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2025-12-10 Opinion 9 Basis for Opinion 2025-12-10 2024-06-30 2024-07-01 2025-06-30 39690799 Uggerhalnevej 80 Søborg 9310 Vodskov Aalborg Beierholm 2860 true We have on this day presented the annual report for the financial year 01.07.24 - 30.06.25 for Global Equestrian Group 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 30.06.25 and of the results of The company's activities for the financial year 01.07.24 - 30.06.25. We believe that the management's review includes a fair review of the matters dealt with in the management's review. The annual report is submitted for adoption by the general meeting. Lars Andreas Helgstrand Casper Cassøe Krüth Tobias Tovgaard Gæmelke Tomas Simons Chairman Niels Thomas Heering Nicklas Skou Guldberg To the capital owner of Global Equestrian Group ApS In our opinion the financial statements give a true and fair view of the company's financial position at 30.06.25 and of the results of the company's operations for the financial year 01.07.24 - 30.06.25 in accordance with the Danish Financial Statements Act. We conducted our audit in accordance with International Standards on Auditing (ISAs) and the 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 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 audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Management is responsible for the management’s review.Our opinion on the financial statements does not cover the management’s review, and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, it is our responsibility is to read management’s review and, in doing so, consider whether management’s review is materially inconsistent with the financial statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated.Moreover, it is our responsibility to consider whether management’s review provides the information required by law and regulations.Based on the work we have performed, we conclude that the management’s review is in accordance with the financial statements and has been prepared in accordance with the requirements of Danish Financial Statements Act. We did not identify any material misstatement of the management’s review. 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 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 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 judgment and maintain professional scepticism throughout the audit. We also: 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.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 company's internal control.Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.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 company'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 company to cease to continue as a going concern.Evaluate the overall presentation, structure and contents of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that gives a true and fair view.Plan and perform the audit of the financial statements to obtain sufficient appropriate audit evidence regarding the consolidated financial information of the entities or business units as a basis for expressing an opinion on the financial statements. We are responsible for the direction, supervision and review of the audit work performed. We remain solely responsible for our audit opinion.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. Soeborg, Copenhagen Henrik Agner Hansen State Authorised Public Accountant mne28682 -11523000 -48564000 -19889000 -138015000 -75779000 19422000 -154553000 -77482000 4009000 2398727000 2607195000 987987000 674364000 878759000 454528000 -48 -20 -12 1 Ratios definitionsReturn on equity:Profit/loss for the year x 100Average equity Primary activitiesThe company's activities comprise of owning shares, directly or indirectly, in other companies and other business realated herto. Development in activities and financial affairsThe income statement for the period 01.07.24 - 30.06.25 shows a profit of DKK 362,257k against DKK -264,785k for the period 01.07.23 - 30.06.24. The balance sheet shows equity of DKK 676,356k.The financial figures of the Company is primarly a reflection of recognition of the Group companies accodring to the equity method. The Group’s EBITDA expectations for the financial year 01.07.24 - 30.06.25 were an EBITDA in the range of DKKm 25 – 100 excluding earnings/losses from the discontinuing operations. The Group financial statement for the parent company shows an EBITDA of DKK 96,930k and the financial result is therefore at the high end of expectations. The result is driven by high demand for quality horses within both Dressage as well as Jumping. Compared to last year, the Group has experienced a significant increase in sales of horses for Jumping. During the financial year the Group has, in line with communication in connection with the release of the financial statement for 23/24, divested its activities related to the