xbrli:pureiso4217:DKK418591482021-01-012021-12-31cmn:ConsolidatedMember418591482021-01-012021-12-311cmn:ConsolidatedMember418591482021-01-012021-12-311cmn:ConsolidatedMember418591482021-01-012021-12-312cmn:ConsolidatedMember418591482021-01-012021-12-313cmn:ConsolidatedMember418591482021-01-012021-12-314cmn:ConsolidatedMember418591482020-01-012020-12-31cmn:ConsolidatedMember418591482021-01-012021-12-31418591482020-01-012020-12-31418591482021-01-012021-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember418591482021-01-012021-12-31fsa:EquityAttributableToParentMembercmn:ConsolidatedMember418591482021-01-012021-12-31fsa:MinorityInterestsMembercmn:ConsolidatedMember418591482021-01-012021-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember418591482020-01-012020-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember418591482021-01-012021-12-31fsa:MinorityInterestsMembercmn:ConsolidatedMember418591482020-01-012020-12-31fsa:MinorityInterestsMembercmn:ConsolidatedMember418591482021-01-012021-12-31fsa:ReserveForNetRevaluationAccordingToEquityMethodMember418591482021-01-012021-12-31fsa:RetainedEarningsMember418591482021-01-012021-12-31fsa:RetainedEarningsMember418591482020-01-012020-12-31fsa:RetainedEarningsMember418591482021-12-31cmn:ConsolidatedMember418591482020-12-31cmn:ConsolidatedMember418591482021-12-31418591482020-12-31418591482021-01-01fsa:ContributedCapitalMembercmn:ConsolidatedMember418591482021-01-01fsa:RetainedEarningsMembercmn:ConsolidatedMember418591482021-01-01fsa:EquityAttributableToParentMembercmn:ConsolidatedMember418591482021-01-01fsa:MinorityInterestsMembercmn:ConsolidatedMember418591482021-01-01cmn:ConsolidatedMember418591482021-12-31fsa:ContributedCapitalMembercmn:ConsolidatedMember418591482021-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember418591482021-12-31fsa:EquityAttributableToParentMembercmn:ConsolidatedMember418591482021-12-31fsa:MinorityInterestsMembercmn:ConsolidatedMember418591482021-01-01fsa:ContributedCapitalMember418591482021-01-01fsa:ReserveForNetRevaluationAccordingToEquityMethodMember418591482021-01-01fsa:RetainedEarningsMember418591482021-01-01418591482021-12-31fsa:ContributedCapitalMember418591482021-12-31fsa:ReserveForNetRevaluationAccordingToEquityMethodMember418591482021-12-31fsa:RetainedEarningsMember418591482021-01-012021-12-31fsa:ContributedCapitalMembercmn:ConsolidatedMember418591482021-01-012021-12-31fsa:ContributedCapitalMember418591482021-01-012021-12-31fsa:OtherShorttermPayablesMemberGrundlag for konklusionKonklusion2022-06-292022-06-2933963556Deloitte Statsautoriseret RevisionspartnerselskabRevisionspåtegningRegnskabsklasse C, mellemstor virksomhed2020-12-312020-01-0133963556Weidekampsgade 6Deloitte Statsautoriseret Revisionspartnerselskab2300 København S2021-12-312021-01-01M Dansk Logistical Holdings ApS41859148ÅrsrapportAarhus C80002City Tower, VærkmestergadeAarhusAarhus80002<br /><br />15BalticagadeThe Executive Board has today considered and approved the annual report of M Dansk Logistical Holdings 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.AarhusBrian Anthony ChildJared Calvin EricksonJeffrey David SteedAaron David WomackTo the shareholders of M Dansk Logistical Holdings ApSWe have audited the consolidated financial statements and the parent financial statements of M Dansk Logistical Holdings 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.AarhusSøren Marquart Alsenmne40040State Authorised Public AccountantFinancial highlights2021
DKK'0002020
DKK'000Key figuresGross profit/loss35,6210Operating profit/loss7,9090Net financials6530Profit/loss for the year3,4880Profit for the year excl
.
minority interests9130Balance sheet total218,4680Investments in property, plant and equipment1,0860Equity123,3910Equity excl. minority interests46,6850Cash flows from operating activities(2,782)0Cash flows from investing activities(82,284)0Cash flows from financing activities117,2070RatiosEquity ratio (%)21.370.00As the group was established in 2021 theres is no comparison numbers.Financial highlights are defined and calculated in accordance with the current version of "Recommendations &
Ratios" issued by the CFA Society Denmark.Equity ratio (%)
:Equity excl. minority interests * 100
Balance sheet totalPrimary activitiesThe principal activity of the Group is primarily to operate in trade and in related business and consultancy business.
