xbrli:pureiso4217:DKK416046892022-01-012022-12-31cmn:ConsolidatedMember416046892022-01-012022-12-311cmn:ConsolidatedMember416046892022-01-012022-12-311cmn:ConsolidatedMember416046892022-01-012022-12-311416046892022-01-012022-12-312416046892022-01-012022-12-313416046892020-08-202021-12-31cmn:ConsolidatedMember416046892022-01-012022-12-31416046892020-08-202021-12-31416046892022-01-012022-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember416046892022-01-012022-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember416046892020-08-202021-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember416046892022-01-012022-12-31fsa:ReserveForNetRevaluationAccordingToEquityMethodMember416046892022-01-012022-12-31fsa:RetainedEarningsMember416046892022-01-012022-12-31fsa:RetainedEarningsMember416046892020-08-202021-12-31fsa:RetainedEarningsMember416046892022-12-31cmn:ConsolidatedMember416046892021-12-31cmn:ConsolidatedMember416046892022-12-31416046892021-12-31416046892022-01-01cmn:ConsolidatedMember416046892020-08-20cmn:ConsolidatedMember416046892022-01-01fsa:ContributedCapitalMembercmn:ConsolidatedMember416046892022-01-01fsa:RetainedEarningsMembercmn:ConsolidatedMember416046892022-12-31fsa:ContributedCapitalMembercmn:ConsolidatedMember416046892022-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember416046892022-01-01fsa:ContributedCapitalMember416046892022-01-01fsa:ReserveForNetRevaluationAccordingToEquityMethodMember416046892022-01-01fsa:RetainedEarningsMember416046892022-01-01416046892022-12-31fsa:ContributedCapitalMember416046892022-12-31fsa:ReserveForNetRevaluationAccordingToEquityMethodMember416046892022-12-31fsa:RetainedEarningsMember416046892022-01-012022-12-311cmn:ConsolidatedMember416046892022-01-012022-12-312cmn:ConsolidatedMember416046892020-08-202021-12-311cmn:ConsolidatedMember416046892020-08-202021-12-312cmn:ConsolidatedMemberGrundlag for konklusionKonklusion2023-06-222023-06-2233963556Deloitte Statsautoriseret RevisionspartnerselskabRevisionspåtegningRegnskabsklasse C, mellemstor virksomhed2021-12-312020-08-2033963556Weidekampsgade 6Deloitte Statsautoriseret Revisionspartnerselskab2300 København S2022-12-312022-01-01Americhem Denmark ApS41604689ÅrsrapportEsbjerg67018DokkenEsbjergRibe6760<br /><br />8BohrsvejThe Board of Directors and the Executive Board have today considered and approved the annual report of Americhem Denmark ApS for the financial year 01.01.2022 - 31.12.2022.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 31.12.2022 and of the results of their operations and the consolidated cash flows for the financial year
01.01.2022 - 31.12.2022.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.RibeJames Michael FiganiakRobert Kenneth GudbransonJames Michael FiganiakBarend Christoffel Du PlessisTo the shareholders of Americhem Denmark ApSWe have audited the consolidated financial statements and the parent financial statements of Americhem Denmark ApS for the financial year 01.01.2022 - 31.12.2022, 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 31.12.2022 and of the results of their operations and the consolidated cash flows for the financial year 01.01.2022 - 31.12.2022 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.EsbjergMikael Grosbølmne33707State Authorised Public AccountantFinancial highlights2022
DKK'0002020/21
DKK'000Key figuresGross profit/loss34,36333,008Operating profit/loss(861)6,111Net financials(1,674)60Profit/loss for the year(4,767)2,004Balance sheet total285,658235,792Investments in property, plant and equipment24,43221,985Equity187,190191,957Cash flows from operating activities(9,010)951Cash flows from investing activities(25,058)(206,418)Cash flows from financing activities34,887205,467RatiosEquity ratio (%)65.5381.41Financial highlights are defined and calculated in accordance with the current version of "Recommendations &
Ratios" issued by the CFA Society Denmark.Equity ratio (%)
:Equity * 100
Balance sheet totalPrimary activitiesThe company is a holding company with no actual operating activity. The Group's primary activity are research, development, production and sale of compounded plastic materials as well as color and additive masterbatch.Development in activities and financesAugust 31st, 2020 Americhem Denmark bought the subsidariy Controlled Polymers.
