†rsrapport Nycomed - Takeda Pharmaceuticals International GmbH

ACCOUNTSACCOUNTING PRINCIPLESPurchases below DKK 10,000 are expensed in the profit and loss statement.On disposal of a tangible fixed asset the cost and related accumulated depreciationare removed from the accounts and the net amount, less any proceeds, istaken to the consolidated profit and loss account.Financial fixed assets:Investments in subsidiaries and associated companies are stated at the bookedequity of the companies less group internal gains on inventory and includingremaining excess values from acquisition.Other financial fixed assets are stated at cost less write-downs, if any.Inventory:Raw materials, purchased semi-finished products and finished products are statedat weighted average purchase prices. Manufactured finished and semi-finishedproducts are valued at cost including raw materials and semi-finished productsat cost and adding production overhead cost.Products, where the expected sales price less any remaining production cost andsales cost (net realisation value) is lower than the purchase price or cost price,are written down to the net realisation value.Goods for resale are stated at purchase price or net realisation value, if lower.Securities:Securities are stated at the lower of purchase price and market value at balancesheet date. Any unrealised losses are expensed under financial expenses.Transactions in foreign currency:Receivables and debt in foreign currency are converted to Danish kroner atexchange rates at the end of the year.Realised and unrealised exchange losses and gains are included in the profit andloss statement under financial income and expenses.Forward contracts serving as hedging of future cash flows are not recognised inthe profit and loss statement until realisation of the hedged transaction.–43–