IFRS changes in 2006

The change to IAS 39 affects the Group’s classification of certain securities and equity investments. On initial recognition, securities and equity investments outside the scope of the Group’s documented investment strategy are measured at fair value with the addition of directly attributable costs. They are subsequently measured at fair value at the balance sheet date, and changes to the fair value are recognised in equity and dividends are recognised in the income statement. When securities are sold or settled, the accumulated fair value adjustments are recognised in the income statement.

The change has not affected the Group’s classification of listed Danish bonds, as this portfolio forms part of the Group’s documented investment strategy and cash resources for the financing of share buybacks, etc. Accordingly, value changes to listed Danish bonds are still recognised in the income statement under net financials. All other securities and equity investments measured at fair value have been reclassified as available-for-sale financial assets.

The change has affected the Group’s comparative figures for 2005 for net financials and profit for the year by DKK -14 million. Equity was not affected.

 

In addition to the above, the revised IAS 19 Employee benefits entails that the annual report for 2006 contains additional information about defined benefit pension plans in foreign subsidiaries.