xbrli:pureiso4217:DKK421506062021-02-222021-12-31gsd:RegisteredReportingPeriodDeviatingFromReportedReportingPeriodDueArbitraryDatesMembercmn:ConsolidatedMember421506062021-02-222021-12-31cmn:ConsolidatedMember421506062021-02-222021-12-311cmn:ConsolidatedMember421506062021-02-222021-12-311cmn:ConsolidatedMember421506062021-02-222021-12-311421506062021-02-222021-12-312421506062021-02-222021-12-313421506062021-02-222021-12-314421506062021-02-222021-12-315421506062021-02-222021-12-316421506062021-02-222021-12-31421506062021-02-222021-12-31fsa:ReserveForCurrentValueOfHedgingMembercmn:ConsolidatedMember421506062021-02-222021-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember421506062021-02-222021-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember421506062021-02-222021-12-31fsa:ReserveForNetRevaluationAccordingToEquityMethodMember421506062021-02-222021-12-31fsa:RetainedEarningsMember421506062021-02-222021-12-31fsa:RetainedEarningsMember421506062021-12-31cmn:ConsolidatedMember421506062021-12-31421506062021-12-31fsa:ContributedCapitalMembercmn:ConsolidatedMember421506062021-12-31fsa:SharePremiumMembercmn:ConsolidatedMember421506062021-12-31fsa:ReserveForCurrentValueOfHedgingMembercmn:ConsolidatedMember421506062021-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember421506062021-12-31fsa:ContributedCapitalMember421506062021-12-31fsa:SharePremiumMember421506062021-12-31fsa:ReserveForNetRevaluationAccordingToEquityMethodMember421506062021-12-31fsa:RetainedEarningsMember421506062021-02-222021-12-31fsa:ContributedCapitalMembercmn:ConsolidatedMember421506062021-02-222021-12-31fsa:SharePremiumMembercmn:ConsolidatedMember421506062021-02-222021-12-31fsa:ContributedCapitalMember421506062021-02-222021-12-31fsa:SharePremiumMember421506062021-02-222021-12-31fsa:ShorttermDeferredIncomeMembercmn:ConsolidatedMember421506062021-02-222021-12-31fsa:OtherShorttermPayablesMember2021-12-312021-12-31Grundlag for konklusionKonklusion2022-05-252022-05-2533963556Deloitte Statsautoriseret RevisionspartnerselskabRevisionspåtegningRegnskabsklasse C, stor virksomhed33963556Weidekampsgade 6Deloitte Statsautoriseret Revisionspartnerselskab2300 København S2021-02-22Fcp Holdco ApS42150606ÅrsrapportAalborg900026, 4. salØstre HavnepromenadeAalborgAalborg9000<br /><br />9Fuglevængethttps://www.geiafood.com/wp-content/uploads/2022/05/Geia-Food-CSR-Report-2022.pdfThe Board of Directors and the Executive Board have today considered and approved the annual report of Fcp Holdco ApS covering the consolidated financial statements for the financial year 19.04.2021 - 31.12.2021 and the parent financial statements for the financial year 22.02.2021 - 31.12.2021.The annual report is presented in accordance with the Danish Financial Statements Act.In our opinion, the consolidated financial statements and the parent financial statements give a true and fair view of the Group’s and the Parent’s financial position at 31.12.2021 and of the results of the Group’s operations and cash flows for the financial year 19.04.2021 - 31.12.2021 and of the results of the Parent’s operations for the financial year 22.02.2021 - 31.12.2021.We believe that the management commentary contains a fair review of the affairs and conditions referred to therein.We recommend the annual report for adoption at the Annual General Meeting.AalborgPer Olof Martin FranklingClaus Juel JensenPer Olof Martin FranklingSara Elisabeth DambergEsko Mikael AroAndréa Ellinor Persdotter NilssonIvar VillaTo the shareholders of Fcp Holdco ApSWe have audited the consolidated financial statements and the parent financial statements of Fcp Holdco ApS for the financial year 22.02.2021 - 31.12.2021, which comprise the income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies, for the Group as well as the Parent, and the consolidated cash flow statement. The consolidated financial statements and the parent financial statements are prepared in accordance with the Danish Financial Statements Act. ​ ​In our opinion, the consolidated financial statements and the parent financial statements give a true and fair view of the Group's and the Parent's financial position at 31.12.2021 and of the results of their operations and the consolidated cash flows for the financial year 22.02.2021 - 31.12.2021 in accordance with the Danish Financial Statements Act.We conducted our audit in accordance with International Standards on Auditing (ISAs) and additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further ​described in the "Auditor’s responsibilities for the audit of the consolidated financial statements and the parent financial statements" section of this auditor’s report. We are independent of the Group 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 consolidated financial statements and parent 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 consolidated financial statements and parent financial statements that are free from material