showground in Wellington. The divestment resulted in settling short-term payables in the continuing activities amounting to DKK 1,621m. leaving the continuing Group with very low debt ratio. The discontinuing operations have impacted the financial year positively with DKK 526.289k which has been included in the net income from equity investments in group enterprises in the financial statements. As stated, all debt related to the discontinuing activities, is included in the continuing activities. After the sale, and settling of the short-term payables, the financial expenses in the continuing activities has decreased significant. OutlookThere is a positive outlook for the Group with focus on growing and strengthening our positions in horse sales, events and apparel and further extracting synergies from past acquisitions. In addition, the divestment of the showground in Wellington has strengthened financial resilience and supports the future growth in core activities.The Group expects an EBITDA for 2025/26 in the range of DKK 50-125m primarily driven by continuing demand for dressage and show jumping horses, continuing success in competing at tournaments at the highest level globally, increasing activity in the event segment, and improving sales in apparel and ac-cessories.The main risk to meeting expectations for the coming year is a potential decline in horse sales due to global political or financial uncertainty. Current activity levels are high, and the Group remains positive for 2025/26. 10922000 -5783000 13529000 14166000 822000 60000 -3429000 -20009000 330347000 -195105000 174596000 149474000 165390000 213169000 336124000 -278809000 -26133000 -14024000 362257000 -264785000 806000 1369000 0 218000 806000 1587000 1066077000 741234000 190813000 1564889000 1256890000 2306123000 1257696000 2307710000 113000 280000 2566000 1552000 37075000 16146000 592000 0 0 19000 434000 391000 40780000 18388000 288000 48000 41068000 18436000 1298764000 2326146000 1000000 1000000 180206000 0 456000 1238000 879000 110027000 493815000 315018000 676356000 427283000 27575000 12662000 27575000 12662000 0 108949000 0 108949000 0 1512916000 618000 3153000 505377000 248980000 88838000 12035000 0 168000 594833000 1777252000 594833000 1886201000 1298764000 2326146000 Figures in DKK '000Share capitalReserve for net revaluation according to the equity methodReserve for development costsForeign currency translation reserveRetained earningsTotal equity Statement of changes in equity for 01.07.23 - 30.06.24 Balance as at 01.07.231.000093793.145579.283674.365Foreign currency translation adjustment of foreign enterprises0821021.643022.464Tax on changes in equity000-4.7610-4.761Transfers to/from other reserves0-82130105200Net profit/loss for the year0000-264.785-264.785 Balance as at 30.06.241.00001.238110.027315.018427.283 Statement of changes in equity for 01.07.24 - 30.06.25 Balance as at 01.07.241.00001.238110.027315.018427.283Foreign currency translation adjustment of foreign enterprises0-4.036020.957016.921Dissolution of fair value reserve on realization000-125.4940-125.494Tax on changes in equity000-4.6110-4.611Transfers to/from other reserves00-78207820Net profit/loss for the year0184.24200178.015362.257 Balance as at 30.06.251.000180.206456879493.815676.356 1000000 0 937000 579283000 821000 -821000 301000 520000 -264785000 1000000 0 1238000 315018000 -4036000 -782000 782000 184242000 178015000 1000000 180206000 456000 493815000 13154000 13860000 33000 45000 342000 261000 10 13 Remuneration for the management: Remuneration for the Executive Board and Board of Directors200100 200000 100000 65437000 149353000 109159000 121000 Other financial income primarily comprise net foreign currency translation which is primarily related to the dissolution of the fair value reserve previously recognised as equity. 15854000 4103000 149536000 209066000 184242000 0 178015000 -264785000 1429000 41000 218000 1688000 -60000 -822000 -882000 806000 Development projects comprise software related to an internal group platform insuring efficiency improvements in the group. 7.Equity investments in group enterprisesFigures in DKK '000Equity investments in group enterprises Cost as at 01.07.24881.371Additions during the year4.500 Cost as at 30.06.25885.871 Depreciation and impairment losses as at 01.07.24-140.137Foreign currency translation adjustment of foreign enterprises-4.036Amortisation of goodwill-64.394Net profit/loss from equity investments368.688Negative equity value impaired in receivables20.085 Depreciation and impairment losses as at 30.06.25180.206 Carrying amount as at 30.06.251.066.077 Name and registered office:Ownership interest Subsidiaries: Equestrian Ventures ApS, Vodskov100%Riding Arena Robots ApS, Vodskov100%Ejendomsselskabet Helgstrand ApS, Vodskov100%Helgstrand Global Properties ApS, Vodskov100%Helgstrand Windsome LLC, Florida, USA100%Helgstrand Dressage ApS, Vodskov100%GEG Event