Notes for P&L

Note 2 Revenues

Accounting policy

The Group generates revenue primarily from (i) sales of biometric hardware products (wafers, sensors and sensor modules) and (ii) technology licensing arrangements, including royalties. Revenue is recognized in accordance with IFRS 15 when (or as) control of the promised goods or services is transferred to the customer.

Product revenue is recognized at a point in time when control transfers in accordance with the delivery terms (Incoterms). Embedded software/firmware is integral to the hardware and does not constitute a separate performance obligation. License revenue is recognized at a point in time (right to use) or over time (right to access) depending on the nature of the license and the Group’s ongoing activities affecting the IP. Sales- or usage-based royalties are recognized when the underlying sales/usage occur. Multiple-element arrangements are separated into distinct performance obligations and the transaction price is allocated based on relative stand-alone selling prices.

The transaction price may include variable consideration (e.g., discounts), which is estimated and included only to the extent that it is highly probable that a significant reversal will not occur. Average payment terms are 30 days net.

Presentation

Net sales comprise IFRS 15 revenues from contracts with customers (product sales and licensing/royalty income from ordinary activities). Income outside IFRS 15 or outside ordinary activities is presented as other operating income, such as gains from sale/monetization of assets and grants.

IFRS 15 disclosures

Revenue is disaggregated by product group and geography. Significant judgments relate mainly to (i) identifying performance obligations in combined hardware and licensing arrangements, (ii) assessing license classification (right to use/right to access) and (iii) estimating variable consideration.

Group revenue by type of product, SEK M

 

Group sales by country, SEK M