misstatement, ​whether due to fraud or error. ​ ​In preparing the consolidated financial statements and the parent financial statements, Management is responsible for assessing the Group's and the Entity’s ability to continue ​as a going concern, for disclosing, as applicable, matters related to going concern, and for using the going ​concern basis of accounting in preparing the consolidated financial statements and the parent financial statements unless Management either intends to liquidate ​the Entity or to cease operations, or has no realistic alternative but to do so.Our objectives are to obtain reasonable assurance about whether the consolidated financial statements and the parent 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 consolidated financial statements and parent financial statements. ​ ​As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, ​we exercise professional judgement and maintain professional scepticism throughout the audit. We also:<br />Identify and assess the risks of material misstatement of the consolidated financial statements and the parent financial statements, whether due to ​fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence ​that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a ​material misstatement resulting from fraud is higher than for one resulting from error, as fraud may ​involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. <br />Obtain an understanding of internal control relevant to the audit in order to design audit procedures ​that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the ​effectiveness of the Group's and the Entity’s internal control. <br />Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates ​and related disclosures made by Management. <br />Conclude on the appropriateness of Management’s use of the going concern basis of accounting in ​preparing the consolidated financial statements and the parent 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 Group's and the Entity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to ​draw attention in our auditor’s report to the related disclosures in the consolidated financial statements and the parent 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 Group and the ​Entity to cease to continue as a going concern. <br />Evaluate the overall presentation, structure and content of the consolidated financial statements and the parent financial statements, including the disclosures ​in the notes, and whether the consolidated financial statements and the parent financial statements represent the underlying transactions and ​events in a manner that gives a true and fair view.<br />We communicate with those charged with governance regarding, among other matters, the planned scope ​and timing of the audit and significant audit findings, including any significant deficiencies in internal control ​that we identify during our audit.Management is responsible for the management commentary. ​ ​Our opinion on the consolidated financial statements and the parent financial statements does not cover the management commentary, and we do not express ​any form of assurance conclusion thereon. ​ ​In connection with our audit of the consolidated financial statements and the parent financial statements, our responsibility is to read the management ​commentary and, in doing so, consider whether the management commentary is materially inconsistent with ​the consolidated financial statements and the parent financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. ​Moreover, it is our responsibility to consider whether the management commentary provides the information ​required under the Danish Financial Statements Act.<br />Based on the work we have performed, we conclude that the management commentary is in accordance with ​the consolidated financial statements and the parent financial statements and has been prepared in accordance with the requirements of the Danish Financial ​Statements Act. We did not identify any material misstatement of the management commentary.AalborgLars Birner Sørensenmne11671State Authorised Public AccountantFinancial highlights2021 DKK'000Key figuresRevenue1,178,375Gross profit/loss65,182Operating profit/loss(40,511)Net financials(9,483)Profit/loss for the year(60,563)Balance sheet total1,314,327Investments in property, plant and equipment14,942Equity155,435Cash flows from operating activities48,845Cash flows from investing activities(962,071)Cash flows from financing activities999,837RatiosGross margin (%)5.53Net margin (%)(5.14)Equity ratio (%)11.83Financial highlights are defined and calculated in accordance with the current version of "Recommendations & Ratios" issued by the CFA Society Denmark.Gross margin (%) :​Gross profit/loss * 100 ​RevenueNet margin (%) : Profit/loss for the year * 100 ​RevenueEquity ratio (%) :​Equity * 100 ​​Balance sheet totalPrimary activitiesThe primary activity of the