G3. Contingent liabilities and pledged assets

AP Accounting principles

A contingent liability is recognized when there is a potential or actual obligation arising from events that have occurred that is not recognized as a liability or provision, either because it is improbable that an outflow of resources will be required to settle the obligation or because the amount cannot be calculated in a reliable manner.

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Contingent liabilities

SEKm

2017

2016

2015

1)

Contingent liabilities for tax in 2015 mainly relate to one tax dispute in Sweden where the Tax Agency had decided on additional taxes and tax surcharges for the years 2008 to 2012 of approximately SEK 1,188m, including interest. The dispute pertained to interest expenses on loans in a Group company that arose in connection with the move of operations to Sweden in 2004. A provision was made in 2016 and this obligation was subsequently settled.

2)

Other contingent liabilities above pertains to recycling fees/taxes for packaging in France, where the claim is subject to a judicial review.

Guarantees for

 

 

 

associates

5

8

9

customers and others

43

39

38

Tax disputes

–

–

1,3021)

Other contingent liabilities2)

294

214

243

Total

342

261

1,592

With reference to infringements of competition rules, claims for damages have been brought against the company. The company contests its responsibility and does not expect the claim to have a material impact.

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Pledged assets

 

Pledged assets related to financial liabilities

Other

Total

SEKm

2017

2016

2015

Real estate mortgages

65

–

65

7

7

Chattel mortgages

31

–

31

55

52

Other

64

186

250

130

134

Total

160

186

346

192

193

Liabilities for which some of these assets were pledged as collateral amounted to SEK 3m (0; 0).