35391282 2025-02-01 2026-01-31 c:RetainedEarningsMember 35391282 2025-02-01 2026-01-31 35391282 2025-02-01 2026-01-31 1 35391282 2025-02-01 2026-01-31 1 35391282 2024-02-01 2025-01-31 35391282 2026-01-31 35391282 2025-01-31 35391282 2025-02-01 c:ContributedCapitalMember 35391282 2025-02-01 c:SharePremiumMember 35391282 2025-02-01 c:RetainedEarningsMember 35391282 2025-02-01 2026-01-31 c:ContributedCapitalMember 35391282 2025-02-01 2026-01-31 c:SharePremiumMember 35391282 2026-01-31 c:ContributedCapitalMember 35391282 2026-01-31 c:SharePremiumMember 35391282 2026-01-31 c:RetainedEarningsMember 35391282 2025-02-01 c:FixturesFittingsToolsAndEquipmentMember 35391282 2025-02-01 c:LeaseholdImprovementsMember 35391282 2026-01-31 c:FixturesFittingsToolsAndEquipmentMember 35391282 2026-01-31 c:LeaseholdImprovementsMember 35391282 2025-02-01 2026-01-31 c:FixturesFittingsToolsAndEquipmentMember 35391282 2025-02-01 2026-01-31 c:LeaseholdImprovementsMember 35391282 2025-02-01 c:OtherReceivablesMember 35391282 2025-02-01 2026-01-31 c:OtherReceivablesMember 35391282 2026-01-31 c:OtherReceivablesMember iso4217:DKK xbrli:pure 0 true BDO Statsautoriseret Revisionspartnerselskab Havneholmen 2, 6. sal DK-2450 Copenhagen SV 45719375 2026-08-27 Michael Alan Cowles Årsrapport Tradeshift ApS c/o Christensen Kjærulff Statsautoriseret Re 2100 Copenhagen Ø Den uafhængige revisors erklæring 35391282 2013-07-01 Copenhagen 2025-02-01 2026-01-31 2024-02-01 2025-01-31 BDO Statsautoriseret Revisionspartnerselskab Havneholmen 2, 6. sal 2450 Copenhagen SV Jyske Bank Hovedvej 99 2600 Glostrup Bird&Bird Today the Executive Board have discussed and approved the Annual Report of Tradeshift ApS for the fi­nan­ci­al year 1 February 2025  - 31 January 2026. The Annual Report is presented in accor­dance with the Da­nish Fi­nan­ci­al State­ments Act. In my opinion the Fi­nan­ci­al Sta­te­ments give a true and fair view of the Company's assets, liabilities and financial position at 31 January 2026 and of the results of the Company's operations for the fi­nan­ci­al year 1 February 2025  - 31 January 2026. The Management Commentary includes in my opinion a fair presentation of the matters dealt with in the Commentary. I recommend the Annual Report be approved at the Annual General Meeting. Copenhagen 2026-08-27 Michael Alan Cowles To the Shareholder of Tradeshift ApS Konklusion We ha­ve au­di­ted the Fi­nan­ci­al Sta­te­ments of Tradeshift ApS for the fi­nan­ci­al year 1 February 2025 - 31 January 2026, which comprise income statement, Balance Sheet, sta­te­ment of chan­ges in e­qui­ty, no­tes and 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 assets, liabilities and financial position of the Com­pa­ny at 31 January 2026 and of the results of the Com­pa­ny's operations for the fi­nan­ci­al year 1 February 2025 - 31 January 2026 in accordance with the Da­nish Fi­nan­ci­al State­ments Act.   Basis for OpinionGrundlag for konklusion We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the “Auditor’s Responsibilities for the Audit of the Fi­nan­ci­al Sta­te­ments” section of our report. We are independent of the Com­pa­ny in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code), together with the ethical requirements that are relevant to our audit of the Financial Statements in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We be­lie­ve that the e­vi­den­ce we ha­ve ob­tai­ned is suf­fi­ci­ent and ap­prop­ria­te to pro­vi­de a ba­sis for our con­clu­si­on.   Grundlag for konklusion Material uncertainty relating to Going ConcernWe draw attention to Note 1 in the financial statements, which describes that the Company has incurred recurring operating losses in recent years, experienced declining revenue, generated negative operating cash flows, and has been dependent on continued financial support from its Parent company. Although the Company's equity position was restored through a debt-to-equity conversion completed in November 2025 and Management has concluded that adequate liquidity and funding will be available for at least 12 months from the date of approval of these financial statements, the Company remains dependent on continued support from the Parent and the Group. As stated in Note 1, these events and conditions, along with the other matters set forth therein, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.   Ma­na­ge­ment's Re­spon­si­bi­li­ti­es for the Fi­nan­ci­al Sta­te­ments Management is responsible for the preparation of Fi­nan­ci­al Sta­te­ments that give a true and fair view in accordance with the Da­nish Fi­nan­ci­al State­ments Act and for such Internal control as Ma­na­ge­ment determines is necessary to enable the preparation of Fi­nan­ci­al Sta­te­ments that are free from material misstatement, whether due to fraud or error.   In preparing the Fi­nan­ci­al Sta­te­ments, Ma­na­ge­ment is responsible for assessing the Com­pa­ny's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the Fi­nan­ci­al Sta­te­ments unless Management either intends to liquidate the Com­pa­ny or to cease operations, or has no realistic alternative but to do so.   