xbrli:pureiso4217:DKK329334912021-01-012021-12-31329334912021-01-012021-12-311329334912021-01-012021-12-311329334912021-01-012021-12-311329334912021-01-012021-12-312329334912021-01-012021-12-313329334912021-01-012021-12-312329334912021-01-012021-12-31329334912020-01-012020-12-31329334912021-01-012021-12-31fsa:RetainedEarningsMember329334912021-01-012021-12-31fsa:ProposedDividendRecognisedInEquityMember329334912021-01-012021-12-31fsa:ProposedDividendRecognisedInEquityMember329334912020-01-012020-12-31fsa:ProposedDividendRecognisedInEquityMember329334912021-01-012021-12-31fsa:RetainedEarningsMember329334912020-01-012020-12-31fsa:RetainedEarningsMember329334912021-12-31329334912020-12-31329334912021-01-01fsa:ContributedCapitalMember329334912021-01-01fsa:RetainedEarningsMember329334912021-01-01fsa:ProposedDividendRecognisedInEquityMember329334912021-01-01329334912021-12-31fsa:ContributedCapitalMember329334912021-12-31fsa:RetainedEarningsMember329334912021-12-31fsa:ProposedDividendRecognisedInEquityMemberGrundlag for konklusionKonklusionRegnskabsklasse C, stor virksomhed339635562020-01-012020-12-31Kolding60004Egtved AlléDeloitte Statsautoriseret RevisionspartnerselskabKoldingKolding6000Revisionspåtegning2021-12-312021-01-01<br /><br />24EjlersvejMos Mosh A/S32933491339635562300 København SWeidekampsgade 6Deloitte Statsautoriseret RevisionspartnerselskabÅrsrapportThe Board of Directors and the Executive Board have today considered and approved the annual report of Mos Mosh A/S for the financial year 01.01.2021 - 31.12.2021.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 31.12.2021 and of the results of its operations for the financial year 01.01.2021 - 31.12.2021.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.Kolding2022-01-28David SkjødtCEOHans-Christian OhrtKim HyldahlDavid SkjødtChairman of the boardVice chairman of the boardTo the shareholders of Mos Mosh A/SWe have audited the financial statements of Mos Mosh A/S 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. 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 31.12.2021 and of the results of its operations 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 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.Kolding2022-01-28Morten Gade SteinmetzMorten Almtoft Lundmne34145mne41365State Authorised Public AccountantState Authorised Public AccountantFinancial highlights2021
DKK'0002020
DKK'0002019
DKK'0002018
DKK'0002017
DKK'000Key figuresRevenue466,414412,521450,572391,854276,149Gross profit/loss123,604107,952130,242114,79174,725Operating profit/loss99,12385,824112,19698,32261,390Net financials143(1,528)(55)250(178)Profit/loss for the year77,36365,72087,40076,81247,675Total assets277,028172,072167,698163,91694,210Investments in property,
plant and equipment1,9121,3981,6991,597761Equity204,526127,163105,443108,04356,231RatiosGross margin (%)26.5026.1728.9129.2927.06EBIT margin (%)21.2520.8024.9025.0922.23Net margin (%)16.5915.9319.4019.6017.26Return on equity (%)46.6556.5181.8893.52327,45Equity ratio (%)73.8373.9062.8865.9159.69Financial 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
RevenueEBIT margin (%):Operating profit/loss
* 100
RevenueNet margin (%)
:Profit/loss for the year * 100
RevenueReturn on equity (%)
:Profit/loss for the year * 100
Average equityEquity ratio (%)
:Equity * 100
Total assetsPrimary activitiesThe company’s activity consists in development, manufacturing, sale, and distribution of fashion clothing.Development in activities and financesThe net revenue is DKK 466.414k, which is a growth of 13 % from 2020. The restrictions and lockdowns around Europe caused by the COVID 19 pandemic has however continued to affect negatively in 2021 and curbed the growth compared to our initial expectations.
The profit after tax for the year amounted to DKK 77.363k.
