37404241 2021-08-31 cmn:TwoYearsAgoMember 37404241 2020-08-31 cmn:ThreeYearsAgoMember 37404241 2019-08-31 cmn:FourYearsAgoMember 37404241 2023-08-31 37404241 2022-08-31 37404241 2023-08-31 ClassOfSharesIdentifier_1 37404241 2022-09-01 fsa:ContributedCapitalMember 37404241 2022-09-01 fsa:HedgeFundMember 37404241 2022-09-01 fsa:RetainedEarningsMember 37404241 2023-08-31 fsa:ContributedCapitalMember 37404241 2023-08-31 fsa:HedgeFundMember 37404241 2023-08-31 fsa:RetainedEarningsMember 37404241 2022-09-01 37404241 2021-09-01 37404241 2022-09-01 fsa:AcquiredOtherSimilarRightsMember 37404241 2022-09-01 fsa:GoodwillMember 37404241 2023-08-31 fsa:AcquiredOtherSimilarRightsMember 37404241 2023-08-31 fsa:GoodwillMember 37404241 2023-08-31 fsa:LongtermLeaseCommitmentsMember 37404241 2022-08-31 fsa:LongtermLeaseCommitmentsMember 37404241 2022-09-01 2023-08-31 37404241 2022-09-01 2023-08-31 1 37404241 2022-09-01 2023-08-31 memberOfBoardIdentifier_executive_board_1 37404241 2022-09-01 2023-08-31 memberOfBoardIdentifier_board_of_director_1 37404241 2022-09-01 2023-08-31 memberOfBoardIdentifier_board_of_director_2 37404241 2022-09-01 2023-08-31 memberOfBoardIdentifier_board_of_director_3 37404241 2020-09-01 2021-08-31 cmn:TwoYearsAgoMember 37404241 2019-09-01 2020-08-31 cmn:ThreeYearsAgoMember 37404241 2018-09-01 2019-08-31 cmn:FourYearsAgoMember 37404241 2021-09-01 2022-08-31 37404241 2022-09-01 2023-08-31 fsa:RetainedEarningsMember 37404241 2021-09-01 2022-08-31 fsa:RetainedEarningsMember 37404241 2022-09-01 2023-08-31 fsa:ContributedCapitalMember 37404241 2022-09-01 2023-08-31 fsa:HedgeFundMember 37404241 2022-09-01 2023-08-31 fsa:RetainedEarningsMember 37404241 2022-09-01 2023-08-31 fsa:AcquiredOtherSimilarRightsMember 37404241 2022-09-01 2023-08-31 fsa:GoodwillMember 37404241 2022-09-01 2023-08-31 EY Godkendt Revisionspartnerselskab 37404241 2021-09-01 2022-08-31 EY Godkendt Revisionspartnerselskab iso4217:DKK pure Årsrapport 33771231 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Strandvejen 44 2900 Hellerup 2022-09-01 2021-09-01 2023-08-31 2022-08-31 37404241 AB Neo A/S Skjernvej 42 6920 Videbæk Ringkøbing-Skjern + 45 97 17 33 00 www.ab-neo.com 2016-01-22 EY Godkendt Revisionspartnerselskab 30700228 Dalgasgade 27, 3 7400 Herning Denmark 2023-12-15 Ole Nørgaard Regnskabsklasse C, stor virksomhed Revisionspåtegning The Executive Board and Board of Directors have today considered and adopted the Financial Statements of AB Neo A/S for the financial year 1 September 2022 - 31 August 2023. The Annual Report is prepared in accordance with the Danish Financial Statements Act. In our opinion the Financial Statements give a true and fair view of the financial position at 31 August 2023 of the Company and of the results of the Company operations and cash flows for 2022/23. In our opinion, Management's Review includes a true and fair account of the matters addressed in the Review. We recommend that the Financial Statements be adopted at the Annual General Meeting. 2023-12-15 Videbæk Jesper Riisgaard Nielsen Executive Officer Scott Michael Gurvis Chairman José Jorge Nobre Ole Nørgaard To the shareholder of AB Neo A/S Opinion In our opinion, the Financial Statements give a true and fair view of the financial position of the Company at 31 August 2023 and of the results of the Company´s operations and cash flows for the financial year 1 September 2022 - 31 August 2023 in accordance with the Danish Financial Statements Act. We have audited the Financial Statements of AB Neo A/S for the financial year 1 September 2022 - 31 August 2023, which comprise income statement, balance sheet, statement of changes in equity, cash flow statement and notes, including a summary of significant accounting policies. The Financial Statements are prepared in accordance with the Danish Financial Statements Act. Basis for Opinion 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 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 judgement 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. 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 Management’s Review. Our opinion on the Financial Statements does not cover Management’s Review, 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 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 under the Danish Financial Statements Act. Based on the work we have performed, in our view, Management’s Review 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 in Management’s Review. Herning 2023-12-15 EY Godkendt Revisionspartnerselskab Karsten Mehlsen statsautoriseret revisor mne18473 320573000 0 -86000 -16000 24000 10547000 21207000 11047000 115408000 104864000 83696000 159563000 151513000 125893000 -6174000 35153000 4201000 -6316000 -18243000 -21139000 158000 -4973000 12264000 61 51 46 -7.3 0.9 8.5 18.0 11.2 83.4 82.5 72.3 69.2 66.5 -6.0 1.0 9.6 22.5 14.1 xx xx Key activities The company’s business activities consist of production and sale of high-end quality feed products for young and sensitive animals. Development in the year The income statement of the Company for 2022/23 shows a loss of DKK 11,675,899, and at 31 August 