The result for the year shows a loss of DKK 4,767k.Profit/loss for the year in relation to expected developmentsThe result for the year shows a loss of DKK 4,767k, compared with last years result, which showed a profit of DKK 2,004k.
The management considers the year's result unsatisfactoryOutlookRaw material availability, and price constraints, combined with escalating energy costs and a disruption to the business from the transfer of Manchester assets and product technologies, constrained projected business growth in 2022. Multiple price increases, as mentioned, were implemented to reduce the impact from the aforementioned.
Expectations for 2023 are that raw material availability, and cost, will ease but that high inflation will continue to impact customer demand, potentially challenging our performance targets. New business opportunities, a revised sales strategy, focusing on healthcare, and price maintenance, management believes, will enable the business to post modest growth in the next financial year.
The groups revenue is invoiced primarily in EUR and DKK and the company's purchases are also made in DKK and EUR. The company thus does not have a significant currency risk on revenue and purchases. The group are financed only with variable short-term debt and the company thus has an interest rate risk on the financing side.
Stagflation and a possible EU, or global recession cannot be excluded in 2023.
Knowledge resourcesThe group works on an ongoing basis to attract, retain, and develop employees to support the company
business. This happens i.e. via extroverted activities, support of staff activities, continuing education etc. and not
at least a striving to be a good and proper workplace.Environmental performanceThe group are aware that our products contribute to the consumption of plastic. The group are actively trying to develop our production in a way that increasingly reduces the environmental impact. We carry out continuous measurement and follow-up on our most important environmental parameters. In our production, we only use raw materials that are REACH and RoHS approved. Our electricity supply is based 100% wind energy. Our heating is done with wood pellets and the company has embarked on developing a global sustainability strategy.
Additionally, Controlled Polymers A/S is an active member of the parent company’s Sustainability Council in support of developing a Global Sustainability Strategy for Americhem INC.Research and development activitiesThe group works continuously on the development of production methods and processes. Because of the
current financial situation, development activities in the financial year have primarily been targeted solving direct
customer-related issues.34362910330082922280909215594186124147191130264174144162112-8609016111465-74144-162112143341356086465184013523202961611931510-25350646171390-4783064199284522320004167545-16000-11000-47670642003845-4767064-47670642003845-47670642003845-2154957-2612107-4767064200384537054034009191100011601300125317878136964890129033282140990094259942731544087313322294383090539316567192717781683498491602618721875921191921078884839271434681915762392688752165601664043557131475920182803477114343371259143471744020179227626209425618304845160469895319717565533744367300082119113351335133511730772675530222553374436730002856575752357920941931258631957808881000000100000010000001000000186189712190956776186189712188801819187189712191956776100000019095677619195677610000001861897121871897121919567761000000215495718880181919195677610000000186189712125800010720001258000107200014392761441411143927614414111591981516215589294862291516234335000484064052658140351060113706204600036620002046000366200077919622246869385515109577058741321907593615138241129720986342763318593615138241122856575752357920941931258631957808881696952519491670-19782381-22745012-36737572858123143341356086-1817504-296161-3662000-1967411-9009920950637-625456-1765970-24432046-146988670-189952931-25057502-206417768-34067422-20546713101551420035183052001000000Group contributionChanges short term bank facilities0188952931-295774034887278205467131819856082119113351 Staff costs2022
