xbrli:pureiso4217:DKK401127742021-01-012021-12-31cmn:ConsolidatedMember401127742021-01-012021-12-311cmn:ConsolidatedMember401127742021-01-012021-12-311cmn:ConsolidatedMember401127742021-01-012021-12-311401127742021-01-012021-12-312401127742021-01-012021-12-313401127742020-01-012020-12-31cmn:ConsolidatedMember401127742021-01-012021-12-31401127742020-01-012020-12-31401127742021-01-012021-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember401127742021-01-012021-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember401127742020-01-012020-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember401127742021-01-012021-12-31fsa:RetainedEarningsMember401127742021-01-012021-12-31fsa:RetainedEarningsMember401127742020-01-012020-12-31fsa:RetainedEarningsMember401127742021-12-31cmn:ConsolidatedMember401127742020-12-31cmn:ConsolidatedMember401127742021-12-31401127742020-12-31401127742021-01-01cmn:ConsolidatedMember401127742020-01-01cmn:ConsolidatedMember401127742021-01-01fsa:ContributedCapitalMembercmn:ConsolidatedMember401127742021-01-01fsa:ReserveForDevelopmentExpenditureMembercmn:ConsolidatedMember401127742021-01-01fsa:RetainedEarningsMembercmn:ConsolidatedMember401127742021-12-31fsa:ContributedCapitalMembercmn:ConsolidatedMember401127742021-12-31fsa:ReserveForDevelopmentExpenditureMembercmn:ConsolidatedMember401127742021-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember401127742021-01-01fsa:ContributedCapitalMember401127742021-01-01fsa:RetainedEarningsMember401127742021-01-01401127742021-12-31fsa:ContributedCapitalMember401127742021-12-31fsa:RetainedEarningsMember401127742021-01-012021-12-31fsa:ReserveForDevelopmentExpenditureMembercmn:ConsolidatedMember401127742021-01-012021-12-31fsa:ClassesOfLongtermLiabilitiesMembercmn:ConsolidatedMember401127742021-01-012021-12-31fsa:ClassesOfLongtermLiabilitiesMember401127742021-01-012021-12-31fsa:OtherShorttermPayablesMembercmn:ConsolidatedMember401127742021-01-012021-12-31fsa:ShorttermDeferredIncomeMembercmn:ConsolidatedMemberGrundlag for konklusionKonklusion2022-06-292022-06-2933963556Deloitte Statsautoriseret RevisionspartnerselskabRevisionspåtegningRegnskabsklasse C, mellemstor virksomhed2020-12-312020-01-0133963556Weidekampsgade 6Deloitte Statsautoriseret Revisionspartnerselskab2300 København S2021-12-312021-01-01Crey Holding ApS40112774ÅrsrapportKøbenhavn S23006WeidekampsgadeCopenhagenKøbenhavn K11112<br /><br />10Christian IX's GadeThe Board of Directors and the Executive Board have today considered and approved the annual report of Crey Holding ApS for the financial year 01.01.2021 - 31.12.2021.The annual report is presented in accordance with the Danish Financial Statements Act.In our opinion, the consolidated financial statements and the parent financial statements give a true and fair view of the Group's and the Parent's financial position at 31.12.2021 and of the results of their operations and the consolidated cash flows for the financial year
01.01.2021 - 31.12.2021.We believe that the management commentary contains a fair review of the affairs and conditions referred to therein.We recommend the annual report for adoption at the Annual General Meeting.CopenhagenJanos FlösserAmer RamzanMathias Gredal NørvigJanos FlösserTo the shareholders of Crey Holding ApSWe have audited the consolidated financial statements and the parent financial statements of Crey Holding ApS for the financial year 01.01.2021 - 31.12.2021, which comprise the income statement, balance sheet, statement of changes in equity and notes, including a
summary of significant accounting policies, for the Group as well as the Parent, and the consolidated cash flow statement. The consolidated financial statements and the parent financial statements
are prepared in accordance with the
Danish Financial Statements Act.
