xbrli:pureiso4217:DKK187223992023-01-012023-12-31187223992023-01-012023-12-311187223992023-01-012023-12-311187223992023-01-012023-12-311187223992023-01-012023-12-312187223992023-01-012023-12-313187223992023-01-012023-12-314187223992023-01-012023-12-315187223992023-01-012023-12-316187223992023-01-012023-12-312187223992023-01-012023-12-31187223992022-01-012022-12-31187223992023-01-012023-12-31fsa:ReserveForCurrentValueOfHedgingMember187223992023-01-012023-12-31fsa:ReserveForNetRevaluationAccordingToEquityMethodMember187223992023-01-012023-12-31fsa:RetainedEarningsMember187223992023-01-012023-12-31fsa:ProposedDividendRecognisedInEquityMember187223992023-12-31187223992022-12-31187223992023-01-01fsa:ContributedCapitalMember187223992023-01-01fsa:ReserveForCurrentValueOfHedgingMember187223992023-01-01fsa:ReserveForNetRevaluationAccordingToEquityMethodMember187223992023-01-01fsa:RetainedEarningsMember187223992023-12-31fsa:ContributedCapitalMember187223992023-12-31fsa:ReserveForCurrentValueOfHedgingMember187223992023-12-31fsa:ReserveForNetRevaluationAccordingToEquityMethodMember187223992023-12-31fsa:RetainedEarningsMember187223992023-01-01fsa:ProposedDividendRecognisedInEquityMember187223992023-01-01187223992023-12-31fsa:ProposedDividendRecognisedInEquityMember187223992023-01-012023-12-31fsa:ContributedCapitalMember187223992023-01-012023-12-31fsa:OtherShorttermPayablesMemberGrundlag for konklusionKonklusion2024-06-282024-06-28Regnskabsklasse C, mellemstor virksomhed339635562022-01-012022-12-31Aarhus C80002City Tower, VærkmestergadeDeloitte Statsautoriseret RevisionspartnerselskabSkanderborgHørning8362Revisionspåtegning2023-12-312023-01-01<br /><br />21NydamsvejMaki A/S18722399339635562300 København SWeidekampsgade 6Deloitte Statsautoriseret RevisionspartnerselskabÅrsrapportThe Board of Directors and the Executive Board have today considered and approved the annual report of Maki A/S for the financial year 01.01.2023 - 31.12.2023.The annual report is presented in accordance with the Danish Financial Statements Act.In our opinion, the financial statements give a true and fair view of the Entity’s financial position at 31.12.2023 and of the results of its operations for the financial year 01.01.2023 - 31.12.2023.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.HørningMichael JensenJohn ThomasUlrik Nicolai JungersenLars GjørupErik Balleby JensenNiels Backman Dahl-NielsenSusanne SchustinChairmanVice-chairmanTo the shareholders of Maki A/SWe have audited the financial statements of Maki A/S for the financial year 01.01.2023 -
31.12.2023, which comprise the income statement, balance sheet, statement of changes in equity and
notes, including a
summary of significant 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 Entity’s financial position at 31.12.2023 and of the results of its operations for the financial year 01.01.2023 - 31.12.2023 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 financial statements" section of this auditor’s
report. We are independent of the Entity in accordance with the International Ethics Standards Board for
Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical
requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.Management is responsible for the preparation of financial statements that give a true and fair view in accordance
with the Danish Financial Statements Act, and for such internal control as Management determines
is necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, Management is responsible for assessing the 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 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 financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of these financial statements.
As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark,
we exercise professional judgement and maintain professional scepticism throughout the audit. We also:<br />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.
<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 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 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 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 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
Entity to cease to continue as a going concern.
<br />Evaluate the overall presentation, structure and content of the financial statements, including the disclosures
in the notes, and whether the 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 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 financial statements, our responsibility is to read the management
commentary and, in doing so, consider whether the management commentary is materially inconsistent with
the 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 by relevant law and regulations.<br />Based on the work we have performed, we conclude that the management commentary is in accordance with
the financial statements and has been prepared in accordance with the requirements in the relevant law and regulations. We did not identify any material misstatement of the management commentary.
