Note G2 Important estimates and assessments for accounting purposes The estimates and assessments are evaluated on an ongoing basis and are based on historical experience and other factors, including expectations of future events that can be considered reasonable under the prevailing conditions. Important estimates and assessments for accounting purposes TheGroupmakes estimates andassumptions about the future. The estimates for accountingpurposes that result fromthesewill, by definition, rarely correspond to the actual result. The estimates andassumptions that pose a significant risk of material adjustments in the carryingamounts of assets and liabilities during the next financial year are dealt with in themain feature as follows. (a) Impairment testing of intangible assets Customer relationships and platform acquired as part of business acquisitions are recognised at fair value at the time of acquisition and are amortised on a straight-line basis over the forecasted useful life corresponding to the estimated time, they will generate cash flow. Assets are assessed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Goodwill and trademarks have been assessed to have an indefinite useful life and are tested for impairment annually or as soon as indications arise that imply that the asset in question has decreased in value. See notes G1 and G13 for accounting principles and estimated useful lives and note G13 for reported values. (b) Useful life of intangible assets Trademarks are attributable to the value inHemnet as abrandandheldwith ownership. The company does not see any limitation in the useful life of trademarks and their useful life is thus considered indefinable. Themajority of customer relationships have an estimateduseful life of 20 years, and the remaining depreciationperiod is 15 years. See notesG1andG13 for accountingprinciples and estimateduseful lives andnoteG13 for reported values. (c) Capitalised development costs TheGroup carries out software development work related to the technical platform andwebsite hemnet.se. Accounting for self-accumulated intangible assetsmeans that the companymustmake anumber of assessments about the future. The decision toactivate anasset is basedonan estimate of whether it is technically feasible to complete the asset, the company intends to complete the asset, it is likely that the asset will generate future economic benefits and that there are resources to complete the development. See alsonotesG1andG13.
Advertising services consist, among other things, of income from real estate developerswhomarket their properties and brands. Real estate agents are an important partner, as they administer the property sellers' listings onHemnet and provide information about Hemnet's services. Revenue recognition and performance obligations for the various product areas are shown below: Listings revenue: Revenue is accrued over averagematurity. Hemnet is considered to have satisfied its performance obligationwith regard to property listingswhen the listing is removed for advertising, which is done by way of terminating the assignment by the real estate agent who arranged it. For arranging the property listing, the real estate agent receives administrative compensation. See also notes G6. Value-added services: Revenue for value-added services attributable to the property sellers' property listing, such as the products Hemnet Plus and Premium, is accrued over averagematurity. Hemnet is considered to have satisfied its performance obligation for value-added services related to property listingswhen the listing is removed for advertising or when the period for which the value-added service extends is over. For example, the product Raketen is active for a certain number of days after purchase. For mediating value-added services linked to property listings, there is an option for real estate agent firms to enter into an intermediation agreement and receive commission compensation. See alsoNote G6. Advertising services and other: Advertising services consist, among other things, of income from real estate developerswhomarket their properties and brands. Advertisements are recognised as revenue over the period that the advertising campaign is exposed on Hemnet.se and in Hemnet's apps. Other services are recognised as revenue during the period inwhich the service is used. Advertising and similar services are considered to be deliveredwhen the advertisement is published according to agreed conditions and the agreed publication time has expired. Themajority of the services are invoicedwith 30 days payment due. Advertising services are billed in linewith campaign times. Invoicing for property listing takes place in connectionwith publication. Since 2020, home sellers have been offered to pay their home listing via Klarna up to seven days after publication. In the event that the sellers choose to pay via Klarna, an invoicewill be drawn up via Klarna and Hemnet will receive a settlement claimon Klarna. If the property seller does not choose to pay via Klarnawithin seven days, a paper invoicewill be issued. Accrued income is reported in the balance sheet for published listings that have not been invoiced as of the balance sheet date. The portion relating to the remaining publication period regarding invoiced and accrued invoicing is reported as prepaid income in the balance sheet. The remaining performance obligations as of Dec. 31, 2021 amounted to SEK 7.6million (8.2), including prepaid income reported as contractual liabilities. Performance obligations are essentially expected to be executed and revenue is reported within one month from the balance sheet date. Furthermore, no revenue related to performance obligations that were fulfilled in previous years has been recognised as revenue in 2021.
G1 G2 G3 G4 G5 G6 G7 G8 G9
G10 G11 G12 G13 G14 G15 G16 G17 G18 G19 G20 G21 G22 G23 G24 G25 G26 G27 G28 G29
Note G3 Revenue fromcontracts with customers
Revenue breakdown by customer category
2021 482.3
2020 325.8
P1 P2 P3 P4 P5 P6 P7 P8 P9
Note G4 Other operating income
Property sellers Real estate agents
95.4 54.4 96.0
80.7 56.5 81.1
2021
2020
Real estate developers
Reminder fees and interest for late payments
Advertisers
0.9 0.2 0.2 0.5 1.8
1.1 0.2 0.1 0.3 1.7
Total
728.1
544.1
Commission income
Revenue breakdown by service category
2021 411.5 140.9 175.7 728.1
2020 312.7
Exchange rate differences receivables of an operative nature
Listings
Other Total
Value-added services
77.5
Advertising services and other
153.9 544.1
Total
Note G5 Other operating costs
The entire Group is followed up as a segment and the revenues are in principle exclusively attributable to Swedish customers. Hemnet's revenues come fromservices that target the followingmain customer groups: Property sellers, real estate developers, advertisers and real estate agents. Thesingle largest revenuestreamcomes fromthepropertysellers' property listings. Inorder for propertysellers tobeable to influence their propertysales, value-added servicessuchasHemnetPlusandHemnetPremiumareoffered,whichgiveamore prominent exposureof theproperty listingcomparedwith thebasicversion.
2021
2020
Foreign exchange losses
-0.7 -1.0 -0.0 -1.7
-0.6 -1.1 -0.0 -1.7
Reminder and debt collection costs
Other Total
50 · HEMNET GROUP | ANNUAL AND SUSTAINABILITY REPORT 2021
Financial statements
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