The ATP Group Annual Report 2012

More documents

Recommendations

Info

Management's Review Business Model Risk Pension Hedging and Investment Hedging Investment A d m i n i s t r a t i o n S o c i a l R e s p o n s i b i l i t y T h e AT P G r o u p Financial StatementsIncome from associates is comprised of dividends as well as valueadjustments related to fair-value measurement of investments in associates.Income from investment properties is comprised of the rental incomefor the year of investment properties less property-managementexpenses.Market-value adjustments are comprised of realised and unrealisedgains and losses related to financial derivatives and bonds.Interest expenses include all expenses related to forward premiumson repo transactions.Pension activities:Consulting fees are comprised of the fees received for the year for investmentadvice provided to mutual funds and other funds.Contributions are ATP contributions collected for the year less social-securitycontributions.Interest income and dividends, etc., include interest for the year onsecurities and loans, forward premiums related to repo transactionsand forward-exchange contracts, indexation of index-linked bonds,interest payments on financial derivatives and dividends on equityinvestments less foreign dividend taxes. Interest income on interestbearingfinancial instruments is recognised in the income statementusing the effective rate of interest method.Interest expenses include the interest expense for the year payableby investment activities to hedging activities for liquidity made available.The interest expense is calculated on a daily basis, using DanmarksNationalbank's (central bank) seven-day borrowing rate andbased on the value of guaranteed benefits. The contra entry is includedin interest income related to hedging activities. Also included areall expenses related to forward premiums on repo transactions andforward-exchange contracts.Market-value adjustments are comprised of value adjustments forthe year of equity investments, bonds, financial derivatives, loans toportfolio companies and investment properties, as well as realisedgains and losses on the sale of equity investments, bonds, financialderivatives, loans to portfolio companies and investment properties.Exchange-rate adjustments are also included.Fees are the portion of contribution payments by SUPP account holdersand the remaining SP account holders, transferred to the ATP ParentCompany, which are used to cover pension expenses.Benefit payoutsBenefit payouts include personal pensions paid, spouse pensions andcapitalised benefits for the year, as well as changes in claims-outstandingprovisions.Change in guaranteed benefitsThe change in guaranteed benefits includes the change for the year inpension provisions for future pension benefits.Transferred to unit-linked contractsThe change in provisions for unit-linked contracts covers the changein provisions associated with changes in the fair value of investmentassets related to unit-linked contracts under the remaining contractsof the Special Pension Savings Scheme (SP), which have been transferredto the ATP Parent Company, and the Supplementary LabourMarket Pension Scheme for Disability Pensioners (SUPP). This item isrecognised after deduction of tax on pension-savings returns.Administration activities:Fee income includes the fee income for the year related to the use offinancial instruments.Hedging activities:Interest income and dividends, etc., include the interest for the yearof hedging activities. Interest income includes the interest for the yearon securities and loans. The interest income on loans is the incomereceived by hedging activities from investment activities for liquiditymade available. Interest income is calculated on a daily basis, usingDanmarks Nationalbank's (central bank) seven-day borrowing rateand based on the value of guaranteed benefits. The contra entry is includedin interest expenses related to investment activities. Interestincome on interest-bearing financial instruments is recognised in theincome statement using the effective rate of interest method.Other income and other expensesOther income is income for the year from sale of administration servicesto external clients as well as related parties.Other expenses include expenses incurred for the sale of administrationservices.Other customary income and expenses for the year that cannot be attributedto pension, hedging or investment activities are also includedin the items 'Other income' or 'Other expenses'.Applicable to both investment, hedging, pension and administrationactivities:The ATP Group – Annual Report 201280
