xbrli:pureiso4217:DKK296903592021-01-012021-12-31cmn:ConsolidatedMember296903592021-01-012021-12-311cmn:ConsolidatedMember296903592021-01-012021-12-311cmn:ConsolidatedMember296903592020-01-012020-12-31cmn:ConsolidatedMember296903592021-01-012021-12-31296903592020-01-012020-12-31296903592021-01-012021-12-31fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMembercmn:ConsolidatedMember296903592021-01-012021-12-31fsa:ReserveForNetRevaluationAccordingToEquityMethodMembercmn:ConsolidatedMember296903592021-01-012021-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember296903592021-01-012021-12-31fsa:EquityAttributableToParentMembercmn:ConsolidatedMember296903592021-01-012021-12-31fsa:MinorityInterestsMembercmn:ConsolidatedMember296903592021-01-012021-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember296903592020-01-012020-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember296903592021-01-012021-12-31fsa:MinorityInterestsMembercmn:ConsolidatedMember296903592020-01-012020-12-31fsa:MinorityInterestsMembercmn:ConsolidatedMember296903592021-01-012021-12-31fsa:ReserveForNetRevaluationAccordingToEquityMethodMember296903592021-01-012021-12-31fsa:RetainedEarningsMember296903592021-01-012021-12-31fsa:RetainedEarningsMember296903592020-01-012020-12-31fsa:RetainedEarningsMember296903592021-12-31cmn:ConsolidatedMember296903592020-12-31cmn:ConsolidatedMember296903592021-12-31296903592020-12-31296903592021-01-01cmn:ConsolidatedMember296903592020-01-01cmn:ConsolidatedMember296903592021-01-01fsa:ContributedCapitalMembercmn:ConsolidatedMember296903592021-01-01fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMembercmn:ConsolidatedMember296903592021-01-01fsa:ReserveForNetRevaluationAccordingToEquityMethodMembercmn:ConsolidatedMember296903592021-01-01fsa:ReserveForDevelopmentExpenditureMembercmn:ConsolidatedMember296903592021-01-01fsa:RetainedEarningsMembercmn:ConsolidatedMember296903592021-12-31fsa:ContributedCapitalMembercmn:ConsolidatedMember296903592021-12-31fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMembercmn:ConsolidatedMember296903592021-12-31fsa:ReserveForNetRevaluationAccordingToEquityMethodMembercmn:ConsolidatedMember296903592021-12-31fsa:ReserveForDevelopmentExpenditureMembercmn:ConsolidatedMember296903592021-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember296903592021-01-01fsa:EquityAttributableToParentMembercmn:ConsolidatedMember296903592021-01-01fsa:MinorityInterestsMembercmn:ConsolidatedMember296903592021-12-31fsa:EquityAttributableToParentMembercmn:ConsolidatedMember296903592021-12-31fsa:MinorityInterestsMembercmn:ConsolidatedMember296903592021-01-01fsa:ContributedCapitalMember296903592021-01-01fsa:ReserveForNetRevaluationAccordingToEquityMethodMember296903592021-01-01fsa:RetainedEarningsMember296903592021-01-01296903592021-12-31fsa:ContributedCapitalMember296903592021-12-31fsa:ReserveForNetRevaluationAccordingToEquityMethodMember296903592021-12-31fsa:RetainedEarningsMember296903592021-01-012021-12-31fsa:ContributedCapitalMembercmn:ConsolidatedMember296903592021-01-012021-12-31fsa:ContributedCapitalMember296903592021-01-012021-12-31fsa:ReserveForDevelopmentExpenditureMembercmn:ConsolidatedMember296903592021-01-012021-12-31fsa:ShorttermDeferredIncomeMembercmn:ConsolidatedMemberGrundlag for konklusionKonklusion2022-07-042022-07-0433963556Deloitte Statsautoriseret RevisionspartnerselskabRevisionspåtegningRegnskabsklasse C, mellemstor virksomhed2020-12-312020-01-0133963556Weidekampsgade 6Deloitte Statsautoriseret Revisionspartnerselskab2300 København S2021-12-312021-01-01HFUNK ApS29690359ÅrsrapportEsbjerg67018DokkenRudersdalHolte2840<br /><br />7FredsvejThe Executive Board has today considered and approved the annual report of HFUNK ApS for the financial year 01.01.2021 - 31.12.2021. The annual report is presented in accordance with the Danish Financial Statements Act.In my opinion, the consolidated financial statements and the parent financial statements give a true and fair view of the Group's and the Parent's financial position at 31.12.2021 and of the results of their operations and the consolidated cash flows for the financial year
01.01.2021 - 31.12.2021.I believe that the management commentary contains a fair review of the affairs and conditions referred to therein.I recommend the annual report for adoption at the Annual General Meeting.HolteHenrik MouTo the shareholder of HFUNK ApSWe have audited the consolidated financial statements and the parent financial statements of HFUNK ApS for the financial year 01.01.2021 - 31.12.2021, which comprise the income statement, balance sheet, statement of changes in equity and notes, including a
summary of significant accounting policies, for the Group as well as the Parent, and the consolidated cash flow statement. The consolidated financial statements and the parent financial statements
are prepared in accordance with the
Danish Financial Statements Act.