M Dansk Logistical Holdings ApS’ activity consists in investing in Forsco ApS. In the following, the name Group is used as a general name covering all companies and therefore applies to the Group, M Dansk Logistical Holdings ApS, Forsco ApS and all underlying subsidiaries.
Development in activities and financesAs the Group was established in January 2021, when acquiring 55% of the shares in Forsco ApS, there is no comparison numbers.
The Group realized a profit of DKK 3.487.568 of which DKK 2.574.387 is attributable to minority interests.
Management considers profit for the financial year 2021 satisfactory.
Profit/loss for the year in relation to expected developmentsThe COVID-19 pandemic has affected revenue and profit for the year 2021 negatively compared to the expectations for the year.OutlookManagement expects an increase in the activity level for the coming financial year, primarily driven by more sales to existing customers, and sales to new customers. The profit for the Group is expected to increase by up to 300% in 2022.
The parent company plans to acquire additional shares in Forsco ApS during the financial year 2022.
Regarding future performance, the development of the USD exchange rate must be taken into account as all trading is done in USD.
We do not use future exchange contracts. Exchanges are done when the exchange rate is favorable.
Environmental performanceThe Group makes an effort to constantly reduce the environmental impact related to our activities. We are in progress with finalizing our ESG report in medio 2022, which outlines our sustainability strategy, commitments and clear traceable objectives for every commitment. In the coming years those commitments will be:
1. Continuous improvement of the social and environmental performance of our supply chain
2. Supply long-lasting, circular and certified products that benefits people and planet
3. Reduce our GHG emissions and use of natural resources
4. Build continuous and transparent communication of our achievements and challenges.
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. 356205140-153506001320722101450461307908680018384020292310118560701153073085614750487570050739060-425611034875690913182913182257438791318202574387091318103146472-2233291913181039412101406498310141043952045910004591000336688075000033668808504772201418397400850477220438867170524905249025056011262400004203620420362015043604448782004368734000032140561010737310766283810151060440000218468121086558326400005000005000040000466354970434675740466854970767055870123391084040000040000040000500004663549746685497767055874668549640000400000040000500003167922434675744284804284802963974102963974102963974102963974108510353085103530442275700934182010204260567544003498393025485100702310065394448010233089095034189039872830021846812108655832640000000741312007413120010000457008654571086504571086510000457008654571086502145021450021450145046130-224495970-363040-11716350-15743910-27823300-2991980-948430-851250-818048000-822839660-85066296038150094045710865033345898011720685703214056103214056101 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. 1 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. 2 Staff costs2021
DKK2020
DKKWages and salaries12,811,5530Pension costs178,7380Other social security costs68,9950Other staff costs147,935013,207,2210Average number of full-time employees16016003 Depreciation, amortisation and impairment losses2021
DKK2020
DKKAmortisation of intangible assets14,295,4800Depreciation on property, plant and equipment209,133014,504,61304 Other financial income2021
DKK2020
DKKExchange rate adjustments1,838,40201,838,40202 Other financial income2021
DKK2020
DKKExchange rate adjustments29,231029,23105 Other financial expenses2021
DKK2020
DKKFinancial expenses from associates86,9510Other interest expenses1,046,2430Exchange rate adjustments52,41301,185,60702021
DKK2020
DKKFinancial expenses from associates86,9510Other interest expenses1,046,2430Exchange rate adjustments52,41301,185,6070<br />3 Other financial expenses2021
DKK2020
DKKOther interest expenses1,100,6590Exchange rate adjustments52,41401,153,0730<br />2021
DKK2020
DKKOther interest expenses1,100,6590Exchange rate adjustments52,41401,153,07306 Tax on profit/loss for the year2021
DKK2020
DKKCurrent tax5,076,5010Change in deferred tax(2,595)05,073,90604 Tax on profit/loss for the year2021
DKK2020
DKKCurrent tax(420,362)0Change in deferred tax(5,249)0(425,611)07 Proposed distribution of profit/loss2021