In our opinion, the consolidated financial statements and the parent financial statements give a true and fair view of the Group's and the Parent's financial position at 31.12.2021 and of the results of their operations and the consolidated cash flows for the financial year 01.01.2021 - 31.12.2021 in accordance
with the Danish Financial Statements Act.We conducted our audit in accordance with International Standards on Auditing (ISAs) and additional
requirements
applicable in Denmark. Our responsibilities under those standards and requirements are further
described in the "Auditor’s responsibilities for the audit of the consolidated financial statements and the parent financial statements" section of this auditor’s
report. We are independent of the Group in accordance
with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional
Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled
our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.Management is responsible for the preparation of consolidated financial statements and parent financial statements that give a true and fair view in
accordance
with the Danish Financial Statements Act, and for such internal control as Management determines
is necessary to enable the preparation of consolidated financial statements and parent financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the consolidated financial statements and the parent financial statements, Management is responsible for assessing the Group's and the Entity’s ability to continue
as a going concern, for disclosing, as applicable, matters related to going concern, and for using the going concern basis of accounting in preparing the consolidated financial statements and the parent financial statements unless Management either intends to liquidate
the Entity or to cease operations, or has no realistic alternative but to do so.Our objectives are to obtain reasonable assurance about whether the consolidated financial statements and the parent financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of these consolidated financial statements and parent financial statements.
As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark,
we exercise professional judgement and maintain professional scepticism throughout the audit. We also:<br />Identify and assess the risks of material misstatement of the consolidated financial statements and the parent financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
<br />Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group's and the Entity’s internal control.
<br />Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by Management.
<br />Conclude on the appropriateness of Management’s use of the going concern basis of accounting in
preparing the consolidated financial statements and the parent financial statements, and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on the Group's and the Entity’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related disclosures in the consolidated financial statements and the parent financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause the
Group and the Entity to cease to continue as a going concern.
<br />Evaluate the overall presentation, structure and content of the consolidated financial statements and the parent financial statements, including the disclosures
in the notes, and whether the consolidated financial statements and the parent financial statements represent the underlying transactions and
events in a manner that gives a true and fair view.<br />We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.Management is responsible for the management commentary.
Our opinion on the consolidated financial statements and the parent financial statements does not cover the management commentary, and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements and the parent financial statements, our responsibility is to read the management
commentary and, in doing so, consider whether the management commentary is materially inconsistent with
the consolidated financial statements and the parent financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.
Moreover, it is our responsibility to consider whether the management commentary provides the information
required under the Danish Financial Statements Act.<br />Based on the work we have performed, we conclude that the management commentary is in accordance with
the consolidated financial statements and the parent financial statements and has been prepared in accordance with the requirements of the Danish Financial
Statements Act. We did not identify any material misstatement of the management commentary.CopenhagenHenrik Wolff Mikkelsenmne33747State Authorised Public AccountantFinancial highlights2021
DKK'0002020
DKK'000Key figuresGross profit/loss(6,442)(6,623)Operating profit/loss(20,460)(15,865)Net financials(2,385)(114)Profit/loss for the year(18,195)(10,520)Balance sheet total67,11952,824Investments in property, plant and equipment2330Equity12,67330,868Cash flows from operating activities(9,327)(8,285)Cash flows from investing activities(23,341)(18,712)Cash flows from financing activities31,31517,177RatiosReturn on equity (%)(83.58)(68.16)Equity ratio (%)18.8858.44Financial 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
Balance sheet totalPrimary activitiesThe Group's primary activity is to develop and market an online platform that allows users to express their
creativity, share their creations and interact with the Community.Development in activities and financesLoss for the year amounts to DKK 18,195,135 which was expected by management. The same applies for the parent company, which realised a loss of DKK 926,424.
2021 was an important year for the Group with further development of its platform with the introduction of new user experiences in game creation. The platform also continued it’s growth journey.Profit/loss for the year in relation to expected developmentsThe Group's overall performance for the year is satisfactory and in line with plans and expectations.OutlookIn 2022, the Group will continue development of the platform and expanding its reach.Events after the balance sheet dateNo events have occurred after the balance sheet date to this date, which would influence the evaluation of this annual report. -6441592-6622938-148748-423924897406529527791213943946553-20460392-1586476833431133214299421446012418334115018220761870595-22845295-15978454-92642431614-4650160-545811501366-18195135-10520339-18195135-18195135-10520339-92642430248-926424-9264243024842287895285543651044548122200423923492863558728637452421533400181977452421024775698546102477569854689090705552391784359910129379375890907055523917892097107590275944420974584906145772685810972642656798199537009716721851180747861807478627894250117088051454784723520050234448831170880514547847671191515282425810079951069787025612436124361243612433298455822272405-2037295585343335025067851177102126728463086798161243222724058534333308679816124332984558-20372955503119215123834561243511771025123834561243502506781998310157504619983101575046278670001632000027867000163200001559801871762110429611783392022115904912727617685515480881591632000022653149107134508276018415358926875195268617751872981123833207192695716239943022286805244799520381231504875891854868067119151528242581007995106978702510712153-10712153091213943946553595148-228946-10743850-12147161334311332-2418334-11501838016313975728-9327122-8285119-23014891-18439727-326229-271841-23341120-18711568-32668242-2699668731315308171772233131530817177223-1352934-981946416721852180747861 Going concernThe Group's continued operation is conditional on the ability to attract capital from investors and loan providers. Management is confident that such capital will be provided to the company as the needs occur.
