ANNUAL REPORT INTRUM JUSTITIA A N N U A L R EP O R T 2 0 ...

66
Notes
Amortization for the year SEK M 2010
GROUP
2009
Time and interest component
Revaluation in connection with changes
–803.3 –780.8
in expectations in forecasts of future
cash flows
65.6 68.2
Impairment in connection with
changes in expectations in forecasts
of future cash flows
–62.4 –103.9
Total amortization for the year –800.1 –816.5
Payments during the year for investments in purchased debt amounted to
SEK 1,049.6 M (870.6).
For a description of Intrum Justitia’s accounting principles for purchased debt,
see Note 1, page 57.
NOTE 17
OTHER LONG-TERM RECEIVABLES
GROUP PARENT COMPANY
SEK M 2010 2009 2010 2009
Deposits with landlords 1.8 5.3 – –
Deposits with clients 0.3 0.3 – –
Lending to law firms 0.3 0.3 – –
Long-term VAT receivable 41.0 59.9 – –
Endowment insurance 5.0 0.5 5.0 0.5
Total 48.4 66.3 5.0 0.5
Opening balances 67.4 95.4 0.5 0.8
Reclassified from current
receivables
– – – –
On loan 0.1 75.3 – –
Paid-in insurance premiums 4.5 0.0 4.5 –
Repaid –15.1 –98.6 – –0.3
Exchange rate difference –7.4 –4.7 – –
Closing balance 49.5 67.4 5.0 0.5
Accumulated impairment,
opening balance
–1.1 –1.1 – –
Accumulated impairment,
closing balance
–1.1 –1.1 0.0 0.0
Carrying value 48.4 66.3 5.0 0.5
A long-term VAT receivable arises in the Netherlands in connection with
the purchase of overdue receivables. The VAT portion of the receivable can
be recovered from the tax authority if it is not collected from the debtor
and is therefore recognized separately as a receivable.
NOTE 18
ACCOUNTS RECEIVABLE
GROUP PARENT COMPANY
SEK M 2010 2009 2010 2009
Non-delinquent receivables 181.5 166.3 0.0 0.0
Accounts receivable
overdue 91 days
51.3 63.4 – –
Total accounts receivable 303.0 320.7 0.0 0.0
GROUP PARENT COMPANY
MSEK 2010 2009 2010 2009
Accumulated reserve for impaired
receivables, opening balance
–39.7 –39.3 0.0 0.0
Reserve for impaired
receivables for the year
–10.2 –16.3 – –
Realized client losses for the year
Withdrawals from reserve for
2.5 5.6 – –
impaired accounts receivable for
the year
8.0 8.5 – –
Translation difference 4.7 1.8 – –
Accumulated impaired receivables,
closing balance
–34.7 –39.7 0.0 0.0
Carrying values 268.3 281.0 0.0 0.0
NOTE 19
OTHER RECEIVABLES
GROUP PARENT COMPANY
SEK M 2010 2009 2010 2009
Outlays on behalf of clients 285.8 503.4 – –
Less: reserve for uncertainty in
outlays on behalf of clients
–94.5 –141.4 – –
Total 191.3 362.0 – –
Capital insurance for senior
executives
0.3 2.1 0.3 2.1
VAT refund claims on purchased
debt
27.3 0.0 – –
To be recovered from Netherlands
enforcement authorities
51.9 0.0 – –
Other 54.3 40.2 4.5 3.0
Total 133.8 42.3 4.8 5.1
Carrying value 325.1 404.3 4.8 5.1
A VAT receivable is incurred in the Netherlands when purchasing overdue
receivables. The VAT portion of the receivable can be recovered from the
tax authorities if it is not collected from the debtor and is therefore recognized
as a separate receivable. The portion that is expected to be recovered
within twelve months is recognized as current.
Expenses paid to bailiffs in the Netherlands for collection cases can in
some cases be recovered from the bailiffs if the collection measures fail.
When it emerges that Intrum Justitia is entitled to request that the amount
be returned from the bailiffs, the amount is moved from Outlays on behalf
of clients, to To recover from bailiffs.
NOTE 20
PREPAID EXPENSES AND ACCRUED INCOME
GROUP PARENT COMPANY
SEK M 2010 2009 2010 2009
Prepaid rent 11.9 18.2 0.6 0.4
Prepaid insurance premiums 8.0 6.8 1.5 1.6
Prepaid expenses for
purchased debt
20.0 2.5 – –
Accrued income 66.0 41.0 – –
Derivative assets
(forward exchange contracts)
8.2 7.5 8.2 7.5
Other 24.6 37.7 0.5 0.6
Carrying value 138.7 113.7 10.8 10.1