xbrli:pureiso4217:DKK179403842022-01-012022-12-31179403842022-01-012022-12-311179403842022-01-012022-12-311179403842022-01-012022-12-312179403842022-01-012022-12-311179403842022-01-012022-12-312179403842022-01-012022-12-313179403842022-01-012022-12-314179403842022-01-012022-12-315179403842022-01-012022-12-316179403842022-01-012022-12-317179403842022-01-012022-12-312179403842022-01-012022-12-31179403842021-01-012021-12-31179403842022-01-012022-12-31fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMember179403842022-01-012022-12-31fsa:ReserveForNetRevaluationAccordingToEquityMethodMember179403842022-01-012022-12-31fsa:RetainedEarningsMember179403842022-01-012022-12-31fsa:ProposedDividendRecognisedInEquityMember179403842022-01-012022-12-31fsa:ProposedDividendRecognisedInEquityMember179403842021-01-012021-12-31fsa:ProposedDividendRecognisedInEquityMember179403842022-01-012022-12-31fsa:RetainedEarningsMember179403842021-01-012021-12-31fsa:RetainedEarningsMember179403842022-12-31179403842021-12-31179403842022-01-01fsa:ContributedCapitalMember179403842022-01-01fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMember179403842022-01-01fsa:ReserveForNetRevaluationAccordingToEquityMethodMember179403842022-01-01fsa:ReserveForDevelopmentExpenditureMember179403842022-01-01fsa:RetainedEarningsMember179403842022-12-31fsa:ContributedCapitalMember179403842022-12-31fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMember179403842022-12-31fsa:ReserveForNetRevaluationAccordingToEquityMethodMember179403842022-12-31fsa:ReserveForDevelopmentExpenditureMember179403842022-12-31fsa:RetainedEarningsMember179403842022-01-01fsa:ProposedDividendRecognisedInEquityMember179403842022-01-01179403842022-12-31fsa:ProposedDividendRecognisedInEquityMember179403842022-01-012022-12-31fsa:ContributedCapitalMember179403842022-01-012022-12-31fsa:ReserveForDevelopmentExpenditureMember179403842022-01-012022-12-31fsa:ManagementMember179403842021-01-012021-12-31fsa:ManagementMember179403842022-01-012022-12-31fsa:BoardOfDirectorsMember179403842021-01-012021-12-31fsa:BoardOfDirectorsMemberGrundlag for konklusionKonklusionRegnskabsklasse C, mellemstor virksomhed2021-01-012021-12-3133963556København S23006WeidekampsgadeDeloitte Statsautoriseret RevisionspartnerselskabCopenhagenNordhavn2150Revisionspåtegning2022-12-312022-01-01<br /><br />18OrientkajGubi A/S17940384339635562300 København SWeidekampsgade 6Deloitte Statsautoriseret RevisionspartnerselskabÅrsrapportThe Board of Directors and the Executive Board have today considered and approved the annual report of Gubi A/S for the financial year 01.01.2022 - 31.12.2022.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 31.12.2022 and of the results of its operations for the financial year 01.01.2022 - 31.12.2022.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.Copenhagen2023-03-22Klaus Thyge Høeg-HagensenHenriette SchützeCEOLars Henrik MunchAsbjørn Mosgaard HyldgaardHans Christian GalstJacob Gudmund OlsenTue MantoniLars CordtJacob Lahn SlothChairmanVice ChairmanTo the shareholder of Gubi A/SWe have audited the financial statements of Gubi A/S for the financial year 01.01.2022 -
31.12.2022, 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 31.12.2022 and of the results of its operations for the financial year 01.01.2022 - 31.12.2022 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.Copenhagen2023-03-22Bill Haudal PedersenHans Taubymne30131mne44339State Authorised Public AccountantState Authorised Public AccountantFinancial highlights2022
DKK'0002021
DKK'0002020
DKK'0002019/20
DKK'0002018/19
DKK'000Key figuresGross profit/loss135,321174,17372,321127,256154,149Operating profit/loss70,000120,67448,94184,025125,217Net financials(703)(2,055)(1,917)(1,572)(421)Profit/loss for the year55,83495,76936,65564,10599,079Total assets159,790147,525126,750140,805160,028Investments in property,
plant and equipment39902622,5781,114Equity38,78237,83649,93453,45785,337RatiosReturn on equity (%)145.75218.2370.9192.37176.04Equity ratio (%)24.2725.6539.4037.9753.33Financial highlights are defined and calculated in accordance with the current version of "Recommendations & Ratios" issued by the CFA Society Denmark.Return on equity (%)
:Profit/loss for the year * 100
Average equityEquity ratio (%)
:Equity * 100
Total assetsPrimary activitiesThe main activities of GUBI A/S (the "Company") are within design and sale of furniture, lighting, and interior products.
GUBI is a leading Danish design brand focusing on timeless, high-quality furniture, lighting, and interior products. The Company designs, and markets products developed in co-operation with reputable national and international designers for both consumer and contract markets, and the range includes several prize-winning designs. Products are sold by leading national and international retailers and e-tailers and to professional customers worldwide. The Company's headquarters are located in Nordhavn, Copenhagen.
Development in activities and financesReported gross profit of DKK 135,321k in 2022 compared to DKK 174,173k in 2021 and reported operating profit of DKK 70,000k in 2022 compared to DKK 120,674k in 2021. The Company has been impacted by inflation on cost prices and significant higher freight costs. In addition, the Company has continued to invest in strategic initiatives related to the sales organization and marketing activities.Profit/loss for the year in relation to expected developmentsManagement considers the results for the financial year 2022 to be satisfactory.Unusual circumstances affecting recognition and measurementNo significant uncertainties are attached to recognition and measurement.OutlookThe Company expects revenue at a similar level as 2022 and anticipates normalized operating profit margin (EBITDA) to be in line with 2022.
Environmental performanceThe Company continuously seeks to improve, and comply with product or packaging requirements, for the benefit of the environment. Research and development activitiesThe Company’s research activities are related to products developed and designed both internally and in collaboration
with internationally leading external partners.
Group relations
Statutory report on corporate social responsibilityThe Company’s parent company, GUBI Group ApS, has published a Sustainability Report covering non-financial results related to environmental, social, and governance impacts. The Sustainability Report is available at GUBI website, https://gubi.com/en/dk/company/company-information.
Please refer to the management commentary in the annual report for 2022 for GUBI Group ApS, which is available at the GUBI website, https://gubi.com/en/dk/company/company-information. Events after the balance sheet dateNo other events have occurred after the balance sheet date to this date, which would influence the evaluation of this annual report. 13532054817417262555818532451184589501599838033970000417120673828301859026512149115391111261614165216629072316381121269878164823402550098755834041957688910035834041200000002000000020000000350000007000000083404157688915208394731141433531954067985438077740559281294236615435327439193869196975071102103114142641890227974900366180563495055418104413244058107991002760068828124654765265044561852813450003834166778715044945269430825671470529011626977916636370108390020831310323918614684104938224964776069505410467046444259613218972811940070015979041614752535450124750124766805-4555293019526171005747955388665261432739234267220000000200000003878229637835898501247-45552617100588665262342672501247668059301952747955314327392000000037835898200000009040005330007666750870059185707509233591010503640105036423939186168422725037405116102003638513529774979257677752659169215684562623186456233078354494112437370994055011124373701004558651597904161475253540-20000000-20000000-35000000-35000000011235700011235703130947-1386973-174397401 Events after the balance sheet dateNo other events have occurred after the balance sheet date to this date, which would influence the evaluation of this annual report. 2 Staff costs2022
DKK2021
DKKWages and salaries52,606,98345,532,443Pension costs3,279,3251,481,198Other social security costs1,291,667505,803Other staff costs2,669,2331,654,94259,847,20849,174,386Staff costs classified as assets(4,028,676)(4,055,928)55,818,53245,118,458Average number of full-time employees6662Remuneration
of
Management2022
DKKRemuneration of Management
2021
DKKExecutive Board5,773,2906,264,000Board of Directors1,300,0001,300,0007,073,2907,564,0006662Remuneration
of
Management2022
DKKRemuneration of Management
2021
DKKExecutive Board5,773,2906,264,000Board of Directors1,300,0001,300,0007,073,2907,564,00057732906264000130000013000003 Depreciation, amortisation and impairment losses2022
DKK2021
DKKAmortisation of intangible assets8,354,1817,123,858Depreciation of property, plant and equipment875,2421,256,481Impairment losses on property, plant and equipment272,17609,501,5998,380,3394 Other financial income2022
DKK2021
DKKFinancial income from group enterprises91,39894,116Other interest income401,530962Exchange rate adjustments418,61116,048911,539111,1265 Other financial expenses2022
DKK2021
DKKFinancial expenses from group enterprises93,178558,539Other interest expenses1,520,9871,367,613Exchange rate adjustments0240,1381,614,1652,166,290<br />2022
DKK2021
DKKFinancial expenses from group enterprises93,178558,539Other interest expenses1,520,9871,367,613Exchange rate adjustments0240,1381,614,1652,166,2906 Tax on profit/loss for the year2022
DKK2021
DKKCurrent tax15,743,47626,218,548Change in deferred tax371,000(777,000)Adjustment concerning previous years367,86459,43916,482,34025,500,9877 Proposed distribution of profit and loss2022
DKK2021
DKKOrdinary dividend for the financial year20,000,00020,000,000Extraordinary dividend distributed in the financial year35,000,00070,000,000Retained earnings 834,0415,768,891 55,834,04195,768,8918 Intangible assetsCompleted development projects
DKKAcquired licences
DKKDevelopment projects in progress
DKKCost beginning of year18,111,9946,014,5954,055,928Transfers00(4,055,928)Additions4,677,274859,0974,380,777Cost end of year22,789,2686,873,6924,380,777Amortisation and impairment losses beginning of year(10,800,580)(1,946,610)0Amortisation for the year(6,780,294)(1,573,887)0Amortisation and impairment losses end of year(17,580,874)(3,520,497)0Carrying amount end of year5,208,3943,353,1954,380,7779 Development projectsDevelopment projects regarding products and processors that are clearly defined and identifiable, where a
potential future market or development opportunity in companies can be found, and where appropriate in
manufacturing, marketing or using the official product or work, procedures, add in as an intangible assets.
The cost of development projects includes internal wages directly attributable to development projects. 10 Property, plant and equipmentPlant and machinery
DKKOther fixtures and fittings, tools and equipment
DKKCost beginning of year3,250,7132,432,914Additions0399,279Cost end of year3,250,7132,832,193Depreciation and impairment losses beginning of year(2,381,517)(1,411,883)Depreciation for the year(430,003)(445,239)Depreciation and impairment losses end of year(2,811,520)(1,857,122)Carrying amount end of year439,193975,07111 Financial assetsInvestments in group enterprises
DKKDeposits
DKKCost beginning of year447,0514,181,044Disposals0(685,989)Cost end of year447,0513,495,055Revaluations beginning of year6,171,0050Exchange rate adjustments112,3570Share of profit/loss for the year3,018,5900Revaluations end of year9,301,9520Carrying amount end of year9,749,0033,495,055Investments in subsidiariesRegistered inCorporate formEquity
interest
%Gubi IncUSAInc100Gubi Italy SRLItalySRL100Gubi Pty LtdAustraliaLtd100Gubi Design Limited (inactive)UKLtd100Shenzhen GUBI Trade Co., LimitedChinaLtd100<br />Investments in group enterprises
DKKDeposits
DKKCost beginning of year447,0514,181,044Disposals0(685,989)Cost end of year447,0513,495,055Revaluations beginning of year6,171,0050Exchange rate adjustments112,3570Share of profit/loss for the year3,018,5900Revaluations end of year9,301,9520Carrying amount end of year9,749,0033,495,05512 PrepaymentsPrepayments is related to prepaid costs.13 Deferred tax
Changes during the year2022
DKK2021
DKKBeginning of year533,0001,310,000Recognised in the income statement371,000(777,000)End of year904,000533,000Deferred tax consists of tax differences in intangible assets, fixed assets, inventory and other tax differences. <br />13 Deferred tax14 Other provisionsProvisions for warranty and fairness of DKK 7.7 million have been recognised as of 31 December 2022 to cover expected warranty and fairness claims. The size and timing of the provisions is based on previous experience of the level and timing of repairs and returns. The expected amount due within one year amounts to DKK 5.7 m. 15 Unrecognised rental and lease commitments2022
DKK2021
DKKLiabilities under rental or lease agreements until maturity in total3,855,3814,153,74816 Contingent liabilities2022
DKK2021
DKKOther contingent liabilities19,032,67715,580,389Contingent liabilities 19,032,67715,580,389Other contingent liabilities relates to a repurchase obligation towards a number of their suppliers. The Company participates in a Danish joint taxation arrangement where AX V Gubi Holding III ApS serves as
the administration company. According to the joint taxation provisions of the Danish Corporation Tax Act,
the Company is therefore secondarily liable for income taxes etc for the jointly taxed companies, which is limited to
the equity interest by which the Company participates in the Group, as well as secondarily liable for obligations,
if any, relating to the withholding of tax on interest, royalties and dividend for the jointly taxed entities. The
jointly taxed companies' total known net liability under the joint taxation arrangement is disclosed in the administration
company's financial statements.
