Årsrapport 30700228 EY Godkendt Revisionspartnerselskab Dirch Passers Allé 36 Postboks 250, 2000 Frederiksberg 2021-01-01 2021-12-31 2020-01-01 2020-12-31 33362811 Denmark Wall Owner ApS Dirch Passers Allé 76 2000 Frederiksberg 2010-12-10 Frederiksberg EY Godkendt Revisionspartnerselskab 30700228 Dirch Passers Allé 36 2000 Frederiksberg 2022-06-02 Mette Seifert Regnskabsklasse B Revisionspåtegning Grundlag for konklusion Konklusion true 2022-06-02 2022-06-02 CaseWare Working Papers Copenhagen Mette Seifert Copenhagen Henrik Reedtz State Authorised Public Accountant mne24830 2680843 2758480 3775000 2975000 6455843 5733480 0 11 372879 363024 6082964 5370467 1338252 1181484 4744712 4188983 8769463 1669000 -4024751 2519983 37750000 33975000 37750000 33975000 37750000 33975000 0 1459285 0 1459285 37750000 35434285 2000000 2000000 3199238 7223989 8769463 1669000 13968701 10892989 4131757 3149623 4131757 3149623 0 11797451 18104027 0 18104027 11797451 0 803437 80 0 0 6571398 0 334774 1078168 1075898 467267 808715 1545515 9594222 19649542 21391673 37750000 35434285 2000000 0 6696865 4704006 2519983 1669000 0 6696865 2000000 7223989 1669000 -4024751 8769463 0 1669000 2000000 3199238 8769463 0 11 241221 177645 0 122688 0 62691 131658 0 356117 470719 982135 710765 1338252 1181484 30385260 30385260 3589740 3775000 7364740 37750000 Today, the Executive Board has discussed and approved the annual report of Denmark Wall Owner ApS for the financial year 1 January - 31 December 2021. The annual report is prepared in accordance with the Danish Financial Statements Act. In my opinion, the financial statements give a true and fair view of the financial position of the Company at 31 December 2021 and of the results of the Company's operations for the financial year 1 January - 31 December 2021. Further, in my opinion, the Management's review gives a fair review of the matters discussed in the Management's review. I recommend that the annual report be approved at the annual general meeting. To the shareholder of Denmark Wall Owner ApS We have audited the financial statements of Denmark Wall Owner ApS for the financial year 1 January - 31 December 2021, which comprise income statement, balance sheet, statement of changes in equity and notes, including accounting policies. The financial statements are prepared in accordance with the Danish Financial Statements Act. In our opinion, the financial statements give a true and fair view of the financial position of the Company at 31 December 2021 and of the results of the Company's operations for the financial year 1 January - 31 December 2021 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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence 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. 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 as to 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 the 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 note 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 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, our responsibility is to read the Management's review and, in doing so, consider whether the 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 the Management's review provides the information required under the Danish Financial Statements Act. 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 the Danish Financial Statement Act. We did not identify any material misstatement of the Management's review. The object of the Company is to conduct business by investment in real estate, including buying and selling real estate, letting out real estate, administration and management of real estate as well as other related activities. The income statement for 2021 shows a profit of DKK 4,744,712 against a profit of DKK 4,188,983 last year, and the balance sheet at 31 December 2021 shows equity of DKK 13,968,701. Management considers the Company's financial performance in the year satisfactory. Effective from 1 January 2021, the Company changed its accounting policies regarding investment properties, due to changes in the ownership structure. The accounting principles for investment properties have been adjusted to the accounting principles of the parent company Denmark Capital Region K/S, which measures investment properties at fair value with value adjustments recognized in the income statement. Before the change, investment properties were measured at cost less depreciation and impairment. The change affects profit for the year by an increase of DKK 3,143,983 (2020: DKK 2,519,983). The balance sheet total is affected by an increase of DKK 12,405,506 (2020: DKK 9,261,523) and an increase of equity at 31 December 2021 by DKK 10,367,972 (2020: DKK 7,223,989). The change in accounting policy affects deferred tax by an increase of DKK 886,765 (2020: DKK 2,037,535) and the change has had no effects on tax for the year. No events materially affecting the Company's financial