AarhusJacob NørmarkJonas Thøstesen Svenssonmne30176mne47824State Authorised Public AccountantState Authorised Public AccountantFinancial highlights2023
DKK'0002022
DKK'0002021
DKK'0002020
DKK'0002019
DKK'000Key figuresGross profit/loss118,242119,224119,32998,53470,554Operating profit/loss76,75281,24284,84668,66946,844Net financials(8,101)(2,513)(658)(1,533)(2,952)Profit/loss for the year54,12162,55265,99052,93035,247Total assets131,449140,526132,190139,813139,690Investments in property,
plant and equipment5,0649701,0121,1912,808Equity72,95395,18381,31945,97625,189RatiosReturn on equity (%)64.3870.88103.68148.7573.97Equity ratio (%)55.5067.7361.5232.8818.03Financial highlights are defined and calculated in accordance with the current version of "Recommendations & Ratios" issued by the CFA Society Denmark.Return on equity (%)
:Profit/loss for the year * 100
Average equityEquity ratio (%)
:Equity * 100
Total assetsPrimary activitiesMaki, headquartered in Denmark and with subsidiaries in Norway, Sweden, and Finland, is a leading distributor in the Nordic market for toys.
Working only with well-established and often global brand owners, we market high-quality toys that not only bring joy but also foster learning, development, imagination, and creativity in kids.
Kids aged up to eight years, their parents, and gift-givers remain our primary customers and in strong partnerships with brand owners and retailers, we have offered exciting ranges of toys for more than 25 years.
Our annual assortment features some 2,500-3,000 SKUs that we reach kids through a network of more than 5,000 Nordic stores and webshops.
We always strive to build strong and value-adding ties with our brand owners and customers, many of whom have been with us since our early years. In the years to come we will continue to bring new toys to market, while providing even more value to our business partners through innovative services and solutions, utilizing new technologies, digitization, and integration.
Development in activities and finances2023 became a year of adapting to the market downturn that had started in the second half of 2022. Many of our customers struggled during the year and this impacted order and sales volumes adversely. We believe to have succeeded in keeping our market share, and in some cases even increasing it, thanks to a strong assortment and a close cooperation with both brand owners and customers.
The market downturn must be seen in context with demand in 2020-2021 was at an unusual high level due to changed consumer behaviour (COVID-19, lockdowns, etc.). Furthermore, this fiscal year was also impacted by
the declining SEK/NOK rates as well as non-recurring, relocation costs. With these circumstances in mind, but also owing greatly to our business partners and dedicated employees, we believe our financial performance in 2023 was satisfactory.
Over the last quarter, we successfully moved our organization spread over three locations in the Silkeborg area to a single, new office and warehouse in Hørning, close to Aarhus. The move did not affect operations as systems and processes were migrated. We believe our new 16,000 m2 domicile will form a strong platform for the future growth and development of Maki.
Profit/loss for the year in relation to expected developmentsNet profit for the year ended within management's expectations, although somewhat lower than the previous year.OutlookFor 2024, we expect only a modest sales development and a net profit of DKK 40-50m. The Nordic toy markets are still fragile and exposed to recession, interest rates, etc.
Other risks: The company is affected by changes in exchange rates, as purchases of goods and part of revenue are invoiced in foreign currencies. The company's currency risks in USD, SEK and NOK are hedged primarily using forward exchange contracts and by matching deposits and withdrawals per currency. The hedge period is normally 0-12 months.
Statutory report on corporate social responsibilityMaki has opted for greater responsibility in terms of a more sustainable world and has signed up to the UN Global Compact related to human rights, working life principles, environment, and prevention of corruption.
Earlier this month, Maki filed its third annual report to the Communication on Progress (CoP) platform: https://unglobalcompact.org/what-is-gc/participants/152168.
During 2023, we improved our carbon footprint estimations but witnessed a higher emission per revenue ratio than in 2022. Diversity – both a board, management, and company level – all improved in 2023 which is very satisfactory. Employee turnover was higher than our target, but we have identified the main root causes and see a positive trend going into the new year. You can find further details in our Sustainability Report 2023.
Events after the balance sheet dateIn March 2024, an extraordinary dividend was distributed cf. note 6.
Except for that, no other events have occurred after the balance sheet date that would influence the evaluation of this annual report.