Group is Geia Food (and subsidiaries). Geia Food is a strong business partner with extensive expertise within a wide range of product categories – from frozen and chilled foods to groceries and beverages. We are the value-adding link between suppliers and customers, developing food concepts for the Nordics through unique competences and a long track record as a trusted partner. We create value for our customers by boosting product innovation, reducing operating complexity and increasing category profitability. Our best-in-class supplier network benefit from a one-point-of-access to all the Nordic markets, an effective sales platform, deep customer insight and a cost-efficient logistics and quality assurance platform. Development in activities and financesThe Group generated a net loss of 57.093t. DKK in the financial year. The profit for the part-year period is considered satisfactory by the Board of Directors, as the annual report are affected by one-offs relating to the acquisition of Geia Food A/S and subsidiaries. Uncertainty relating to recognition and measurementThere are no uncertainties relating to recognition and measurement.Unusual circumstances affecting recognition and measurementThere have been no unusual circumstances affecting recognition and measurement.OutlookThe Group expects continued good performance in the financial year 2022 as sales development in Denmark and foreign markets continues to be positive, with an expected profit for the year in the range of 0-5 m.DKK. Furthermore, The Group expects to develop its current business areas and to develop new ones. Use of financial instrumentsBusiness risks The Group’s most significant business risk relates to the quality and food safety of the products distributed. Financial risks Because of its operations, investments and financing, The Group is exposed to changes in the level of interest and exchange rates. The Group pursues a fiscal policy operating with a low risk profile so that currency risks, interest risks and credit risks only arise based on commercial matters. Currency risks Where possible, The Group’s currency exposure is hedged through matching of payments received and made in the same currency and by using forward exchange contracts. It is company policy to hedge the most important commercial currency risks on 3-9 months basis. The Group does not enter into speculative currency contracts. At the end of the financial year 2021, the notional value of The Group’s forward exchange contracts for meeting future currency risks amounted to negative 1.520 t.DKK. Forward exchange contracts consist of hedging of activities in EUR, USD, NOK and SEK with a term up to 24 months.Research and development activitiesThe Group has not incurred any research and development expenses.Foreign branchesThe Group is represented in Sweden through the subsidiary Geia Food AB, Geia Food Holding AB, in Norway through the subsidiary Geia Food Norge AS and Geia Food AS and Østlandske Formidling AS and in Finland through the subsidiary Geia Food OY.Statutory report on corporate social responsibilityThe 2021 Corporate Social Responsibility report contains The Group’s policies regarding CSR, animal welfare and environmental performance. The 2021 Corporate Social Responsibility report is available on the following link: https://www.geiafood.com/wp-content/uploads/2022/05/Geia-Food-CSR-Report-2022.pdf Statutory report on the underrepresented genderThe Group recognizes the importance of a diverse workforce and work to create equal opportunities for all current as well as future employees. In the process of retaining and attracting talent across the organization, The Group have processes and policies in place which are solely based on an evaluation of the employees’ professional skills. Therefore, diversity is not a decision factor, but rather an ongoing focus point to ensure that all positions are at all times populated by the right person with the right skills. The Board of Directors is certain that this approach to retaining and attracting talent will sustain The Groups business performance over time. The Group has a target of minimum two female directors on the Board of Directors, which has been reached in 2021. There are currently no females in the group management team of The Group. The Board of Directors is continuously monitoring performance across the group management team and will at all times make sure that all roles are populated by the right person. Statutory report on data ethics policyThe Group are aware of both the security and data ethics risks regarding employees and other stakeholders. Several elements are incorporated in existing policies and procedures that describe data ethics and during 2022, we will develop a specific policy for data ethics.Events after the balance sheet dateIn the beginning of 2022, the Group completed the acquisitions of Danish companies Food Partners and Lauge Food To this date no other events have occurred after the balance sheet date which would influence the evaluation of this annual report. The Group expect that Covid-19 will have a minor impact on the business and the financial result in 2022. 