xbrli:pureiso4217:DKK176942352021-10-012022-09-30176942352021-10-012022-09-301176942352021-10-012022-09-301176942352021-10-012022-09-301176942352021-10-012022-09-302176942352021-10-012022-09-303176942352021-10-012022-09-30176942352020-10-012021-09-30176942352021-10-012022-09-30fsa:ReserveForNetRevaluationAccordingToEquityMethodMember176942352021-10-012022-09-30fsa:RetainedEarningsMember176942352021-10-012022-09-30fsa:ProposedDividendRecognisedInEquityMember176942352021-10-012022-09-30fsa:ProposedDividendRecognisedInEquityMember176942352020-10-012021-09-30fsa:ProposedDividendRecognisedInEquityMember176942352021-10-012022-09-30fsa:RetainedEarningsMember176942352020-10-012021-09-30fsa:RetainedEarningsMember176942352022-09-30176942352021-09-30176942352021-10-01fsa:ContributedCapitalMember176942352021-10-01fsa:ReserveForNetRevaluationAccordingToEquityMethodMember176942352021-10-01fsa:ReserveForDevelopmentExpenditureMember176942352021-10-01fsa:RetainedEarningsMember176942352021-10-01fsa:ProposedDividendRecognisedInEquityMember176942352022-09-30fsa:ContributedCapitalMember176942352022-09-30fsa:ReserveForNetRevaluationAccordingToEquityMethodMember176942352022-09-30fsa:ReserveForDevelopmentExpenditureMember176942352022-09-30fsa:RetainedEarningsMember176942352022-09-30fsa:ProposedDividendRecognisedInEquityMember176942352021-10-01176942352021-10-012022-09-30fsa:ContributedCapitalMember176942352021-10-012022-09-30fsa:ReserveForDevelopmentExpenditureMemberGrundlag for konklusionKonklusion2023-01-262023-01-26Regnskabsklasse C, mellemstor virksomhed339635562020-10-012021-09-30Esbjerg67018DokkenDeloitte Statsautoriseret RevisionspartnerselskabEsbjergEsbjerg N6715Revisionspåtegning2022-09-302021-10-01<br /><br />18OddesundvejBelman A/S17694235339635562300 København SWeidekampsgade 6Deloitte Statsautoriseret RevisionspartnerselskabÅrsrapportThe Board of Directors and the Executive Board have today considered and approved the annual report of Belman A/S for the financial year 01.10.2021 - 30.09.2022.The annual report is presented in accordance with the Danish Financial Statements Act.In our opinion, the financial statements give a true and fair view of the Entity’s financial position at 30.09.2022 and of the results of its operations and cash flows for the financial year 01.10.2021 - 30.09.2022.We believe that the management commentary contains a fair review of the affairs and conditions referred to therein.We recommend the annual report for adoption at the Annual General Meeting.EsbjergRolf RasmussenHenrik MouChristian MouJacob MouTo the shareholders of Belman A/SWe have audited the financial statements of Belman A/S for the financial year 01.10.2021 -
30.09.2022, which comprise the income statement, balance sheet, statement of changes in equity and
notes, including a
summary of significant accounting policies. The financial statements are prepared in
accordance with the
Danish Financial Statements Act.
In our opinion, the financial statements give a true and fair view of the Entity’s financial position at 30.09.2022 and of the results of its operations for the financial year 01.10.2021 - 30.09.2022 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 financial statements" section of this auditor’s
report. We are independent of the Entity 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 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 financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, Management is responsible for assessing 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 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 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 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 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 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 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 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 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
Entity to cease to continue as a going concern.