DKK2020/21
DKKWages and salaries39,618,64233,380,074Pension costs3,824,0153,392,199Other social security costs1,985,535680,562Other staff costs0409,62445,428,19237,862,459Average number of full-time employees7966Information on remuneration to management has been omitted as per ÅRL § 98b paragraph 379662 Depreciation, amortisation and impairment losses2022
DKK2020/21
DKKAmortisation of intangible assets12,582,26816,778,689Depreciation on property, plant and equipment4,387,2572,712,98116,969,52519,491,6703 Tax on profit/loss for the year2022
DKK2020/21
DKKCurrent tax2,046,0004,036,545Change in deferred tax186,000131,0002,232,0004,167,5451 Tax on profit/loss for the year2022
DKK2020/21
DKKRefund in joint taxation arrangement(16,000)(11,000)(16,000)(11,000)4 Proposed distribution of profit/loss2022
DKK2020/21
DKKRetained earnings(4,767,064)2,003,845(4,767,064)2,003,8452 Proposed distribution of profit and loss2022
DKK2020/21
DKKRetained earnings(4,767,064)2,003,845(4,767,064)2,003,8455 Intangible assetsCompleted development projects
DKKAcquired intangible assets
DKKAcquired patents
DKKGoodwill
DKKCost beginning of year4,838,382436,432269,981152,493,969Additions625,456000Cost end of year5,463,838436,432269,981152,493,969Amortisation and impairment losses beginning of year(829,191)(420,419)(269,981)(15,529,079)Amortisation for the year(929,244)(6,012)0(11,647,012)Amortisation and impairment losses end of year(1,758,435)(426,431)(269,981)(27,176,091)Carrying amount end of year3,705,40310,0010125,317,878Completed development projects
DKKAcquired intangible assets
DKKAcquired patents
DKKGoodwill
DKKCost beginning of year4,838,382436,432269,981152,493,969Additions625,456000Cost end of year5,463,838436,432269,981152,493,969Amortisation and impairment losses beginning of year(829,191)(420,419)(269,981)(15,529,079)Amortisation for the year(929,244)(6,012)0(11,647,012)Amortisation and impairment losses end of year(1,758,435)(426,431)(269,981)(27,176,091)Carrying amount end of year3,705,40310,0010125,317,8786 Development projectsCompleted development projects is costs related to a new ERP system, that was implemented in 2020 and have
been further developed in 2021 and 2022.7 Property, plant and equipmentOther fixtures and fittings, tools and equipment
DKKLeasehold improvements
DKKCost beginning of year17,463,3244,521,435Additions14,264,36810,167,678Cost end of year31,727,69214,689,113Depreciation and impairment losses beginning of year(2,022,451)(690,530)Depreciation for the year(3,710,968)(676,289)Depreciation and impairment losses end of year(5,733,419)(1,366,819)Carrying amount end of year25,994,27313,322,2948 PrepaymentsPrepayments include prepaid insurance, leasing, licensing agreements and prepayments for goods.9 Contributed capitalNumberPar value
DKKNominal
value
DKKRecorded par
value
DKKOrdinary Shares Americhem Denmark ApS10,000100.001,000,0001,000,00010,0001,000,0001,000,00010 Deferred tax2022
DKK2020/21
DKKIntangible assets815,0001,150,000Property, plant and equipment1,428,0001,000Inventories(1,123,000)(160,000)Receivables138,00081,000Deferred tax1,258,0001,072,000
Changes during the year2022
DKK2020/21
DKKBeginning of year1,072,000398,000Recognised in the income statement186,000674,000End of year1,258,0001,072,00010 Deferred tax11 Non-current liabilities other than provisionsDue after
more than 12
months
2022
DKKOutstanding
after 5 years
2022
DKKOther payables1,439,2761,439,2761,439,2761,439,27612 Changes in working capital2022
DKK2020/21
DKKIncrease/decrease in inventories(12,459,509)(19,541,184)Increase/decrease in receivables(27,189,716)(16,564,074)Increase/decrease in trade payables etc.19,868,97913,360,246Other changes(2,135)0(19,782,381)(22,745,012)13 Unrecognised rental and lease commitments2022
DKK2020/21
DKKTotal liabilities under rental or lease agreements until maturity 2,677,1942,681,17514 Assets charged and collateralBank loans are secured by way of a deposited mortgage deed registered to the mortgagor on goodwill, other fixtures and fittings, tools and equipment and leasehold improvements of DKK 1.900k nominal.