117837500026570001049221000666290009000065182000-900004904000056248000405000-405110001928000114110004385000-49994000-6153900010569000-976000-605630000-60563000-60563000-60563000-57065000-3498000-6056300057170009700092998100093579500011278000680001134600060001600000167000177300043893400094891400043893400013273200054330001381650001166660006300022098000650000460001764000140637000162600086611000999000365413000262500013143270004415590002145700021457000-1520000135498000133978000155435000214570000-1520000135498000155435000214570000013397800033200033200020438400020438400056373300020000013700076845400020438400020493000104210001980020005000018222000139229000816500003739000390106000817400001158560000286124000131432700044155900040000004000040000004000000-18530000-1853000214170001931490000214566000214170001931490000214566000-1931490001931490000-19314900019314900004270000427000002912000291200001392000013920000-940000-940005624800049826000655630001160000-10555000-732300048845000-146000-2790000593000-1500062000-960114000339000-962071000-913226000788610000-337900021460600099983700086611000866110001 Revenue2021 DKK'000Denmark719,119Other Scandinavian countries439,185Other conutries20,071Total revenue by geographical market1,178,3752 Fees to the auditor appointed by the Annual General Meeting2021 DKK'000Statutory audit services1,129Tax services132Other services871,348Of the above mentioned fee on statutory audit service t.DKK 333 and other service t.DKK 59 regards PwC.3 Staff costs2021 DKK'000Wages and salaries37,810Pension costs8,442Other social security costs1,814Other staff costs97449,040Average number of full-time employees136Remuneration ​of ​manage- ment 2021 DKK'000Total amount for management categories4,0594,059136Remuneration ​of ​manage- ment 2021 DKK'000Total amount for management categories4,0594,05940590004 Depreciation, amortisation and impairment losses2021 DKK'000Amortisation of intangible assets53,352Depreciation on property, plant and equipment2,89656,2485 Other financial income2021 DKK'000Other financial income1,9281,9286 Other financial expenses2021 DKK'000Other financial expenses11,41111,4112021 DKK'000Other financial expenses11,41111,411<br />1 Other financial expenses2021 DKK'000Financial expenses from group enterprises4,384Other interest expenses14,385<br />2021 DKK'000Financial expenses from group enterprises4,384Other interest expenses14,3857 Tax on profit/loss for the year2021 DKK'000Current tax11,130Change in deferred tax(561)10,5692 Tax on profit/loss for the year2021 DKK'000Current tax(976)(976)8 Proposed distribution of profit/loss2021 DKK'000Retained earnings(60,563)(60,563)3 Proposed distribution of profit and loss2021 DKK'000Retained earnings(60,563)(60,563)9 Intangible assetsAcquired licences DKK'000Acquired rights DKK'000Goodwill DKK'000Addition through business combinations etc6,988097,006Additions0146885,456Cost end of year6,988146982,462Amortisation and impairment losses beginning of year00(449)Amortisation for the year(1,271)(49)(52,032)Amortisation and impairment losses end of year(1,271)(49)(52,481)Carrying amount end of year5,71797929,981Acquired licences DKK'000Acquired rights DKK'000Goodwill DKK'000Addition through business combinations etc6,988097,006Additions0146885,456Cost end of year6,988146982,462Amortisation and impairment losses beginning of year00(449)Amortisation for the year(1,271)(49)(52,032)Amortisation and impairment losses end of year(1,271)(49)(52,481)Carrying amount end of year5,71797929,98110 Property, plant and equipmentOther fixtures and fittings, tools and equipment DKK'000Leasehold improvements DKK'000Addition through business combinations etc12,06488Additions2,7900Disposals(1,951)0Cost end of year12,90388Depreciation for the year(2,876)(20)Reversal regarding disposals1,2510Depreciation and impairment losses end of year(1,625)(20)Carrying amount end of year11,2786811 Financial assetsDeposits DKK'000Other receivables DKK'000Addition through business combinations etc1,647167Additions150Disposals(62)0Cost end of year1,600167Carrying amount end of year1,6001674 Financial assetsInvestments in group enterprises DKK'000Additions494,607Cost end of year494,607Adjustments on equity1,392Share of profit/loss for the year(57,065)Revaluations end of year(55,673)Carrying amount end of year438,934A specification of investments in subsidiaries is evident from the notes to the consolidated financial statements.12 Deferred tax2021 DKK'000Intangible assets(227)Property, plant and equipment(689)Fixed asset investments262Inventories93Receivables(288)Liabilities other than provisions580Deferred tax(269) ​Changes during the year2021 DKK'000Recognised in the income statement(233)Recognised directly in equity(36)End of year(269)Deferred tax has been recognised in the balance sheet as follows2021 DKK'000 Deferred tax assets63 Deferred tax liabilities(332)(269)​Deferred tax assetsDeferred tax assets relates to property, plant and equipment and 13 PrepaymentsPrepayments consists of rent and insurance costs.14 Contributed capitalNumberNominal ​value DKK'000A shares6,433,7426,434B shares1,709,8691,710C shares9,411,3929,411D shares3,901,5313,90221,456,53421,45715 Subordinate loan capitalSubordinate loan capital must be repaid in June 2026. The loan carries interest at a rate equal to 4% per annum.