Our objectives are to obtain reasonable assurance 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 judgment and maintain professional skepticism throughout the audit. We also:   Identify and assess the risks of material misstatement of the Fi­nan­ci­al Sta­te­ments, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.   Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Com­pa­ny's internal control.   Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Ma­na­ge­ment.   Conclude on the appropriateness of Ma­na­ge­ment’s use of the going concern basis of accounting in preparing the Fi­nan­ci­al Sta­te­ments and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Com­pa­ny's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Fi­nan­ci­al Sta­te­ments or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Com­pa­ny to cease to continue as a going concern.   Evaluate the overall presentation, structure and contents of the Fi­nan­ci­al Sta­te­ments, including the disclosures, and whether the Fi­nan­ci­al Sta­te­ments represent the underlying transactions and events in a manner that gives a true and fair view.   We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.   Statement on Management Commentary Management is responsible for Ma­na­ge­ment Com­men­ta­ry.   Our opinion on the Fi­nan­ci­al Sta­te­ments does not cover 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 Ma­na­ge­ment Com­men­ta­ry and, in doing so, consider whether Ma­na­ge­ment Com­men­ta­ry is materially inconsistent with the Fi­nan­ci­al Sta­te­ments or our knowledge obtained during the audit, or otherwise appears to be materially misstated.   Moreover, it is our responsibility to consider whether Ma­na­ge­ment Com­men­ta­ry provides the information required under the Danish Financial Statements Act.   Based on the work we have performed, we conclude that Ma­na­ge­ment Com­men­ta­ry is in accordance with the 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 Ma­na­ge­ment Com­men­ta­ry.   Violation of the Financial Statements Act's deadline for submitting the annual reporttrue The Company's management has not complied with the requirements of the Danish Financial Statements Act, which stipulates that the annual report must be filed with the Danish Business Authority within six months of the financial year-end. Consequently, Management may incur liability for the late filing.   Violation of Danish tax legislation As required under the Danish Tax Control Act, the Company is obligated to prepare and submit transfer pricing documentation upon request by the Danish Tax Agency. We have become aware that the Company has not complied with the statutory requirements regarding the submission of transfer pricing documentation within the prescribed deadline. Non-compliance with these requirements may result in penalties under applicable tax legislation. Accordingly, we consider this matter to give rise to a reasonable presumption that members of Management may incur liability.   true Copenhagen 2026-08-27 BDO Statsautoriseret Revisionspartnerselskab 45719375 Brian Olsen Halling Den uafhængige revisors erklæring State Authorised Public Accountant mne32094 Principal activities Tradeshift ApS (the “Company”) is located in Copenhagen, Denmark and is a subsidiary of Tradeshift Holdings, Inc. (the “Parent”), which is headquartered in San Francisco, California, United States of America. The Parent has subsidiaries in various regions, including Asia, Europe and the United States (the “Group”). The Company, together with its Parent, connects buyers, suppliers, and their processes in one network. Its global business-to-business platform helps companies run more efficiently, using cloud-based technology to improve processes like accounts payable automation, procurement, supplier management and working capital optimization. Companies rely on Tradeshift to transform their supply chains from a focus on cost-reduction to value and growth creation. As an open platform, third parties build new applications on the Tradeshift platform, creating a whole new app ecosystem on top of open business data.  For suppliers, Tradeshift delivers free electronic invoicing, faster payments, and predictable cash flow. Tradeshift empowers enterprises to work more easily and productively with their entire supply chain, anywhere in the world   Going concern In assessing the Company's ability to continue as a going concern, Management has considered a number of indicators that individually or collectively could cast doubt on the going concern assumption, including the recurring operating losses incurred over recent financial years, the decline in revenue over the period, an accumulated deficit and the negative equity position that existed prior to the debt-to-equity conversion, negative operating cash flows during the year and the Company's reliance on continued funding and operational support from the Parent. Notwithstanding these factors, following the completion of the debt-to-equity conversion in November 2025, the Company has restored its equity position and meets the minimum capital requirements under the Danish Companies Act. Moreover, most of the Company’s liabilities are with entities within the Group and hence under the control of the Group. The Parent, Tradeshift Holdings Inc., continues to provide financial and operational support to the Company as part of the Group's global operations.  