2023 the balance sheet of the Company shows positive equity of DKK 187,266,070. The management expected an increase of revenue by 24,5% which has not been fulfilled. On this basis, the management finds the result of the year unsatisfying. The company has been significantly impacted by the general market condition for pork production as well as the general increases in raw material prices. Special risks - operating risks and financial risks The company has no special risks apart from normal business risk in feed industry. The company continuously works on eliminating risks as well as heightening the quality standards and meeting the criteria of the feed safety standard GMP+. Subsequent events No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date. The company’s business activities consist of production and sale of high-end quality feed products for young and sensitive animals. The company’s business model is to buy raw materials which it then refines and produces into feed products that improves the survivability and growth of animals. This leads to a higher profitability in the animal production. The company is a subsidiary of a larger Group, and therefore follow the social responsibility policies set by Associated British Foods (https://www.abf.co.uk/investors/annual-report-2023). The company follows the local rules and regulation in all these areas. For details regarding the development during the year, please also see the annual reporting of Associated British Foods (https://www.abf.co.uk/investors/annual-report-2023). The company has a target of 33% female members elected at the annual general meeting. Currently there are no women in the board of directors. The board of directors consist of 3 members currently. During the year, there was a change in the board of directors leading to a female member’s departure and therefore the target has been fulfilled until this year. The board of directors has consisted of the local site director which is a position that is still unoccupied. The goal is to fulfill the target again before the end of the financial year of 2026/2027. The company also has a policy of increasing the proportion of the underrepresented gender, which includes all management levels in the company. The management in 2022/23 consists of 25% women which is in line with the current target. The company defines other management as positions with employees reporting to them. The recruitment process encourages everyone to apply and informs applicants of our commitment to equal opportunity. The calculation of other management is calculated by head count. The Company handles general data in the form of customer, supplier and employee data. Data is processed in accordance with the GDPR and our privacy and information security policies. The company is part of a larger group where there is a general policy on how to handle data. The company is internally audited every year to ensure that it is compliant with the general data policy. This general data policy is continuously updated and be found through the annual report of Associated British Foods (https://www.abf.co.uk/investors/annual-report-2023). 323323709 327899634 23543 76600 266896866 253935256 29647739 28410158 26802647 45630820 34424831 34829581 8676493 8747134 -16298677 2054105 102420 6296 73024 60872 -16269281 1999529 -4593382 382939 -11675899 1616590 -11675899 1616590 2779166 3929166 3834192 5420753 6613358 9349919 34313891 37613058 319386 542777 4550905 6185155 64750832 28126004 103935014 72466994 20951302 26800337 174882 637952 113888000 159559640 224436372 241376553 110548372 81816913 45548481 72763728 13080874 46948593 1344540 0 2852000 44192 629141 894656 39032739 75325730 29306780 11470182 1000000 1000000 -85231 90043 0 2226187 0 2226187 3942796 7530466 3942796 7530466 3884650 3788271 6909684 6542873 1000000 1000000 186351301 198027200 187266070 199117243 18975590 18328673 3457582 3842840 33227506 32502657 37170302 40033123 224436372 241376553 The share capital consists of 1000000 shares of a nominal value of DKK 1. No shares carry any special rights. 1000000 90043 198027200 0 -175274 0 0 0 -11675899 1000000 -85231 186351301 -11675899 1616590 4030172 9108049 33879252 -32216917 26233525 -21492278 102420 6296 73024 60872 26262921 -21546854 1785153 2053849 24477768 -23600703 37420409 33318211 36000 76600 -37384409 -33241611 7672162 3689814 -34234530 20245870 4180871 4062864 0 82000000 30743239 62127180 17836598 5284866 11470182 6185316 29306780 11470182 29306780 11470182 0 0 No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date. Geographical segments Revenue Denmark 133989061 157108253 Revenue Europa 172652988 146397194 0 0 Revenue Other 16681660 24394187 323323709 327899634 Business segments Feed products 323323709 327899634 0 0 0 0 323323709 327899634 31584525 31785147 2333499 2457176 506807 587258 34424831 34829581 54 58 2736561 2736561 5939932 6010573 96817 2831 5603 3465 46821 13872 26203 47000 73024 60872 -3570727 382939 -1022655 0 -4593382 382939 14500000 15865613 14500000 15865613 10570834 10444860 1150000 1586561 11720834 12031421 2779166 3834192 Amortised over 2-10 years 10 years Raw materials and consumables 28173783 47862647 Finished goods and goods for resale 17374698 24901081 45548481 72763728 Prepayments consist of prepaid expenses concerning rent, insurance premiums, subscriptions etc. Deferred tax asset at 1 September -2,226,187 -1,843,248 Amounts recognised in the income statement for the year 3,570,727 -382,939 Deferred tax asset at 31 August 1,344,540 -2,226,187 Of the company's tax assets, TDKK 2.900 is income tax loss to be carried forward, which is expected to be utilized in the coming financial years. 