in the ordinary course of business. It is not anticipated that any material liabilities will arise from the contin-gent liabilities. The Group has given guarantees in the ordinary course of business amounting to NOK 9,521 million in 2023 (NOK 8,307 million in 2022) to external parties (see Note 25).
For contingent considerations regarding Business combinations, see Note23.
Legal disputes
Atea (the Group) is involved in lawsuits in various jurisdictions. The outcome for a number of these cases is uncertain. In management\u2019s opinion these cases will be resolved without significantly weakening the Group\u2019s financial standing. If the disputes nevertheless end with a negative outcome, Atea is insured in most cases.
", "dimensions": { "concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f65316": { "value": "Note 25\tCommitments
NOK in million | 2023 | 2022 |
Guarantees to financial institutions\u200c1 | 1,022 | 996 |
Guarantees to business associates\u200c2 | 8,133 | 6,963 |
Residual value obligations related to leasing activities\u200c3 | 365 | 348 |
Total guarantees | 9,521 | 8,307 |
1In addition to facilities disclosed in Note 17, Atea ASA issued guarantees for sublease facilities of NOK 106 million in 2023 (NOK 82 million in 2022).
2As part of the ordinary operations, parent company guarantees are furnished to suppliers and partners on behalf of subsidiaries.
3The leasing companies have a residual value obligation of NOK 365 million in 2023 (NOK 348 million in 2022) on the outstanding leasing contracts. No losses have been incurred as result of this, and the risk of incurring losses is considered being low.
Pledged assets under securitization contract (see Note17)
As part of securitization contract, Atea has pledged the following asset to Nordea Denmark, Branch of Nordea Bank Abp:
\u2022Shares and related rights of Atea Service Center AB (subsidiary, 100% owned by Atea ASA).
\u2022Bank accounts of Atea Service Center AB. Cash balance including restricted cash in other companies amount NOK 643 million at the end of 2023 (NOK 823 million at the end of 2022).
\u2022Trade receivables covering uncommitted revolving credit facility, but not exceeding the limit of NOK 1,100 million at the end of 2023 (limit of NOK 1,100 million at the end of 2022). Atea has no borrowings secured by receivables at the end of 2023 (facility utilised amounting of NOK 95 million at the end of 2022).
", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f65317": { "value": "Note 25\tCommitments
NOK in million | 2023 | 2022 |
Guarantees to financial institutions\u200c1 | 1,022 | 996 |
Guarantees to business associates\u200c2 | 8,133 | 6,963 |
Residual value obligations related to leasing activities\u200c3 | 365 | 348 |
Total guarantees | 9,521 | 8,307 |
1In addition to facilities disclosed in Note 17, Atea ASA issued guarantees for sublease facilities of NOK 106 million in 2023 (NOK 82 million in 2022).
2As part of the ordinary operations, parent company guarantees are furnished to suppliers and partners on behalf of subsidiaries.
3The leasing companies have a residual value obligation of NOK 365 million in 2023 (NOK 348 million in 2022) on the outstanding leasing contracts. No losses have been incurred as result of this, and the risk of incurring losses is considered being low.
Pledged assets under securitization contract (see Note17)
As part of securitization contract, Atea has pledged the following asset to Nordea Denmark, Branch of Nordea Bank Abp:
\u2022Shares and related rights of Atea Service Center AB (subsidiary, 100% owned by Atea ASA).
\u2022Bank accounts of Atea Service Center AB. Cash balance including restricted cash in other companies amount NOK 643 million at the end of 2023 (NOK 823 million at the end of 2022).
\u2022Trade receivables covering uncommitted revolving credit facility, but not exceeding the limit of NOK 1,100 million at the end of 2023 (limit of NOK 1,100 million at the end of 2022). Atea has no borrowings secured by receivables at the end of 2023 (facility utilised amounting of NOK 95 million at the end of 2022).
", "dimensions": { "concept": "ifrs-full:DisclosureOfRestrictedCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f65651": { "value": "Note 26\tRelated parties
Atea has ongoing transactions with related parties. All the transactions are in accordance with the arm\u2019s length principle and as part of the ordinary operations. The most important transactions are listed below.
The transactions have been carried out by companies controlled by Lone Sch\u00f8tt Kun\u00f8e, who is the Board member and close associate to the largest shareholder, of Atea ASA, Ib Kun\u00f8e through the company Systemintegration ApS. Transactions have also been carried out with companies controlled by Managing Director of Atea Baltic UAB, Ar\u016bnas Bartusevicius. In addition, transactions with companies controlled by Elmera Group ASA. The CEO of Atea ASA, Steinar S\u00f8nsteby is Chairman of the Board in Elmera ASA.
Wages and remuneration to the CEO, CFO, Board of Directors are described in a separate Remuneration report published at atea.com. See also Note 6and Note 7.
Sales to(+)/from(-) related parties | Credit (+)/debit (-) balances with related parties | |||
2023 | 2022 | 2023 | 2022 | |
Leasing of property or equipment | ||||
5.0 | 4.4 | - | - | |
Development of software | -0.2 | -0.5 | - | - |
Other\u200c1 | 26.8 | 29.0 | -0.2 | 0.2 |
1Includes transactions with companies controlled by Lone Sch\u00f8tt Kun\u00f8e (NOK 18 million), and companies controlled by Elmera Group (NOK 9 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f66344": { "value": "Note 29\tEvents after the balance sheet date
Dividend
On February 7, 2024 the Board of Atea ASA resolved to propose a dividend of NOK 7.00 per share at the next Annual General Meeting to be held on April 25, 2024. The dividend will be split into two equal payments of NOK 3.50 which will take place in May and November 2024. For Norwegian tax purposes, the dividend shall be considered as repayment of paid in capital. Further details on the dividend payment will be provided in the Notice to the Annual General Meeting.
There were no other significant events after the balance sheet date which could affect the evaluation of the reported accounts.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f66345": { "value": "Note 29\tEvents after the balance sheet date
Dividend
On February 7, 2024 the Board of Atea ASA resolved to propose a dividend of NOK 7.00 per share at the next Annual General Meeting to be held on April 25, 2024. The dividend will be split into two equal payments of NOK 3.50 which will take place in May and November 2024. For Norwegian tax purposes, the dividend shall be considered as repayment of paid in capital. Further details on the dividend payment will be provided in the Notice to the Annual General Meeting.
There were no other significant events after the balance sheet date which could affect the evaluation of the reported accounts.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDividendsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXINVS13", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } } } }