41846232 2024-05-01 2025-04-30 41846232 2024-05-01 2025-04-30 1 41846232 2024-05-01 2025-04-30 1 41846232 2024-05-01 2025-04-30 1 41846232 2024-05-01 2025-04-30 2 41846232 2024-05-01 2025-04-30 3 41846232 2024-05-01 2025-04-30 4 41846232 2023-05-01 2024-04-30 41846232 2025-04-30 41846232 2024-04-30 41846232 2023-05-01 c:ContributedCapitalMember 41846232 2023-05-01 c:ReserveForNetRevaluationAccordingToEquityMethodMember 41846232 2023-05-01 c:ReserveForDevelopmentExpenditureMember 41846232 2023-05-01 c:RetainedEarningsMember 41846232 2023-05-01 2024-04-30 c:ReserveForDevelopmentExpenditureMember 41846232 2023-05-01 2024-04-30 c:RetainedEarningsMember 41846232 2023-05-01 2024-04-30 c:ReserveForNetRevaluationAccordingToEquityMethodMember 41846232 2024-04-30 c:ContributedCapitalMember 41846232 2024-04-30 c:ReserveForNetRevaluationAccordingToEquityMethodMember 41846232 2024-04-30 c:ReserveForDevelopmentExpenditureMember 41846232 2024-04-30 c:RetainedEarningsMember 41846232 2024-05-01 2025-04-30 c:ContributedCapitalMember 41846232 2024-05-01 2025-04-30 c:ReserveForDevelopmentExpenditureMember 41846232 2024-05-01 2025-04-30 c:RetainedEarningsMember 41846232 2024-05-01 2025-04-30 c:ReserveForNetRevaluationAccordingToEquityMethodMember 41846232 2025-04-30 c:ContributedCapitalMember 41846232 2025-04-30 c:ReserveForNetRevaluationAccordingToEquityMethodMember 41846232 2025-04-30 c:ReserveForDevelopmentExpenditureMember 41846232 2025-04-30 c:RetainedEarningsMember 41846232 2024-05-01 c:CompletedDevelopmentProjectsMember 41846232 2024-05-01 c:AcquiredIntangibleAssetsMember 41846232 2024-05-01 c:DevelopmentProjectsInProgressMember 41846232 2024-05-01 2025-04-30 c:DevelopmentProjectsInProgressMember 41846232 2024-05-01 2025-04-30 c:CompletedDevelopmentProjectsMember 41846232 2025-04-30 c:CompletedDevelopmentProjectsMember 41846232 2025-04-30 c:AcquiredIntangibleAssetsMember 41846232 2025-04-30 c:DevelopmentProjectsInProgressMember 41846232 2024-05-01 2025-04-30 c:AcquiredIntangibleAssetsMember 41846232 2024-05-01 c:FixturesFittingsToolsAndEquipmentMember 41846232 2024-05-01 2025-04-30 c:FixturesFittingsToolsAndEquipmentMember 41846232 2025-04-30 c:FixturesFittingsToolsAndEquipmentMember 41846232 2024-05-01 c:InvestmentsInGroupEnterprisesMember 41846232 2024-05-01 c:InvestmentsInAssociatesMember 41846232 2024-05-01 2025-04-30 c:InvestmentsInGroupEnterprisesMember 41846232 2024-05-01 2025-04-30 c:InvestmentsInAssociatesMember 41846232 2025-04-30 c:InvestmentsInGroupEnterprisesMember 41846232 2025-04-30 c:InvestmentsInAssociatesMember 41846232 2024-05-01 2025-04-30 c:SubsidiaryMember 1 41846232 2025-04-30 c:SubsidiaryMember 1 41846232 2024-05-01 2025-04-30 c:SubsidiaryMember 2 41846232 2025-04-30 c:SubsidiaryMember 2 41846232 2024-05-01 c:DepositsLongtermInvestmentsAndReceivablesMember 41846232 2024-05-01 2025-04-30 c:DepositsLongtermInvestmentsAndReceivablesMember 41846232 2025-04-30 c:DepositsLongtermInvestmentsAndReceivablesMember 41846232 2025-04-30 c:ConvertibleProfitYieldingOrDividendYieldingLongtermDebtInstrumentsMember 41846232 2024-04-30 c:ConvertibleProfitYieldingOrDividendYieldingLongtermDebtInstrumentsMember 41846232 2025-04-30 c:OtherPayablesIncludingTaxPayablesLiabilitiesOtherThanProvisionsLongtermMember 41846232 2024-04-30 c:LongtermBillsOfExchangePayableMember iso4217:DKK xbrli:pure Regnskabsklasse B Erklæring om udvidet gennemgang Roskilde Årsrapport Langagervej 1 Beierholm 9220 Aalborg Ø 2025-11-11 Peter Strøm Opinion Basis for Opinion 2025-11-11 2023-05-01 2024-04-30 2024-05-01 2025-04-30 41846232 Noahs Global ApS Jernbanegade 27, st. 4000 Roskilde Beierholm 32895468 Knud Højgaards Vej true 9 2860 Søborg Danmark We have on this day presented the annual report for the financial year 01.05.24 - 30.04.25 for Noahs Global ApS. 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 company's assets, liabilities and financial position as at 30.04.25 and of the results of the company's activities for the financial year 01.05.24 - 30.04.25. The annual report is submitted for adoption by the general meeting. Daniel Baven Daniel Baven Peter Strøm Susan Nørgaard Helle Lund Uth To the capital owners of Noahs Global ApS We have conducted an extended review of the financial statements of Noahs Global ApS for the financial year 01.05.24 - 30.04.25, which comprise income statement, balance sheet, statement of changes in equity and notes to the financial statements, including material accounting policy information. The financial statements are prepared in accordance with the Danish Financial Statements Act.Based on the work performed, in our opinion, the financial statements give a true and fair view of the company's financial position at 30.04.25 and of the results of the company's operations for the financial year 01.05.24 - 30.04.25 in accordance with the Danish Financial Statements Act. We conducted our extended review in accordance with the Danish Business Authority’s Assurance Standard for Small Enterprises and FSR – Danish Auditors’ standard on extended review of financial statements prepared in accordance with the Danish Financial Statements Act. Our responsibilities under those standards and requirements are further described in the ‘Auditor’s responsibilities for the extended review of the financial statements’ section of our report. We are independent of the company 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 evidence we have obtained is sufficient and appropriate to provide a basis for our basis for conclusion. We draw attention to note 2 in the financial statements, in which the management explains the assumptions for the value of the recognized completed development projects and development projects in progress. We agree with management on the accounting treatment of completed development projects and development projects in progress. Our opinion is therefore not modified in this regard. Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the financial statements unless management either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so. Our responsibility is to express a conclusion on the financial statements. This requires that we plan and perform procedures in order to obtain limited assurance for our conclusion on the financial statements and in addition perform specifically required supplementary procedures to obtain further assurance for our conclusion.An extended review comprises procedures that primarily consist of inquiries to management and others within the company, as appropriate, analytical procedures, the specifically required supplementary procedures as well as evaluation of the evidence obtained.The procedures performed in an extended review are less than those performed in an audit, and accordingly, we do not express an audit opinion on the financial statements. Soeborg, Copenhagen Morten Clement Skov State Authorised Public Accountant mne35432 -2209127 179521 2022230 1823820 1304144 985972 0 205248 -5535501 -2835519 -989954 86772 -3974 481453 242007 95598 4260882 649985 845079 1061220 -11393383 -3882901 0 -75294 -11393383 -3807607 -362226 86772 -11031157 -3894379 6019491 1478915 5795596 6567824 1845662 3211113 13660749 11257852 220059 0 220059 0 14330 388226 0 3974 24680 50057 39010 442257 13919818 11700109 373037 0 0 2734841 37225 141429 684732 304382 1094994 3180652 146677 489273 1241671 3669925 15161489 15370034 50707 50220 0 362226 6134819 3658223 -19204682 -5696929 -13019156 -1626260 1000000 9838675 4153456 3645142 5153456 13483817 20676542 540732 700742 692914 0 1206702 1649905 1072129 23027189 3512477 28180645 16996294 15161489 15370034 Figures in DKKShare capitalReserve for net revaluation according to the equity methodReserve for development costsRetained earningsTotal equity Statement of changes in equity for 01.05.23 - 30.04.24 Balance as at 01.05.2350,220275,4541,281,727573,9462,181,347Transfers to/from other reserves002,376,496-2,376,4960Net profit/loss for the year086,7720-3,894,379-3,807,607 Balance as at 30.04.2450,220362,2263,658,223-5,696,929-1,626,260 Statement of changes in equity for 01.05.24 - 30.04.25 Balance as at 01.05.2450,220362,2263,658,223-5,696,929-1,626,260Capital increase487000487Transfers to/from other reserves002,476,596-2,476,5960Net profit/loss for the year0-362,2260-11,031,157-11,393,383 Balance as at 30.04.2550,70706,134,819-19,204,682-13,019,156 50220 275454 1281727 573946 2376496 -2376496 86772 -3894379 50220 362226 3658223 -5696929 487 2476596 -2476596 -362226 -11031157 50707 0 6134819 -19204682 1.Information as regards going concernThe Company has realized a loss of DKK 11.393k and has a negative equity of DKK 13.019k as of April 30, 2025. The Company’s financial situation indicates uncertainty regarding its ability to continue as a going concern. In October 2025, the Company completed a series of capital increases (collectively referred to as Tranche I) to strengthen its equity and liquidity position.The transactions were carried out through a combination of cash contribution and conversion of profit-sharing loan instruments. A total nominal capital increase of DKK 24,819 was subscribed, comprising a cash contribution of DKK 1,667 and a conversion of profit-sharing loans totalling DKK 21,500k, corresponding to a nominal increase of DKK 23,152.An additional capital increase under Trache I was completed with a nominal increase of DKK 16,448 through a cash contribution of DKK 7,229k.Following the capital increases completed in October 2025, the Company's equity has changed from negative to positive, thereby restoring the capital base and improving the financial position.A subsequent Tranche II is planned for completion in February 2026, with a nominal capital increase of DKK 11,954 through a cash contribution of approximately DKK 5.2 million.Based on the budget for the financial year 2025/26, management expects to have sufficient liquidity to carry out the planned activities. Accordingly, the financial statements have been prepared on a going concern basis. 2.Uncertainty concerning recognition and measurementIn the financial statements for the financial year 01.05.24 - 30.04.25, management has identified an uncertainty related to recognition and measurement that has had a significant impact on the assets and liabilities in the financial statements.The Company has recognized completed development projects with a carrying amount of DKK 6,019k and development projects in progress with a carrying amount of DKK 1,846k. The valuation is based on budgets for the financial years 2025/26 and 2026/27 and assumes improved earnings and cash flows from the Company's operations, including the conlusion of new customer agreements. If the underlying assumptions and budgets are not achieved, the carrying amounts of the completed development projects and development projects in progress may be subject to impairment, which could affect the valuation. Management considers the assumptions to be reasonable and achievable but acknowledges that the uncertainty decribed above exists. 3.Primary activitiesThe company's primary activities comprise the development, operation and commercialization of the Noahs concept – a network of smart, data-driven kitchens built on Noahs' proprietary technological platform and brand univers. The Company develops both the hardware and software infrastructure supporting kitchen operations, brand consistency, and customer experience. Furthermore, the Company establishes National License agreements with strategic partners in key markets, who are responsible for the local rollout and management of Master Franchise structures in their respective countries. 1789569 1664676 0 32200 24612 19535 208049 107409 3 3 181331 95430 60676 168 8.Special itemsSpecial items are income and expenses that are special due to their size and nature. The following special items were recorded in the financial year: Special items:Recognised in the income statement in:2024/25 DKK2023/24 DKK Impairment losses of receivables from associatesImpairment losses on financial assets0-649,985Write-downs on other receivablesImpairment losses on financial assets-4,260,8820 Total -4,260,882-649,985 Based on a conservative approach, a write-down has been made on the receivable from the Thai subsidiary Noahs TH Co. Ltd., which became 100% owned after the financial year. It is expected that the subsidiary will, in the long term, be able to repay the loan through positive operating results. 0 13892 818875 838388 25902 189664 302 19276 1643239 7722280 3211113 3691322 5056773 -5056773 6700012 7722280 1845662 -164324 -1154456 0 -516197 -772228 -680521 -1926684 0 6019491 5795596 1845662 10.Intangible assets - continued -Capitalised development costs comprise the development of Noahs’ proprietary technological platform, including software, hardware integration, and operational systems that enable efficient management, monitoring, and scaling of the Noahs kitchen network. These internally developed solutions constitute a core element of the Company’s future revenue generation through franchise and license operations The capitalised development projects relate to the development of proprietary technological platforms and commercial concepts expected to generate future economic benefits for the Company. Management has assessed that the following special assumptions form the basis for recognition and measurement of development projects: The projects are technically feasible and can be completed using the Company’s existing technical and financial resources.A structured development and implementation plan has been established, with completion expected within 12–24 months.The projects are expected to contribute positively to future earnings through product sales, licensing arrangements and commercial partnerships The underlying market assumptions are supported by identified customer demand, pilot installations and existing collaboration agreements.The Company maintains full control and ownership of all intellectual property rights arising from the projects.Development costs are measured reliably based on detailed project records, including internal time tracking and allocation of directly attributable expenses. 11.Property, plant and equipmentFigures in DKKOther fixtures and fittings, tools and equipment Cost as at 01.05.240Additions during the year235,778 Cost as at 30.04.25235,778 Depreciation and impairment losses as at 01.05.240Depreciation during the year-15,719 Depreciation and impairment losses as at 30.04.25-15,719 Carrying amount as at 30.04.25220,059 0 235778 235778 0 -15719 -15719 220059 12.Equity investmentsFigures in DKKEquity investments in group enterprisesEquity investments in associates Cost as at 01.05.2426,00023,974Additions during the year20,0000Disposals during the year0-23,974 Cost as at 30.04.2546,0000 Revaluations as at 01.05.24362,2260Net profit/loss from equity investments-989,9550 Revaluations as at 30.04.25-627,7290 Depreciation and impairment losses as at 01.05.240-20,000Reversal of depreciation of and impairment losses on disposed assets020,000Negative equity value impaired in receivables596,0590 Depreciation and impairment losses as at 30.04.25596,0590 Carrying amount as at 30.04.2514,3300 Name and registered office:Ownership interest Subsidiaries: Noahs Danmark ApS, Roskilde65%Noahs Belux ApS, Roskilde100% 26000 23974 20000 -23974 46000 0 0 -20000 20000 596059 596059 0 14330 0 Noahs Danmark ApS Roskilde 65 Noahs Belux ApS Roskilde 100 50057 -25377 24680 24680 0 1000000 9838675 0 4153456 3645142 15.Contingent liabilitiesOther contingent liabilitiesThe company is taxed jointly with the other companies in the group and has joint, several and unlimited liability for income taxes for the jointly taxed companies. The liability also includes any subsequent corrections to the calculated tax liability as a consequence of changes made to the jointly taxable income etc. The company has until 30 April 2026 expressed its commitment to ensuring that its subsidiary has sufficient