DKK2020
DKKRetained earnings913,1820Minority interests' share of profit/loss2,574,38703,487,56905 Proposed distribution of profit and loss2021
DKK2020
DKKRetained earnings913,1810913,18108 Intangible assetsAcquired intangible assets
DKKGoodwill
DKKAddition through business combinations etc682,301154,658,154Additions299,1980Cost end of year981,499154,658,154Addition through business combinations etc(300,221)0Amortisation for the year(287,157)(14,008,323)Amortisation and impairment losses end of year(587,378)(14,008,323)Carrying amount end of year394,121140,649,831Acquired intangible assets
DKKGoodwill
DKKAddition through business combinations etc682,301154,658,154Additions299,1980Cost end of year981,499154,658,154Addition through business combinations etc(300,221)0Amortisation for the year(287,157)(14,008,323)Amortisation and impairment losses end of year(587,378)(14,008,323)Carrying amount end of year394,121140,649,8319 Property, plant and equipmentOther fixtures and fittings, tools and equipment
DKKAddition through business combinations etc987,068Additions99,190Cost end of year1,086,258Addition through business combinations etc(418,025)Depreciation for the year(209,133)Depreciation and impairment losses end of year(627,158)Carrying amount end of year459,10010 Financial assetsDeposits
DKKAddition through business combinations etc251,563Additions85,125Cost end of year336,688Carrying amount end of year336,6886 Financial assetsInvestments in group enterprises
DKKDeposits
DKKAdditions81,804,80075,000Cost end of year81,804,80075,000Adjustments on equity21,4500Amortisation of goodwill(7,704,578)0Share of profit/loss for the year10,851,0500Revaluations end of year3,167,9220Carrying amount end of year84,972,72275,000Goodwill or negative goodwill recognised during the financial year84,050,000A specification of investments in subsidiaries is evident from the notes to the consolidated financial statements.11 Deferred tax
Changes during the year2021
DKKRecognised in the income statement(2,595)Other adjustmenst40,194End of year37,599Deferred tax relates to property, and plant and equipment.Deferred tax assetsDefered tax consists of timely difference between tax and financial depriciations.7 Deferred tax
Changes during the year2021
DKKRecognised in the income statement5,249End of year5,249Deferred tax relates to equipment.Deferred tax assetsDefered tax consists of timely difference between tax and financial depreciations.12 PrepaymentsPrepayments and accrued income consist of prepaid expenses. 13 Non-current liabilities other than provisionsDue within 12
months
2021
DKKDue after
more than 12
months
2021
DKKBank loans8,510,35329,639,7418,510,35329,639,7418 Non-current liabilities other than provisionsDue within 12
months
2021
DKKDue after
more than 12
months
2021
DKKBank loans8,510,35329,639,7418,510,35329,639,74114 Changes in working capital2021
DKK2020
DKKIncrease/decrease in receivables(25,348,853)0Increase/decrease in trade payables etc.4,197,3360Other changes(1,298,080)0(22,449,597)015 Contingent liabilitiesThe Parent and the Danish subsidiaries participate in a Danish joint taxation
arrangement in which M Dansk Logistical Holding ApS serves as the administration company.
According to the joint taxation provisions of
the Danish Corporation Tax Act, the Parent and the Danish subsidiaries are 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 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.11 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.16 Assets charged and collateralAs security for bank commitments the company has provided a floating charge of DKK 1 million.
17 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.13 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.18
Group relationsName and registered office of the Parent preparing consolidated financial statements for the largest group:
M Dansk Logistical Holdings ApS, Aarhus Name and registered office of the Parent preparing consolidated financial statements for the smallest group:
M Dansk Logistical Holdings ApS, Aarhus 19 SubsidiariesRegistered inCorporate
formOwnership
%Forsco ApSDenmarkApS55.003146472084972722031679220214509 Other payables2021
DKK2020
DKKOther costs payable702,3100702,310012 Related parties with controlling interest M. Logistical Holdings B.V. owns all shares in the Entity, thus exercising control. 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.