In our opinion, the consolidated financial statements and the parent financial statements give a true and fair view of the Group's and the Parent's financial position at 31.12.2021 and of the results of their operations and the consolidated cash flows for the financial year 01.01.2021 - 31.12.2021 in accordance
with the Danish Financial Statements Act.We conducted our audit in accordance with International Standards on Auditing (ISAs) and additional
requirements
applicable in Denmark. Our responsibilities under those standards and requirements are further
described in the "Auditor’s responsibilities for the audit of the consolidated financial statements and the parent financial statements" section of this auditor’s
report. We are independent of the Group in accordance
with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional
Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled
our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.Management is responsible for the preparation of consolidated financial statements and parent financial statements that give a true and fair view in
accordance
with the Danish Financial Statements Act, and for such internal control as Management determines
is necessary to enable the preparation of consolidated financial statements and parent financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the consolidated financial statements and the parent financial statements, Management is responsible for assessing the Group's and the Entity’s ability to continue
as a going concern, for disclosing, as applicable, matters related to going concern, and for using the going concern basis of accounting in preparing the consolidated financial statements and the parent financial statements unless Management either intends to liquidate
the Entity or to cease operations, or has no realistic alternative but to do so.Our objectives are to obtain reasonable assurance about whether the consolidated financial statements and the parent financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of these consolidated financial statements and parent financial statements.
As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark,
we exercise professional judgement and maintain professional scepticism throughout the audit. We also:<br />Identify and assess the risks of material misstatement of the consolidated financial statements and the parent financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
<br />Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group's and the Entity’s internal control.
<br />Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by Management.
<br />Conclude on the appropriateness of Management’s use of the going concern basis of accounting in
preparing the consolidated financial statements and the parent financial statements, and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on the Group's and the Entity’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related disclosures in the consolidated financial statements and the parent financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause the
Group and the Entity to cease to continue as a going concern.
<br />Evaluate the overall presentation, structure and content of the consolidated financial statements and the parent financial statements, including the disclosures
in the notes, and whether the consolidated financial statements and the parent financial statements represent the underlying transactions and
events in a manner that gives a true and fair view.<br />We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.Management is responsible for the management commentary.
Our opinion on the consolidated financial statements and the parent financial statements does not cover the management commentary, and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements and the parent financial statements, our responsibility is to read the management
commentary and, in doing so, consider whether the management commentary is materially inconsistent with
the consolidated financial statements and the parent financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.