Profit/loss for the year in relation to expected developmentsThe management is overall satisfied with the results of 2021. The market situation has been difficult and
unpredictable on both the customers and the suppliers side but we have managed to maintain and develop our
position as a brand and as a highly valued business partner. OutlookThe management expects 2022 to show a similar or even higher growth rate as in 2021. The orderbook going into 2022 is more than 30 % higher than last year and our men’s brand MOS MOSH Gallery will contribute significant to the overall growth.
The company will in 2022 continue the substantial investment program in developing the organization and digitalization. The fundamental core value of the company regarding responsible behavior towards whoever we meet in our daily activity, will also in 2022 be backed by considerable investments in below mentioned csr initiatives.
Statutory report on corporate social responsibilityIntroduction
At Mos Mosh we take our social responsibility seriously. It is an integrated part of how we are doing business from our headquarters in Kolding, and towards suppliers and business partners, who reside mainly in Europe. Our main business activities consist of development, manufacturing, sale and distribution of fashion clothing. The company had 38 dedicated employees in 2021.
We have established four principles guiding our work.
Fairness
The love for what we do and the respect for the people who are involved in our organization, is what makes Mos Mosh truly unique - all the way from production to final product. Our factories adhere to an ethical Code of Conduct, that ensures fair wages and working conditions for anyone involved in the production of our collections.
Responsibility
We source and use high quality fabrics and fibers including those which are considered to be less impactful on our environment. We do our best to stay in the loop regarding new, responsible initiatives and opportunities and we understand the importance of being innovative and acting regarding a less impactful fashion future.
Lasting quality
We believe in good craftsmanship, lasting quality, and innovative designs that our customers can love for years to come. Perfect fits, luxurious fabrics and a love for the small details are what define our collections.
Responsibility
About 70 % of our garments are produced within Europe. This means we are able to meet high quality standards and legislation within the field of responsibility and ethics in the production compared to conventional means. Keeping our production close to us also means less resources spent in transportation context.
Principal risks and their management
Our company is committed to avoiding and addressing adverse impacts on the basic principles for social, environmental, and economic development that we cause, contribute to, or are linked to via our business relationships. As the principal risk areas, we have identified:
- the risk of human and labor rights not being fully protected in our supply chain,
- the risk of a negative impact on the environment and climate especially in relation to our sourcing of cotton, which is our main resource material for our production,
- the risk of our business partners not acting with sufficient integrity and avoiding contributing to bribery,
- the risk of our contribution to negative impact on animal welfare in the materials which we source.
In the sections below, we have outlined how we work to avoid and mitigate these risks.
Policies
Our policies are written down in our Code of Conduct which was established in February 2019. The policies are embedded in the way we work at Mos Mosh and apply to our suppliers through the Code of Conduct.
The Code of Conduct is based on the ten principles of the UN Global Compact and is aligned with the UN Guiding Principles of Business and Human Rights. The Code encompasses
• human rights/labor rights
• environment
• anti-corruption
• animal welfare
The main requirements to our suppliers in the Code of Conduct is to
1) Establish a policy covering the policy topics, integrate it in business processes and towards sub-suppliers,
2) Perform due diligence processes to prevent and mitigate possible adverse impacts, and
3) Provide access to remedy.
We see the Code of Conduct as a tool for cooperation and dialogue about improving systems to manage adverse impacts on the topics covered. We know that establishing the required processes outlined in this Code of Conduct requires both time and resources; both in our own operations and with our suppliers. However, we expect our suppliers to follow the code, and we have reserved the right to monitor and audit compliance.
Actions
Code of conduct implementation in the supplier relation
Our collaboration with suppliers of fabric, garments etc. to our clothing is characterized by long term relationships in which we rely on a selected number of suppliers. This means that the suppliers know our values well. Since the publication of our Code of Conduct, we have distributed it to our suppliers and all of them have signed it. Should we onboard new suppliers, they will be asked to sign the Code of Conduct as well. Our following up on compliance will be an integrated part of future supplier visits and dialogue.
Responsible fibers
First of all, we believe that good quality and timeless garments are the baseline for responsible fashion. At Mos Mosh we create products that lives up to our customers’ requirements in regard to quality and responsibility, while still meeting their need for fashionable items.
We have for a long time been using responsible materials, and we are constantly searching for new responsible fabric options when setting up our next collections. This means that we are using EcoVero, Lyocel and recycled polyester and polyamide, recycled postconsumer cotton, responsible down amongst other in our collections. We are furthermore working on increasing the share of ‘more sustainable cotton’ including BCI (Better Cotton Initiative), Organic Cotton and Recycled Cotton.
