RDG Annual Report 2023

RDG Annual Report 2023Rosendahl Design Group A/S Annual Report 2023 • Accounting Policies 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 liabili- ties 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. For one amount of goodwill, it has not been possible to estimate useful life reliably, for which reason such useful life has been set at 10 years. For other amounts of goodwill, useful life has been determined based on an assess- ment of whether the enterprises are strategically acquired enterprises with a strong market position and a long-term earnings proﬁle and whether the amount of goodwill includes intangible resources of a temporary nature that cannot be separated and recognised as separate assets. Useful lives are reassessed annually. The amortisation periods used are 10-20 years. Investments in group enterprises are written down to the lower of recovera- ble amount and carrying amount. Receivables Receivables are measured at amortised cost, usually equalling nominal value, less writedowns for bad and doubtful debts. Inventories Inventories are measured at the lower of cost using the FIFO method and net realisable value. Cost consists of purchase price plus delivery costs. The net realisable value of inventories is calculated as the estimated selling price less completion costs and costs incurred to execute sale. Prepayments Prepayments comprise incurred costs relating to subsequent ﬁnancial years. Prepayments are measured at cost. Cash Cash comprises cash in hand and bank deposits. Minority interests On initial recognition, minority inter- ests are measured at the minority interests’ share of the acquiree’s net assets measured at fair value. No goodwill related to the minority inter- ests’ equity interests in the acquiree is recognised. Deferred tax Deferred 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. 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 liabil- ities or as net tax assets. Deferred tax relating to retaxation of previously deducted losses in foreign subsidiaries is recognised on the basis of an actual assessment of the purpose of each subsidiary. Other ﬁnancial liabilities Other ﬁnancial liabilities are measured at amortised cost, which usually corresponds to nominal value. Prepayments received from custom- ers Prepayments received from custom- ers comprise amounts received from customers prior to delivery of the goods agreed or completion of the service agreed. 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. Cash ﬂow statement 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 ope- rating 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, develop- ment, 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 inter- est-bearing debt, including lease liabilities, purchase of treasury shares and payment of dividend. Cash and cash equivalents comprise cash. ESG data CO2 Absolute Scope 1 Emission Absolute CO2e direct emissions from sources that are owned or controlled/ leased by Rosendahl Design Group Including on-site fossil fuel combus- tion and fleet fuel consumption. Calculated according to the GHG Protocol. CO2 Absolute Scope 2 Emission Absolute CO2e emissions from purchased energy for electricity, heating and cooling. Calculated according to GHG protocol. CO2 Absolute Scope 3 Emission Absolute CO2e emissions generated from the 6 most material categories identified, in SCOPE 3 in the GHG protocol. 81Side 80Side 82