<br />Evaluate the overall presentation, structure and content of the financial statements, including the disclosures
in the notes, and whether the 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 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 financial statements, our responsibility is to read the management
commentary and, in doing so, consider whether the management commentary is materially inconsistent with
the 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 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 highlights2021/22
DKK'0002020/21
DKK'0002019/20
DKK'0002018/19
DKK'0002017/18
DKK'000Key figuresGross profit/loss67,89463,64577,16767,63150,871Operating profit/loss15,44811,10323,44614,0831,520Net financials(341)(195)(389)118(105)Profit/loss for the year8,7388,15817,43010,864365Total assets66,37063,07466,47660,19252,633Investments in property,
plant and equipment1,0572,9561,6533,6471,295Equity38,17434,48541,09834,06424,112Average invested capital incl goodwill32,29127,67026,73528,65124,832Net interest-bearing debt(7,510)(6,327)(16,698)4,676(10,662)Average number of employees8287959085RatiosReturn on invested capital incl goodwill (%)45.0340.1387.749.156.12Financial gearing (0.20)(0.18)(0.41)0.14(0.44)Return on equity (%)24.0521.5946.3837.351.45Equity ratio (%)57.5254.6761.8256.5945.81Financial highlights are defined and calculated in accordance with the current version of "Recommendations & Ratios" issued by the CFA Society Denmark.Return on invested capital incl goodwill (%)
:EBITA * 100
Average invested capital incl goodwillFinancial gearing :Net interest-bearing debt
EquityReturn on equity (%)
:Profit/loss for the year * 100
Average equityEquity ratio (%)
:Equity * 100
Total assetsPrimary activitiesThe Company's main activity is design, manufacturing and sale of steel expansion joints as well as complementary products as rubber and fabric bellows, steel hoses etc. The products are used to absorb movements mainly caused by thermal flucturations in pipe systems, vibrations and also help to reduce pressure thrust forces in pressurized systems and equipment.
The products are mainly sold to energy, steel, oil & gas and chemical sector as well as industrial processingplants, vessels piping systems and pharmaceutical plants. Development in activities and financesThe financial year 2021/22 turned out to be satisfying for Belman A/S. The Company realised a profit of DKK 8,738k for the year against a profit of DKK 8,158k for 2020/21.
Following the profit, equity comes to DKK 38,174k. Profit/loss for the year in relation to expected developmentsDue to a positive market development, the result for the year is approx. 3 mDKK better than expected.Uncertainty relating to recognition and measurementA business partner has raised a claim against Belman. The management has estimated what the
management expect to pay for a settlement. If the settlement against expectation is higher, the amount allocated
under other provisions may not be sufficient.
OutlookA profit of 6-8 mDKK is expected for the financial year 2022/23.
Use of financial instrumentsPrice risks
The Company purchases of goods takes place in most pre-sales situations, which involves a risk.
Currency risk
Purchasing abroad means that earnings and cash flows are affected by the development in exchange rates for a number of currencies. No speculative currency positions are entered into.
Credit risk
The Company has good procedures for handling credit risks and historically the company has had insubstantial loss on debtors.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.67894264636448665062474551006377182125115351561544826811103333-3052173-35825806473340560201366120555351055018233180002392000873753581581824809026894456000000600000050000002737535315818219431025117230398404982942511725120127532771043691009301305163818625784023846584282592238465842825928046770107916041955290514560083195529051456008315544055123478417016770590358223582201822937507000014610903162212269965493554271571002373012611613237139917935832324252282002663700126307360650000005000000151562195914270226492428885260000005000000381742113448476650000000195914242888525000000500000001515622702264960000003448476603360005205021499916520502183591636045860232629078492876968326830734792942275302227509343556267697572214288689629868853622207028732676641610002105000543961074631971972247324273630229907802775292466370012630736060-5000000-50000000-4809000-480900-443524435201 Uncertainty relating to recognition and measurement
A business partner has raised a claim against Belman. The management has estimated what the management expect to pay for a settlement. If the settlement against expectation is higher, the amount allocated under other provisions may not be sufficient.2 Staff costs2021/22
DKK2020/21
DKKWages and salaries46,956,83246,963,311Pension costs2,819,5003,039,643Other social security costs848,4131,003,42350,624,74551,006,377Average number of full-time employees8287Remuneration
of
Management2021/22
DKKRemuneration of Management
2020/21
DKKTotal amount for management categories2,498,4172,169,4042,498,4172,169,4048287Remuneration
of
