116770 Project Obelix Pt1.qxp - Carlsberg Group

Carlsberg Breweries Groupcosts. Significant impairment losses and impairment losses arising on extensive restructuring of processes andfundamental structural changes are, however, recognised under special items.Impairment of goodwill is not reversed. Impairment of other assets is reversed only to the extent of changes inthe assumptions and estimates underlying the impairment calculation. Impairment is only reversed to the extentthat the asset’s new carrying amount does not exceed the carrying amount of the asset after amortisation hadthe asset not been impaired.Deferred tax assets are subject to annual impairment tests and are recognised only to the extent that it is probablethat the assets will be utilised.EquityTranslation reserveThe translation reserve in the consolidated financial statements comprises foreign exchange differences arisingon translation of financial statements of foreign entities from their functional currencies into the presentation currencyused by Carlsberg Breweries A/S (DKK), balances considered to be part of the total net investment in foreignentities, and financial instruments used to hedge net investments in foreign entities.On full or partial realisation of the net investment, the foreign exchange adjustments are recognised in the incomestatement in the same item as the gain/loss.The translation reserve was recognised at zero at 1 January 2004 in accordance with IFRS 1.Proposed dividendsProposed dividends are recognised as a liability at the date when they are adopted at the Annual General Meeting(declaration date). The dividend recommended by the Board of Directors and therefore expected to be paidfor the year is disclosed in the notes.Interim dividends are recognised as a liability at the date when the decision to pay interim dividends is made.Share-based paymentThe value of services received in exchange for granted options is measured at the fair value of the optionsgranted.The share option programme for the Executive Board and other key employees in the Group is an equity-settledscheme. The share options are measured at fair value at the grant date and recognised in the income statementunder staff costs over the vesting period with a set-off directly against equity.On initial recognition of the share options, an estimate is made of the number of options expected to vest. Thatestimate is subsequently revised for changes in the number of options expected to vest. Accordingly, recognitionis based on the number of options that ultimately vested.The fair value of granted share options is estimated using the Black & Scholes call option pricing model, takinginto account the terms and conditions upon which the options were granted.Employee benefitsWages and salaries, social security contributions, paid leave and sick leave, bonuses and other employee benefitsare recognised in the financial year in which the employee renders the related service.Retirement benefit obligations and similar obligationsThe Group has entered into retirement benefit schemes and similar arrangements with the majority of theGroup's employees.Contributions to defined contribution plans are recognised in the income statement in the period to which theyrelate and any contributions outstanding are recognised in the balance sheet as other payables.F-160