Based on this assessment the financial statements have been prepared on the condition of the company's and the Group's continued operations.2 Uncertainty relating to recognition and measurement
The preparation of the financial statements requires Management to make judgements, estimates and
assumptions that affect the reported amounts of expenses, assets and liabilities, and the accompanying
disclosures. Uncertainty about these assumptions and estimates could result in outcomes that require a material
adjustment to the carrying amount of assets or liabilities affected in future periods. Management continuously
reassesses these estimates and judgements based on several factors in the given circumstances.
Valuation of development projects
Development projects consist of completed development projects, that are amortized over their useful lives.
Completed development projects are assessed for impairment whenever there is an indication that the
development asset may be impaired. The amortisation period for completed development projects are reviewed
at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of
consumption of future economic benefits embodied in the asset are accounted for by changing the amortisation
period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense
on intangible assets with finite lives is recognised in the income statement as amortisation. The estimated values
of intangible assets are based on Management estimates and assumptions and are by nature subject to
uncertainty.3 Staff costs2021
DKK2020
DKKWages and salaries18,083,85815,447,766Pension costs356,647356,252Other social security costs123,04982,147Other staff costs655,047473,98619,218,60116,360,151Staff costs classified as assets(14,321,195)(11,064,874)4,897,4065,295,277Average number of full-time employees473547354 Depreciation, amortisation and impairment losses2021
DKK2020
DKKAmortisation of intangible assets9,025,4213,698,478Depreciation on property, plant and equipment95,973101,477Profit/loss from sale of intangible assets and property, plant and equipment0146,5989,121,3943,946,5535 Other financial income2021
DKK2020
DKKOther interest income0870Exchange rate adjustments33,4310Other financial income046233,4311,3321 Other financial income2021
DKK2020
DKKFinancial income from group enterprises1,429,942144,6011,429,942144,6016 Other financial expenses2021
DKK2020
DKKOther interest expenses564,030115,129Exchange rate adjustments146,904(111)Other financial expenses1,707,40002,418,334115,0182021
DKK2020
DKKOther interest expenses564,030115,129Exchange rate adjustments146,904(111)Other financial expenses1,707,40002,418,334115,018<br />2 Other financial expenses2021
DKK2020
DKKFinancial expenses from group enterprises44,0360Other interest expenses456,18170,595Exchange rate adjustments10Other financial expenses1,707,40002,207,61870,595<br />2021
DKK2020
DKKFinancial expenses from group enterprises44,0360Other interest expenses456,18170,595Exchange rate adjustments10Other financial expenses1,707,40002,207,61870,5957 Tax on profit/loss for the year2021
DKK2020
DKKCurrent tax(5,083,155)(3,980,053)Change in deferred tax432,995(1,479,428)Adjustment concerning previous years01,366(4,650,160)(5,458,115)3 Tax on profit/loss for the year2021
DKK2020
DKKAdjustment concerning previous years01,36601,3668 Proposed distribution of profit/loss2021
DKK2020
DKKRetained earnings(18,195,135)(10,520,339)(18,195,135)(10,520,339)4 Proposed distribution of profit and loss2021
DKK2020
DKKRetained earnings(926,424)30,248(926,424)30,2489 Intangible assetsCompleted development projects
DKKAcquired patents
DKKAcquired rights
DKKCost beginning of year32,236,220325,5041,947,412Additions22,705,18277,0010Cost end of year54,941,402402,5051,947,412Amortisation and impairment losses beginning of year(3,681,855)(244,282)(1,947,412)Amortisation for the year(8,971,652)(53,769)0Amortisation and impairment losses end of year(12,653,507)(298,051)(1,947,412)Carrying amount end of year42,287,895104,4540Completed development projects
DKKAcquired patents
DKKAcquired rights
DKKCost beginning of year32,236,220325,5041,947,412Additions22,705,18277,0010Cost end of year54,941,402402,5051,947,412Amortisation and impairment losses beginning of year(3,681,855)(244,282)(1,947,412)Amortisation for the year(8,971,652)(53,769)0Amortisation and impairment losses end of year(12,653,507)(298,051)(1,947,412)Carrying amount end of year42,287,895104,454010 Development projectsThe Group develops its own technology for a social gaming platform which allows users to build, create and play games together.11 Property, plant and equipmentOther fixtures and fittings, tools and equipment
