Notes to the Parent Company Financial Statements (FAS)

1. Accounting principles 

Basware Corporation’s financial statements have been prepared in accordance with the Finnish Accounting Act.

In February 2018 Basware Corporation sold its Financial Performance Solutions and Banking businesses and harmonised revenue recognition principles with the Group in accordance with the Finnish Accounting Rules. Due to changes the figures for the financial year 2018 and 2017 are not comparable.

Transactions in foreign currencies

Transactions in foreign currencies are recorded at the exchange rates prevailing at the transaction dates. At the end of the accounting period, the unsettled balances on foreign currency receivables and liabilities are valued at the rates of exchange prevailing at the end of the accounting period. Foreign exchange gains and losses related to normal business operations are entered in the appropriate income statement account before operating profit and foreign exchange gains and losses associated with financing are entered as a net amount under financial income and expenses.

Revenue recognition

Parent company applies the same revenue recognition principles as Basware group. Revenue recogniton principles of Basware Group are presented in note 2.

Other operating income

Other operating income includes proceeds from the sale of business operations and property, plant and equipment and rental income.

Research and development costs

Research expenses are booked as an expense as they are incurred. Costs related to the adoption of new technology or development of a new generation of projects are capitalized and recognized and amortized over the useful life of 3-5 years. In determining the useful life, the obsolescence of technology and the typical life cycle of products in the industry are taken into consideration. Amortization starts once the product is ready for commercial utilization. Maintenance of existing products and minor enhancements are recognized as they are incurred. Public subsidies related to research and development are recognized through profit or loss in the periods during which the corresponding costs are recognized as expenses.


The statutory pension coverage for employees is provided through insurance policies taken out with a pension institution. The statutory pension expenses are recognized as expenses in the year they are incurred. 

Intangible assets

Intangible assets are recognized at the original acquisition cost less accumulated depreciation according to plan and possible impairment. Public subsidies related to the acquisition of an intangible asset are deducted from the acquisition cost of the asset and recognized as income by reducing the depreciation charge of the asset they are related to. The expected useful lives of intangible assets are 3–10 years. The useful lives are reviewed at the end of each financial year and are adjusted if needed. 

Tangible assets

Tangible assets are recognized in the balance sheet at the original acquisition cost less accumulated depreciation. The useful lives of tangible assets are 3-5 years.


The company’s subsidiary shares and other shares in the investments in non-current assets are valued at acquisition cost or, if lower, at fair value. 

Financial instruments

Financial instruments are recognized at fair value in accordance with Accounting Act section 5: 2a. The accounting principles of hedge accounting are presented in Note 18 and Note 22 of Group Financial Statements.


A provision is recognized when the Group has a present legal or constructive obligation as a result of a past event, it is probable that the obligation will have to be settled, and the amount of the obligation can be reliably estimated.


Leasing payments are recognized as annual expenses.

Income taxes

Income taxes have been recognized in accordance with the Finnish tax legislation.

Income taxes include the income tax payments for the period based on the profit for the period, taxes for prior periods and tax refunds. Deferred taxes are not included in the parent’s income statement and balance sheet.



2. Net sales

Net sales by revenue type

Below is breakdown of revenue by type. Revenue by type is not directly comparable with group revenue because figures reported by parent company include intra-group revenue.

EUR thousand

Cloud revenue  
Transaction services24,76722,715
Other cloud revenue125430
Cloud revenue total49,58343,656
Non-cloud revenue  
License sales1,4812,605
Consulting services6,59510,341
Other non-cloud revenue45-67
Non-cloud revenue total25,29139,253
Revenue total74,87482,909


Net sales by location of customer

EUR thousand





3. Other operating income

EUR thousand

Gain on sale of assets30,3010
Other operating income1,5500
Other operating income, total31,8510

Parent company recognized a gain on sale of assets amounting to EUR 30.3 million in the first quarter 2018 as a result of the sale of Banking and Financial Performance Solutions businesses.

Other operating income EUR 1.5 million consists of other proceeds related to divestment.



4. Materials and services

EUR thousand

Purchases during the financial period-12,007-10,661
Services purchased-1,104-2,101




5. Personnel and employee benefits

Personnel expenses

EUR thousand

Salaries paid to CEO and the Board of Directors-720-634
Salaries paid to other personnel-23,943-26,923
Pension expenses-4,023-4,498
Other personnel expenses-954-1,453

Salaries and fees paid to each member of the management are detailed in Note 5 to the Consolidated Financial Statements.