Moreover, it is our responsibility to consider whether the management commentary provides the information
required under the Danish Financial Statements Act.<br />Based on the work we have performed, we conclude that the management commentary is in accordance with
the consolidated financial statements and the parent financial statements and has been prepared in accordance with the requirements of the Danish Financial
Statements Act. We did not identify any material misstatement of the management commentary.EsbjergMikael Grosbølmne33707State Authorised Public AccountantFinancial highlights2021
DKK'0002020
DKK'0002019
DKK'0002018
DKK'0002017
DKK'000Key figuresRevenue195,429174,048168,026133,2860Gross profit/loss144,480130,420124,36089,9810Operating profit/loss(3,859)8792,669-488-40Net financials(5,568)(3,200)(1,869)(1,516)0Profit/loss for the year2,1174,44813,267-2993-3,838Balance sheet total150,240127,083119,8245198723035Investments in property, plant and equipment3,9988,98315,6525290Equity71,00162,38959,3406680Equity excl. minority interests68,34162,03957,058(1,299)0Cash flows from investing activities(3,204)(10,579)(64,387)(3,126)0Cash flows from financing activities12,2702,35851,244(1,890)0RatiosGross margin (%)73.9374.9374.0167.510.00Net margin (%)1.082.567.90(2.25)(Infinity)Equity ratio (%)45.4948.8247.62(2.50)0.00The company has gained a controlling influence in its subsidiaries as of the financial year 2018, so the key figures
for 2017 only include the parent figures from that date and are therefore not comparable with the following years.Financial highlights are defined and calculated in accordance with the current version of "Recommendations &
Ratios" issued by the CFA Society Denmark.Gross margin (%)
:Gross profit/loss * 100
RevenueNet margin (%)
:
Profit/loss for the year * 100
RevenueEquity ratio (%)
:Equity excl. minority interests * 100
Balance sheet totalPrimary activitiesHFUNK ApS' primary activity is to act as mother company for INSCALE.
INSCALE support domestic and international business clients’ strategy through providing dedicated software development teams and -resources. INSCALE always builds through a strategic partnership with our clients.
All the teams work from one of our offshore development locations. INSCALE manages and advises on the remote software development process between the client and INSCALE’s offshore development location.
In providing services to the client, the team works on application development and maintenance of the client’s core software solutions. In doing so, the team will be a strategic resource pool for clients’ on-going software development efforts.
The collaboration and the partnership between INSCALE and the Client are a long-term relationship to give team members the best opportunity to acquire in depth knowledge of client’s business and software solutions, so INSCALE enables our clients to leverage on our engagement model for their business excellence.
By adopting INSCALE’s approach to building dedicated software development teams, our clients can extend their reach beyond their location into a wider pool of offshore developers and close technology gaps within their existing software development resources.
INSCALE is a player in the international market, where we all focus a huge need for software developers, as IT is fundamentally for many business’ all over the world. INSCALE has a solution for this and believe that our footprint in the sector is powerful and has been consistent for many years and this will continue.
Development in activities and financesThe profit for the year amounts to DKK 2,117 thousand, which is satisfactory due to the COVID-19 challenges and in line with the planned and liquidity-requiring expansion plans. The profit for the year is still affected by costs regarding etablishment of the Entity in Portugal.Profit/loss for the year in relation to expected developmentsThe growth was lower than expected, but still positive with 12%. The profit for the year was lower than expected.OutlookWe expect to return to our previous growth rate of +20% in 2022. A net profit between +5 and +10 mio. DKK in