<br />16 Non-current liabilities other than provisionsDue within 12 months 2021 DKK'000Due after more than 12 months 2021 DKK'000Outstanding after 5 years 2021 DKK'000Subordinate loan capital0204,3840Bank loans18,056563,733476,465Lease liabilities2,4372000Other payables0137020,493768,454476,4655 Subordinate loan capitalSubordinate loan capital must be repaid in June 2026. The loan carries interest at a rate equal to 4% per annum. The subordinate loan capital is subordinate to other creditors. <br />6 Non-current liabilities other than provisionsDue after more than 12 months 2021 DKK'000Subordinate loan capital204,384204,384Outstanding debt after 5 years amounts to DKK 0.17 Deferred incomeDeferred income consists of freight charges.7 Other payablesOther payables primarily relate to payable purchase price of shares.18 Changes in working capital2021 DKK'000Increase/decrease in inventories(5,035)Increase/decrease in receivables36,498Increase/decrease in trade payables etc.18,36349,82619 Derivative financial instrumentsThe Company hedges currency risks on expected transactions in EUR and USD with forward exchange ​contracts. Forward exchange contracts relates to purchase of goods. Value adjustments are recognized in the ​equity and are expected to be carried out and recognized in the income statement after the balance sheet day. ​The forward exchange contracts are hedging towards currency risks relating to EUR/DKK, EUR/NOK and USD/NOK. ​ The fair value has not been calculated on the basis of observations in an active market. For the valuation of the fair value as of the balance sheet date, the statement of the bank has been used due to the company's credit rating and collateral. PeriodFair value ​DKK'000Contractual value ​DKK'0000-6 months993389,6446-12 months390238,09212-24 months13759,560Total1,520687,29620 Fair value informationForward exchange contracts DKK'000Fair value end of year 1,520Unrealised fair value adjustments recognised in the fair value reserve in equity1,52021 Unrecognised rental and lease commitmentsThe entity has entered agreements of rented premises with an average annual rent of 2,841.t.DKK. The Contracts are irredeemable for 67 month and have an outstandeing commitment of 15,864 t.DKK.22 Non-arm’s length related party transactionsOnly non-arm's length related party transactions are disclosed in the annual report.​ No such transactions were conducted during the financial year.11 Non-arm’s length related party transactionsOnly non-arm's length related party transactions are disclosed in the annual report.​ ​ ​FCP HoldCo ApS has maded a group contribution to the subsidiary in the amount of t.DKK 125.885. No further transactions were conducted during the financial year.23 SubsidiariesRegistered inCorporate ​formOwnership ​​%FCP BidCo ApSAalborg, DanmarkApS100.00Geia Food A/SAalborg, DenmarkA/S100.00Geia Food OYVantaa, FinlandOY100.00Geia Food Holding ABKarlstad, SwedenAB100.00Geia Food ABKarlstad, SwedenAB100.00Geia Food Norge ASOslo, NorwayAS100.00Geia Food ASOslo, NorwayAS100.00-5706400043893400097600040000055673000-5567300008 Contingent liabilitiesThe Entity serves as the administration company in a Danish joint taxation arrangement. According to the joint taxation provisions of the Danish Corporation Tax Act, the Entity is therefore liable for income taxes etc. for the jointly taxed entities, and also for obligations, if any, relating to the withholding of tax on interest, royalties and dividends for these entities.9 Assets charged and collateral Shares in FCP BidCo ApS has been deposited to guarantee the company's and affiliated companies' loan at ​Danske Bank. The affiliated companies are FCP BidCo ApS, Geia Food Norge AS, Geia Food AS, Geia Food Holding AB and Geia Food AB and Geia Food A/S and as of the 31st of December the affiliated companies bank debt amounts to 592.210 t.DKK. The book value of the shares are 438.934 t.DKK.