Report and Accounts 1999 / 2000 - Carlsberg Group

Accounting Policies
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running of the company, including certain relatively
substantial profits or losses arising from disposals,
special write-downs and depreciation, provisions
and any reversals of such items.
draught beer equipment of Carlsberg-Tetley is
recorded as a basic stock stated at cost. Depreciation
is provided under the straight-line method
over the estimated economic lives of the assets:
Share of subsidiary companies’ profit or loss
Share of the profit or loss of the subsidiary and
associated companies is recorded in accordance
with the accounting policies of the Carlsberg
Group. Adjustments are made for changes in
unrealised intercompany profits and the result is
entered in the profit and loss account of the
Parent Company. Share of the estimated tax
charge of these companies is recorded under
corporation tax.
Buildings
20 - 50 years
Plant and machinery 10 - 20 years
Other fixtures and fittings,
tools and equipment
including soft drink machines 3 - 10 years
Plastic crates and returnable bottles together with
other minor fixed assets are charged against
profits in the year of acquisition.
Corporation tax
The Parent Company is taxed jointly with its
wholly-owned Danish subsidiaries and certain
foreign subsidiaries. The aggregate tax charge of
the jointly-taxed Danish companies is allocated to
the individual entities in proportion to their taxable
incomes (the full allocation method).
Deferred tax
Deferred tax is provided for all temporary differences
between accounting and tax values and
deferred tax assets are included in the balance
sheet at the expected realisable value. Provisions
are not made for deferred tax which may arise
from the realisation of shares at book value.
Intangible fixed assets
Intangible fixed assets are charged against
income in the year of acquisition except for
Group goodwill. In the event that intangible fixed
assets are taken over in connection with the
acquisition of a company, the amount is included
in the computation of goodwill.
Fixed asset investments
Participating interests in subsidiary and associated
companies are stated in the balance sheet
of the Parent Company with a share of the net
assets of the companies in question in accordance
with Group accounting policies, less unrealised
intercompany profits.
Other fixed asset investments are stated at
cost or lower value at the balance sheet date.
Stocks
Stocks are stated at purchase price or production
cost (average method), or net realisable
value, if lower. Write-down is effected for obsolete
stocks. Indirect production overheads are not
included in the production cost.
Marketable securities
Marketable shares and bonds are stated at cost
or at the quoted price at year end if lower. Realised
and unrealised gains or losses, constituting
the difference between sales proceeds and cost,
are included in the profit and loss account.
Tangible fixed assets
Tangible fixed assets are recorded at purchase
price or cost less accumulated depreciation.
Value adjustments have taken place in certain
foreign subsidiary and associated companies in
accordance with local accounting practice. The
Financial instruments
Financial instruments, including forward exchange
contracts and options, are used in the normal
course of business of the Group, mainly to cover
existing commitments, as well as repos.
Financial instruments are treated in the ac-