2022 is expected.Events after the balance sheet dateNo events have occurred after the balance sheet date to this date, which would influence the evaluation of this annual report. 195429388174048085-1629234-2483372413664413664529925844652488014447970213042024114188424512369911964544735842118-385901687900413402514713495713402514713495729109612440836667869720752847909156405103845098753084397536848142871858684366438211668444478490064051646405164-428848064051645813543-4288480-1365694640516458135444595924180924064051645813544560445342336980848494560445350821922167794916997012059612792167794922958291789385847061239878938584706123982614269191431914319143142240514160818297525872047622813916077500073011025766010008810581391607750007301762210216790873262357314041348171751184331653762527772106332413064574078545742392921329322604060525725131377710769137439127643912767582658399824302699533652572513137771502400901270834418664885875314507130000130000130000130000-237212-50138402472858819628054151350200396411068448181337173814858291546773675683409696203869526605023500187100147162388713130000-50138424728588396411033717381130000-23721200684481816203869535001862388713683409692660502683409696203869513000015135020467736756203869513000019628054485829152083668310859158088617415270700000007000000266455411850118070000001002364030053227000000058779477288895113545813868349026864999306100000000100000000139244477579111224447487912109768310134445601871401872853286522640851765740655284461018307889627581279238619646947281830788913275812150240090127083441866488587531450700-367062-3670623672561940005848000584800002641720026417238370864788002641720264172-24728588247285880000-3964110396411000-285059164544735842118557773-314904315323064062180752-2340608-1280605-3500268-97372-26876465028993-1629234-2483372-3997971-7901829243560-2601450-19342950000000-3204299-10578630-5891945-554963702358255-35781940100000000584800001226980623582556377861-31913821076913743912761 Staff costs2021
DKK2020
DKKWages and salaries126,597,897108,982,982Pension costs422,5253,450,447Other social security costs13,367,71310,149,249Other staff costs1,496,1101,116,441141,884,245123,699,119Average number of full-time employees455416Remuneration to the executive board has not been disclosed in accordance with section 98b (3) of the Danish
Financial Statements Act.4554162 Depreciation, amortisation and impairment losses2021
DKK2020
DKKAmortisation of intangible assets1,106,973814,789Depreciation on property, plant and equipment5,362,2145,005,753Profit/loss from sale of intangible assets and property, plant and equipment(14,714)21,5766,454,4735,842,1183 Other financial income2021
DKK2020
DKKExchange rate adjustments2,910,9612,440,084Other financial income07522,910,9612,440,8361 Other financial income2021
DKK2020
DKKFinancial income from group enterprises667,869720,000Other financial income0752667,869720,7524 Other financial expenses2021
DKK2020
DKKOther interest expenses542,786573,820Exchange rate adjustments4,116,6514,359,905Other financial expenses3,819,654706,7858,479,0915,640,5102021
DKK2020
DKKOther interest expenses542,786573,820Exchange rate adjustments4,116,6514,359,905Other financial expenses3,819,654706,7858,479,0915,640,5105 Tax on profit/loss for the year2021
DKK2020
DKKCurrent tax1,807,000340,235Change in deferred tax51,68426,2031,858,684366,4386 Proposed distribution of profit/loss2021
DKK2020
DKKRetained earnings6,405,1645,813,543Minority interests' share of profit/loss(4,288,480)(1,365,694)2,116,6844,447,8492 Proposed distribution of profit and loss2021
DKK2020
DKKRetained earnings6,405,1645,813,5446,405,1645,813,5447 Intangible assetsCompleted development projects
DKKDevelopment projects in progress
DKKCost beginning of year5,048,487848,494Transfers1,022,414(1,022,414)Additions1,455,314173,920Cost end of year7,526,2150Amortisation and impairment losses beginning of year(814,789)0Amortisation for the year(1,106,973)0Amortisation and impairment losses end of year(1,921,762)0Carrying amount end of year5,604,4530Completed development projects
DKKDevelopment projects in progress
DKKCost beginning of year5,048,487848,494Transfers1,022,414(1,022,414)Additions1,455,314173,920Cost end of year7,526,2150Amortisation and impairment losses beginning of year(814,789)0Amortisation for the year(1,106,973)0Amortisation and impairment losses end of year(1,921,762)0Carrying amount end of year5,604,45308 Development projectsThe groups development projects relate to the development and improvement of the Inscale ERP System.