On this basis, Management has assessed that the Company will have adequate liquidity and funding to meet its obligations as they fall due for at least the next 12 months from the date of approval of these financial statements and considers the use of the going concern assumption to be appropriate. The financial statements have therefore been prepared on a going concern basis. However, the matters described above indicate the existence of a material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern.   Recognition and measurement uncertainty Management makes a number of estimates and assumptions in applying the Company's accounting policies. These estimates and assumptions are based on historical experience and other factors that Management considers reasonable under the circumstances. Actual results may differ from these estimates and could require adjustments in future periods. Tax receivables The measurement of tax receivables involves management judgement, as it depends on the expected outcome of ongoing tax matters, the timing of settlements with tax authorities, and the Company's overall tax position within the Group. Tax receivables are recognised at the amount expected to be recovered based on the information available at the reporting date. Management assesses the recoverability of these balances on an ongoing basis and considers them recoverable in full. However, changes in tax assessments, interpretations of tax legislation, or the outcome of discussions with tax authorities could affect the amounts ultimately recovered.   Intercompany receivables The Company holds significant intercompany receivables from other entities within the Tradeshift Group. The assessment of the recoverability of these balances requires significant judgement and is based on estimates of the future financial performance, liquidity, and funding requirements of the relevant group entities. Management has concluded that the intercompany receivables are recoverable and, consequently, no impairment has been recognised. This assessment is based on the Group’s strategic business plans, forecast cash flows, expected funding arrangements, and Management’s expectation that the Group will continue to provide financial support to subsidiaries where required. In evaluating recoverability, Management considers the current and expected financial position of the debtor entities, forecast operating results, available financing, and broader market and economic conditions. As these assessments are inherently dependent on future events and circumstances, actual outcomes may differ from the estimates and assumptions applied. Changes in operating performance, funding availability, or market conditions may result in future adjustments to the carrying amount of intercompany receivables. Management reviews the underlying assumptions regularly and updates its assessments when relevant facts and circumstances change.   Development in activities and financial and economic position The gross profit for the year totals DKK 5,126,189 against DKK 28,266,033 last year. Profit or loss from ordinary activities after tax totals DKK -8,469,229 against DKK -4,094,715 last year. Equity totals DKK 4,372,711 against DKK -39,563,482 last year. Management considers the loss for the year less satisfactory. In the annual report for 2025 the management expected a consistent level of activity with reduced staff costs due to restructuring exercises carried out across the group. The result was lower than expected as reduction staff costs were offset by allocation of head office costs from the parent company.   Significant events after the end of the financial year No events have occurred after the end of the financial year of material importance for the Company's financial position.   5126189 28266033 8555435 31872682 51629 1783850 -3480875 -5390499 12306254 135351 13684701 0 -4859322 -5255148 3609907 -1160433 -8469229 -4094715 -8469229 -4094715 -8469229 -4094715 0 8445 0 43183 0 51628 75951 281028 75951 281028 75951 332656 1559616 4872464 215080141 228171717 0 3609907 195604 0 9869871 8501872 0 124988 226705232 245280948 654439 4562687 227359671 249843635 227435622 250176291 150000 100000 52355422 0 -48132711 -39663482 4372711 -39563482 11688624 12750251 901911 488573 208818997 263547091 698627 0 349816 4959007 211374287 276989522 223062911 289739773 227435622 250176291 DKKSha­re ca­pi­talShare premium accountRetained profitTotal Equity at 1 February 2025100.0000-39.663.482-39.563.482 Proposed profit allocation -8.469.229-8.469.229 Transactions with