116770 Project Obelix Pt1.qxp - Carlsberg Group

Carlsberg Breweries GroupBuildingsTechnical installationsBrewery equipmentFilling and bottling equipmentTechnical installations in warehousesOn-trade and distribution equipmentFixtures and fittings, other plant and equipmentReturnable packagingHardware20-40 years15 years15 years8-15 years8 years5 years5-8 years3-10 years3 yearsLand is not depreciated.The basis of depreciation is calculated on the basis of the residual value less impairment losses. The residualvalue is determined at the acquisition date and reassessed annually. If the residual value exceeds the carryingamount, depreciation is discontinued.When changing the depreciation period or the residual value, the effect on the depreciation is recognised prospectivelyas a change in accounting estimates.Depreciation and minor impairment losses are recognised in the income statement under cost of sales, salesand distribution costs and administrative expenses to the extent that depreciation is not included in the cost ofself-constructed assets.Significant impairment losses of a non-recurring nature are recognised in the income statement under specialitems.Investments in associatesInvestments in associates are recognised according to the equity method and measured at the proportionateshare of the entities' net asset values calculated in accordance with the Group's accounting policies minus orplus the proportionate share of unrealised intra-group profits and losses and plus the carrying amount of goodwill.Investments in associates with negative net asset values are measured at DKK 0. If the Group has a legal orconstructive obligation to cover a deficit in the associate, the deficit is recognised under provisions.Any amounts owed by associates are written down to the extent that the amount owed is deemed irrecoverable.On acquisition of investments in associates, the purchase method is used, see the description under Businesscombinations.InventoriesInventories are measured at the lower of weighted average cost and the net realisable value.Goods for resale and raw materials and consumables are measured at cost, comprising purchase price plus deliverycosts.Finished goods and work in progress are measured at cost, comprising the cost of raw materials, consumables,direct wages and salaries and indirect production overheads. Indirect production overheads comprise indirectmaterials and wages and salaries, and maintenance and depreciation of production machinery, buildings andequipment. amd factory administration and management.The net realisable value of inventories is calculated as the sales amount less costs of completion and costs necessaryto make the sale, and is determined taking into account marketability, obsolescence and development inexpected sales price.F-158