Development project assets are measured at net cost value, and is impairment tested on a yearly basis.9 Property, plant and equipmentOther fixtures and fittings, tools and equipment
DKKProperty, plant and equipment in progress
DKKCost beginning of year28,995,8135,961,279Exchange rate adjustments936,4340Transfers5,961,279(5,961,279)Additions3,997,9710Disposals(183,743)0Cost end of year39,707,7540Depreciation and impairment losses beginning of year(11,998,801)0Exchange rate adjustments(842,891)0Depreciation for the year(5,362,214)0Reversal regarding disposals174,1010Depreciation and impairment losses end of year(18,029,805)0Carrying amount end of year21,677,9490Recognised assets not owned by Entity381,693010 Financial assetsInvestments in associates
DKKOther investments
DKKDeposits
DKKCost beginning of year45,883,81019,1431,416,081Additions02,595,1266,324Cost end of year45,883,8102,614,2691,422,405Revaluations beginning of year24,728,58800Exchange rate adjustments(76,328)00Share of profit/loss for the year12,000,25700Dividend(5,000,000)00Other adjustments1,402,25700Revaluations end of year33,054,77400Carrying amount end of year78,938,5842,614,2691,422,405
AssociatesRegistered inOwnership
%Mou Fusion ApSVirum, Denmark33,333 Financial assetsInvestments in group enterprises
DKKInvestments in associates
DKKOther investments
DKKOther receivables
DKKCost beginning of year9,875,00045,883,81019,1434,087,756Transfers000(4,050,625)Additions5,985,600000Disposals000(37,131)Cost end of year15,860,60045,883,81019,1430Revaluations beginning of year024,728,58800Exchange rate adjustments0(76,328)00Share of profit/loss for the year012,000,25700Dividend0(5,000,000)00Other adjustments01,402,25700Revaluations end of year033,054,77400Impairment losses beginning of year(9,593,567)000Exchange rate adjustments340,500000Share of profit/loss for the year(3,806,591)000Other adjustments(367,062)000Impairment losses end of year(13,426,720)000Carrying amount end of year2,433,88078,938,58419,1430A specification of investments in subsidiaries is evident from the notes to the consolidated financial statements.Investments in
associatesRegistered inCorporate
formOwnership
%Mou Holding A/SVirum, DenmarkA/S33,3311 Deferred tax
Changes during the year2021
DKKBeginning of year314,041Recognised in the income statement(51,684)End of year262,357The capitalized tax assets consists only of tax losses from the groups malaysian subsidiary. Deferred tax assetsDeferred tax assets are measured at net realizable value, and are based on Management's best estimate. The
capitalized tax assets consists only of tax losses from the groups malaysian subsidiary.12 PrepaymentsPrepayments consist of insurance, subscription fees, etc. in respect of subsequent financial years.13 Non-current liabilities other than provisionsDue within 12
months
2021
DKKDue within 12
months
2020
DKKDue after
more than 12
months
2021
DKKBank loans1,024,923968,3432,083,668Lease liabilities265,519534,8310Debt to other credit institutions1,733,1981,502,148580,886Other payables7,000,0000010,023,6403,005,3222,664,554The Group has no long-term debt that is due more than 5 years from the balance sheet date.4 Non-current liabilities other than provisionsDue within 12
months
2021
DKKOther payables7,000,0007,000,000The Company has no long-term debt that is due more than 5 years from the balance sheet date. 14 Deferred incomeDeferred income consists of revenue to be recognized in future periods as the recognition criteria has not been
completed yet.15 Changes in working capital2021
DKK2020
DKKIncrease/decrease in receivables(8,195,171)(144,399)Increase/decrease in trade payables etc.8,122,085(312,528)Other changes630,859142,023557,773(314,904)16 Unrecognised rental and lease commitments2021
DKK2020
DKKTotal liabilities under rental or lease agreements until maturity 28,027,99728,829,65217 Contingent liabilitiesThe entity participates in a Danish joint taxation arrangement in which HFUNK ApS serves as the administration
company. According to the joint taxation provisions of the Danish Corporation Tax Act, the Entity is
therefore liable for income taxes etc for the jointly taxed entities, and for obligations, if any, relating to the
withholding of tax on interest, royalties and dividend for these entities.5 Contingent liabilitiesThe Entity serves as the administration company in a Danish joint
taxation arrangement. According to the joint
taxation provisions of the Danish Corporation Tax Act, the Entity
is therefore liable for income taxes etc. for the
jointly taxed entities, and also for obligations, if any, relating to
the withholding of tax on interest, royalties and
dividends for these entities.18 Assets charged and collateralThe group has not itself provided collateral or made mortgages.6 Assets charged and collateralThe company has not itself provided collateral or made mortgages.19 Non-arm’s length related party transactionsOnly non-arm's length related party transactions are disclosed in the annual report. No
such transactions were conducted during the financial year.20 SubsidiariesRegistered inCorporate
formOwnership
%Inscale Holding ApS (Hold 32,89% of Inscale A/S)DenmarkApS52.50Inscale A/SDenmarkA/S30.76Inscale Asia (owned 100% by Inscale A/S)MalaysiaSDN Bhd100Inscale Facilitation (owned 100% by Inscale A/S)MalaysiaSDN Bhd100Inscale Portugal (owned 100% by Inscale A/S)PortugalLtd.100Inscale QT Ukraine (owned 100% by Inscale A/S)UkraineLLC100Inscale Ukraine (owned 100% by Inscale A/S)UkraineLtd.100-13530-75860-3806591-12132212433880281433040877562091875610002483529024835297 Related parties with controlling interestRelated parties with controlling interest consist of Henrik Mou. No disclosures of transactions with related
parties has been stated as management believes that all transactions with related parties has been carried
out on arms length basis.This annual report has been prepared in accordance with the provisions of the Danish Financial Statements Act
governing reporting class C enterprises (medium).The accounting policies applied to these consolidated financial statements and parent financial statements are consistent with those applied last year.falseRecognition and measurementAssets are recognised in the balance sheet when it is probable as a result of a prior event that future economic
benefits will flow to the Entity, and the value of the asset can be measured reliably.
