Note 36 – Obligations
Accounting principles
Operating leases
Leases of fixed assets, where the company in all essential respects holds the financial risks and benefits associated with ownership, are classified as finance leases. Other leases agreements are classified as operating leases. The Parent Company only holds leases classified as operating leases. Payments made during the lease term (less deductions for any incentives from the lessor) are recognized as an expense in the income statement on a straight-line basis over the lease term.
Duni AB leases some offices and warehouses as well as passenger cars, primarily for the sales organization. The largest leases are non-terminable in advance. Leases have varying terms, index clauses and rights of extension. The terms are market terms as regards prices and lengths of the agreements.
The nominal value of future minimum lease payments, with respect to non-terminable operating leases, is broken down as follows:
| Parent Company | ||||
| SEK m | 2019 | 2018 | ||
| Moderbolaget | ||||
| MSEK | 2019 | 2018 | ||
| Payable within one year | Förfaller till betalning inom ett år | 7 | 6 | |
| Payable later than one but within five years | Förfaller till betalning senare än ett men inom fem år | 6 | 10 | |
| Payable later than five years | Förfaller till betalning senare än fem år | – | – | |
| Total | Summa | 13 | 16 | |
| Of which leases signed during the year | Därav leasingkontrakt tecknade under året | 1 | 3 | |
The total expenses for operating leases during the year amounted to SEK 8 m (2018: SEK 7 m) in the Parent Company. The Parent Company does not hold any finance leases. Following the implementation of IFRS 16, lease expenses for 2018 were harmonized and changed from SEK 25 m to SEK 7 m. An expense for storage service management was treated as an operating lease under previous rules but does not classify as a finance lease under IFRS 16.