Management's Review Business Model Risk Pension Hedging and Investment Hedging Investment A d m i n i s t r a t i o n S o c i a l R e s p o n s i b i l i t y T h e AT P G r o u p Financial StatementsTax on pension-savings returnsTax on pension-savings returns comprises current tax on pensionsavingsreturns for the year, changes in deferred tax on pension-savingsreturns, and prior year adjustments, if any. Tax on pension-savingsreturns is allocated between investment and hedging activitiesbased on the return allocated to investment and hedging activities,respectively.Current tax liabilities in respect of pension-savings returns and currenttax receivable in respect of pension-savings returns are recognised inthe balance sheet as calculated tax on pension-savings returns adjustedfor interim payment of tax on pension-savings returns.Deferred tax on pension-savings returns resulting from temporary differencesbetween the carrying amount and the tax base of assets andliabilities is measured under the balance-sheet-liability method.Deferred tax assets in respect of pension-savings returns, includingthe tax value of tax-loss carryforwards, are included at the value atwhich the asset is expected to be realisable – either by elimination intax on pension-savings returns on future earnings or by set-off againstdeferred tax liabilities.Deferred tax on pension-savings returns is measured in accordancewith current tax rules and at the tax rates that are expected to apply inthe periods in which the temporary differences reverse.TaxTax on the profit for the year, comprising current tax for the year,changes in deferred tax and prior year adjustments, if any, is recognisedin the income statement. Tax payable and deferred tax are recognisedunder payables, while tax receivable and deferred tax assetsare recognised under assets.lated amortisation and impairment. Amortisation is provided on astraight-line basis over the estimated useful economic lives of the assets,typically from three to ten years.Development costs include expenses, salaries and amortisation attributableto the Group's development activities.Clearly defined and identifiable development projects, for which thetechnical rate of utilisation, sufficient resources and a potential futuremarket or application in the company can be demonstrated, andwhere it is the intention to manufacture, market or use the project, arerecognised as intangible assets, provided that the cost of these assetscan be measured reliably and there is a sufficient degree of certaintyof the future value in use. Other development costs are recognised inthe income statement as incurred.The useful economic lives of the assets are reviewed and adjusted, ifappropriate, at each balance-sheet date.Property, plant and equipmentOperating equipmentOperating equipment is measured at cost less accumulated depreciationand impairment.Cost includes the acquisition price as well as expenses directly relatedto the acquisition until such a time as the asset is ready for use. Expensesincurred for repair and maintenance are taken directly to theincome statement.Depreciation of operating equipment is provided on a straight-line basisover the estimated useful economic lives of the assets. The depreciationperiods range from two to five years.Deferred tax resulting from temporary differences between the carryingamount and the tax base of assets and liabilities is measured underthe balance-sheet liability method.The tax value of tax-loss carryforwards is included in the calculationof deferred tax if it is likely that the tax-loss carryforwards can be utilised.Deferred tax is measured in accordance with current tax rules andat the tax rates that are expected to apply in the periods in which thetemporary differences reverse.BALANCE SHEETIntangible assetsIntangible assets are measured at cost less deduction for accumu-Losses or gains on the sale or other disposal of property, plant andequipment are measured as the difference between the selling priceand the carrying amount. Losses or gains are recognised in the incomestatement as 'Other income' or 'Other expenses', respectively.The residual value and useful economic lives of the assets are reviewedand adjusted, if appropriate, at each balance-sheet date. Ifthe residual value of the asset exceeds the carrying amount, depreciationis discontinued.In case of changes in the depreciation period or the residual value, theprospective effect of depreciation is recognised as a change in accountingestimate.Owner-occupied propertiesOwner-occupied properties are recognised at cost and subsequentlymeasured at fair value using a revaluation model. The fair value ofThe ATP Group – Annual Report 201281
Page 1 and 2:
The ATP GroupAnnual Report 2012
Page 3 and 4:
Management's Review Business Model
Page 5 and 6:
Page 7 and 8:
Management's Review B u s i n e s s
Page 9 and 10:
Page 11 and 12:
Page 13 and 14:
Page 15 and 16:
Page 17 and 18:
Page 19 and 20:
M a n a g e m e n t 's R ev i ew B
Page 21 and 22:
Page 23 and 24:
Page 25 and 26:
M a n a g e m e n t 's R ev i ew B
Page 27 and 28:
Page 29 and 30: Management's Review Business Model
Page 37 and 38: Management's Review B u s in e s s
Page 63 and 64: M an a g e m e nt's Revi ew B u s i
Page 67 and 68: M an a g e m e nt's Revi ew B u s i
Page 79: Management's Review Business Model
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Page 139:
Hovedtræk ATP Koncernens hovedtal
show all

The ATP Group Annual Report 2012

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?