​ Any loans made from FCP BidCo ApS to FCP HoldCo ApS has been deposited to guarantee the company's and affiliated companies' debt at ​​Danske Bank. As of the 31st december there is no loan from FCP BidCo ApS to FCP HoldCo ApS. 10 Related parties with controlling interest- TSM II LuxCo 3 SARL owns 75,7% of shares in the Entity, thus exercising control. This annual report has been presented in accordance with the provisions of the Danish Financial Statements Act ​governing reporting class C enterprises (large).Recognition and measurementAssets are recognised in the balance sheet when it is probable as a result of a prior event that future economic ​benefits will flow to the Entity, and the value of the asset can be measured reliably. ​ ​Liabilities are recognised in the balance sheet when the Entity has a legal or constructive obligation as a ​result of a prior event, and it is probable that future economic benefits will flow out of the Entity, and the ​value of the liability can be measured reliably. ​ ​On initial recognition, assets and liabilities are measured at cost. Measurement subsequent to initial ​recognition is effected as described below for each financial statement item. ​ ​Anticipated risks and losses that arise before the time of presentation of the annual report and that confirm ​or invalidate affairs and conditions existing at the balance sheet date are considered at recognition and ​measurement. ​ ​Income is recognised in the income statement when earned, whereas costs are recognised by the amounts ​attributable to this financial year. <br />Consolidated financial statementsThe consolidated financial statements comprise the Parent and the group enterprises (subsidiaries) that are controlled by the Parent. Control is achieved by the Parent, either directly or indirectly, holding more than 50% of the voting rights or in any other way possibly or actually exercising controlling influence. Enterprises in which the Group, directly or indirectly, holds between 20% and 50% of the voting rights and exercises significant, but not controlling, influence are regarded as associates.<br />Basis of consolidationThe consolidated financial statements are prepared on the basis of the financial statements of the Parent and its subsidiaries. The consolidated financial statements are prepared by combining uniform items. On consolidation, intra-group income and expenses, intra-group accounts and dividends as well as profits and losses on transactions between the consolidated enterprises are eliminated. The financial statements used for consolidation have been prepared applying the Group’s accounting policies. Subsidiaries’ financial statement items are recognised in full in the consolidated financial statements. Minority interests’ pro rata shares of the profit/loss and the net assets are disclosed as separate items in Management's proposal for the distribution of net profit/loss and equity, respectively. Investments in subsidiaries are offset at the pro rata share of such subsidiaries’ net assets at the acquisition date, with net assets having been calculated at fair value.RevenueRevenue from the sale of manufactured goods and goods for resale is recognised in the income statement ​when delivery is made and risk has passed to the buyer. Revenue from the sale of services is recognised in the income statement when delivery is made to the buyer. Revenue is recognised net of VAT, duties and sales discounts and is measured at fair value of the consideration fixed.Other operating incomeOther operating income comprises income of a secondary nature as viewed in relation to the Entity’s primary ​activities.Cost of salesCost of sales comprises goods consumed in the financial year measured at cost, adjusted for ordinary inventory writedowns.Other external expensesOther external expenses include expenses relating to the Entity’s ordinary activities, including expenses for ​premises, stationery and office supplies, marketing costs, etc. This item also includes writedowns of ​receivables recognised in current assets.Staff costsStaff costs comprise wages and salaries, and social security contributions, pension contributions, etc . for entity staff.Depreciation, amortisation and impairment lossesDepreciation, amortisation and impairment losses relating to property, plant and equipment and intangible ​assets comprise depreciation, amortisation and impairment losses for the financial year, and gains and ​losses from the sale of intangible assets and property, plant and equipment.Other operating expensesOther operating expenses comprise expenses of a secondary nature as viewed in relation to the Entity’s primary activities.Income from investments in group enterprisesIncome from investments in group enterprises comprises the pro rata share of the individual enterprises’ profit/loss after full elimination of intra-group profits or losses. Other financial incomeOther financial income comprises dividends etc. received on other investments, interest income, including ​interest income on receivables from group enterprises, net capital or exchange gains on securities, payables ​and transactions in foreign currencies, amortisation of financial assets, and tax relief under the Danish ​Tax Prepayment Scheme etc.Other financial expensesOther financial expenses comprise interest expenses, including interest