ANNUAL REPORT 2011 - DONG Energy
ANNUAL REPORT 2011 - DONG Energy
ANNUAL REPORT 2011 - DONG Energy
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notes<br />
01 Basis of reporting<br />
Dividends from investments in subsidiaries<br />
Dividends from investments in subsidiaries are credited<br />
to profit for the year in the financial year in which they are<br />
declared.<br />
property, plant and equipment<br />
Investment property is property that is held to earn rental<br />
income and is used for own purposes to an insignificant extent<br />
only.<br />
Investment property is measured at cost less accumulated<br />
02 Critical accounting estimates and judgements<br />
In the process of preparing the parent company financial<br />
statements, management makes a number of estimates<br />
and judgements that affect the value of recognised assets<br />
and liabilities at the balance sheet date, the value of recognised<br />
income and expenses in the reporting period and<br />
disclosures on contingent assets and contingent liabilities<br />
at the balance sheet date.<br />
estimation uncertainties<br />
Estimates made are based on historical experience and<br />
other factors that are believed by management to be<br />
reasonable under the circumstances, but that, by their<br />
nature, are uncertain and unpredictable. The effect of such<br />
estimates and judgements may lead to results that differ<br />
significantly from those that would result from the use of<br />
other judgements and assumptions.<br />
Estimates and judgements relating to impairment testing<br />
of subsidiaries that are affected by the value in use<br />
03 Revenue<br />
depreciation and impairment losses. Investment property is<br />
depreciated over 20 years.<br />
Fixtures and fittings, tools and equipment are depreciated over<br />
3-5 years.<br />
investments in subsidiaries<br />
Investments in subsidiaries are measured at cost in the parent<br />
company financial statements. Impairment testing is carried<br />
out if there is any indication of impairment. Cost is written<br />
down to recoverable amount whenever the cost exceeds the<br />
recoverable amount.<br />
of property, plant and equipment, had a material effect<br />
on the parent company financial statements for <strong>2011</strong>.<br />
Reference is made to the section on impairment testing<br />
in note 2 to the consolidated financial statements. Other<br />
areas that were affected by estimates and judgments were<br />
primarily the valuation of receivables, onerous contracts,<br />
other provisions and contingent assets and liabilities. For<br />
information on these areas, reference is made to note 2 to<br />
the consolidated financial statements.<br />
Judgements in connection with accounting policies<br />
As part of the parent company’s accounting policies, management<br />
makes judgements, apart from those involving<br />
estimations, that may have a significant effect on the parent<br />
company financial statements. These judgments are<br />
the methods of accounting for derivative financial instruments<br />
and hybrid capital. Reference is made to note 2 to<br />
the consolidated financial statements.<br />
DKK million <strong>2011</strong> 2010<br />
Rental income and sales of services 119 99<br />
revenue 119 99<br />
166 parEnt COmpany finanCial statEmEnts – <strong>DONG</strong> ENERGY <strong>ANNUAL</strong> <strong>REPORT</strong> <strong>2011</strong>
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