liquidity to continue its operations and meet its obligations as they fall due. 16.Charges and securityAs security for debt to credit institutions of DKK 4,154k, a company charge has been provided of DKK 3,000k comprising intangible assets, other fixed assets, trade receivables, operating materials and inventory. The total carrying amount of the comprised assets is DKK 13,881k. The annual report is presented in accordance with the provisions of the Danish Financial Statements Act (Årsregnskabsloven) for enterprises in reporting class B with application of provisions for a higher reporting class. In accordance with section 110 of the Danish Financial Statements Act, the company has not prepared consolidated financial statements. Basis of recognition and measurementIncome is recognised in the income statement as earned, including value adjustments of financial assets and liabilities. All expenses, including depreciation, amortisation, impairment losses and write-downs, are also recognised in the income statement.Assets are recognised in the balance sheet when it is probable that future economic benefits will flow to the company, and the value of such assets can be measured reliably. Liabilities are recognised in the balance sheet when it is probable that future economic benefits will flow from the company, and the value of such liabilities can be measured reliably. On initial recognition, assets and liabilities are measured at cost. Subsequently, assets and liabilities are measured as described for each item below.On recognition and measurement, account is taken of foreseeable losses and risks arising before the date at which the annual report is presented and proving or disproving matters arising on or before the balance sheet date. CURRENCYThe annual report is presented in Danish kroner (DKK).On initial recognition, transactions denominated in foreign currencies are translated using the exchange rates applicable at the transaction date. Exchange rate differences between the exchange rate applicable at the transaction date and the exchange rate at the date of payment are recognised in the income statement as a financial item. Receivables, payables and other monetary items denominated in foreign currencies are translated using the exchange rates applicable at the balance sheet date. The difference between the exchange rate applicable at the balance sheet date and at the date at which the receivable or payable arose or was recognised in the latest annual report is recognised under financial income or expenses in the income statement. Fixed assets and other non-monetary assets acquired in foreign currencies are translated using historical exchange rates. Gross resultGross result comprises revenue, work performed for own account and capitalised, other operating income and cost of sales and other external expenses. RevenueIncome from the sale of services is recognised in the income statement as delivery takes place (delivery method). Revenue is measured at the selling value of the agreed consideration exclusive of VAT and other taxes collected on behalf of third parties and less discounts. Work performed for own account and capitalisedWork performed for own account and capitalised comprises cost of sales, wages and salaries and other internal expenses incurred during the year and included in the cost of self-constructed or self-produced intangible assets and property, plant and equipment. Other operating incomeOther operating income comprises income of a secondary nature in relation to the enterprise’s activities, including rental income, negative goodwill and gains on the sale of intangible assets and property, plant and equipment. Cost of salesCost of sales comprises cost of sales for the year measured at cost plus any changes in inventories, including write-downs to the extent that these do not exceed normal write-downs. Other external expensesOther external expenses comprise costs relating to distribution, sales and advertising and administration, premises and bad debts to the extent that these do not exceed normal write-downs. Staff costsStaff costs comprise wages and salaries as well as other staff-related costs. Depreciation, amortisation and impairment lossesThe depreciation and amortisation of intangible assets and property, plant and equipment aim at systematic depreciation and amortisation over the expected useful lives of the assets. Assets are depreciated and amortised according to the straight-line method based on the following expected useful lives and residual values:The basis of depreciation and amortisation is the cost of the asset less the expected residual value at the end of the useful life. Moreover, the basis of depreciation and amortisation is reduced by any impairment losses. The useful life and residual value are determined when the asset is ready for use and reassessed annually.Intangible assets and property, plant and equipment are impaired in accordance with the accounting policies referred to in the ‘Impairment losses on fixed assets’ section. Other operating expensesOther operating expenses comprise costs of a secondary nature in relation to the enterprise’s activities, including costs relating to rental activities and losses on the sale of intangible assets and property, plant and equipment. Income from equity investments