RDG Annual Report 2023

RDG Annual Report 2023Rosendahl Design Group A/S Annual Report 2023 • Accounting Policies Reporting class This annual report has been prepared in accordance with the provisions of the Danish Financial Statements Act governing reporting class C enter- prises (medium). The accounting policies applied to these consolidated ﬁnancial state - ments and parent ﬁnancial state - ments are consistent with those applied last year. Recognition and measurement Assets 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 proba- ble 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 liabil- ities are measured at cost. Measure- ment 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 exist- ing 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. Consolidated ﬁnancial statements The 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. Basis of consolidation The 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 consoli- dation, intra-group income and expenses, intra-group accounts and dividends as well as proﬁts and losses on transactions between the consoli- dated enterprises are eliminated. The ﬁnancial statements used for consoli - dation have been prepared applying the Group’s accounting policies. Subsidiaries’ ﬁnancial statement items are recognised in full in the consoli- dated 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 subsidi- aries’ net assets at the acquisition date, with net assets having been calculated at fair value. Income statement Revenue Revenue from the sale of 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. Own work capitalised Own work capitalised comprises staff costs and other costs incurred in the ﬁnancial year and recognised in cost for intangible assets. Other operating income Other operating income comprises income of a secondary nature as viewed in relation to the Entity’s primary activities, Costs of raw materials and consumables Costs of raw materials and consuma- bles comprise the consumption of raw materials and consumables for the ﬁnancial year after adjustment for changes in inventories of these goods from the beginning to the end of the year. This item includes shrinkage, if any, and normal writedowns of the relevant inventories. Other external expenses Other 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 costs Staff costs comprise wages and salaries, and social security contri- butions, pension contributions, etc. for entity staff. Depreciation, amortisation and impairment losses Depreciation, amortisation and impair- ment 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 enterprises Income 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 income Other ﬁnancial income comprises interest income, including interest income on receivables from group enterprises, net capital or exchange gains on securities, payables and transactions in foreign currencies, amortisation of ﬁnancial assets, and tax relief under the Danish Tax Prepayment Scheme etc. 79Side 78Side 80