position have occurred subsequent to the financial year-end. The annual report of Denmark Wall Owner ApS for 2021 has been prepared in accordance with the provisions in the Danish Financial Statements Act applying to reporting class B entities and elective choice of certain provisions applying to reporting class C entities. Effective from 1 January 2021, the Company changed its accounting policies regarding investment properties, due to changes in the ownership structure. The accounting principles for investment properties have been adjusted to the accounting principles of the parent company Denmark Capital Region K/S, which measures investment properties at fair value with value adjustments recognized in the income statement. Before the change, investment properties were measured at cost less depreciation and impairment. The change affects profit for the year by an increase of DKK 3,143,983 (2020: DKK 2,519,983). The balance sheet total is affected by an increase of DKK 12,405,506 (2020: DKK 9,261,523) and an increase of equity at 31 December 2021 by DKK 10,367,972 (2020: DKK 7,223,989). The change in accounting policy affects deferred tax by an increase of DKK 886,765 (2020: DKK 2,037,535) and the change has had no effects on tax for the year. Reporting currency The financial statements are presented in Danish kroner (DKK). Rental income receivable from operating leases is recognised on a straight line basis over the term of the lease, except for contingent rental income, which is recognised as earned. Costs relating to incentives for lessees to enter into lease agreements are spread evenly over the lease term, even if the payments are not made on such a bias. The lease term is the non cancellable period of the lease together with any further term for which the lessee has the option to continue the lease, where, at the inception of the lease, Management is reasonably certain that the lessee will exercise this option. Amounts received from lessees to terminate leases or to compensate for dilapidations are recognised in the income statement as received. The items revenue, expenses, property and external expenses have been aggregated into one item in the income statement called gross profit in accordance with section 32 of the Danish Financial Statements Act. Property expenses include expenses relating to renting out the Company's investment property, including expenses relating to running and maintaining such property. Other external expenses include the year's expenses relating to the Company's core activities, including expenses relating to advertising, administration, premises, bad debts, payments under operating leases, etc. Financial income and expenses are recognised in the income statement at the amounts that relate to the financial reporting period. The items comprise interest income and expenses, e.g. from group entities and associates, declared dividends from other securities and investments, financial expenses relating to finance leases, realised and unrealised capital gains and losses relating to other securities and investments, exchange gains and losses and amortisation of financial assets and liabilities. Tax for the year includes current tax on the year's expected taxable income and the year's deferred tax adjustments. The portion of the tax for the year that relates to the profit/loss for the year is recognised in the income statement, whereas the portion that relates to transactions taken to equity is recognised in equity. The entity is jointly taxed with other group entities. The total Danish income tax charge is allocated between profit/loss-making Danish entities in proportion to their taxable income (full absorption). Jointly taxed entities entitled to a tax refund are reimbursed by the management company based on the rates applicable to interest allowances, and jointly taxed entities which have paid too little tax pay a surcharge according to the rates applicable to interest surcharges to the management company. On initial recognition, investment property is measured at cost. Investment property is subsequently measured at fair value, and the value adjustment for the year is recognised in the income statement under the item "Fair value adjustment of investment property". The fair value is based on the expected future cash flows for the investment property. Receivables are measured at amortised cost. An impairment loss is recognised if there is objective evidence that a receivable or a group of receivables is impaired. If there is objective evidence that an individual receivable has been impaired, an impairment loss is recognised on an individual basis. Prepayments recognised under "Assets" comprise prepaid expenses regarding subsequent financial reporting years. Cash comprise cash and short term securities which are readily convertible into cash and subject only to minor risks of changes in value. Proposed dividends Dividend proposed for the year is