in group entreprises and associatesFor equity investments in equity investments in subsidiaries and associates, measured using the equity method, the share of the enterprises’ profit or loss is recognised in the income statement after elimination of unrealised intercompany profits and losses and less any goodwill amortisation and impairment losses. For associates only the proportionate share of intercompany gains and losses is eliminated.Income from equity investments in equity investments in subsidiaries and associates also comprises gains and losses on the sale of equity investments. Impairment losses on financial assetsImpairment losses on financial assets comprise impairment of investments at a lower recoverable amount and write-downs of financial current assets at a lower net realisable value. Other net financialsInterest income and interest expenses, foreign exchange gains and losses on transactions denominated in foreign currencies etc. are recognised in other net financials. Tax on profit/loss for the yearThe current and deferred tax for the year is recognised in the income statement as tax on the profit/loss for the year with the portion attributable to the profit/loss for the year, and directly in equity with the portion attributable to amounts recognised directly in equity.The company is jointly taxed with Danish consolidated enterprises. The parent is the administration company for the joint taxation and thus settles all income tax payments with the tax authorities.In connection with the settlement of joint taxation contributions, the current Danish income tax is allocated between the jointly taxed enterprises in proportion to their taxable incomes. This means that enterprises with a tax loss receive joint taxation contributions from enterprises which have been able to use this loss to reduce their own taxable profit. Intangible assetsCompleted development projects and development projects in progressDevelopment projects are recognised in the balance sheet where the project aims at developing a specific product or a specific process, intended to be produced or used, respectively, by the company in its production process. On initial recognition, development projects are measured at cost. Cost comprises the purchase price plus expenses resulting directly from the purchase, including wages and salaries directly attributable to the development projects until the asset is ready for use. Interest on loans arranged to finance development projects in the development period is not included in the cost. Other development projects and development costs are recognised in the income statement in the year in which they are incurred.Development projects in progress are transferred to completed development projects when the asset is ready for use. Development projects are subsequently measured in the balance sheet at cost less accumulated amortisation and impairment losses.Completed development projects are amortised using the straight-line method based on useful lives, which are stated in the ‘Depreciation, amortisation and impairment losses’ section.Acquired rightsAquired rights are measured in the balance sheet at cost less accumulated amortisation and impairment losses.Acquired rights are amortised using the straight-line method based on useful lives, which are stated in the ‘Depreciation, amortisation and impairment losses’ section.Gains or losses on the disposal of intangible assetsGains or losses on the disposal of intangible assets are determined as the difference between the selling price, if any, less selling costs and the carrying amount at the date of disposal. Property, plant and equipmentProperty, plant and equipment comprise leasehold improvements as well as other fixtures and fittings, tools and equipment.Property, plant and equipment are measured in the balance sheet at cost less accumulated depreciation and impairment losses. Cost comprises the purchase price and expenses resulting directly from the purchase until the asset is ready for use. Interest on loans arranged to finance production is not included in the cost.Property, plant and equipment are depreciated using the straight-line method based on useful lives and residual values, which are stated in the ‘Depreciation, amortisation and impairment losses' section.Gains and losses on the disposal of property, plant and equipment are determined as the difference between the selling price, if any, less selling costs and the carrying amount at the date of disposal less any costs of disposal. Equity investments in group entreprises and associatesEquity investments in group enterprisesEquity investments in subsidiaries are recognised and measured according to the equity method. For equity investments in subsidiaries, the equity method is considered a measurement method, and reference is made to the 'Equity method' section for further details.Equity investments in associatesEquity investments in associates are recognised and measured according to the equity method. For equity investments in associates, the equity method is considered a measurement method, and reference is made to the 'Equity method' section for further details.Equity methodOn initial recognition, equity investments measured according to the equity method are measured at cost. Transaction costs directly attributable