expenses on payables to group ​enterprises, net capital or exchange losses on securities, payables and transactions in foreign currencies, ​amortisation of financial liabilities, and tax surcharge under the Danish Tax Prepayment Scheme etc.Tax on profit/loss for the yearTax for the year, which consists of current tax for the year and changes in deferred tax, is recognised in the ​income statement by the portion attributable to the profit for the year and recognised directly in equity by the portion attributable to entries directly in equity.GoodwillGoodwill is the positive difference between cost and fair value of assets and liabilities arising from acquisitions. Goodwill is amortised straight-line over its estimated useful life, which is fixed based on the experience gained by Management for each business area. Useful life has been determined based on an assessment of whether the enterprises are strategically acquired enterprises with a strong market position and a long-term earnings profile and whether the amount of goodwill includes intangible resources of a temporary nature that cannot be separated and recognised as separate assets. Useful lives are reassessed annually. The amortisation periods used are 10 years. ​ ​Goodwill is written down to the lower of recoverable amount and carrying amount.<br />Intellectual property rights etc.Intellectual property rights etc. comprise acquired intellectual property rights.Intellectual property rights acquired are measured at cost less accumulated amortisation. Patents are amortised on a straight-line basis over their remaining duration, and licences are amortised on a straight-line basis over the term of the agreement.​ ​Intellectual property rights etc. are written down to the lower of recoverable amount and carrying amount.Property, plant and equipmentOther fixtures and fittings, tools and equipment are ​measured at ​cost less accumulated depreciation and impairment losses. ​​ ​​Cost comprises the acquisition price, costs directly attributable to the acquisition and preparation costs of the ​asset until the time when it is ready to be put into operation. ​ ​ ​The basis of depreciation is cost less estimated residual value after the end of useful life. Straight-line depreciation is made on the basis of the following estimated useful lives of the assets:Other fixtures and fittings, tools and equipment 1-5 yearsLeasehold improvements1-5 yearsFor leasehold improvements and assets subject to finance leases, the depreciation period cannot exceed ​the contract period. ​ ​Estimated useful lives and residual values are reassessed annually. ​ ​Items of property, plant and equipment are written down to the lower of recoverable amount and carrying ​amount.Investments in group enterprisesInvestments in group enterprises are recognised and measured in the parent financial statements according to the equity method. This means that investments are measured at the pro rata share of the enterprises’ equity value plus unamortised goodwill and plus or minus unrealised intra-group profits or losses. Reference is made to the above section on business combinations for more details about the accounting policies applied to acquisitions of investments in group enterprises. ​ ​Group enterprises with negative equity value are measured at DKK 0. Any receivables from these enterprises ​are written down to net realisable value based on a specific assessment. If the Parent has a legal or constructive obligation to cover the liabilities of the relevant enterprise, and it is probable that such obligation will involve a loss, a provision is recognised that is measured at present value of the costs necessary to settle the obligations at ​the balance sheet date. ​ ​Upon distribution of profit or loss, net revaluation of investments in group enterprises is transferred to the reserve for net revaluation according to the equity method in equity. ​ ​Goodwill is the difference between cost of investments and fair value of the pro rata share of assets and liabilities arising from acquisitions. Goodwill is amortised straight-line over its estimated useful life, which is fixed based on the experience gained by Management for each business area. Useful life has been determined based on an assessment of whether the enterprises are strategically acquired enterprises with a strong market position and a long-term earnings profile and whether the amount of goodwill includes intangible resources of a temporary nature that cannot be separated and recognised as separate assets. Useful lives are reassessed annually. The amortisation periods used are 10 years. ​Investments in group enterprises are written down to the lower of recoverable amount and carrying amount. ReceivablesReceivables are measured at amortised cost, usually equalling nominal value, less writedowns for bad and ​doubtful debts.Other investmentsOther investments comprise listed securities which