0 0 3942796 7530466 3884650 3788271 7827446 11318737 Payments due within 1 year are recognised in short-term debt. Other debt is recognised in long-term debt. The debt falls due for payment as specified below: -102420 -6296 73024 60872 8652950 8670534 -4593382 382939 27215241 -23539536 6577620 -2576492 261665 -6194001 -175274 93112 Contingent liabilities The company has concluded regular forward puchase contracts for raw materials. The group companies are jointly and severally liable for tax on the jointly taxed incomes etc of the Group. The total amount of corporation tax payable by the Group amounts to DKK 0. Moreover, the group companies are jointly and severally liable for Danish withholding taxes by way of dividend tax, tax on royalty payments and tax on unearned income. Any subsequent adjustments of corporation taxes and withholding taxes may increase the Group’s liability. Controlling interest Associated British Foods Plc, London Participating interest Transactions The Company has chosen only to disclose transactions which have not been made on an arm's length basis in accordance with section 98(c)(7) of the Danish Financial Statements Act. The sale of goods to associates, has been effected at arm's length. Ownership The following shareholders are recorded in the Company's register of shareholders as holding at least 5% of the votes or at least 5% of the share capital: ABF Overseas Limited, London. The Company is included in the Group Annual Report of the Parent Company. Name Place of registered office Associated British Foods Plc, London No. 293262 at Weston Centre, 10 Grosvenor Street, London W1K 4QY 155000 115000 The Annual Report of AB Neo A/S for 2022/23 has been prepared in accordance with the provisions of the Danish Financial Statements Act applying to large enterprises of reporting class C. The accounting policies applied remain unchanged from last year. The Financial Statements for 2022/23 are presented in DKK. 1 Revenues are recognised in the income statement as earned. Furthermore, value adjustments of financial assets and liabilities measured at fair value or amortised cost are recognised. Moreover, all expenses incurred to achieve the earnings for the year are recognised in the income statement, including depreciation, amortisation, impairment losses and provisions as well as reversals due to changed accounting estimates of amounts that have previously been recognised in the income statement. Assets are recognised in the balance sheet when it is probable that future economic benefits attributable to the asset will flow to the Company, and the value of the asset can be measured reliably. Liabilities are recognised in the balance sheet when it is probable that future economic benefits will flow out of the Company, and the value of the liability can be measured reliably. Assets and liabilities are initially measured at cost. Subsequently, assets and liabilities are measured as described for each item below. At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company uses the definition of a lease in IFRS 16. At commencement or on modification of a contract that contains a lease component, the Company allocates the consideration in the contract to each lease component on the basis of its relative stand-alone prices. The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term, unless the lease transfers ownership of the underlying asset to the Company by the end of the lease term or the cost of the right-of-use asset reflects that the Company will exercise a purchase option. In that case the right-of-use asset will be depreciated over the useful life of the underlying asset, which is determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.The Company determines its incremental borrowing rate by obtaining interest rates from various external financing sources and makes certain adjustments to reflect the terms of the lease and type of the asset leased. Lease payments included in the measurement of the lease liability comprise the following:- fixed payments, including in-substance fixed payments;- variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;- amounts expected to be payable under a residual value guarantee; and- the exercise price under a purchase option that the Company is reasonably certain to exercise,lease payments in an optional renewal period if the Company is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Company is reasonably certain not to terminate early. The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee, if the Company changes its