118241829120170970399588303681538015310792113799767519208124179183751677815657215968964786734083202329694881877950726515367158169553625412102962551903083751618283513350000000510458821780776063930571098121780771537002194258612734763461538275241893272492564597009742231247812980533872624435119776103868256492415043440179956671135000027639569856235378979110612112888098323052061018429790328259792612357393712419983113592918913144908714052619810101001010100-2002501438908914570481862632724885845292096103500000072953231951827821010100438908918626325292096101010100-200250114570487248858403500000095182782006730000673000226757835265773416042229793347659445941829552090372832404348304584958564467041658495856446704161314490871405261980-35000000-350000000-35000000-3500000004101000041010-81945900000-8194590180300000001803000-1284110128411001 Events after the balance sheet dateAn extraordinary dividend was distributed cf. note 6. Except for that no events have occurred after the balance
sheet date to this date, which would influence the evaluation of this annual report.2 Staff costs2023
DKK2022
DKKWages and salaries36,218,18033,601,195Pension costs2,748,7352,332,267Other social security costs557,307559,233Other staff costs434,608322,68539,958,83036,815,380Average number of full-time employees6868Remuneration of Management2023
DKKRemuneration of Management
2022
DKKTotal amount for management categories1,944,5231,916,4951,944,5231,916,4956868Remuneration of Management2023
DKKRemuneration of Management
2022
DKKTotal amount for management categories1,944,5231,916,4951,944,5231,916,495194452319164953 Other financial income2023
DKK2022
DKKOther interest income65,189128,563Exchange rate adjustments506,970561,084572,159689,6474 Other financial expenses2023
DKK2022
DKKFinancial expenses from group enterprises335,782123,635Other interest expenses4,558,6153,078,694Exchange rate adjustments3,779,01108,673,4083,202,329<br />2023
DKK2022
DKKFinancial expenses from group enterprises335,782123,635Other interest expenses4,558,6153,078,694Exchange rate adjustments3,779,01108,673,4083,202,3295 Tax on profit/loss for the year2023
DKK2022
DKKCurrent tax15,121,02117,393,879Change in deferred tax(5,000)(301,000)Adjustment concerning previous years251,137(137,517)15,367,15816,955,3626 Proposed distribution of profit and loss2023
DKK2022
DKKExtraordinary dividend distributed in the financial year35,000,00051,600,000Retained earnings19,121,02910,951,903 54,121,02962,551,903Dividend distributed after the balance sheet dateExtraordinary dividend30,000,00035,000,0003500000051600000191210291095190330,000,00035,000,0007 Property, plant and equipmentOther fixtures and fittings, tools and equipment
DKKLeasehold improvements
DKKCost beginning of year7,084,0510Additions4,447,310616,671Cost end of year11,531,361616,671Depreciation and impairment losses beginning of year(4,905,972)0Depreciation for the year(1,520,801)(10,278)Depreciation and impairment losses end of year(6,426,773)(10,278)Carrying amount end of year5,104,588606,3938 Financial assetsInvestments in group enterprises
DKKDeposits
DKKCost beginning of year79,953476,346Disposals0(475,073)Cost end of year79,9531,273Revaluations beginning of year1,862,6330Exchange rate adjustments41,0100Share of profit/loss for the year837,5160Dividend(1,284,110)0Revaluations end of year1,457,0490Carrying amount end of year1,537,0021,273Investments in subsidiariesRegistered inCorporate formEquity
interest
%Maki Norge ASNorgeAS100Making Kidplay ABSverigeAB100Maki Finland OYFinlandOY100<br />Investments in group enterprises
DKKDeposits
DKKCost beginning of year79,953476,346Disposals0(475,073)Cost end of year79,9531,273Revaluations beginning of year1,862,6330Exchange rate adjustments41,0100Share of profit/loss for the year837,5160Dividend(1,284,110)0Revaluations end of year1,457,0490Carrying amount end of year1,537,0021,2739 Deferred tax
Changes during the year2023
DKK2022
DKKBeginning of year(673,000)(450,000)Recognised in the income statement5,000301,000Recognised directly in equity1,803,000(854,340)Adjustment concering previous years0330,340End of year1,135,000(673,000)Deferred tax assetsDeferred tax assets consist primarily of a forward exchange contract , which are expected to use the losses within 1-5 years as a result of
future positive operations. 10 PrepaymentsPrepayments cover substantially prepaid insurance, prepaid product development costs, etc.11 Other payablesOther payables include financial instruments, in the form of forward exchange contracts such as
the company has entered into a hedge of future cash flows in USD and NOK. The value of the forward exchange contracts per 31.12.2023 amounts to DKK 2.567.893.
12 Unrecognised rental and lease commitments2023
DKK2022
DKKLiabilities under rental or lease agreements until maturity in total80,399,3843,478,35013 Contingent liabilitiesThe Entity participates in a Danish joint taxation arrangement where TopCo M ApS served as the administration company. 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 for obligations, if any, relating to the withholding of tax on interest, royalties and dividend for the jointly
taxed entities. The jointly taxed entities' total known net liability under the joint taxation arrangement is
disclosed in the administration company's financial statements.14 Assets charged and collateralBank loans are secured by way of a deposited floating charge of DKK 10,000k nominal on unsecured claims/trade receivables, intellectual property rights and operating equipment. The carrying amount of assets charged is:
Unsecured claims/trade receivables DKK 15,043k
Inventories DKK 77,610k
Intellectual property rights DKK 0k
Operating equipment DKK 5,711k 15 Related parties with controlling interestCapHold M ApS Store Kongensgade 118, 1. th, 1264 København K, CVR No 42106534, TopCo M ApS, Store Kongensgade 118, 1. th, 1264 København K, CVR No 42106275 and Capidea Kapital III K/S, Store Kongensgade 118, 1. th, 1264 København K, CVR No 39184168 wholly owns the shares of the Entity and thus has control over the Entity.
