English - DFDS

DFDS annual report 2009 NOTEs 107
Note 40
Critical accounting estimates and judgements
When preparing the annual report for the Group, DFDS’ management makes a number of accounting estimates and assessments to recognise and measure the Group’s
and the parent company’s assets, liabilities, income and expenses. The most significant accounting estimates and assessments are mentioned below.
Valuation of non-current intangible assets
Impairment tests of goodwill and other non-current intangible assets, which primary relates to customer portfolios/-relations, are made annually as a minimum. Impairment
tests are based on the expected free cash flow from the cash generating unit in question. For further description of impairment tests of goodwill and other non-current
intangible assets, view Note 39.
Estimated useful life, residual values and impairment tests of ships
Significant accounting estimates regarding ships include, among other things, estimates of useful life (including decomposing), residual value and impairment tests. The useful
life and the residual values of the ships within the Group are estimated annually as a minimum. Furthermore the carrying amounts of the ships are tested for impairment
annually as a minimum. Material changes in estimated useful life as well as residual value and the result of the impairment tests can affect the profit for the year.
Accounting Policies and methods regarding critical estimates regarding estimated useful life, residual values and impairment tests of ships are described in Note 1 and Note 39.
Allowances for doubtful trade receivables
Trade receivables are stated at amortised cost less allowances for potential losses on doubtful trade receivables.
Allowances for doubtful trade receivables are estimated taking the inability of the customers to make required payments into account. If the ability of the costumers
to make required payments were to deteriorate, additional allowances may be required in future periods. Management performs analyses on the basis of customers’
expected ability to pay, historical information on payment patterns and doubtful debts, customer concentrations and customers’ creditworthiness and collateral received
when estimating whether write-downs made are sufficient to cover losses.
It is estimated that the allowances are sufficient for covering losses on doubtful trade receivables.
Pensions and similar liabilities
The Groups defined benefit schemes are estimated based on a number of material actuarial assumptions, including discount rates, expected return on the schemes assets,
expected rates for salary, pension increase and death-rate etc. Even modest changes to the assumptions may significant change the pension liability.
The value of the Groups defined benefit schemes are based on calculations from external actuaries.
Deferred tax assets
Deferred tax assets, including tax deficit carried forward, are recognised to the extent that it is estimated that the tax assets can be realised through future positive
income within the foreseeable future.
Provisions and contingent liabilities
The management assess the provisions and contingent liabilities and the probable outcome of pending and possible lawsuits etc. The outcome is dependent on future
events which of nature are uncertain. By the assessment of the most probable outcome of material lawsuits, taxable conditions etc. the management involves external
legal advisors and outcomes from case law.
Note 41
Events after the balance sheet date
At the extraordinary general meeting held on 11 January 2010 it was adopted to increase DFDS’ share capital by a nominal total of DKK 540 million in conjunction with
a cash pre-emptive rights issue and to increase the share capital by at least a nominal DKK 310 million and up to a maximum DKK 530 million by way of a directed rights
isssue to A. P. Moller – Maersk, and without pre-emptive subscription rights for shareholders. Please see Company Announcement No. 1/2010.
On 25 January 2010 CEO Niels Smedegaard received a share option of 10,000 shares and CFO Torben Carlsen a share option of 15,750 shares.
On 8 February 2010 an agreement is entered concerning the charter of the passenger ship QUEEN OF SCANDINAVIA for a three year period from 15 April 2010.
The agreement includes purchase options and all terms of the agreement have been fulfilled. The charter agreement is entered into with Inflot Cruise and Ferry Ltd.
headquartered in St. Petersburg, Russia. QUEEN OF SCANDINAVIA is to be deployed on a new route between St. Petersburg and Helsinki in Finland.
On 12 February 2010 the Supreme Court in Norway made the decision that the charge of tax concerning the transition to the new regulation of tonnage tax in 2007
was against the Norwegian constitution. See Note 26.
Beside the above there have not been any significant events after 31 December 2009.