ANNUAL REPORT 2011 - DONG Energy

The main criteria used for determining the recoverable amount
are gross margins and the discount rate applied. Budgeted
gross margins are based on recently realised margins.
Expected net cash fl ows have been determined on the basis
of the company’s business plan and budgets for the period
2012-2018.
As mentioned above, a goodwill impairment of DKK 277 million
was recognised, to the effect that the goodwill relating to
DONG Energy Sales B.V. has been fully written off. The impairment
was recognised in the Sales & Distribution segment.
rights
Rights consist predominantly of gas purchase rights and
a connection right relating to gas transportation. At 31
December 2011, the carrying amount of gas purchase
rights was calculated at DKK 768 million (2010: DKK
875 million) and the carrying amount of the connection
right at DKK 170 million (2010: DKK 292 million).
In June 2011, the Danish Energy Regulatory Authority (DERA)
declared that the tariff for DONG Energy’s gas pipelines must
only amount to DKK 0.07/m3 compared with the current tariff
of DKK 0.13/ m3 . As a consequence of this, in 2011, a DKK 73
million impairment loss was recognised on the connection
right relating to gas transportation and DKK 527 million on
the offshore gas pipelines from the North Sea to Denmark
(recognised in production assets). The impairment loss
refl ects a reduction of the tariff to DKK 0.10/m3 , equivalent
to the tariff reduction offered by DONG Energy to DERA. The
impairment was recognised in the Energy Markets segment.
There were no other indications of impairment
of rights in 2011. Consequently, no further
impairment testing of rights was carried out.
CO2 emissions allowances
CO2 emissions allowances for own use amounted to DKK
834 million (2010: DKK 182 million). There were no indications
of impairment of CO2 emissions allowances in 2011.
Consequently, these were not tested for impairment. In 2010,
a DKK 93 million impairment loss was recognised in respect of
rights relating to CO2 emissions allowances. The impairment
loss refl ected a change in the Group’s estimate relating to the
allocation of CO2 emissions allowances in the Netherlands.
CO2 emissions allowances are recognised in the Thermal
Power segment.
Completed development projects
Completed development projects relate primarily to IT software
and development of technical solutions, for example for the
electricity grid. The carrying amount of completed development
projects was DKK 279 million at 31 December 2011 (2010: DKK
357 million).
There were no indications of impairment of completed development
projects. Consequently, these were not tested for
impairment.
in-process development projects
In-process development projects are tested annually for
impairment.
In-process development projects relate primarily to the implementation
of new IT systems. The carrying amount of inprocess
development projects stood at DKK 22 million at 31
December 2011 (2010: DKK 21 million).
The Group tested the carrying amounts of recognised in-process
development projects for impairment in 2011. The result
of the year’s other impairment tests was that the recoverable
amount exceeded the carrying amount of in-process development
projects. It was consequently not deemed necessary to
write down in-process development projects.
DONG ENERGY DONG ENERGY GROUP ANNUAL REPORT 2011 – COnsOliDatED finanCial statEmEnts
87 91
notes