ANNUAL REPORT 2011 - DONG Energy

01 Basis of reporting
The parent company financial statements are prepared pursuant
to the requirements in the Danish Financial Statements
Act concerning preparation of separate parent company financial
statements for companies applying IFRS.
The parent company financial statements have been prepared
in accordance with International Financial Reporting
Standards (IFRSs) as adopted by the EU and also comply with
International Financial Reporting Standards issued by the
IASB.
The annual report has been prepared in accordance with
Danish disclosure requirements for annual reports of listed
and State-owned public limited companies, see the statutory
order on adoption of IFRS issued pursuant to the Danish
Financial Statements Act.
The annual report is presented in Danish kroner (DKK), rounded
to the nearest million, unless otherwise stated.
Implementation of new standards
and interpretations
Reference is made to the description in note 1 to the consolidated
financial statements.
Description of accounting policies
Changed presentation
DONG Energy A/S has changed the presentation of its statement
of comprehensive income so that it is now classified by
nature instead of function, which means that EBITDA features
directly in the statement of comprehensive income. This ensures
better coherence with Management’s review, in which
EBITDA is used as one of the Group’s most important performance
measures.
Changed presentation of income statement, 2010
DKK million
Classified by function
Revenue 99
Production costs (96)
Gross profit 3
Management and administration (66)
Operating profit (loss) (EBit) (63)
DKK million
Classified by nature
Revenue 99
Other external expenses (141)
Staff costs (16)
Operating profit (loss) before depreciation,
amortisation and impairment losses
(EBitDa) (58)
Depreciation and impairment losses on
property, plant and equipment (5)
Operating profit (loss) (EBit) (63)
The parent company’s accounting policies deviate from the
accounting policies described for the consolidated financial
statements, see note 40 in the complete annual report, on the
following points:
foreign currency translation
Foreign exchange adjustments of balances accounted for as
part of the total net investment in enterprises that have a
functional currency other than DKK are recognised in profit for
the year as finance income and costs in the parent company
financial statements. Likewise, foreign exchange gains and
losses on the portion of loans and derivative financial instruments
that has been entered into to hedge the net investment
in these enterprises are recognised directly in profit for the
year as finance income and costs.
revenue
Rental income comprises income from commercial leases and
is recognised over the term of the lease. Income from services
is recognised when delivery has taken place.
DONG ENERGY ANNUAL REPORT 2011 – parEnt COmpany finanCial statEmEnts
165
notes