ownersCapital increase50.00052.355.42252.405.422 Equity at 31 January 2026150.00052.355.422-48.132.7114.372.711 100000 0 -39663482 -8469229 50000 52355422 150000 52355422 -48132711 1 | Information on uncertainty with respect to going concern The Company has incurred recurring operating losses in recent financial years and has experienced a decline in revenue. Furthermore, the Company generated negative operating cash flows during the year and was dependent on continued funding and operational support from its Parent. Prior to the debt-to-equity conversion completed in November 2025, the Company also had a negative equity position. Subsequent to the debt-to-equity conversion, the Company has restored its equity and complies with the minimum capital requirements of the Danish Companies Act. In addition, the majority of the Company’s liabilities are owed to Group entities and are therefore under the control of the Group. The Parent, Tradeshift Holdings Inc., has confirmed its intention to continue providing the necessary financial and operational support to the Company. The Parent has further confirmed that it will not seek, recall or demand repayment of any amounts owed to it unless the Company has sufficient working capital to make such repayment. In particular, the Parent will not demand repayment of these amounts until the Company has received the amounts owed to it by other Group subsidiaries. Management has prepared cash flow forecasts and funding plans and expects the Company to have sufficient liquidity to meet its obligations as they fall due for a period of at least 12 months from the date of approval of the financial statements. Accordingly, the financial statements have been prepared on a going concern basis. However, the Company’s ability to continue as a going concern is dependent upon the continued financial and operational support from the Parent and the Group, including the Parent’s continued forbearance from demanding repayment of amounts owed to it. However this is based on the Group financial position and the ongoing negociation of ongoing funding, that is expected to be finalized in November 2026. These conditions indicate the existence of a material uncertainty that may cast significant doubt on the Company’s ability to continue as a going concern. 2 | Information on significant uncertainties at recognition and measurement Management makes a number of estimates and assumptions in applying the Company's accounting policies. These estimates and assumptions are based on historical experience and other factors that Management considers reasonable under the circumstances. Actual results may differ from these estimates and could require adjustments in future periods. Tax receivables The measurement of tax receivables involves management judgement, as it depends on the expected outcome of ongoing tax matters, the timing of settlements with tax authorities, and the Company's overall tax position within the Group. Tax receivables are recognised at the amount expected to be recovered based on the information available at the reporting date. Management assesses the recoverability of these balances on an ongoing basis and considers them recoverable in full. However, changes in tax assessments, interpretations of tax legislation, or the outcome of discussions with tax authorities could affect the amounts ultimately recovered. Intercompany receivables The Company holds significant intercompany receivables from other entities within the Tradeshift Group. The assessment of the recoverability of these balances requires significant judgement and is based on estimates of the future financial performance, liquidity, and funding requirements of the relevant Group entities. Management has concluded that the intercompany receivables are recoverable and, consequently, no impairment has been recognised. This assessment is based on the Group's strategic business plans, forecast cash flows, expected funding arrangements, and Management's expectation that the Group will continue to provide financial support to subsidiaries where required. Tradeshift ApS holds both the receivable and the related payables within the same closed group of commonly controlled entities. Management has confirmed that intercompany payables of DKK 208.8 million will not be called for settlement by the counterparty entities until the receivable from Tradeshift Holdings Inc. has been settled in full. Furthermore, Tradeshift Holdings Inc. has confirmed that it will not seek, recall or demand repayment of amounts owed to it unless Tradeshift ApS has sufficient working capital to make repayment. In particular, it will not demand repayment until Tradeshift ApS has received the amounts owed to it by other Group subsidiaries. Settlement of the receivable and settlement of the payables are therefore economically linked. Accordingly, the Company cannot be required to discharge the payables other than out of the proceeds of the receivable. As a result, Management considers the Company's economic