assessment of whether it will exercise a purchase, extension or termination option or if there is a revised in-substance fixed lease payment.When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.The Company has selected not to recognise right-of-use assets and lease liabilities for leases of low-value assets and short-term leases. The Company recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term. Transactions in foreign currencies are translated at the exchange rates at the dates of transaction. Exchange differences arising due to differences between the transaction date rates and the rates at the dates of payment are recognised in financial income and expenses in the income statement. Where foreign exchange transactions are considered hedging of future cash flows, the value adjustments are recognised directly in equity. Receivables, payables and other monetary items in foreign currencies that have not been settled at the balance sheet date are translated at the exchange rates at the balance sheet date. Any differences between the exchange rates at the balance sheet date and the transaction date rates are recognised in financial income and expenses in the income statement Fixed assets acquired in foreign currencies are measured at the transaction date rates. Derivative financial instruments are initially recognised in the balance sheet at cost and are subsequently remeasured at their fair values. Positive and negative fair values of derivative financial instruments are classified as ”Other receivables” and ”Other payables”, respectively. Changes in the fair values of derivative financial instruments are recognised in the income statement unless the derivative financial instrument is designated and qualify as hedge accounting, see below. Changes in the fair values of financial instruments that are designated and qualify as fair value hedges of a recognised asset or a recognised liability are recognised in the income statement as are any changes in the fair value of the hedged asset or the hedged liability related to the hedged risk. Changes in the fair values of derivative financial instruments that are designated and qualify as hedges of expected future transactions are recognised in the fair value reserve under equity as regards the effective portion of the hedge. The ineffective portion is recognised in the income statement. If the hedged transaction results in an asset or a liability, the amount deferred in equity is transferred from equity and recognised in the cost of the asset or the liability, respectively. If the hedged transaction results in an income or an expense, the amount deferred in equity is transferred from equity to the income statement in the period in which the hedged transaction is recognised. The amount is recognised in the same item as the hedged transaction. Changes in the fair values of financial instruments that are designated and qualify as hedges of net investments in independent foreign subsidiaries or associates are recognised directly in equity as regards the effective portion of the hedge, whereas the ineffective portion is recognised in the income statement. Information on business geographical segment is based on the company's risks and returns and its internal financial reporting system. There is only one business segment in the company "production and sale of feed products for young and sensitive animals" why no segmentation has been made. Revenue from the sale of goods is recognised when the risks and rewards relating to the goods sold have been transferred to the purchaser, the revenue can be measured reliably and it is probable that the economic benefits relating to the sale will flow to the Company. Revenue is measured at the consideration received and is recognised exclusive of VAT and net of discounts relating to sales. The company has chosen IAS18 as an interpretation contribution for the recognition of revenue. Expenses for raw materials and consumables comprise the raw materials and consumables consumed to achieve revenue for the year. Other external expenses comprise expenses for premises, sales as well as office expenses, etc. Staff costs include wages and salaries including compensated absence and pensions as well as other social security contributions etc. made to the entity's employees. Amortisation, depreciation and impairment losses comprise amortisation, depreciation and impairment of intangible assets and property, plant and equipment. Other operating income and other operating expenses comprise items of a secondary nature to the main activities of the Company, including gains and losses on the sale of intangible assets and property, plant and equipment. Financial income and expenses are recognised in the income statement at the amounts relating to the financial year. Tax for the year consists of current tax for the year and deferred tax for the year. The tax attributable to the profit for year is recognised in the income statement, whereas the tax attributable to equity transactions is recognised directly in equity. The Company is jointly taxed with group company. The tax effect