Management2021/22
DKKRemuneration of Management
2020/21
DKKTotal amount for management categories2,498,4172,169,4042,498,4172,169,404249841721694043 Depreciation, amortisation and impairment losses2021/22
DKK2020/21
DKKAmortisation of intangible assets56,862191,638Depreciation of property, plant and equipment1,790,9851,384,626Profit/loss from sale of intangible assets and property, plant and equipment(26,596)(41,108)1,821,2511,535,1564 Other financial expenses2021/22
DKK2020/21
DKKOther interest expenses199,857106,478Exchange rate adjustments140,70394,888340,560201,366<br />2021/22
DKK2020/21
DKKOther interest expenses199,857106,478Exchange rate adjustments140,70394,888340,560201,3665 Tax on profit/loss for the year2021/22
DKK2020/21
DKKCurrent tax4,161,0002,105,000Change in deferred tax(843,000)287,0003,318,0002,392,0006 Proposed distribution of profit and loss2021/22
DKK2020/21
DKKOrdinary dividend for the financial year6,000,0005,000,000Retained earnings 2,737,5353,158,182 8,737,5358,158,1827 Intangible assetsCompleted development projects
DKKAcquired intangible assets
DKKCost beginning of year2,185,9320Additions0303,984Cost end of year2,185,932303,984Amortisation and impairment losses beginning of year(1,934,760)0Amortisation for the year(56,862)0Amortisation and impairment losses end of year(1,991,622)0Carrying amount end of year194,310303,9848 Development projectsThe development project consists of a simplified offer- and calculation software, which will be available to customers and internal sales agents, and provide these with the opportunity to calculate and prepare offers on the smaller projects. The software will at the same time form the basis of the new catalogue.
The name of the software is Belmaker Light, which indicates the software is a variant of the company's existing calculation- and offer-preparing software.
Expenses include essentially internal costs pertaining to salaries to the involved development engineers and IT-responsible.
The object of the software is to increase efficiency regarding preparing of offers, and to increase the visibility of the company towards new and existing customer segments.
Development projects includes also implementation of IPW, which is used for lawful maintenance of tools and machines, handling complaints and competence management. 9 Property, plant and equipmentOther fixtures and fittings, tools and equipment
DKKLeasehold improvements
DKKProperty, plant and equipment in progress
DKKCost beginning of year38,201,482236,948930,130Transfers1,213,0070(1,213,007)Additions728,59045,995282,877Disposals(914,989)00Cost end of year39,228,090282,9430Depreciation and impairment losses beginning of year(32,873,772)(236,948)0Depreciation for the year(1,788,681)(2,304)0Reversal regarding disposals554,49000Depreciation and impairment losses end of year(34,107,963)(239,252)0Carrying amount end of year5,120,12743,6910Recognised assets not owned by entity868,0000010 Financial assetsInvestments in group enterprises
DKKCost beginning of year4,454,392Cost end of year4,454,392Revaluations beginning of year(171,800)Exchange rate adjustments(48,090)Share of profit/loss for the year(3,052,173)Investments with negative equity value depreciated over receivables 1,202,329Revaluations end of year(2,069,734)Carrying amount end of year2,384,658Investments in subsidiariesRegistered inCorporate formEquity
interest
%Belman UK Ltd.United KingdomLtd100LLC Belman RussiaRussiaLLC75Belman Design ApSEsbjergApS100Belman Flexibles India Private Ltd.IndiaLtd99,99Belman Design Zp.zoo.o (owned by Belman Design ApS)PolandZp.zoo.o100.00All accounts, shares, etc. of the Russian subsidiary have been written down to DKK 0.<br />Investments in group enterprises
DKKCost beginning of year4,454,392Cost end of year4,454,392Revaluations beginning of year(171,800)Exchange rate adjustments(48,090)Share of profit/loss for the year(3,052,173)Investments with negative equity value depreciated over receivables 1,202,329Revaluations end of year(2,069,734)Carrying amount end of year2,384,65811 Contract work in progress2021/22
DKK2020/21
DKKContract work in progress17,393,6829,758,000Progress billings regarding contract work in progress(10,376,912)(3,854,418)7,016,7705,903,58212 Deferred tax2021/22
DKK2020/21
DKKIntangible assets(72,000)(5,000)Property, plant and equipment154,000188,000Receivables(720,000)(629,000)Provisions1,145,000110,000Deferred tax507,000(336,000)
Changes during the year2021/22
DKKBeginning of year(336,000)Recognised in the income statement843,000End of year507,000Deferred tax assetsDeferred tax relates to tangible and intangible fixed assets, as well as receivables.13 PrepaymentsPreypayments comprise incurred costs relating to subsequent financial years14 Share capitalNumberPar value
DKKNominal
value
DKKOrdinary shares5,00010005,000,0005,0005,000,00015 Other provisionsOther provisions is excpected warranty provisions.16 Non-current liabilities other than provisionsDue within 12 months
2021/22
DKKDue within 12
months
2020/21
DKKDue after more than 12 months
2021/22
DKKOutstanding after 5 years
2021/22
