†rsrapport Nycomed - Takeda Pharmaceuticals International GmbH

ACCOUNTSACCOUNTING PRINCIPLESThe result in subsidiaries and associated companies:The result before tax in subsidiaries and associated companies includes the proportionalshare of the results before tax in the subsidiaries and associated companiesafter elimination of any internal gains and amortization of goodwill. Theproportional share of tax expenses in the subsidiaries and associated companiesis included in the item ”Income tax expenses”.Research and development expenses:Research and development expenses are taken to the profit and loss statementwhen incurred.Income tax expenses:Income tax expenses are allocated to the relevant accounting year.Deferred tax comprises all timing differences between tax and accounting depreciationand accounting provisions, which will be tax deductible in later years.Income tax expenses are calculated in accordance with current tax laws and taxrates. Deferred tax in Denmark is calculated at the basis of a tax rate of 30%.Balance sheetIntangible fixed assets:Goodwill and patent and rights are stated at cost less accumulated amortization.Amortization is made on a straight line basis over the expected useful lifetime –assessed individually – however, the maximum amortization period is 15 yearsfor goodwill and 10 years for patents and rights.Goodwill is included in investments in subsidiaries.Tangible fixed assets:Tangible fixed assets are stated at cost adding revaluations, if any, less straightline depreciation.Depreciation is calculated at the basis of the following expected useful lifetimes:- Buildings 25 - 33 years- Other tangible fixed assets 3 - 10 years–42–