The jointly taxed enterprises subscribe to the Tax Prepayment Scheme. Supplementary payments, allow-ances and refunds relating to the tax payments are re-cognised under net financials.
Segment information
Segment information is provided for the electricity and gas system segments. Segment information is in line with the Group's accounting policies, risks and internal finan-cial management.
Intangible assets are written down to the lower of reco-verable amount and carrying amount.
Profit or loss from the sale of intangible assets is deter-mined as the difference between the selling price less selling costs and the carrying amount at the date of dis-posal.
Any profit or loss is recognised in the income statement under 'Other operating income' or 'Other external ex-penses'.
Tangible fixed assets
Tangible fixed assetts are measured at cost less accumu-lated depreciation and impairment losses.
Tangible fixed assets in progress are measured at cost.
Extensive value-adding changes and improvements of tangible fixed assets are recognised as assets.
Cost comprises the acquisition cost and any expenses directly related to the acquisition up until the time when the asset is ready for entry into service. For internally developed assets, cost comprises direct and indirect costs of materials, components, subsuppliers and labour.
Furthermore, any finance costs attributable to the cost are recognised. In addition, decommissioning costs are recognised as a part of the cost.
For assets held under finance leases, the cost is deter-mined on the date of conclusion of the contract at the lower of the assets' fair values and the present value of future minimum lease payments. When calculating the present value, the lease contract's internal rate of return is used as the discount rate.
Amortisation is provided using the straight-line method over the expected useful lives of the assets based on the following assessment of their expected useful lives:
Land Is not depreciated
Buildings 20-100 years
Infrastructure 10-60 years
Cushion gas Is not depreciated
Other plant 3-10 years
New acquisitions with acquisition costs of less than DKK 100,000 are charged to the income statement in the acquisition year.
Acquisitions in the financial year are depreciated propor-tionately from the date of entry into service. Expenses relating to extensive maintenance checks are recognised at the acquisition cost of infrastucture as a separate non-current asset which is depreciated over its useful life, i.e.
the period until the next maintenance check. On the original acquisition of tangible fixed assets, account is
also taken of the shorter useful life of a particular part of the asset, and for accounting purposes the part concer-ned is therefore treated at the date of acquisition as a separate asset with a shorter useful life and thus depreci-ation period.
Tangible fixed assets are written down to the lower of recoverable amount and carrying amount.
An impairment test of tangible fixed assets is carried out when there is an indication of impairment. The impair-ment test compares the recoverable amount and the carrying amount of the tested asset. Impairment losses are recognised when the carrying amount of an asset or cash-generating unit (CGU) exceeds the recoverable amount of the asset or cash-generating unit.
The recoverable amount of tangible fixed assets is the highest value of the assets' fair value less expected dis-posal costs and the present value of the expected future net cash flows (value in use).
Prepayments on tangible fixed assets not delivered are capitalised.
Interest and borrowing costs in relation to loans obtained to finance prepayments on tangible fixed assets not
de-livered are recognised as a part of the acquisition cost of such tangible fixed assets.
Profit or loss from the sale or scrapping of tangible fixed assets is determined as the difference between the sell-ing price less dismountsell-ing, sellsell-ing and decommissionsell-ing costs and the carrying amount at the time of sale or scrapping.
Any profit or loss is recognised in the income statement under 'Other operating income' or 'Other external ex-penses'.
Investments
Equity investments in associates are measured according to the equity method.
Other equity investments and other investments are measured at their fair values provided the asset is ex-pected to be disposed of before maturity. Assets held to maturity are measured at amortised cost. All fair value adjustments (with the exception of repayments) are rec-ognised in the income statement.
Equity investments in associates are measured in the balance sheet as the proportionate share of the equity value of the enterprise concerned determined on the
basis of the accounting policies applied by the Parent plus or minus unrealised intercompany profits or losses.
Net revaluation of equity investments in associates is transferred to 'Excess revenue/deficit' under equity ac-cording to the equity method in so far as the carrying amount exceeds the cost.
Inventories
Inventories comprise natural gas in the storage facilities as well as components and other technical spare parts in stock.
Inventories are measured at the lower of cost and net realisable value.
The net realisable value of inventories is determined as the selling price less costs of completion and costs per-taining to the completion of the sale and is determined with due consideration being given to marketability, obsolescence and the development in the expected sel-ling price.
Deficit
Negative differences between realised income and the sum of necessary costs for the business areas for electri-city and gas, respectively, are entered as a separate item
in the balance sheet for subsequent inclusion in the ta-riffs.
Receivables
Receivables are measured at amortised cost. Write-downs are performed for anticipated uncollectibles.
Prepayments (asset)
Prepayments include prepaid expenses incurred.