Derivative financial instruments are initially recognised in the balance sheet at cost and subsequently measured at their fair values. Positive and negative fair values of de-rivative financial instruments are included under ‘Other receivables’ and ‘Other payables’, respectively.
Changes in the fair values of derivative financial instru-ments classified as and complying with the criteria for the fair value hedging of a recognised asset or liability are recognised in the income statement together with changes in the value of the hedged asset or liability.
Changes in the fair values of derivative financial instru-ments classified as and complying with the criteria for the hedging of future transactions are recognised directly in equity under ‘Reserve for hedging transactions’. If the expected future transaction results in the acquisition of non-financial assets or liabilities, amounts which are de-ferred under equity are transde-ferred from equity to the cost of the asset. If the expected future transaction re-sults in income or expenses, amounts deferred under equity are transferred from equity by realising the hedged asset and recognised in the same item as the
hedged asset. In case of derivative financial instruments not complying with the criteria for being treated as hedging instruments, the changes are recognised.
Income statement
RevenueRevenue includes the transmission of electricity and nat-ural gas as well as related services. Revenue is recognised in the income statement if delivery has taken place and the risk has passed to the buyer before the end of the year and the income can be calculated reliably and is expected to be received.
Revenue includes payments from Energinet.dk’s custom-ers which it has a statutory obligation to collect and manage, and which must be passed on to the producers of environmentally friendly electricity. Revenue thus indi-cates the total scope of the activities managed by Ener-ginet.dk.
Revenue is presented in the income statement less taxes and VAT.
Excess revenue/deficit is recognised in the income state-ment as a separate correcting entry for revenue.
Grants from European Energy Programme for Recovery Grants from the European Energy Programme for Recov-ery are recognised in the income statement when the conditions for receiving the grant have been met. The purpose of the grants is to ensure recovery through sup-port for economic activities in the EU and thus employ-ment. The grant is transferred to an undistributable serve in equity which is subsequently systematically re-versed via the account for excess revenue/deficit in the income statement.
Other EU investment grants are recognised in the bal-ance sheet under prepayments and recognised as in-come as the assets to which they relate are depreciated.
Other operating income
Other operating income comprises items of a secondary nature.
Other external expenses
Other external expenses include costs of a primary nature in relation to transmission and system activities within the fields of electricity and gas.
Staff costs
Staff costs include salaries and wages, remuneration, pension contributions and other staff costs pertaining to
Energinet.dk’s employees, including the Supervisory Board and Executive Board.
Research and development costs not complying with the criteria for capitalisation are recognised under ‘Other external expenses’ and ‘Staff costs’.
Depreciation, amortisation and impairment losses This item includes the year’s depreciation, amortisation and impairment losses for tangible and intangible assets.
Profit/loss in associates
The proportionate share of the individual associates’ net profit/loss after elimination of intercompany profit/loss and less amortisation of goodwill is recognised in the income statement.
Financial income and expenses
Financial income and expenses include interest income and expenses, foreign exchange gains and losses relating to securities, debt and transactions in foreign currency, indexation of the remaining debt regarding index-linked loans, and amortisation of financial assets and liabilities.
Financial income and expenses are recognised with the amounts pertaining to the financial year.
Tax on profit/loss for the year
Energinet.dk is jointly taxed with its Danish consolidated enterprises. The enterprise acts as an administration
company, which means that the total Danish tax for all consolidated enterprises is paid by Energinet.dk.
Current Danish corporation tax is still allocated to the jointly taxed enterprises in proportion to their taxable income (full allocation).
The tax for the year, which comprises the current tax for the year and any changes in deferred tax, is recognised in the income statement with the share attributable to the net profit/loss for the year and directly in equity with the share attributable to items recognised directly in equity.
The share of the tax recognised in the income statement relating to the extraordinary profit/loss for the year is attributable to the tax for the year, while the remaining share is attributable to the profit/loss from ordinary ac-tivities for the year.
The jointly taxed enterprises subscribe to the Tax Pre-payment Scheme. Supplementary Pre-payments, allowances and refunds relating to the tax payments are recognised 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.