ApS, Vodskov100%Helgstrand Dressage US LLC, Florida, USA100%Helgstrand Dressage Germany GmbH, Syke, Germany100%Helgstrand Jewellery ApS, Vodskov100%Kingsland AS, Sarpsborg, Norway100%Kingsland DK ApS, København100%Kingsland GmbH, Germany100%Kingsland FR, France100%Kingsland Equestrian Inc., Florida, USA100%Kingsland Asia Ltd., HongKong100%Kingsland Trading Co., Ltd., Hangzhou, China100%StandbyCo Germany ApS, Vodskov100%StandbyCo Germany Holding GmbH, Syke, Germany100%Beerbaum Stables GbmH, Hörstel, Germany100%PK Agency GmbH, Syke, Germany100%Equestrian Events Holding ApS, Vodskov100%Danish Derby Horse Shows ApS, Mariager100%World Cup Herning P/S, Mariager67%World Cup Komplementar ApS, Mariager67% Associates: Ruxbury ApS, Hørsholm45%Bengtsson & Helgstrand GmbH, Germany50% 881371000 4500000 885871000 -140137000 -4036000 368688000 20085000 180206000 1066077000 Equestrian Ventures ApS Vodskov 100 Riding Arena Robots ApS Vodskov 100 Ejendomsselskabet Helgstrand ApS Vodskov 100 Helgstrand Global Properties ApS Vodskov 100 Helgstrand Windsome LLC Florida, USA 100 Helgstrand Dressage ApS Vodskov 100 GEG Event ApS Vodskov 100 Helgstrand Dressage US LLC Florida, USA 100 Helgstrand Dressage Germany GmbH Syke, Germany 100 Helgstrand Jewellery ApS Vodskov 100 Kingsland AS Sarpsborg, Norway 100 Kingsland DK ApS København 100 Kingsland GmbH Germany 100 Kingsland FR France 100 Kingsland Equestrian Inc. Florida, USA 100 Kingsland Asia Ltd. HongKong 100 Kingsland Trading Co., Ltd. Hangzhou, China 100 StandbyCo Germany ApS Vodskov 100 StandbyCo Germany Holding GmbH Syke, Germany 100 Beerbaum Stables GbmH Hörstel, Germany 100 PK Agency GmbH Syke, Germany 100 Equestrian Events Holding ApS Vodskov 100 Danish Derby Horse Shows ApS Mariager 100 World Cup Herning P/S Mariager 67 World Cup Komplementar ApS Mariager 67 Ruxbury ApS Hørsholm 45 Bengtsson & Helgstrand GmbH Germany 50 1643145000 20957000 -1417359000 246743000 -78256000 22326000 -55930000 190813000 9.Prepayments Prepaid expenses434391 Total434391 30.06.2530.06.24 DKK '000DKK '000 10.Deferred tax Provisions for deferred tax as at 01.07.2416.1457.155Transfers during the year to/from other items-5920Deferred tax recognised in the income statement26.13313.752Deferred tax recognised in equity-4.611-4.761 Provisions for deferred tax as at 30.06.2537.07516.146 Deferred tax is distributed as below: Intangible assets-177-349Receivables17.6192.685Liabilities03.436Tax losses19.63310.374 Total37.07516.146 16145000 7155000 26133000 13752000 -4611000 -4761000 11.Other provisionsFigures in DKK '000Provisions for subsidiaries Provisions as at 01.07.2412.662Provisions during the year14.913 Provisions as at 30.06.2527.575 30.06.2530.06.24 DKK '000DKK '000 Other provisions are expected to be distributed as follows: Current liabilities27.57512.662 Total27.57512.662 12.Contingent liabilitiesRecourse guarantee commitmentsThe company has provided a guarantee whereby the guarantor assumes primary liability for group enterprises' debt to credit institutions. The guarantee is maximised at DKK 211,202k. The group enterprises' debt to the credit institutions concerned amounts to DKK 171,322k at the balance sheet date.Other contingent liabilitiesThe company is taxed jointly with the other Danish companies in the group and has joint, several and unlimited liability for income taxes and any obligations to withhold tax at source on interest, royalties and dividends 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.In addition the company has issued letters of support to group enterprises ensuring the necessary liquidity for the ongoing operations of these companies. 13.Related partiesRelated party transactions are not disclosed, as all transactions are entered into in the ordinary course of business at arms’ length.Remuneration for the management is specified in note 1. Staff costs.The company is included in the consolidated financial statements of the parent Global Equestrian Group Holding ApS, Vodskov. The annual report is presented in accordance with the provisions of the Danish Financial Statements Act (Årsregnskabsloven) for medium-sized enterprises in reporting class C with application of provisions for a higher reporting class. In accordance with section 112 of the Danish Financial Statements Act, The company has not prepared consolidated financial statements. The company is a subsidiary of Global Equestrian Group Holding ApS, Vodskov, CVR no. 39 69 07 48, which prepares 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 and other operating income and other external expenses. RevenueIncome from the sale of services is recognised in the income statement in line with completion of services, which means that revenue corresponds to the selling price of the work performed for the year stated on the basis of the stage of completion at the balance sheet date (percentage of completion method). Other operating incomeOther operating income comprises income of a secondary nature in relation to the enterprise’s activities, including rental income, salary supplements and refunds, negative goodwill and gains on the sale of intangible assets and property, plant and equipment. 