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 combinationsNewly acquired or newly established enterprises are recognised in the financial statements from the time
of acquiring or establishing such enterprises. Divested or wound-up enterprises are recognised in the income
statement up to the time of their divestment or winding-up.
The purchase method is applied at the acquisition of new enterprises, under which identifiable assets and
liabilities of these enterprises are measured at fair value at the acquisition date. Provisions for costs of
restructuring of the enterprise acquired are only made in so far as such restructuring was decided by the
enterprise acquired prior to acquisition. Allowance is made for the tax effect of restatements.Positive 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 10 years. Useful life is reassessed annually. Negative balances (negative
goodwill) are recognised as income in the income statement.The uniting-of-interests method is applied on acquisition of enterprises, mergers, demergers, contributions
of assets and exchanges of shares, etc. in which 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.Gross profit or lossGross profit or loss comprises revenue, changes in inventories of finished goods, other operating income,
cost of raw materials and consumables and external expenses. Referring to section 32 of the Danish Financial
Statements Act, no Revenue or Cost of sales are shown. 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.Cost of salesCost of sales comprises goods consumed in the financial year measured at cost, adjusted for ordinary
inventory
writedowns.Other external expensesOther external expenses include expenses relating to the Entity’s ordinary activities, including expenses for
premises, stationery and office supplies, marketing costs, etc. This item also includes writedowns of
receivables recognised in current assets.Staff costsStaff costs comprise wages and salaries, and social security contributions, pension contributions, etc
. for entity
staff.Depreciation, amortisation and impairment lossesDepreciation, amortisation and impairment losses relating to property, plant and equipment and intangible
assets comprise depreciation, amortisation and impairment losses for the financial year, and gains and
losses from the sale of intangible assets and property, plant and equipment.Income from investments in group enterprisesIncome from investments in group enterprises comprises the pro rata share of the individual enterprises’ profit/loss after full elimination of intra-group profits or losses.
Other financial incomeOther financial income comprises dividends etc. received on other investments, interest income, including
interest income on receivables from group enterprises, net capital or exchange gains on securities, payables
and transactions in foreign currencies, amortisation of financial assets, and tax relief under the Danish
Tax Prepayment Scheme etc.Other financial expensesOther financial expenses comprise interest expenses, including interest expenses on payables to group
enterprises, net capital or exchange losses on securities, payables and transactions in foreign currencies,
amortisation of financial liabilities, and tax surcharge under the Danish Tax Prepayment Scheme etc.Tax on profit/loss for the yearTax for the year, which consists of current tax for the year and changes in deferred tax, is recognised in the
income statement by the portion attributable to the profit for the year and recognised directly in equity by
the
portion attributable to entries directly in equity.GoodwillGoodwill is the positive difference between cost and fair value of assets and liabilities arising from
acquisitions. Goodwill is amortised straight-line over its estimated useful life, which is fixed based on the experience gained by
Management for each business area. It has not been
possible to estimate useful life reliably, for which reason such useful life has been set at 10 years.
Goodwill is written down to the lower of recoverable amount and carrying amount.<br />Intellectual property rights etc.Intellectual property rights etc. comprise development projects completed and in progress with related
intellectual property rights, acquired intellectual property rights and prepayments for intangible assets.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. For assets held under
finance
leases, cost is the lower of the asset’s fair value and present value of future lease payments.
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 equipment5 yearsEstimated 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 enterprises Investments 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. It has not been
possible to estimate useful life reliably, for which reason such useful life has been set at 10 years.
Investments in group enterprises are written down to the lower of recoverable amount and carrying amount.
ReceivablesReceivables are measured at amortised cost, usually equalling nominal value, less writedowns for bad and
doubtful debts.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.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.Minority interestsOn initial recognition, minority interests are measured at the minority interests’ share of the acquiree’s net assets measured at fair value. No goodwill related to the minority interests’ equity interests in the acquiree is recognised.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 financial income, financial expenses and income tax paid.
Cash flows from investing activities comprise payments in connection with acquisition and divestment of
enterprises, activities and fixed asset investments, and purchase, 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 and short-term securities with an insignificant price risk 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 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.
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 and short-term securities with an insignificant price risk less
short-
term bank loans.
2022-06-29Aaron David Womack