Furthermore bank loans are secured by receivables charges of DKK 11.000k nominal.
The carrying amount of mortgaged goodwill, other fixtures and fittings, tools and equipment and leasehold improvements is DKK 73.374k, the carrying amount of mortgaged recievables is DKK 47,592k.5 Assets charged and collateralCollateral provided for group enterprisesBank loans and guarantees are secured by pledge of shares in Controlled Polymers A/S. The carrying amount of the investment is DKK 187,592k.
15 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.7 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.16
Group relationsName and registered office of the Parent for the largest group:
Americhem Inc.
2000 Americhem Way
Cuyahoga Falls, OH, 44221 USA
The parent does not publish a group annual report.17 SubsidiariesRegistered inCorporate
formOwnership
%Controlled Polymers A/SDenmarkA/S100.00-4515769215495718759211919210788818759211919210788820620003673000021549573 Financial assetsInvestments in group enterprises
DKKCost beginning of year189,952,931Cost end of year189,952,931Revaluations beginning of year2,154,957Transfers2,360,812Amortisation of goodwill(7,204,780)Share of profit/loss for the year2,689,011Revaluations end of year0Transfers(2,360,812)Impairment losses end of year(2,360,812)Carrying amount end of year187,592,119A specification of investments in subsidiaries is evident from the notes to the consolidated financial statements.4 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.6 Related parties with controlling interestAmerichem Inc., Ohio, USA owns all 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 (medium) with addition of a few provisions governing reporting class C
enterprises (large).The accounting policies applied to these consolidated financial statements and parent financial statements are consistent with those applied last year.falseNon-comparabilityBecause it is the company's first financial year, there are no comparative figures.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.Business combinationsPositive differences in amount (goodwill) between cost of the acquired share and fair value of the assets
and liabilities taken over are recognised in intangible assets, and they are amortised systematically over
the income statement based on an individual assessment of their useful lives. If the useful life cannot be
estimated reliably, it is fixed at 15 years. Useful life is reassessed annually. The uniting-of-interests method is applied on mergers where the enterprises concerned are controlled by the Parent, under which method the combination is considered completed at the date of acquisition without restatement of comparative figures. Under the uniting-of-interests method, the acquiree’s assets and liabilities are recognised at their carrying amounts, adjusted for any differences in accounting policies and accounting estimates. The difference between the consideration agreed and the carrying amount of the acquiree is recognised in equity.Foreign currency translationOn initial recognition, foreign currency transactions are translated applying the exchange rate at the transaction date. Receivables, payables and other monetary items denominated in foreign currencies that have not been settled at the balance sheet date are translated using the exchange rate at the balance sheet date. Exchange differences that arise between the rate at the transaction date and the rate in effect at the payment date, or the rate at the balance sheet date, are recognised in the income statement as financial income or financial expenses.
Gross profit or lossGross profit or loss comprises revenue, production costs and other operating income.RevenueRvenue 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. Production costsProduction costs comprise expenses incurred to earn revenue for the financial year. Production costs comprise direct and indirect costs for raw materials and consumables, wages and salaries, rent and lease, and amortisation, depreciation and impairment losses relating to intangible assets and property, plant and equipment included in the production process. In addition, the item includes ordinary write-down of inventories.Cost of salesCost of sales comprises goods consumed in the financial year measured at cost, adjusted for ordinary
inventory
writedowns.Distribution costsDistribution costs comprise costs incurred for sale and distribution of the Entity’s products, including wages
and salaries for sales staff, advertising costs, travelling and entertainment expenses, etc., and amortisation,
depreciation and impairment losses relating to intangible assets and property, plant and
equipment involved in
the distribution process.Administrative expensesAdministrative expenses comprise expenses incurred for the Entity’s administrative functions, including wages
and salaries for administrative staff and Management, stationery and office supplies, and amortisation,
depreciation and impairment losses relating to intangible assets and property, plant and equipment used for
administration of the Entity.Other operating incomeOther operating income comprises income 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 interest income, including interest income on receivables from group enterprises, net exchange gains on transactions in foreign currencies.Financial expenses from group enterprisesFinancial expenses from group enterprises comprise interest expenses etc. from payables to group
enterprises.<br />Other financial expensesOther financial expenses comprise interest expenses, including interest expenses on payables to group enterprises, net exchange losses on 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.The Parent is jointly taxed with all of its Danish group enterprises. The current Danish income tax is allocated
among
the jointly taxed entities proportionally to their taxable income (full allocation with a refund
concerning tax losses).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. For amounts of goodwill, 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 15 years because of goodwill is related to investment with a strong marked position.
