Note 30 - Uncertainty in estimates and assessments

Sources of uncertainty in estimates

Executive management has analysed significant uncertainties for the Group’s development as well as core accounting policies. The following is a list of certain key risk factors that could affect Svenska Spel’s business, financial position and profit.

Recoverability of capitalised development expenditures

At year-end, the Svenska Spel Group had capitalised development expenditures totalling SEK 185 million (201). The expenditures pertain to several systems platforms for games operated by Group companies such as restaurant games of the Vegas type, as well as Triss, Stryktipset, Lotto, and Bingo, etc. Naturally, the ability to recover current capitalised development expenditure is dependent on future sales prospects for these games associated with particular gaming platforms and the incomes they generate. The carrying amount of the platforms involved may be significantly affected should the income-generating opportunities for these platforms and their lifetime not prove reasonable.

Provision for future profit

Certain products such as Lotto and Joker, etc. have winnings schedules based on statistical probability calculations for the payout of winnings. Chance is a factor that affects the actual outcome. The follow up of outcomes is conducted continually and the statistical calculations are scrutinised in the event of the emergence of major deviations.