Freemelt changes goodwill accounting method – time-of-use shortened to 5 years
11 Apr 2023 | Regulatory
Nasdaq First North listed Freemelt is harmonising with K3 accounting rules and consequently changes goodwill time-of-use treatment. The change implies goodwill is depreciated over five years instead of as previously stated 10 years. The decision to change the goodwill depreciation period is a pure accounting measure with no cash flow impact.
Group goodwill came about when Freemelt Holding AB (publ) acquired the operational entity Freemelt AB at the time of listing at Nasdaq First North. This resultant balance sheet item is now being adjusted.
The adjustment takes effect from 2022 and onwards. It impacts the company’s income statement and balance sheet. Last years result is negatively impacted by SEK 23.8 million. Goodwill will be depreciated in full by year 2026.
Latest update: 2023-04-11