exposure to be limited to the net position between the receivable and the related intercompany payables. Based on the above, Management considers that the loss that could crystallise for Tradeshift ApS is limited to the net position of DKK 6.2 million (approximately USD 0.9 million), rather than the gross receivable of DKK 215.0 million. Any shortfall in the recoverability of the receivable would be substantially matched by a corresponding release or non-settlement of the economically linked payables. In evaluating recoverability, Management considers the current and expected financial position of the debtor entities, forecast operating results, available financing, and broader market and economic conditions. As these assessments are inherently dependent on future events and circumstances, actual outcomes may differ from the estimates and assumptions applied. Changes in operating performance, funding availability, or market conditions may result in future adjustments to the carrying amount of intercompany receivables. Management reviews the underlying assumptions regularly and updates its assessments when relevant facts and circumstances change. 3 | Staff costs Ave­ra­ge num­ber of full ti­me em­ploy­ees723 Wages and salaries 8.168.60231.172.598 Social security costs 386.833700.084 8.555.43531.872.682 7 23 8168602 31172598 386833 700084 8555435 31872682 4 | Other financial income Group enterprises 11.320.3730 Other interest income 985.881135.351 12.306.254135.351 11320373 0 985881 135351 12306254 135351 5 | Other financial expenses Group enterprises 12.884.0820 Other interest expenses 800.6190 13.684.7010 12884082 0 800619 0 13684701 0 3609907 -1160433 7 | Property, plant and equipment DKKOther plants, machinery, tools and equipmentLeasehold improvements Cost at 1 February 2025 6.356.5227.268.741 Cost at 31 January 2026 6.356.5227.268.741   Depreciation and impairment losses at 1 February 2025 6.348.0757.225.559 Depreciation for the year 8.44743.182 Depreciation and impairment losses at 31 January 2026 6.356.5227.268.741 Carrying amount at 31 January 202600 6356522 7268741 6356522 7268741 6348075 7225559 8447 43182 6356522 7268741 0 0 8 | Financial non-current assets DKKRent deposit and other receivables Cost at 1 February 2025 281.028Disposals -205.077Cost at 31 January 2026 75.951  Carrying amount at 31 January 202675.951 281028 205077 75951 75951 9 | Long-term liabilities 31/1 2026Debt outstanding31/1 2025DKKtotal liabilitiesafter 5 yearstotal liabilities Other liabilities 11.688.62411.688.62412.750.251 11.688.62411.688.62412.750.251 11688624 2026 DKK Other financial commitments The company has signed one rent obligation concerning a rent agreement corresponding to TDK 103,000 in the prior year. As of 31 January 2026, the balance was nil. Lease liabilities0 The Annual Report of Tradeshift ApS for 2025/26 has been presented in accor­dance with the pro­vi­sions of the Da­nish Fi­nan­ci­al State­ments Act for en­ter­pri­ses in re­por­ting class B and cer­tain pro­vi­si­ons ap­ply­ing to re­por­ting class C.  Regnskabsklasse B1truetrueThe Annual Report is prepared consistently with the accounting principles applied last year.   Regnskabsklasse B true Net revenue Net revenue from the sale of merchandise and finished goods is recognised in the Income Statement if supply and risk transfer to purchaser has taken place before the end of the year and if the income can be measured reliably and is expected to be received.   Costs of raw materials and consumables Raw materials and consumables comprises the costs of raw materials and consumables used to reach the revenue for the year. Additionally, decrease or increase of inventories of raw materials and consumables for the year is included, as well as normal impairment of inventories of raw materials and consumables.   Other external expenses Other external expenses include other production, sales, delivery and administrative costs, including costs of energy, marketing, premises, loss on bad debts,  lease expenses, etc   Staff costs Staff costs comprise wages and salaries, including holiday pay and pensions, and other costs of social security etc., for the Com­pa­ny's employees.   Financial income and expenses Financial income and expenses include interest income and expenses, realised and unrealised gains and losses arising from securities, debt and transactions in foreign currencies, as well as charges and allowances under the tax-on-account scheme, etc. Financial income and expenses are recognised by the amounts that relate to the financial year. Interest income and expenses are calculated on amortised cost prices.   Tax The tax for the year, which consists of the current tax for the year and changes in deferred tax, is recognised in the Income Statement by the share that may be attributed to the profit for the year, and is recognised directly in equity by the share that may be attributed to entries directly to equity.   