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. Amortisation and impairment lossesThe amortisation of intangible assets aim at systematic amortisation over the expected useful lives of the assets. Assets are amortised according to the straight-line method based on the following expected useful lives and residual values:The basis of amortisation is the cost of the asset less the expected residual value at the end of the useful life. Moreover, the basis of 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 are impaired in accordance with the accounting policies referred to in the ‘Impairment losses on fixed assets’ section. 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. 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. 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 ‘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. 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.Equity investments with a negative carrying amount are measured at DKK 0. Receivables that are considered part of the combined investment in the enterprises in question are impaired by any remaining negative equity value. Other receivables from such enterprises are impaired to the extent that such receivables are considered uncollectible. Provisions to cover the remaining negative equity value are recognised to the extent that The company has a legal or constructive obligation to cover the liabilities of the enterprise in question.Goodwill recognised under equity investments is amortised according to the straight-line method based on an individual assessment of the useful life of the asset. The useful life of goodwill has been determined at 10 years for equity investments in subsidiaries. The useful life has been determined in consideration of the expected future net earnings of the enterprise to which the goodwill relates.For equity investments measured according to the equity method, the proportionate share of the equity investments' equity value is determined according to the accounting policies of the parent, stated in the other sections. Equity value is also based on the following accounting policies:Revenue:Income from the sale of goods is recognised in the income statement if delivery has taken place and the risk has passed to the buyer before the end of the financial year and where the selling price can be determined reliably and is expected to be paid. Revenue is measured at fair value and is determined exclusive of VAT and other taxes collected on behalf of third parties and less discounts. Income 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.Acquired rights:Aquired 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 of 10 years.Property, plant and equipment:Property, plant and equipment comprise land and buildings 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. The total cost of an asset is decomposed into separate components that are depreciated separately if the useful lives of the individual components vary.Property, plant and equipment are depreciated using the straight-line method based on useful lives of 15-50 years.InventoriesInventories primarily consist of horses.Inventories are measured at cost calculated according to the FIFO-method. Inventories are written down to the lower of cost and net realisable value.The cost of raw materials and consumables as well as goods for resale is determined as purchase prices plus expenses resulting directly from the purchase. The cost includes indirect production costs.The net realisable value of inventories is determined as the selling price less costs of completion and costs necessary to make the sale and is determined taking into account marketability, obsolescence and the expected development in the selling price.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 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. PrepaymentsPrepayments recognised under assets comprise costs incurred in respect of subsequent financial years. 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.Unrealised foreign currency gains and losses from the translation of the net investment in independent foreign entities are recognised in equity under the foreign currency translation reserve. The reserve is dissolved when the independent foreign entities are disposed of. 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. PayablesLong-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. Deferred incomeDeferred income under liabilities comprises payments received in respect of income in subsequent financial years. Referring to section 86(4) of the Danish Financial Statements Act a cash flow statement has not been prepared as the enterprise is included in the consolidated cash flow statement.