Number of personnel

Personnel average for the period392449
Personnel at the end of the period374439




6. Depreciation and amortization

EUR thousand

Intangible assets-7,715-6,858
Tangible assets-184-280




7. Other operating expenses

EUR thousand

Non-statutory employee benefits-448-570
IT and telephone-1,109-1,102
Auditor fees-165-367
Other expenses-40,576-35,118
Other operating expenses total-48,526-43,328
Audit fees-165-160
Tax consultancy00
Other fees and services0-207
Audit fees total-165-367




8. Financial income and expenses

EUR thousand

Other interest and financial income  
From group companies1,3661,648
From others129170
Other interest and financial income1,4941,818
Interest and financial expenses  
To group companies-587-2,202
From others-2,002-1,071
Impairment on investments-4,9940
Other interest and financial expenses total-7,583-3,273




9. Direct taxes

EUR thousand

Income taxes from previous financial periods0-187

The deferred tax asset arising from accumulated losses, total of EUR 2.7 million, has not been recognized on the balance sheet.



10. Intangible assets

Intangible assets 2018

EUR thousand

Development costsIntangible rights Goodwill/merger lossOther long-term investmentsAssets, unfinished projectsTotal
Acquisition cost Jan 147,75516,63517,6256412,35894,436
Reclassifications between items6,413----6,4130
Acquisition cost Dec 3150,05317,43717,6256412,89598,074
Cumulative amortization
 Jan 1
Cumulative amortisation on disposals and reclassifications1,335----1,335
Cumulative amortisation Dec 31-30,508-13,162-17,625-480-61,343
Book value Dec 3119,5454,27501612,89536,731


Intangible assets 2017

EUR thousand

Development costsIntangible rights Goodwill/merger lossOther long-term investmentsAssets, unfinished projectsTotal
Acquisition cost Jan 128,54114,57417,6256422,29783,100
Reclassifications between items17,319-42---17,2770
Acquisition cost Dec 3147,75516,63517,6256412,35894,436
Cumulative amortization 
Jan 1
Cumulative amortization Dec 31-26,232-11,067-17,625-430-54,967
Book value 
Dec 31




11. Tangible assets 2018

EUR thousand

Machinery and equipmentOther tangible assetsTotal
Acquisition cost Jan 16,2341336,367
Acquisition cost Dec 316,1961456,341
Cumulative amortization Jan 1-5,9360-5,936
Cumulative amortisation on disposals and reclassifications46-46
Cumulative amortization Dec 31-6,0730-6,073
Book value Dec 31123145268


Tangible assets 2017

EUR thousand

Machinery and equipmentOther tangible assetsTotal
Acquisition cost Jan 16,1651336,298
Additions69 69
Acquisition cost Dec 316,2341336,367
Cumulative amortization Jan 1-5,6560-5,656
Cumulative amortization Dec 31-5,9360-5,936
Book value Dec 31298133431




12. Investments

EUR thousand

Shares in group companies  
Book value Jan 198,07597,621
Book value Dec 3198,07598,075
Balance sheet value Dec 3198,07598,075
Other shares  
Book value Jan 13838
Book value Dec 313838
Share of investment in a joint venture*  
Book value Jan 14,9944,994
Book value Dec 3104,994
Receivables from group companies  
Loan receivables from group companies20,16020,026
Investments total118,272123,133

* During the financial year Basware decided to write down its share of the joint venture Clear Funding Limited.  The loss impact totalled EUR 4.9 million.

Shares in subsidiaries

DomicileCountryParent company holding, %
Basware International OyEspooFinland100
Basware GmbHDüsseldorfGermany100
Basware UK Ltd.StaffordshireUnited Kingdom100
Basware ABStockholmSweden100
Basware B.V.AmsterdamThe Netherlands100
Basware A/SHerlevDenmark100
Basware, Inc.DelawareUnited States100
Basware SASParisFrance100
Basware ASOsloNorway100
Basware Pty LtdChatswoodAustralia100
Basware India Private LimitedIasiIndia99
Basware Belgium NVChandigarhBelgium99
Basware SRLAalstRomania100
Basware Holdings Ltd.LondonGreat Britain100
Basware Shared Services Ltd.LondonGreat Britain100
Basware Supplier Solutions Ltd.LondonGreat Britain100
Procserve Solutions Ltd.LondonGreat Britain100
Procserve Services Ltd.LondonGreat Britain100

Foreign branches


The parent company has branches in India, Chandigarh ( F03347 ) and Russia, Moscow ( 16926.1).

