Consolidated financial statements
•
Annual report 2021
•
ALK
56
Section 1 – Basis of reporting
1.1 General accounting policies
overall description of accounting
policies.
and companies (subsidiaries)
at the transaction date. Receivables
and debt and other monetary items not
settled at the balance sheet date are
translated at the closing rate.
at the exchange rate at the balance
sheet date.
The consolidated financial statements
for the period 1 January to 31
controlled by the parent company.
The parent company is considered
to control a subsidiary when it holds,
directly or indirectly, more than 50%
of the voting rights, or is otherwise
able to exercise or actually exercises a
controlling influence and has the right
to variable returns from the entity.
December 2021 have been prepared
in accordance with the International
Financial Reporting Standards (IFRS)
as adopted by the EU and in accordance
with Danish disclosure requirements
for listed companies. Additional Danish
disclosure requirements for annual
reports are imposed by the Statutory
Order on Adoption of IFRS issued under
the Danish Financial Statements Act.
Exchange rate differences arising on
The accounting policies are unchanged
from last year except for the below
mentioned impacts of new standards.
the translation of foreign subsidiaries’
opening balance sheet items to the
exchange rates at the balance sheet
date and on the translation of the
income statements from average
exchange rates to exchange rates at
the balance sheet date are recognised
in other comprehensive income.
Exchange rate differences between
the exchange rate at the date of
New standards effective from
1 January 2021
the transaction and the exchange
rate at the date of payment or the
balance sheet date, respectively, are
recognised in the income statement
under financial items. Tangible assets
and intangible assets, inventories and
other nonmonetary assets acquired in
foreign currency and measured based
on historical cost are translated at the
exchange rates at the transaction date.
The ALK Group has implemented all
new and amended standards and
interpretations (IFRIC) which are
effective for the financial year 2021.
This has not resulted in any changes
to the accounting policies of the ALK
Group.
Basis of consolidation
The consolidated financial statements
are prepared based on the financial
statements of ALK-Abelló A/S and
its subsidiaries. The consolidated
financial statements are prepared as
a consolidation of items of a uniform
nature. The financial statements
used for consolidation are prepared
in accordance with the ALK Group’s
accounting policies.
Foreign exchange rate adjustment of
receivables or debt to subsidiaries
which are considered part of the
parent company’s overall investment
in the subsidiary in question are also
recognised in other comprehensive
income in the consolidated financial
statements.
The consolidated financial statements
are presented in Danish kroner (DKK),
which is considered the primary
currency of the ALK Group’s activities
and the functional currency of the
parent company.
New standards effective on or after
1 January 2022
On recognition in the consolidated
financial statements of subsidiaries
whose financial statements are
A number of IFRS standards, amended
standards and IFRIC interpretations,
which are effective on or after 1 January
2022, have not been implemented.
Based on a preliminary assessment it
is estimated that these standards and
interpretations will have no material
impact on the consolidated financial
statements.
The consolidated financial statements
are presented on a historical cost
basis, apart from certain financial
instruments, which are measured at
fair value.
presented in a functional currency
other than DKK, the income statements
are translated at average exchange
rates for the respective months, unless
these deviate materially from the actual
exchange rates at the transaction
dates. In that case, the actual exchange
rates are used. Balance sheet items
are translated at the exchange rates
at the balance sheet date. Goodwill is
considered to belong to the acquired
company in question and is translated
On consolidation, intra-group income
and expenses, intra-group balances
and dividends, and gains and losses
arising on intra-group transactions are
eliminated.
Definitions and ratios
The key ratios have been calculated in
accordance with generally accepted
financial ratios applied by financial
analysts. Definitions are shown on
page 90.
The general accounting policies
described below apply to the
consolidated financial statements as
a whole. To enhance understanding,
specific accounting policies are
described in the notes to which they
relate. The description of accounting
policies in the notes form part of the
Foreign currency translation
On initial recognition, transactions
denominated in currencies other
than DKK are translated at average
exchange rates, which are an
Reporting under the ESEF regulation
The Commission Delegated Regulation
(EU) 2019/815 on the European
Single Electronic Format (ESEF) (ESEF
Regulation) has introduced a single
The consolidated financial
statements
The consolidated financial statements
comprise the financial statements of
ALK-Abelló A/S (the parent company)
approximation of the exchange rates