DKKLeasehold improvements
DKKCost beginning of year364,1680Additions79,368153,340Cost end of year443,536153,340Depreciation and impairment losses beginning of year(318,926)0Depreciation for the year(95,973)0Depreciation and impairment losses end of year(414,899)0Carrying amount end of year28,637153,34012 Financial assetsDeposits
DKKCost beginning of year698,546Additions716,895Disposals(390,666)Cost end of year1,024,775Carrying amount end of year1,024,7755 Financial assetsInvestments in group enterprises
DKKReceivables from group enterprises
DKKCost beginning of year4,394,82050,844,358Additions033,851,527Cost end of year4,394,82084,695,885Carrying amount end of year4,394,82084,695,885A specification of investments in subsidiaries is evident from the notes to the consolidated financial statements.13 PrepaymentsThe item comprises miscellaneous prepaid costs.14 Deferred tax
Changes during the year2021
DKK2020
DKKBeginning of year1,575,0463,057,433Recognised in the income statement423,264(1,482,387)End of year1,998,3101,575,046Deferred tax relates to intangible assets, property, plant and equipment, inventories and other provisions.14 Deferred tax15 Convertible and profit-sharing debt instrumentsAmounts
outstanding
DKKInterest rate
agreed
%Convertible debt instruments27,867,0005.0027,867,000Convertible debt instruments comprise promissory notes that entitle the loan providers the right to convert the debt into equity based on certain predetermined terms.6 Convertible and profit-sharing debt instrumentsAmounts
outstanding
DKKInterest rate
agreed
%Convertible debt instruments27,867,0005.0027,867,000Convertible debt instruments comprise promissory notes that entitle the loan providers the right to convert the
debt into equity based on certain predetermined terms.16 Other payables2021
DKK2020
DKKHoliday pay obligation883,1381,178,339Other costs payable20,221,158021,104,2961,178,33917 Non-current liabilities other than provisionsDue after
more than 12
months
2021
DKKConvertible and profit-sharing debt
instruments27,867,000Deposits155,980Other payables21,104,29649,127,2767 Non-current liabilities other than provisionsDue after
more than 12
months
2021
DKKConvertible and profit-sharing debt
instruments27,867,000Other payables20,221,15948,088,15918 Other payables2021
DKK2020
DKKVAT and duties322,912144,391Wages and salaries, personal income taxes, social security costs, etc. payable1,331,9001,102,225Holiday pay obligation285,258361,839Other costs payable12,616166,7321,952,6861,775,18719 Deferred incomeThe item comprises miscellaneous deferred income.20 Changes in working capital2021
DKK2020
DKKIncrease/decrease in receivables(156,309)153,027Increase/decrease in trade payables etc.751,457(381,973)595,148(228,946)21 Unrecognised rental and lease commitments2021
DKK2020
DKKTotal liabilities under rental or lease agreements until maturity 2,375,375022 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.23 SubsidiariesRegistered inCorporate
formOwnership
%Crey A/SDenmarkA/S100.00Crey Games ApSDenmarkApS100.00Bit-Globe ApSDenmarkApS100.00Bit-Globe Hungary Kft.HungaryKft.100.00439482043948208469588550844358224584122018058 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 for obligations, if any, relating to the withholding of tax on interest, royalties and
dividend for these entities.
The company has submitted a declaration of support to its subsidiaries.9 Related parties with controlling interestNo parties are holding controlling interest and thus exercising control over the entity.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 consolidated financial statements and parent financial statements are consistent with those applied last year.falseRecognition 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.
<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.
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.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.
Property, plant and equipment, intangible assets, 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 recognised directly in the translation reserve in equity.