Basware UK subsidiaries, Basware Holdings Ltd and Basware Shared Services Ltd. sub-group entities have applied exemption from the local statutory audit requirements under section 479A of the Companies Act 2006.

Basware GmbH is exempt from the duty of corporations to audit and disclose financial statements pursuant to German legislation (§ 264 III HGB).



13. Non-current receivables

EUR thousand

Dec 31, 2018Dec 31, 2017
Rent deposits401423
Accrued employee expenses and other prepaid expenses9641,287




14. Current receivables

EUR thousand

Dec 31, 2018Dec 31, 2017
Accounts receivables61,5897,546
Receivables from group companies  
Accounts receivables6,3785,802
Interest receivables150153
Loan receivables6,8178,833
Other receivables5,5263,206
Prepaid expenses and accrued income4,4813,707
Other receivables632174
Current receivables total30,14329,421
Prepaid expenses and accrued income  
Accrued employee expenses552344
Other prepaid expenses and accrued income3,9293,363




15. Shareholders' equity

EUR thousand

Share capital Jan 13,5283,528
Share capital Dec 313,5283,528
Share premium account Jan 11,1181,118
Share premium account Dec 311,1181,118
Fair value reserve Jan 100
Fair value reserve Dec 312400
Restricted Equity Dec 314,8874,647
Invested non-restricted equity Jan 1112,089112,291
Decrease of treasury shares-204-202
Invested non-restricted equity Dec 31111,885112,089
Retained earnings Jan 1-11,0435,762
Decrease of treasury shares204202
Profit for the period1,460-15,469
Retained earnings Dec 31-9,379-9,505
Changes in accounting principles0-1,538
Retained earnings Dec 31 changed-9,379-11,043
Non-restricted equity Dec 31102,506101,046
Shareholders' equity Dec 31107,392105,693
Specification of distributable funds  
Profit for the period1,460-15,469
Retained earnings-10,8405,964
Other distributable funds111,885112,089
Change in accounting principles0-1,538
Development expenses, capitalized**-32,440-33,881
Distributable funds70,06567,165

* During the financial year 2018 Basware Corporation aligned its revenue recognition principles with the Group in accordance with Finnish Accounting Rules and changed accounting principle of bad debt provisions. The effect of the change in sales recognition principle on equity is EUR -1,540 thousand and the effect of the change in bad debt calculation is EUR +2 thousand.

** According to Accounting Act 5:8 capitalized development expenses are deducted from distributable funds.



16. Provisions

EUR thousand

Opening balance Jan 12011,199
Closing balance Dec 31106201

Reorganisation provision are detailed in Note 21 to the Consolidated Financial Statements.



17. Non-current liabilities

EUR thousand

Dec 31, 2018Dec 31, 2017
Loans from financial institutions40,11747,286
Deferred income191694
Debts to group companies177177
Non-current liabilities total40,48548,157




18. Current liabilities

EUR thousand

Dec 31, 2018Dec 31, 2017
Accounts payable5,4555,643
Liabilities to group companies  
Accounts payable1,072450
Other debts31,84232,947
Loans from financial institutions17,1011,996
Other debts1,2361,980
Accrued expenses and deferred income9,82011,364
Current liabilities total66,52654,380
Accrued expenses and deferred income  
Accrued exployee expenses6,3968,452
Deferred income1,6981,529
Other accrued expenes1,7261,383




19. Commitments and contingent liabilities

EUR thousand

Dec 31, 2018Dec 31, 2017
Own guarantees  
Business mortgages of own debt01,200
Commitments on behalf of subsidiaries  
Other own contingent liabilities  
Leasing liabilities  
Current lease liabilities240182
Lease liabilities maturing in 1-5 years340229
Rental liabilities  
Current rental liabilities4,3153,567
Rental liabilities maturing in 1-5 years6,4586,705
Rental liabilities maturing over 5 years2,8000
Other own contingent liabilities total14,15410,683
Commitments and Contingent Liabilities total14,84812,185

Value added tax is only included in vehicle leasing liabilities. The other liabilities are exclusive of value added tax. The lease agreements are ordinary lease agreements. The finance lease agreements are ordinary finance lease agreements and have no associated leaseback clauses. The group does not have pledges, mortgages or guarantees on behalf of external parties.

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