16 Non-arm’s length related party transactionsOnly related party transactions not conducted on an arm’s length basis are disclosed in the annual report. No such transactions have been conducted in the financial year.17 Group relationsName and registered office of the Parent preparing consolidated financial statements for the largest group:
TopCo M ApS, Store Kongensgade 118, 1. th, 1264 København K, CVR
No 42106275.This annual report has been prepared in accordance with the provisions of the Danish Financial Statements Act governing reporting class C enterprises (medium).The accounting policies applied to these financial statements are consistent with those applied last year, with minor reclassification.falseConsolidated financial statementsReferring to section 112(2) of the Danish Financial Statements Act,
no consolidated financial statements have been prepared. The financial statements of Maki A/S are included in the consolidated financial statements of Topco M ApSRecognition 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.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. Inventories and
other non-monetary assets that have been purchased in foreign currencies are translated using historical
rates.
When recognising foreign subsidiaries and associates that are independent entities, the income statements
are translated at average exchange rates for the months that do not significantly deviate from the rates at
the transaction date. Balance sheet items are translated using the exchange rates at the balance sheet date. Goodwill is considered belonging to the independent foreign entity and is translated using the exchange
rate at the balance sheet date. Exchange differences arising out of the translation of foreign subsidiaries’
equity at the beginning of the year at the balance sheet date exchange rates and out of the translation of income statements from average rates to the exchange rates at the balance sheet date are classified
directly as equity.
Exchange adjustments of outstanding accounts with independent foreign subsidiaries, which are considered
part of the total investment in the subsidiary in question, are classified directly as equity.When recognising foreign subsidiaries that are integral entities, monetary assets and liabilities are
translated using the exchange rates at the balance sheet date. Non-monetary assets and liabilities are
translated at the exchange rate at the time of acquisition or the time of any subsequent revaluation or writedown.
The items of the income statement are translated at the average rates of the months; however, items
deriving from non-monetary assets and liabilities are translated using the historical rates applicable to the
relevant non-monetary items.Derivative financial instrumentsOn initial recognition in the balance sheet, derivative financial instruments are measured at cost and
subsequently at fair value, which has been calculated as the discounted value of expected future net cash flows by using an approximate risk-free interest rate adjusted for any factors that a potential market participant would attribute value to when acquiring the instrument. Derivative financial instruments are recognised under other receivables or other payables.
Changes in the fair value of derivative financial instruments classified as and complying with the
requirements for hedging the fair value of a recognised asset or a recognised liability are recorded in the
income statement together with changes in the value of the hedged asset or the hedged liability.
Changes in the fair value of derivative financial instruments classified as and complying with the
requirements for hedging future transactions are recognised directly in reserve for fair value adjustments of hedging instruments in equity. When the hedged transactions
are realised, the accumulated changes are recognised as part of cost of the relevant financial statement
items.
Gross profit or lossGross profit or loss comprises revenue, changes in inventories of finished goods and external expenses.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 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 normal
inventory writedowns.Costs of raw materials and consumablesCosts of raw materials and consumables comprise the consumption of raw materials and consumables for
the financial year after adjustment for changes in inventories of these goods from the beginning to the end
of the year. This item includes shrinkage, if any, and normal writedowns of the relevant inventories.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 salaries and wages, 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 comprise depreciation, amortisation and impairment losses for the financial year, and gains and losses from the sale ofproperty, plant and equipment.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 capital or exchange gains on securities, payables
and transactions in foreign currencies 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 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 Entity is jointly taxed with all 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).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:Useful life
Other fixtures and fittings, tools and equipment3-10 yearsLeasehold improvements5 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 according to the equity
method. This means that investments are measured at the pro rata share of the enterprises’ equity value.
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
reserve for net revaluation according to the equity method in equity.
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.
Indirect production costs comprise indirect materials and customs.
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.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.
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.PrepaymentsPrepayments comprise incurred costs relating to subsequent financial years. Prepayments are measured at
cost.CashCash comprises cash in hand and bank deposits.DividendDividend is recognised as a liability at the time of adoption at the general meeting. Proposed dividend for
the financial year is disclosed as a separate item in equity. Extraordinary dividend adopted in the financial
year is recognised directly in equity when distributed and disclosed as a separate item in Management's
proposal for distribution of profit/loss.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.Prepayments received from customersPrepayments received from customers comprise amounts received from customers prior to delivery of the
goods agreed or completion of the service agreed.Cash flow statementThe Company has omitted to prepare a cash flow
statement as this is included in the consolidated
cash flow statement of TopCo M ApS.2024-06-28Henrik Rennison Hansen