Hence we are increasing the number of styles containing better and more responsible fibers. This year up to 54% of all styles are designed to include more responsible yarn fibers.
To us sustainable fibers are categorized into five categories. 1. Fibers we love, 2. Fibers we like, 3. Fibers that are ok, but not great, 4. Fibers we don’t see as responsible, 5. Fibers we don´t use. The categorization of the fibers is based on animal welfare and environmental concerns. Our aim is that in 2026 40% of all fibers is placed in group 1. By early 2022 will start defining our “responsible fiber” strategi roadmap to accomplish this goal. We will keep on implementing and develop this goal in the years to come.
We want our customers to make responsible choices. To make that easier for them, we have added hangtags on all responsible garments. The hangtags include short information about the responsible initiatives taken for that specific garment. We believe that by contributing with information to buyers and consumers, our initiatives will have a larger impact.
Data ethics
At Mos Mosh, we are conscious and aware of the many opportunities and uncertainties that come with the digital transformation. As part of our work to ensure best practice in handling data responsibly and in accordance with the General Data Protection Regulation (GDPR), we have articulated our requirements and expectations to our employees around GDPR in a policy and procedures.
At Mos Mosh, we do not use complex technology such as artificial intelligence (AI) or machine learning as our data landscape is fairly simple at the moment.
Based on the above, we have not found it necessary to develop a specific policy around data ethics. However, at Mos Mosh, we continuously consider ethical matters, in the way we handle and use data in order to ensure the rights and expectations of our employees and our customers.
Results in 2021.
We believe that the efforts done in 2021 has contributed to strengthening our work and profile as a sustainable company. Examples of what we have accomplished in 2021 are:
• Mos Mosh obtained Certification for GOTS (Global Organic Textile Standard), RWS (Responsible Wool Standard) and GRS (Global Recycling Standard). First audit was performed by Control Union in May 2021. The first orders of GOTS and RWS have been placed.
• In 2021, to date, 127.000 kg of BCI cotton (Better Cotton Initiative) have been purchased from our suppliers, this cotton has been used for Mos Mosh garment production. Compared to last year this is an increase of 52.000 kilos.
• Mos Mosh have obtained the first EcoVero Lenzing Product License approvals.
• Our fiber strategy has been completed, setting targets for 2023 and 2026 fiber consumption in relation to responsibility.
• Code of Conduct, Ethical Sourcing Requirements and Mos Mosh Sustainability & CSR policy have been distributed internally and to our suppliers. In total 21 out of 25 suppliers have signed both Code of Conduct and Ethical Sourcing Requirements. Also due to Covid-19 related travel restriction, we did not visit any suppliers and therefore not been able to follow up on these initiatives
Expectations for 2022
In general, we will strive to further develop, implement, and professionalize our work in the field around CSR and Responsible fiber strategy, within our own company, towards sales agents and suppliers. More specifically, we have set the following goals for 2022:
• We will add the certifications RDS (Responsible Down Standard), RMS (Responsible Mohair Standard) and RAS (Responsible Alpaca Standard) to our portfolio. All three standards focus on animal welfare. We expect to deliver the first garments by end of 2022.
• We will be mapping our packing-material consumption, which will be the backbone of development of a new responsible packaging strategy.
• We will start up the process of mapping our CO2 emissions.
• We will increase our responsibility storytelling towards end-consumer
• We will increase focus on internal training to strengthen the knowledge of the sustainable parameters, such as fiber properties and environmental issues.
• A “Procedure Manual” will be implemented, which will map the journey of the garments. The “Procedure Manual” helps employees understand what’s required from them, to ensure the garments are compliant to our Scope Certificate’s.
• We will ask our suppliers to work with us, to increase focus on responsible parameters, ex. will we ask them to obtain their own Scope Certificates of various standards for us the obtain full “chain of custody”.
Statutory report on the underrepresented genderThe company’s Board of Directors consisted of 3 members, all male, in 2021. The board has set a target of having at least one female member of the board by end 2021 which has not been accomplished. The wish to have both genders represented in the Board of Directors is however still relevant. The board therefore intends to enlarge the numbers of members by at least one female board member in 2022 with relevant strategic competencies.