DKKLease liabilities227,530222,750360,4580Other payables002,907,8492,819,475227,530222,7503,268,3072,819,47517 Unrecognised rental and lease commitments2021/22
DKK2020/21
DKKLiabilities under rental or lease agreements until maturity in total1,204,9451,226,630Liabilities under rental agreements or leases with group enterprises until expiry1,186,2181,162,95918 Contingent liabilities2021/22
DKK2020/21
DKKRecourse and non-recourse guarantee commitments2,326,9554,219,066Contingent liabilities 2,326,9554,219,066A dispute with a business partner has not been settled yet. The partner has raised a larger claim, of which it is expected that the company's insurance company will cover the majority part hereof. Management has made a provision for the expected outcome under other provisions, but the basis remains uncertain and it is also uncertain wheather the matter will be closed in 2023. The Entity participates in a Danish joint taxation
arrangement with Mou Holding A/S serving 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 also for obligations, if any, relating to the withholding of tax on interest, royalties and dividend for the jointly taxed entities.19 Non-arm’s length related party transactionsOnly related party transactions not conducted on an arm’s length basis are disclosed in the annual report. No such transactions have been conducted in the financial year.20 Group relationsName and registered office of the Parent preparing consolidated financial statements for the largest group:
Mou Holding A/S, Lyngby-Taarbæk.Name and registered office of the Parent preparing consolidated financial statements for the smallest group:
Mou Holding A/S, Lyngby-Taarbæk.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 financial statements are consistent with those applied last year.falseConsolidated financial statementsReferring to section 112 of the Danish Financial Statements Act,
no consolidated financial statements have been prepared.Recognition 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.Foreign currency translationOn initial recognition, foreign currency transactions are translated applying the exchange rate at the
transaction date. Receivables, payables and other monetary items denominated in foreign currencies that
have not been settled at the balance sheet date are translated using the exchange rate at the balance
sheet date. Exchange differences that arise between the rate at the transaction date and the rate in effect
at the payment date, or the rate at the balance sheet date, are recognised in the income statement as
financial income or financial expenses. Property, plant and equipment, intangible assets, inventories and
other non-monetary assets that have been purchased in foreign currencies are translated using historical
rates.
When recognising foreign subsidiaries and associates that are independent entities, the income statements
are translated at average exchange rates for the months that do not significantly deviate from the rates at
the transaction date. Balance sheet items are translated using the exchange rates at the balance sheet date.
Exchange differences arising out of the translation of foreign subsidiaries’
equity at the beginning of the year at the balance sheet date exchange rates and out of the translation of income statements from average rates to the exchange rates at the balance sheet date are classified
directly as equity.
Gross profit or lossGross profit or loss comprises revenue, cost of sales and other external expenses. RevenueRevenue from the sale of manufactured goods and goods for resale is recognised in the income statement
when delivery is made and risk has passed to the buyer. Revenue is recognised net of VAT, duties and
sales discounts and is measured at fair value of the consideration fixed.Contract work in progress is included in revenue based on the stage of completion so that revenue
corresponds to the selling price of the work performed in the financial year (the percentage-of-completion
method).Changes in inventories of finished goods and work in progressChanges in inventories of finished goods and work in progress comprise decreases or increases for the
financial year in inventories of finished goods and work in progress. This item includes ordinary writedowns
of such inventories. Changes in inventories of raw materials are included in costs of raw materials and
consumables.Other operating incomeOther operating income comprises income of a secondary nature as viewed in relation to the Entity’s primary
activities.Cost of salesCost of sales comprises goods consumed in the financial year measured at cost, adjusted for ordinary
inventory writedowns.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 salaries and wages, 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 comprise depreciation, amortisation and impairment losses for the financial year, calculated on the basis of the residual values and useful lives of the individual assets and impairment testing as well as gains and losses from the sale of 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.Other financial incomeOther financial income comprises exchange gains on securities, payables and transactions in foreign currencies.