to the acquisition are recognised in the cost of equity investments. Under subsequent recognition and measurement of equity investments according to the equity method, equity investments are measured at the proportionate share of the enterprises' equity value, determined according to the accounting policies of the parent, adjusted for the remaining value of goodwill and gains and losses on transactions with the enterprises in question. Equity investments, where information for recognition according to the equity method is not known, are measured at cost.Gains or losses on disposal of equity investmentsGains or losses on disposal of equity investments are determined as the difference between the disposal consideration and the carrying amount of net assets at the time of sale, including non-amortised goodwill, as well as the expected costs of divestment or discontinuation. Gains and losses are recognised in the income statement under income from equity investments. Impairment losses on fixed assetsThe carrying amount of fixed assets which are not measured at fair value is assessed annually for indications of impairment over and above what is reflected in depreciation and amortisation.If the company's realised return on an asset or a group of assets is lower than expected, this is considered an indication of impairment.If there are indications of impairment, an impairment test is conducted of individual assets or groups of assets.The assets or groups of assets are impaired to the lower of recoverable amount and carrying amount.The higher of net selling price and value in use is used as the recoverable amount. The value in use is determined as the present value of expected net cash flows from the use of the asset or group of assets as well as expected net cash flows from the sale of the asset or group of assets after the expiry of their useful lives.Impairment losses are reversed when the reasons for the impairment no longer exist. ReceivablesReceivables are measured at amortised cost, which usually corresponds to the nominal value, less write-downs for bad debts.Write-downs for bad debts are determined based on an individual assessment of each receivable if there is no objective evidence of individual impairment of a receivable.Deposits recognised under assets comprise deposits paid to the lessor under leases entered into by the company. CashCash includes deposits in bank account. EquityThe net revaluation of equity investments measured according to the equity method is recognized in the net revaluation reserve in equity according to the equity method to the extent that the carrying amount exceeds the cost.An amount equivalent to internally generated development costs in the balance sheet is recognised in equity under reserve for development costs. The reserve is measured less deferred tax and reduced by amortisation and impairment losses on the asset. If impairment losses on development costs are subsequently reversed, the reserve will be restored with a corresponding amount. The reserve is dissolved when the development costs are no longer recognized in the balance sheet, and the remaining amount will be transferred to retained earnings. Current and deferred taxCurrent tax payable and receivable is recognised in the balance sheet as tax computed on the basis of the taxable income for the year, adjusted for tax paid on account.Joint taxation contributions payable and receivable are recognised as income tax under receivables or payables in the balance sheet.Deferred tax liabilities and tax assets are recognised on the basis of all temporary differences between the carrying amounts and tax bases of assets and liabilities. However, deferred tax is not recognised on temporary differences relating to goodwill which is non-amortisable for tax purposes and other items where temporary differences, except for acquisitions, have arisen at the date of acquisition without affecting the net profit or loss for the year or the taxable income. In cases where the tax value can be determined according to different taxation rules, deferred tax is measured on the basis of management’s intended use of the asset or settlement of the liability.Deferred tax assets are recognised, following an assessment, at the expected realisable value through offsetting against deferred tax liabilities or elimination in tax on future earnings.Deferred tax is measured on the basis of the tax rules and at the tax rates which, according to the legislation in force at the balance sheet date, will be applicable when the deferred tax is expected to crystallise as current tax. PayablesConvertible debt instruments are issued on terms that entitle the lender to convert the loan into equity interests in the company.Long-term payables are measured at cost at the time of contracting such liabilities (raising of the loan). The payables are subsequently measured at amortised cost where capital losses and loan expenses are recognised in the income statement as a financial expense over the term of the payable on the basis of the calculated effective interest rate in force at the time of contracting the liability.Short-term financial payables are measured at amortised cost, normally corresponding to the nominal value of such payables. Other short-term payables are measured at net realisable value.