Since the company has less than 50 employees, we have chosen not to establish a policy for the underrepresented gender in the other management levels.
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.46641430141252052606617663195270722862296282328364819001159123603581107951505224332432038579220468991741247991234398582446623160857437812173033227222199266491842960262190328918576137773632026571988947363202300000003000000000440000004736320221719889551785991252000055178599125220283161187893683326124035827116422428251105010506355815247086366315257583900058394526152635536495093882420157258664657683710855375853222887022207662730554996027048412569538757123502037615623685378962537417422469013414254883588060389273127685168126376277027743172071637500000500000174026451126663249300000000204526451127163249500000126663249012716324950000017402645130000000017805710178057110000010000048149801387815020198661922048078022034132259696725012924312781772501292449083882770277431720716371 Revenue2021
DKKDACH area193,170,891Scandinavia area159,624,686Benelux area44,092,974Other countries69,525,750Total revenue by geographical market466,414,301The Company only have one activity from sale of clothes.2 Other operating incomeOther operating income relates to salary compensation received as a result of the COVID19. 3 Staff costs2021
DKK2020
DKKWages and salaries19,024,54317,473,504Pension costs2,274,3911,982,064Other social security costs385,302304,246Other staff costs749,007625,97822,433,24320,385,792Average number of full-time employees3834Remuneration
of
Management2021
DKKRemuneration of Management
2020
DKKTotal amount for management categories1,876,5801,879,5181,876,5801,879,518Last year, part of the remuneration of management was a management fee paid to parent company Kate Acquisition for management services. This amount was recognized as other external expenses.3834Remuneration
of
Management2021
DKKRemuneration of Management
2020
DKKTotal amount for management categories1,876,5801,879,5181,876,5801,879,518187658018795184 Depreciation, amortisation and impairment losses2021
DKK2020
DKKAmortisation of intangible assets439,467361,783Depreciation of property, plant and equipment1,610,4511,379,464Profit/loss from sale of intangible assets and property, plant and equipment(3,019)02,046,8991,741,2475 Other financial income2021
DKK2020
DKKOther interest income83,815285,906Exchange rate adjustments2,232,270457,8752,316,085743,7816 Other financial expenses2021
DKK2020
DKKOther interest expenses719,958389,574Exchange rate adjustments1,438,0751,882,647Other financial expenses15,00002,173,0332,272,221<br />2021
DKK2020
DKKOther interest expenses719,958389,574Exchange rate adjustments1,438,0751,882,647Other financial expenses15,00002,173,0332,272,2217 Tax on profit/loss for the year2021
DKK2020
DKKCurrent tax22,048,07818,516,385Change in deferred tax(144,789)59,75221,903,28918,576,1378 Proposed distribution of profit and loss2021
DKK2020
DKKOrdinary dividend for the financial year30,000,0000Extraordinary dividend distributed in the financial year044,000,000Retained earnings 47,363,20221,719,889 77,363,20265,719,8899 Intangible assetsAcquired intangible assets
DKKAcquired trademarks
DKKGoodwill
DKKCost beginning of year1,329,719114,60040,000Cost end of year1,329,719114,60040,000Amortisation and impairment losses beginning of year(338,467)(114,600)(40,000)Amortisation for the year(439,467)00Amortisation and impairment losses end of year(777,934)(114,600)(40,000)Carrying amount end of year551,7850010 Property, plant and equipmentOther fixtures and fittings, tools and equipment
DKKLeasehold improvements
DKKCost beginning of year5,429,0602,904,036Additions1,803,855107,987Disposals(135,000)0Cost end of year7,097,9153,012,023Depreciation and impairment losses beginning of year(4,241,167)(1,663,678)Depreciation for the year(945,432)(665,019)Reversal regarding disposals117,0000Depreciation and impairment losses end of year(5,069,599)(2,328,697)Carrying amount end of year2,028,316683,32611 Financial assetsOther investments
DKKDeposits
DKKCost beginning of year1,050524,708Additions0110,873Cost end of year1,050635,581Carrying amount end of year1,050635,581<br />Other investments
DKKDeposits
DKKCost beginning of year1,050524,708Additions0110,873Cost end of year1,050635,581Carrying amount end of year1,050635,58112 Inventories13 Deferred tax2021
DKK2020
DKKIntangible assets(118,827)(211,907)Property, plant and equipment365,846314,137Financial assets23,46523,465Deferred tax270,484125,695
Changes during the year2021
DKK2020
DKKBeginning of year125,695185,447Recognised in the income statement144,789(59,752)End of year270,484125,695Deferred tax consists of differences between accounting and tax values.14 PrepaymentsPrepayments relate to various prepaid items.15 Share capitalNumberPar value
DKKNominal
value
DKKShare capital500,000500000500,000500,000500,00016 Unrecognised rental and lease commitments2021