Property, plant and equipment Land and buildings, production plant and machinery, other plant, fixtures and equipment are measured at cost less accumulated depreciation and impairment losses.   The depreciation base is cost less estimated residual value after end of useful life.   The cost includes the acquisition price and costs incurred directly in connection with the acquisition until the time when the asset is ready to be used.    Straight-line depreciation is provided on the basis of an assessment of the expected useful lives of the assets and their residual value:   Useful lifeOther plant, fixtures and equipment 2-5 år0-30 % Profit or loss on sale of property, plant and equipment is stated as the difference between the sales price less selling costs and the carrying amount at the date of sale. Profit or loss is recognised in the Income Statement as other operating income or other operating expenses.   Financial non-current assets Deposits include rental deposits which are recognised and measured at cost. Deposits are not depreciated.   Impairment of fixed assets The carrying amount of pro­per­ty, plant and equip­ment to­get­her with fi­xed as­sets, which are not mea­su­red at fair va­lue,, are assessed annually for indications of impairment other than that reflected by amortisation and depreciation.   In the event of impairment indications, an impairment test is made for each asset or group of assets, respectively. If the recoverable amount is lower than the carrying amount, the asset is written down to the recoverable amount.   The recoverable amount is calculated at the higher of the capital value and the sales value less expected costs of a sale. The capital value is determined as the Company's share in the current value of the net cash flows which the subsidiary is expected to generate through its activities and from sale of assets after the end of their useful lives. A discount rate is used which reflects the risk-free market rate and the owners' minimum return on interest requirements for similar assets. The growth rate in the terminal period is determined in accordance with the standards within the industry.   Receivables Receivables are measured at amortised cost which usually corresponds to nominal value. The value is written down to meet expected losses.   Write-off is performed to provide for losses when an objective indication has been assessed to have incurred that a receivable or a portfolio of receivables are impaired. If there is an objective indication that an individual receivable is impaired, the write-off is performed at individual level.   Receivables for which there are no objective indication of impairment at individual level are assessed at portfolio level for objective indication of impairment. The portfolios are primarily based on the debtors’ registered office and credit rating in accordance with the Company’s policy for credit risk management. The objective indicators, which are applied for portfolios, are determined based on the historical loss experiences.   Write-off is determined as the difference between the carrying amount of receivables and the present value of the expected cash flows, including realisable value of any received collaterals. The effective interest rate is used as discount rate for the single receivable or portfolio.   Accruals, assets Accruals recognised as assets include costs incur­red relating to the subsequent financial year.   Tax payable and deferred tax Current tax liabilities and receivable current tax are recognised in the Balance Sheet as the calculated tax on the taxable income for the year, ad­justed for tax on the taxable income for previous years and taxes paid on account.   Deferred tax is measured on the temporary dif­ferences between the carrying amount and the tax value of assets and liabilities.   Deferred tax assets, including the tax value of tax loss carryforwards, are measured at the amount at which the asset is expected to be used within a reasonable number of years, either by setoff against tax on future earnings or by setoff against deferred tax liabilities within the same legal tax entity.   Deferred tax is measured on the basis of the tax rules and tax rates that under the legislation in force on the Balance Sheet date will be ap­pli­cable when the deferred tax is expected to crystallise as current tax. Any changes in the deferred tax resulting from changes in tax rates, are recognised in the income statement, except from items recognised directly in equity.   Liabilities Financial liabilities are recognised at the time of borrowing by the amount of proceeds received less transaction costs. In subsequent periods, the financial liabilities are measured at amortised cost equal to the capitalised value when using the effective interest, the difference between the proceeds and the nominal value being recog­nised in the Income Statement over the loan period.   The amortised cost of current liabilities corresponds usually to the nominal value.   Accruals, liabilities Accruals recognised as liabilities include payments received regarding income in subsequent years.