Liabilities are recognised in the balance sheet when the Entity has a legal or constructive obligation as a
result of a prior event, and it is probable that future economic benefits will flow out of the Entity, and the
value of the liability can be measured reliably.
On initial recognition, assets and liabilities are measured at cost. Measurement subsequent to initial
recognition is effected as described below for each financial statement item.
Anticipated risks and losses that arise before the time of presentation of the annual report and that confirm
or invalidate affairs and conditions existing at the balance sheet date are considered at recognition and
measurement.
Income is recognised in the income statement when earned, whereas costs are recognised by the amounts
attributable to this financial year. <br />Consolidated financial statementsThe consolidated financial statements comprise the Parent and the group enterprises (subsidiaries) that are controlled by the Parent. Control is achieved by the Parent, either directly or indirectly, holding more than 50% of the voting rights or in any other way possibly or actually exercising controlling influence.
Enterprises in which the Group, directly or indirectly, holds between 20% and 50% of the voting rights and exercises significant, but not controlling influence, are regarded as associates.<br />Basis of consolidationThe consolidated financial statements are prepared on the basis of the financial statements of the Parent and its subsidiaries. The consolidated financial statements are prepared by combining uniform items. On consolidation, intra-group income and expenses, intra-group accounts and dividends as well as profits and losses on transactions between the consolidated enterprises are eliminated. The financial statements used for consolidation have been prepared applying the Group’s accounting policies.
Subsidiaries’ financial statement items are recognised in full in the consolidated financial statements. Minority interests’ pro rata shares of the profit/loss and the net assets are disclosed as separate items in Management's proposal for the distribution of net profit/loss and equity, respectively.
Investments in subsidiaries are offset at the pro rata share of such subsidiaries’ net assets at the takeover date, with net assets having been calculated at fair value.Gross profit or lossGross profit or loss comprises revenue, own work capitalised, other operating income and other external
expenses.RevenueRevenue from the sale of services is recognised
in the income statement when delivery is made to the buyer. Revenue is recognised net of VAT, duties and
sales discounts and is measured at fair value of the consideration fixed.Own work capitalisedOwn work capitalised comprises staff costs and other costs incurred in the financial year and recognised in
cost for proprietary intangible assets and property, plant and equipment.Other operating incomeOther operating income comprises income of a secondary nature as viewed in relation to the Entity’s primary
activities.Other external expensesOther external expenses include expenses relating to the Entity’s ordinary activities, including expenses for
premises, stationery and office supplies, marketing costs, etc. This item also includes writedowns of
receivables recognised in current assets.Staff costsStaff costs comprise wages and salaries, and social security contributions, pension contributions, etc
. for entity
staff.Depreciation, amortisation and impairment lossesDepreciation, amortisation and impairment losses relating to property, plant and equipment and intangible
assets comprise depreciation, amortisation and impairment losses for the financial year, and gains and
losses from the sale of intangible assets and property, plant and equipment.Income from investments in group enterprisesIncome from investments in group enterprises comprises the pro rata share of the individual enterprises’ profit/loss after full elimination of intra-group profits or losses.