DKK2020
DKKLiabilities under rental or lease agreements until maturity in total4,804,2976,088,82917 Contingent liabilities2021
DKK2020
DKKOther contingent liabilities3,827,7064,822,473Contingent liabilities 3,827,7064,822,473Other contingent liabilities consists of letters of credit in Sydbank A/S. The Entity participates in a Danish joint taxation
arrangement where Kate Acquisition ApS serves as the
administration company. According to the joint taxation provisions of
the Danish Corporation Tax Act, the Entity
is therefore liable from thr financiel year 2013 for income taxes etc for the jointly taxed entities, and from 1 July
2012 for obligations, if any, relating to the withholding of tax on interest, royalties and dividend for the jointly
taxed entities. The jointly taxed entities' total known net liability under the joint taxation arrangement is
disclosed
in the administration company's financial statements.18 Assets charged and collateralThe Entity's bank has a company mortgage on DKK 8.000K nominal. The mortgage are secured by inventories and
trade receivables. Carrying amount of mortgaged assets are DKK 100.665 k.19 Transactions with related partiesThe annual report discloses only transactions with related parties that have not been conducted on arms
length terms. No such transactions have been carried out during the financial year.20 Group relationsName and registered office of the Parent preparing consolidated financial statements for the largest group:
Kate Acquisition ApS, KoldingName and registered office of the Parent preparing consolidated financial statements for the smallest group:
Kate Acquisition ApS, KoldingThis annual report has been presented in accordance with the provisions of the Danish Financial Statements Act
governing reporting class C enterprises (large).The accounting policies applied to these 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.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.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 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.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.The Entity is jointly taxed with all 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).GoodwillGoodwill is the positive difference between cost and fair value of assets and liabilities arising from
acquisitions.
Goodwill is amortised straight-line over its estimated useful life, which is fixed based on the experience gained by
Management for each business area. Useful life has been determined based on an assessment of whether the
enterprises
are strategically acquired enterprises with a strong market position and a long-term earnings profile
and whether the amount of goodwill includes intangible resources of a temporary nature that cannot be
separated and recognised as separate assets. Useful lives are reassessed annually. The amortisation periods
used are 4 years.
Goodwill is written down to the lower of recoverable amount and carrying amount.<br />Intellectual property rights etcIntellectual property rights etc comprise development projects completed and in progress with related
intellectual property rights, acquired intellectual property rights and prepayments for intangible assets.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. development 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 equipment2-5 yearsLeasehold improvements2-5 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.Other investmentsOther investments comprise listed securities which are measured at fair value (market price) at the balance
sheet date, and nlisted equity investments measured at the lower of cost and net realisable value.InventoriesInventories are measured at the lower of cost using the FIFO method and net realisable value.
Cost consists of purchase price plus delivery 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.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.Joint taxation contributions receivable or payableCurrent joint taxation contributions payable or joint taxation contributions receivable are recognised in the
balance sheet, calculated as tax computed on the taxable income for the year, which has been adjusted for
prepaid tax. For tax losses, joint taxation contributions receivable are only recognised if such losses are
expected to be used under the joint taxation arrangement.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. Extraordinary dividend adopted in the financial
year is recognised directly in equity when distributed and disclosed as a separate item in Management's
proposal for distribution of profit/loss.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.Cash flow statementA cash flow statement has not been included in the annual report, as it is included in the cash flow statement in
consolidated accounts presented by the parent company Kate Acquisition ApS.2022-01-28Kim Hyldahl