Exchange adjustments of outstanding accounts with independent foreign subsidiaries, which are considered
part of the total investment in the subsidiary in question, are recognised directly in the translation reserve in 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.Gross profit or lossGross profit or loss comprises revenue, other operating income and external expenses.Other operating incomeOther operating income comprises income of a secondary nature as viewed in relation to the Entity’s primary
activities.Other external expensesOther external expenses include expenses relating to the Entity’s ordinary activities, including expenses for
premises, stationery and office supplies, marketing costs, etc. This item also includes writedowns of
receivables recognised in current assets.Staff costsStaff costs comprise wages and salaries, and social security contributions, pension contributions, etc
. for entity
staff.Depreciation, amortisation and impairment lossesDepreciation, amortisation and impairment losses relating to property, plant and equipment and intangible
assets comprise depreciation, amortisation and impairment losses for the financial year, and gains and
losses from the sale of intangible assets and property, plant and equipment.Other financial incomeOther financial income comprises exchange gains on transactions in foreign currencies.Other financial expensesOther financial expenses comprise interest expenses, net capital or exchange losses on securities, payables and transactions in foreign currencies,
amortisation of financial liabilities, and tax surcharge under the Danish Tax Prepayment Scheme etc.Tax on profit/loss for the yearTax for the year, which consists of current tax for the year and changes in deferred tax, is recognised in the
income statement by the portion attributable to the profit for the year and recognised directly in equity by
the
portion attributable to entries directly in equity.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).Intellectual property rights etc.Intellectual property rights etc. comprise completed development projects with related
intellectual property rights and acquired intellectual property rights.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. When recognising development projects as intangible assets, an amount equalling
the costs incurred less deferred tax is taken to equity in the reserve for development costs that is reduced
as the development projects are amortised and written down.
The cost of development projects comprises costs such as salaries and amortisation that are directly and
indirectly attributable to the development projects.
Development projects are
amortised on a straight-line basis over their useful lives, which is estimated at 5 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 on a straight-line basis over the term of the agreement.
Intellectual property rights etc. are written down to the lower of recoverable amount and carrying amount.Property, plant and equipmentLand and buildings, plant 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:Other fixtures and fittings, tools and equipment3-5 yearsLeasehold improvements3-5 yearsFor leasehold improvements and assets subject to finance leases, the depreciation period cannot exceed
the contract period.
Estimated useful lives and residual values are reassessed annually.
Items of property, plant and equipment are written down to the lower of recoverable amount and carrying
amount.Investments in group enterprisesInvestments in group enterprises are measured at cost. Investments are written down to the
lower of recoverable amount and carrying amount.ReceivablesReceivables are measured at amortised cost, usually equalling nominal value, less writedowns for bad and
doubtful debts.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.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. Other financial liabilitiesOther financial liabilities are measured at amortised cost, which usually corresponds to nominal value.Deferred incomeDeferred income comprises income received for recognition in subsequent financial years. Deferred income
is measured at cost.Cash flow statementThe cash flow statement shows cash flows from operating, investing and financing activities, and cash
and cash equivalents at the beginning and the end of the financial year.
Cash flows from operating activities are presented using the indirect method and calculated as the operating
profit/loss adjusted for non-cash operating items, working capital changes, and financial income, financial expenses and income tax paid.
Cash flows from investing activities comprise fixed asset investments, and purchase, development, improvement and sale,
etc. of intangible assets and property, plant and equipment.
Cash flows from financing activities comprise changes in the size or composition of the contributed capital
and related costs, and the raising of loans, repayments of interest-bearing debt, including lease liabilities, purchase of treasury shares and payment of dividend.
Cash and cash equivalents comprise cash less
short-term bank loans.
The cash flow statement shows cash flows from operating, investing and financing activities, and cash
and cash equivalents at the beginning and the end of the financial year.
Cash flows from operating activities are presented using the indirect method and calculated as the operating
profit/loss adjusted for non-cash operating items, working capital changes, and financial income, financial expenses and income tax paid.
Cash flows from investing activities comprise fixed asset investments, and purchase, development, improvement and sale,
etc. of intangible assets and property, plant and equipment.
Cash flows from financing activities comprise changes in the size or composition of the contributed capital
and related costs, and the raising of loans, repayments of interest-bearing debt, including lease liabilities, purchase of treasury shares and payment of dividend.
Cash and cash equivalents comprise cash less
short-term bank loans.
2022-06-29Amer Ramzan