<br />Income from investments in associatesIncome from investments in associates comprises the pro rata share of the individual
associates’
profit/loss after pro rata elimination of intra-group profits or losses.
Other financial incomeOther financial income comprises dividends etc. received on other investments, interest income, including
interest income on receivables from group enterprises, net capital or exchange gains on securities, payables
and transactions in foreign currencies, amortisation of financial assets, and tax relief under the Danish
Tax Prepayment Scheme etc.Other financial expensesOther financial expenses comprise interest expenses, including interest expenses on payables to group
enterprises, net capital or exchange losses on securities, payables and transactions in foreign currencies,
amortisation of financial liabilities, and tax surcharge under the Danish Tax Prepayment Scheme etc.Tax on profit/loss for the yearTax for the year, which consists of current tax for the year and changes in deferred tax, is recognised in the
income statement by the portion attributable to the profit for the year and recognised directly in equity by
the
portion attributable to entries directly in equity.Intellectual property rights etc.Intellectual property rights etc. comprise development projects completed and in progress with related
intellectual property rights, acquired intellectual property rights and prepayments for intangible assets.Development projects on clearly defined and identifiable products and processes, for which the technical rate
of utilisation, adequate resources and a potential future market or development opportunity in the enterprise
can be established, and where the intention is to manufacture, market or apply the product or process in
question, are recognised as intangible assets. Other development costs are recognised as costs in the income
statement as incurred. When recognising development projects as intangible assets, an amount equalling
the costs incurred less deferred tax is taken to equity under reserve for development costs that is reduced
as the development projects are amortised and written down.
The cost of development projects comprises costs such as salaries and amortisation that are directly and
indirectly attributable to the development projects.
Completed development projects are amortised on a straight-line basis using their estimated useful lives
which are determined based on a specific assessment of each development project. If the useful life cannot
be estimated reliably, it is fixed at 10 years. For development projects protected by intellectual property
rights,
the maximum period of amortisation is the remaining duration of the relevant rights. The amortisation
periods
used are 5 years.
Intellectual property rights etc. are written down to the lower of recoverable amount and carrying amount.Property, plant and equipmentPlant and machinery, and other fixtures and fittings, tools and equipment are
measured at
cost less accumulated depreciation and impairment losses.
Cost comprises the acquisition price, costs directly attributable to the acquisition and preparation costs of
the
asset until the time when it is ready to be put into operation. For self-constructed assets, cost comprises
direct
and #indirect costs of materials, components, subsuppliers and labour costs.
Indirect production costs in the form of indirectly attributable staff costs and amortisation of intangible
assets
and depreciation on property, plant and equipment used in the manufacturing process are recognised
in cost
based on time spent on each asset.
The basis of depreciation is cost less estimated residual value after the end of useful life. Straight-line
depreciation is made on the basis of the following estimated useful lives of the assets:Other fixtures and fittings, tools and equipment3-5 yearsEstimated useful lives and residual values are reassessed annually.
Items of property, plant and equipment are written down to the lower of recoverable amount and carrying
amount.Investments in group enterprisesInvestments in group enterprises are recognised and measured in the parent financial statements according to the equity
method.
This means that investments are measured at the pro rata share of the enterprises’ equity value.
Group enterprises with negative equity value are measured at DKK 0. Any receivables from these enterprises
are written down to net realisable value based on a specific assessment. If the Parent has a legal
or constructive
obligation to cover the liabilities of the relevant enterprise, and it is probable that such
obligation will involve a
loss, a provision is recognised that is measured at present value of the costs
necessary to settle the obligations at
the balance sheet date.
Upon distribution of profit or loss, net revaluation of investments in group enterprises is transferred to
reserve
for net revaluation according to the equity method in equity.
Investments in group enterprises are written down to the lower of recoverable amount and carrying amount.
Investments in associatesInvestments in associates are recognised and measured according to the equity method. This
means that investments are measured at the pro rata share of the associates’ equity value.