Other financial expensesOther financial expenses comprise interest expenses, including interest expenses on payables to group
enterprises, net capital losses payables and transactions in foreign currencies,
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.The Entity is jointly taxed with the parent and alll the parents Danish group enterprises. The current Danish income tax is allocated
among the jointly taxed entities proportionally to their taxable income (full allocation with a refund
concerning tax losses).Intellectual property rights etcIntellectual property rights etc comprise development projects completed.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.
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. The amortisation
periods used are 5 years. Intellectual property rights acquired are measured at cost less accumulated amortisation. Patents are
amortised on a straight-line basis over their remaining duration, and licences are amortised over the term of the agreement.
Intellectual property rights etc are written down to the lower of recoverable amount and carrying amount.Property, plant and equipmentOther 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.
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:Useful life
YearsOther fixtures and fittings, tools and equipment3-14 yearsFor leasehold improvements and assets subject to finance leases, the depreciation period cannot exceed
the contract period.
Estimated 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 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.InventoriesInventories are measured at the lower of cost using the FIFO method and net realisable value.
Cost consists of purchase price plus delivery costs. Cost of manufactured goods and work in progress consists
of costs of raw materials, consumables, direct labour costs and indirect production costs.
The net realisable value of inventories is calculated as the estimated selling price less completion costs and
costs incurred to execute sale.ReceivablesReceivables are measured at amortised cost, usually equalling nominal value less writedowns for bad and
doubtful debts.Contract work in progressContract work in progress is measured at the selling price of the work carried out at the balance sheet date.
The selling price is measured based on the stage of completion and the total estimated income from the
individual contracts in progress. Usually, the stage of completion is determined as the ratio of actual to total
budgeted consumption of resources.
If the selling price of a project in progress cannot be made up reliably, it is measured at the lower of costs
incurred and net realisable value.
Each contract in progress is recognised in the balance sheet under receivables or liabilities other than provisions,
depending on whether the net value, calculated as the selling price less prepayments received, is
positive or negative.
Costs of sales work and of securing contracts, and finance costs are recognised in the income statement
as incurred.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.PrepaymentsPrepayments comprise incurred costs relating to subsequent financial years. Prepayments are measured at
cost.CashCash comprises cash in hand and bank deposits.DividendDividend is recognised as a liability at the time of adoption at the general meeting. Proposed dividend for
the financial year is disclosed as a separate item in equity. Other provisionsOther provisions comprise anticipated costs of non-recourse guarantee commitments.
Other provisions are recognised and measured as the best estimate of the expenses required to settle the
liabilities at the balance sheet date. Provisions that are estimated to mature more than one year after the
balance sheet date are measured at their discounted value.
Non-recourse guarantee commitments comprise commitments to remedy defects and deficiencies within
the guarantee period.
Once it is probable that total costs will exceed total income from a contract in progress, provision is made
for the total loss estimated to result from the relevant contract.Finance 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.<br />Operating leasesLease payments on operating leases are recognised on a straight-line basis in the income statement over
the term of the lease.Other financial liabilitiesOther financial liabilities are measured at amortised cost, which usually corresponds to nominal value.Prepayments received from customersPrepayments received from customers comprise amounts received from customers prior to delivery of the
goods agreed or completion of the service agreed.Tax receivable or payableCurrent tax receivable or payable is recognised in the balance sheet, stated as tax computed on this year's
taxable income, adjusted for prepaid tax.Cash flow statementThe cash flow statement is excluded because it is included in the consolidated cash flow statement in Mou Holding A/S.
2023-01-26Jacob Mou