Report and Accounts 1999 / 2000 - Carlsberg Group

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Accounting Policies
Accounting Policies
The annual accounts have been prepared in
accordance with Danish accounting legislation
and current accounting standards. The accounting
policies are unchanged from last year.
Consolidation principles
The Group accounts for the Carlsberg Group
comprise the accounts of the Parent Company,
Carlsberg A/S, and its subsidiaries, i.e. entities in
which the Parent Company, directly or indirectly,
holds a controlling interest. Associated companies,
which by agreement are managed jointly
with one or more other companies are pro rata
consolidated with the proportionate share of the
individual items. Other associated companies are
included in the accounts at a proportionate share
of their financial results and equity.
The Group accounts are prepared on the basis
of the accounts of the Parent Company, its subsidiaries
and pro rata consolidated companies, by
combining items of a uniform nature and eliminating
intercompany sales, licences, interest, dividends,
profit and balances. Shareholdings in subsidiary
and pro rata consolidated associated
companies are offset against a proportionate
share of the equity of the relevant companies,
stated in accordance with the accounting policies
of the Group.
Minority shareholders’ share of profit and
equity in subsidiaries are stated separately.
In the case of acquisition of new subsidiary
and associated companies as well as increases in
shareholdings therein, any excess of the cost price
over net assets stated in accordance with Group
accounting policies at the date of acquisition is,
wherever possible, allocated to the assets and
liabilities of the individual companies. Any remaining
amount (Group goodwill) is taken directly to
equity. As a starting point, any negative difference
in value (reduction in value) is taken to equity. To
the extent that a negative difference in value at the
time of acquisition is attributable to expected reductions
in future operating results, the difference
in value is appropriated to other reserves and
used when the reductions are realised. In the case
of disposal of subsidiaries and associated companies,
the company’s results are included in the
Group’s profit and loss account until the date of
disposal. Any realised gains or losses constituting
the difference in value compared to the book value
at the date of disposal is recorded in the profit and
loss account.
Foreign currencies
The accounts of foreign subsidiary and associated
companies are translated into Danish kroner
at the average exchange rates during the financial
year for income and expense items and at the
exchange rates ruling at the balance sheet date
for assets and liabilities. Exchange gains and
losses resulting from the translation of the net
assets of foreign companies at the exchange
rates ruling at the balance sheet date are taken
directly to equity.
Amounts receivable and payable in foreign
currencies are translated into Danish kroner at
the exchange rates ruling at the balance sheet
date. Hedging arrangements are assessed separately.
Realised and unrealised exchange gains
and losses are recorded in the profit and loss account.
Exchange gains or losses after tax on liabilities
to hedge investments in subsidiary or associated
companies are taken directly to equity.
Turnover
Sales are recorded as income upon delivery.
Licence fee income is recorded on the basis of
amounts earned during the year. Contract work in
progress for the account of third parties is
recorded under the percentage of completion
method and is recorded in the balance sheet
under stocks after a conservative evaluation of
each contract.
Research and development expenditure
Research and development expenditure is
charged to the profit and loss account as
incurred.
Special items
This item includes significant non-recurring items
which are not directly attributable to the normal