Goodwill is written down to the lower of recoverable amount and carrying amount.<br />Intellectual property rights etc.Intellectual property rights etc comprise work in progress, development projects completed and acquired patent.Development projects on clearly defined and identifiable products and processes, for which the technical rate of utilisation, adequate resources and a potential future market or development opportunity in the enterprise can be established, and where the intention is to manufacture, market or apply the product or process in question, are recognised as intangible assets. Other development costs are recognised as costs in the income statement as incurred.
The cost of development projects comprises costs such as salaries and amortisation that are directly and indirectly attributable to the development projects.
Completed development projects are amortised on a straight-line basis using their estimated useful lives. For development projects protected by intellectual property rights, the maximum period of amortisation is the remaining duration of the relevant rights. The amortisation periods used are 5-7 years. 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 over the term of the agreement.Intellectual property rights etc are written down to the lower of recoverable amount if it is lower than the carrying amount.Property, plant and equipmentPlant and machinery, and other fixtures and fittings, tools and equipment are
measured at
cost less accumulated depreciation and impairment losses. Land is not depreciated.
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:Useful life
Other fixtures and fittings, tools and equipment3-8 yearsLeasehold improvements6-10 years
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. For other
amounts of goodwill, 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 15 years.
Investments in group enterprises are written down to the lower of recoverable amount and carrying amount.
InventoriesInventories are measured at the lower of cost using the FIFO method and net realisable value.
Cost consists of purchase price plus delivery costs. Cost of manufactured goods and work in progress consists of costs of raw materials, consumables, direct labour costs and indirect production costs.
Indirect production costs comprise indirect materials and labour costs, costs of maintenance of, depreciation of and impairment losses relating to 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.ReceivablesReceivables are measured at amortised cost, usually equalling nominal value, less writedowns for bad and
doubtful debts.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.<br />Tax payable or receivable Current tax payable or receivable is recognised in the balance sheet, stated as tax computed on this year's
taxable income, adjusted for prepaid tax.PrepaymentsPrepayments comprise incurred costs relating to subsequent financial years. Prepayments are measured at cost.CashCash comprises cash in hand and bank deposits.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.
Operating leasesLease payments on operating leases are recognised on a straight-line basis in the income statement over
the
term of the lease.Other financial liabilitiesOther financial liabilities are measured at amortised cost, which usually corresponds to nominal value.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 taxes paid.
Cash flows from investing activities comprise payments in connection with acquisition and divestment of enterprises, activities and fixed asset investments, and purchase, development, improvement and sale, etc. of intangible assets and property, plant and equipment, including acquisition of assets held under finance leases.
Cash flows from financing activities comprise changes in the size or composition of the contributed capital and related costs, and the raising of loans, inception of finance leases, repayments of interest-bearing debt, purchase of treasury shares 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 taxes paid.
Cash flows from investing activities comprise payments in connection with acquisition and divestment of enterprises, activities and fixed asset investments, and purchase, development, improvement and sale, etc. of intangible assets and property, plant and equipment, including acquisition of assets held under finance leases.
Cash flows from financing activities comprise changes in the size or composition of the contributed capital and related costs, and the raising of loans, inception of finance leases, repayments of interest-bearing debt, purchase of treasury shares and payment of dividend.
Cash and cash equivalents comprise cash
2023-06-28Robert Kenneth Gudbranson