Associates with negative equity value are measured at DKK 0. Any receivables from these associates are
written down to net realisable value based on a specific assessment. If the Parent has a legal or constructive
obligation to cover the liabilities of the relevant associate, and it is probable that such obligation will involve
a loss, a provision is recognised that is measured at present value of the costs necessary to settle the
obligations at the balance sheet date.
Upon distribution of profit or loss, net revaluation of investments in associates is transferred to reserve for
net revaluation according to the equity method in equity.
Investments in associates are written down to the lower of recoverable amount and carrying amount.
Investments in associates fall within the definitions of both participating interests and associates, yet in these consolidated financial statements they have been presented as investments in associates because this designation reflects more accurately the Group’s involvement in the relevant entities.
ReceivablesReceivables are measured at amortised cost, usually equalling nominal value, less writedowns for bad and
doubtful debts.Other investmentsOther investments comprise listed securities which are measured at fair value (market price) at the balance
sheet date, and unlisted equity investments measured at the lower of cost and net realisable value.Deferred taxDeferred tax is recognised on all temporary differences between the carrying amount and the tax-based
value of
assets and liabilities, for which the tax-based value is calculated based on the planned use of each
asset.
Deferred tax assets, including the tax base of tax loss carryforwards, are recognised in the balance sheet at
their estimated realisable value, either as a set-off against deferred tax liabilities or as net tax assets.Tax payable or receivableCurrent tax payable or receivable is recognised in the balance sheet, stated as tax computed on this year's
taxable income, adjusted for prepaid tax.PrepaymentsPrepayments comprise incurred costs relating to subsequent financial years. Prepayments are measured at
cost.CashCash comprises cash in hand and bank deposits.Minority interestsOn initial recognition, minority interests are measured at the minority interests’ share of the acquiree’s net assets measured at fair value. No goodwill related to the minority interests’ equity interests in the acquiree is recognised.Lease liabilitiesLease liabilities relating to assets held under finance leases are recognised in the balance sheet as
liabilities
other than provisions, and, at the time of inception of the lease, measured at the present value of
future lease
payments. Subsequent to initial recognition, lease liabilities are measured at amortised
cost. The difference
between present value and nominal amount of the lease payments is recognised in the
income statement as a
financial expense over the term of the leases.Other financial liabilitiesOther financial liabilities are measured at amortised cost, which usually corresponds to nominal value.Deferred incomeDeferred income comprises income received for recognition in subsequent financial years. Deferred income
is measured at cost.Cash flow statementThe cash flow statement shows cash flows from operating, investing and financing activities, and cash
and cash equivalents at the beginning and the end of the financial year.
Cash flows from operating activities are presented using the indirect method and calculated as the operating
profit/loss adjusted for non-cash operating items, working capital changes, and financial income, financial expenses and income tax paid.
Cash flows from investing activities comprise payments in connection with acquisition and divestment of
enterprises, activities and fixed asset investments, and purchase, development, improvement and sale,
etc. of intangible assets and property, plant and equipment.
Cash flows from financing activities comprise changes in the size or composition of the contributed capital
and related costs, and the raising of loans, repayments of interest-bearing debt, including lease liabilities, purchase of treasury shares and payment of dividend.
Cash and cash equivalents comprise cash and short-term securities with an insignificant price risk less
short-
term bank loans.
The cash flow statement shows cash flows from operating, investing and financing activities, and cash
and cash equivalents at the beginning and the end of the financial year.
Cash flows from operating activities are presented using the indirect method and calculated as the operating
profit/loss adjusted for non-cash operating items, working capital changes, and financial income, financial expenses and income tax paid.
Cash flows from investing activities comprise payments in connection with acquisition and divestment of
enterprises, activities and fixed asset investments, and purchase, development, improvement and sale,
etc. of intangible assets and property, plant and equipment.
Cash flows from financing activities comprise changes in the size or composition of the contributed capital
and related costs, and the raising of loans, repayments of interest-bearing debt, including lease liabilities, purchase of treasury shares and payment of dividend.
Cash and cash equivalents comprise cash and short-term securities with an insignificant price risk less
short-
term bank loans.
2022-07-04Henrik Mou