are measured at fair value (market price) at the balance ​sheet date, and unlisted equity investments measured at the lower of cost and net realisable value.InventoriesInventories are measured at the lower of cost using the FIFO method and net realisable value. ​ ​Cost consists of purchase price plus delivery costs. ​ ​Indirect production costs comprise indirect materials and labour costs, costs of maintenance of, depreciation ​on machinery, factory buildings and equipment used in the manufacturing ​process, and costs of factory administration and management. Finance costs are not included in cost. ​The net realisable value of inventories is calculated as the estimated selling price less completion costs and ​costs incurred to execute sale.Deferred taxDeferred tax is recognised on all temporary differences between the carrying amount and the tax-based value of assets and liabilities, for which the tax-based value is calculated based on the planned use of each asset. However, no deferred tax is recognised for amortisation of goodwill disallowed for tax purposes and temporary differences arising at the date of acquisition that do not result from a business combination and that do not have any effect on profit or loss or on taxable income. ​ ​Deferred tax assets, including the tax base of tax loss carryforwards, are recognised in the balance sheet at ​their estimated realisable value, either as a set-off against deferred tax liabilities or as net tax assets.Tax payable or receivableCurrent tax payable or receivable is recognised in the balance sheet, stated as tax computed on this year's ​taxable income, adjusted for prepaid tax.<br />Joint taxation contributions payable or receivable Current joint taxation contributions payable or receivable are recognised in the balance sheet, stated as tax computed on this year's taxable income, adjusted for prepaid tax. For tax losses, joint taxation contributions receivable are only recognised if such losses are expected to be used under the joint taxation arrangement.PrepaymentsPrepayments comprise incurred costs relating to subsequent financial years. Prepayments are measured at ​cost.CashCash comprises cash in hand and bank deposits.Lease liabilitiesLease liabilities relating to assets held under finance leases are recognised in the balance sheet as liabilities other than provisions, and, at the time of inception of the lease, measured at the present value of future lease payments. Subsequent to initial recognition, lease liabilities are measured at amortised cost. The difference between present value and nominal amount of the lease payments is recognised in the income statement as a financial expense over the term of the leases.Other financial liabilitiesOther financial liabilities are measured at amortised cost, which usually corresponds to nominal value.Deferred incomeDeferred income comprises income received for recognition in subsequent financial years. Deferred income ​is measured at cost.Cash flow statementThe cash flow statement shows cash flows from operating, investing and financing activities, and cash ​and cash equivalents at the beginning and the end of the financial year. ​ ​Cash flows from operating activities are presented using the indirect method and calculated as the operating ​profit/loss adjusted for non-cash operating items, working capital changes, and financial income, financial expenses and income tax paid. ​ ​Cash flows from investing activities comprise payments in connection with acquisition and divestment of ​ enterprises, activities and fixed asset investments, and purchase, improvement and sale, ​etc. of property, plant and equipment. ​ ​Cash flows from financing activities comprise changes in the size or composition of the contributed capital ​and related costs, and the raising of loans, repayments of interest-bearing debt, including lease liabilities and payment of dividend. ​ ​Cash and cash equivalents comprise cash. The cash flow statement shows cash flows from operating, investing and financing activities, and cash ​and cash equivalents at the beginning and the end of the financial year. ​ ​Cash flows from operating activities are presented using the indirect method and calculated as the operating ​profit/loss adjusted for non-cash operating items, working capital changes, and financial income, financial expenses and income tax paid. ​ ​Cash flows from investing activities comprise payments in connection with acquisition and divestment of ​ enterprises, activities and fixed asset investments, and purchase, improvement and sale, ​etc. of property, plant and equipment. ​ ​Cash flows from financing activities comprise changes in the size or composition of the contributed capital ​and related costs, and the raising of loans, repayments of interest-bearing debt, including lease liabilities and payment of dividend. ​ ​Cash and cash equivalents comprise cash. 2022-06-29Esko Mikael Aro