The Company has provided a surety bond to the Parent Company Gubi Group ApS and Ax V Gubi Holding I ApS. 17 Assets charged and collateralGUBI A/S is subject to negative pledge (in Danish: pantsætningsforbud). GUBI A/S has provided a surety bond (in Danish: selvskyldnerkaution) to its parent companies, GUBI Group ApS and AX V GUBI Holding I ApS, respectively.18 Related parties with controlling interestRelated parties with controlling interest in Gubi A/S:
Gubi Group ApS, Orientkaj 18, 2150 Nordhavn, (immidiate parent company)
AX Gubi Holding I ApS, Orientkaj 18, 2150 Nordhavn
AX Gubi Holding II ApS, Orientkaj 18, 2150 Nordhavn
AX Gubi Holding III ApS, Sankt Annæ Plads 10, 1250 Copenhagen
Axcel V K/S, c/o Bruun & Hjejle, Noergade 21, 1165 Copenhagen (ultimate parent company)19 Group relationsName and registered office of the Parent preparing consolidated financial statements for the largest group:
AX V Gubi Holding III ApS, Sankt Annæ Plads 10, Copenhagen C 1250 Name and registered office of the Parent preparing consolidated financial statements for the smallest group:
GUBI Group ApS, Orientkaj 18, Nordhavn 2150This 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(1) 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.Business combinationsNewly acquired or newly established enterprises are recognised in the financial statements from the time
of acquiring or establishing such enterprises. Divested or wound-up enterprises are recognised in the income
statement up to the time of their divestment or winding-up.
The book-value method is applied at the acquisition of new enterprises, under which identifiable assets and
liabilities of these enterprises are measured at fair value at the acquisition date. Provisions for costs of restructuring of the enterprise acquired are only made in so far as such restructuring was decided by the
enterprise acquired prior to acquisition. Allowance is made for the tax effect of restatements.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.Gross profit or lossGross profit or loss comprises revenue, cost of raw materials and consumables and 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.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 as well as 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.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 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 as well as 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 as well as 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).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).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.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 3 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 3 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 equipmentPlant and machinery as well as 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.
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
Plant and machinery5 yearsOther fixtures and fittings, tools and equipment3-5 yearsProperty5 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 according to the equity method. This means
that investments are measured at the pro rata share of the enterprises’ equity value plus unamortised goodwill
and plus or minus unrealised intra-group profits or losses.
Group enterprises with negative equity value are measured at DKK 0. Any receivables from these en-terprises
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 under equity.
Goodwill 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.
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.
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.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.<br />Joint taxation contributions payable or receivableCurrent joint taxation contributions receivable or joint taxation contributions payable are recognised in the
balance sheet, calculated as tax computed on the taxable income of 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.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 or the planned settlement of each liability.
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.Other provisionsProvisions comprise provisions for warranty and provisions for fairness. Provisions for warranty are obligations to repair products within the warranty period, whereas provisions for fairness are obligations to repair products after the end of the warranty period.
Provisions are recognised when there is a legal or constructive obligation as a result of events in the financial year or previous years, and it is probable that an outflow of financial resources will be required to settle the obligation. Provisions are measured at the present value of the expected expenditure required to settle the obligation. 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.Cash flow statementReferring to section 86(4) of the Danish Financial Statements Act, the Entity has not prepared any cash flow statement as such statement is prepared by the higher-level group. 2023-03-29Anne Sofie Bendix Ranch