LEGO-Group-Annual-Report-2017.pdf

The accounting policies are unchanged from the latest

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The accounting policies are unchanged from the latest financial year. Supplementary accounting policies for the Parent Company Taxes Current income tax, based on taxable income for the year, is expensed together with changes in deferred tax for the year. Deferred income tax on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts is provided in full using the liability method. The provision of deferred tax reflects the effect of any tax losses carried forward etc. to the extent it is considered likely that such items can be utilised against future taxable income. To the extent calculated deferred tax is positive, this is recognised in the balance sheet as a deferred tax asset at the expected realisable value. Any changes in deferred tax due to changes in tax rates are recognised in the income statement. Investments in subsidiaries and associates Subsidiaries and associates of the Parent Company are recognised under the equity method, which is at the respective share of the net asset values in subsidiaries and associates. Any costs in excess of net assets in the acquired company are capitalised in the Parent Company under investments in subsidiaries as part of the investments (“Goodwill”). Amortisation of the goodwill is provided under the straight- line method over a period not exceeding 5 years based on estimated useful life. To the extent it exceeds declared dividend from subsidiar- ies, net revaluation of investments in subsidiaries and associates is transferred to net revaluation reserve accord- ing to the equity method under equity. Profits in subsidiaries and associates are disclosed as profit after tax in the income statement of the Parent Company. Equity Dividend distribution Dividend distribution proposed by Management for the financial year is disclosed as a separate item under equity. Notes 60 Parent Company — Annual Report 2017
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Note 2. Employee expenses Note 3. Financial income Note 4. Financial expenses (mDKK) 2017 2016 Executive Leadership Team 1 Salaries 86 51 Pension 3 2 Short-term incentive plans 9 16 Long-term incentive plans (3) 15 95 84 Severance payments and other one-offs 31 Including fee to Board of Directors 5 4 Number of employees (headcount) 12 5 1 Employee expenses to Executive Leadership Team are the total amount expensed in all entities within the LEGO Group. (mDKK) 2017 2016 Interest income from subsidiaries 98 92 Exchange gains, net 5 3 103 95 (mDKK) 2017 2016 Interest expenses to subsidiaries 93 90 Interest expenses to related parties 19 19 112 109 Notes 61 Parent Company — Annual Report 2017
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Note 5. Tax on profit for the year Note 6. Intangible assets (mDKK) 2017 2016 Current tax on profit for the year (26) 26 Deferred tax on profit for the year 22 (3) Revaluation of deferred tax assets and liabilities (20) Other tax for the year 5 Adjustment of tax relating to previous years, current tax (5) 1 (24) 24 2017 (mDKK) Patents Cost at 1 January 10 Cost at 31 December 10 Amortisation and impairment losses at 1 January 6 Amortisation for the year 1 Amortisation and impairment losses at 31 December
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