of the joint taxation with the subsidiaries is allocated to Danish enterprises showing profits or losses in proportion to their taxable incomes (full allocation with credit for tax losses). Goodwill acquired is measured at cost less accumulated amortisation. Goodwill is amortised on a straight-line basis over its useful life, which is assessed at 10 year. Other intangible assets acquired is measured at cost less accumulated amortisation. Know-how and brand is amortised on a straight-line basis over its useful life, which is assessed at 2-10 years. Development costs and costs relating to rights developed by the Company are recognised in the income statement as costs in the year of acquisition. Useful life of intangible assets are based on history and strategic expectations for the future. Property, plant and equipment are measured at cost less accumulated depreciation and less any accumulated impairment losses. Cost comprises the cost of acquisition and expenses directly related to the acquisition up until the time when the asset is ready for use. Depreciation based on cost reduced by any residual value is calculated on a straight-line basis over the expected useful lives of the assets, which are: Buildings 5-50 years Plant and machinery 5-12 years Other fixtures and fittings, tools and equipment 3-12 years The fixed assets’ residual values are determined at nil. Depreciation period and residual value are reassessed annually. The carrying amounts of intangible assets and property, plant and equipment and investments are reviewed on an annual basis to determine whether there is any indication of impairment other than that expressed by amortisation and depreciation. Inventories are measured at the lower of cost under the FIFO method and net realisable value. The net realisable value of inventories is calculated at the amount expected to be generated by sale of the inventories in the process of normal operations with deduction of selling expenses and costs of completion. The net realisable value is determined allowing for marketability, obsolescence and development in expected selling price. The cost of goods for resale, raw materials and consumables equals landed cost. Receivables are measured in the balance sheet at the lower of amortised cost and net realisable value, which corresponds to nominal value less provisions for bad debts. The company has chosen IAS39 as an interpretation contribution for the recognition and measurement of financial assets. Prepayments comprise prepaid expenses concerning insurance premiums, subscriptions etc. Deferred income tax is measured using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes on the basis of the intended use of the asset and settlement of the liability, respectively. Deferred tax assets, including the tax base of tax loss carry-forwards, are measured at the value at which the asset is expected to be realised, either by elimination in tax on future earnings or by set-off against deferred tax liabilities within the same legal tax entity. Deferred tax is measured on the basis of the tax rules and tax rates that will be effective under the legislation at the balance sheet date when the deferred tax is expected to crystallise as current tax. Any changes in deferred tax due to changes to tax rates are recognised in the income statement or in equity if the deferred tax relates to items recognised in equity. Current tax liabilities and receivables are recognised in the balance sheet as the expected taxable income for the year adjusted for tax on taxable incomes for prior years and tax paid on account. Extra payments and repayment under the on-account taxation scheme are recognised in the income statement in financial income and expenses. Debts are measured at amortised cost, substantially corresponding to nominal value. The cash flow statement shows the Company´s cash flows for the year broken down by operating, investing and financing activities, changes for the year in cash and cash equivalents as well as the Company´s cash and cash equivalents at the beginning and end of the year. Cash flows from operating activities are calculated as the net profit/loss for the year adjusted for changes in working capital and non-cash operating items such as depreciation, amortisation and impairment losses, and provisions. Working capital comprises current assets less short-term debt excluding items included in cash and cash equivalents. Cash flows from investing activities comprise cash flows from acquisitions and disposals of intangible assets, property, plant and equipment as well as fixed asset investments. Cash flows from financing activities comprise cash flows from the raising and repayment of long-term debt as well as payments to and from shareholders. Cash and cash equivalents comprise ”Cash at bank and in hand”. The cash flow statement cannot be immediately derived from the published financial records. Return on assets Profit before financials x 100 / Total assets at year end Solvency ratio Equity at year end x 100 / Total assets at year end Return on equity Net profit for the year x 100 / Average equity