Annual Report 2001 - Carlsberg Group

Accounting Policies
75
Turnover
Sales are recorded as income upon delivery.
Licence fee income is recorded on the basis of
amounts earned during the year. Contract work in
progress for the account of third parties is
recorded under the percentage of completion
method and is recorded in the balance sheet
under stocks after a conservative evaluation of
each contract.
Research and development expenditure
Research and development expenditure is
charged as incurred.
Special items
This item includes significant non-recurring items,
which are not directly attributable to the normal
running of the company, including certain relatively
substantial profits or losses arising from disposals,
special write-downs and depreciation, and
provisions and any reversal of such items.
Share of subsidiary and associated companies’
profit or loss
Share of the profit or loss of the subsidiary and
associated companies is recorded in the Parent
Company’s profit and loss account in accordance
with the accounting policies of the Carlsberg
Group. Adjustments are made for changes in
unrealised intercompany profits. Share of the
calculated tax charge of these companies is
recorded under corporation tax.
Corporation tax
The Parent Company is taxed jointly with its
wholly-owned Danish subsidiaries. The aggregate
tax charge of the jointly-taxed Danish companies
is allocated to the individual companies in proportion
to their taxable incomes (the full allocation
method).
Corporation tax for the year, comprising tax
payable for the year and adjustments in deferred
tax, is recognised in the profit and loss account at
the share attributable to profit for the year. Tax on
items taken directly to equity is recognised correspondingly.
Deferred tax
Deferred tax is provided for all temporary differences
between accounting and tax values.
Deferred tax assets are included in the balance
sheet at the expected realisable value. Provisions
are not made for deferred tax, which may arise
from the realisation of shares at book value.
Intangible fixed assets
Intangible fixed assets are charged against
income in the year of acquisition except for Group
goodwill. In the event that intangible fixed assets
are taken over in connection with the acquisition
of a company, the amount is included in the
computation of goodwill.
Tangible fixed assets
Tangible fixed assets are recorded at purchase
price or cost less accumulated depreciation. Value
adjustments have taken place in certain foreign
subsidiary and associated companies in accordance
with local accounting practice. The draught
beer equipment of Carlsberg-Tetley is recorded as
a basic stock stated at cost. Depreciation is
provided under the straight-line method over the
estimated economic lives of the assets:
Buildings
20 - 50 years
Plant and machinery
10 - 20 years
Other fixtures and fittings,
tools and equipment
including soft drink machines 3 - 10 years