recognised as a liability once adopted at the annual general meeting (declaration date). Dividends expected to be distributed for the financial year are presented as a separate item under "Equity". Dividend proposed for the year is recognised as a liability once adopted at the annual general meeting (declaration date). Dividends expected to be distributed for the financial year are presented as a separate item under "Equity". Current tax payables and receivables are recognised in the balance sheet as the estimated income tax charge for the year, adjusted for prior-year taxes and tax paid on account. Deferred tax is measured according to the liability method on all temporary differences between the carrying amount and the tax base of assets and liabilities. However, deferred tax is not recognised on temporary differences relating to goodwill which is not deductible for tax purposes and on office premises and other items where temporary differences, apart from business combinations, arise at the date of acquisition without affecting either profit/loss for the year or taxable income. Where alternative tax rules can be applied to determine the tax base, deferred tax is measured based on Management's intended use of the asset or settlement of the liability, respectively. Deferred tax is measured according to the tax rules and at the tax rates applicable at the balance sheet date when the deferred tax is expected to crystallise as current tax. Deferred tax assets are recognised at the expected value of their utilisation; either as a set-off against tax on future income or as a set-off against deferred tax liabilities in the same legal tax entity. Changes in deferred tax due to changes in the tax rate are recognised in the income statement. Financial liabilities are recognised at the date of borrowing at the net proceeds received less transaction costs paid. On subsequent recognition, financial liabilities are measured at amortised cost, corresponding to the capitalised value, using the effective interest rate. Accordingly, the difference between the proceeds and the nominal value is recognised in the income statement over the term of the loan. Financial liabilities also include the capitalised residual lease liability in respect of finance leases. Other liabilities are measured at net realisable value. The Company has no employees. Note 10 provides more details on security for loans, etc. as regards property, plant and equipment. The Company Group invests in rental property. Investment property is recognised at fair value with value adjustment over the income statement, see the provisions in section 38 of the Danish Financial Statements Act. Fair value estimation The fair value of the investment property has been assessed based on the share purchase agreement between the company's previous shareholders and the company's current shareholders. It is management's assessment that the selling price of the property cf. the share purchase agreement correspond to the fair value in an active market at 31 December 2021. Of the long-term liabilities, DKK 0 falls due for payment after more than 5 years after the balance sheet date. The Company is jointly taxed with its management company, and is jointly and severally liable with other jointly taxed group entities for payment of income taxes as well as withholding taxes on interest, royalties and dividends falling due for payment. The Company has not provided any security or other collateral in assets at 31 December 2021. Parties exercising control Related party Domicile Basis for control Denmark Wall ApS Copenhagen, Denmark Participating interest 33362811 2021-01-01 2021-12-31 33362811 2020-01-01 2020-12-31 33362811 2020-12-31 33362811 2021-12-31 33362811 2021-01-01 2021-12-31 1 33362811 2021-01-01 2021-12-31 1 33362811 2021-01-01 2021-12-31 e:ProposedDividendRecognisedInEquityMember 33362811 2020-01-01 2020-12-31 e:ProposedDividendRecognisedInEquityMember 33362811 2021-01-01 2021-12-31 e:RetainedEarningsMember 33362811 2020-01-01 2020-12-31 e:RetainedEarningsMember 33362811 2021-01-01 e:InvestmentPropertyMember 33362811 2021-01-01 2021-12-31 e:InvestmentPropertyMember 33362811 2021-12-31 e:InvestmentPropertyMember 33362811 2020-01-01 e:ContributedCapitalMember 33362811 2021-01-01 e:ContributedCapitalMember 33362811 2021-12-31 e:ContributedCapitalMember 33362811 2021-01-01 e:RetainedEarningsMember 33362811 2021-01-01 2021-12-31 e:RetainedEarningsMember 33362811 2021-12-31 e:RetainedEarningsMember 33362811 2020-01-01 e:RetainedEarningsMember 33362811 2020-01-01 2020-12-31 e:RetainedEarningsMember 33362811 2021-01-01 e:ProposedDividendRecognisedInEquityMember 33362811 2021-01-01 2021-12-31 e:ProposedDividendRecognisedInEquityMember 33362811 2021-12-31 e:ProposedDividendRecognisedInEquityMember 33362811 2020-01-01 e:ProposedDividendRecognisedInEquityMember 33362811 2020-01-01 2020-12-31 e:ProposedDividendRecognisedInEquityMember iso4217:DKK