LEGO-Group-Annual-Report-2017.pdf

Tax on profit for the year 28 balance sheet and other

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Tax on profit for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Balance Sheet and other disclosures Note 12. Intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 13. Property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 14. Investments in associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 15. Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 16. Trade receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 17. Share capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 18. Dividend per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 19. Deferred tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 20. Pension obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 21. Other debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 22. Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 23. Deferred revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 24. Contingent assets, contingent liabilities and other obligations . . . . . . . . . 40 25. Financial risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 26. Financial assets and liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 27. Derivative financial instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47 28. Cash generated from operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 29. Cash at banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 30. Related party transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 17 Notes The LEGO Group — Annual Report 2017
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The Consolidated Financial Statements of the LEGO Group have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and additional Danish disclosure requirements. The Consolidated Financial Statements have been prepared in accordance with the historical cost convention, except for the following: Financial assets and financial liabilities (including financial instruments) measured at fair value. Changes in classification in the income statement To ensure alignment of the income statement with the organisational structure, the LEGO Group has made some reclassifications in the income statement for the compara- tive figures for 2016. The reclassifications in 2016 impact the production costs with DKK 109 million (income), sales and distribution expenses with DKK 97 million (income) and administration costs with DKK 206 million (expense). The reclassifications have not had any effect on the operating profit for 2016. Effects of new and amended accounting standards All amended standards and interpretations issued by IASB and endorsed by the EU effective as of 1 January 2017 have been adopted by the LEGO Group. IFRIC 22 Foreign Currency Transactions and Advance Consideration and IFRIC 23 Uncertainty over Income Tax Treatments have been issued by IASB but not yet endorsed by the EU. The LEGO Group does not anticipate any significant impact on future periods from the adoption of IFRIC 22 nor IFRIC 23. The LEGO Group has not yet applied the following standards: IFRS 9 Financial Instruments IFRS 15 Revenue from Contracts with Customers IFRS 16 Leases IFRS 9 and IFRS 15 are effective from 1 January 2018 and IFRS 16 is effective from 1 January 2019. All three standards are endorsed by the EU. Management has in all material respect concluded analysis of the impending changes resulting from the new stan- dards. The key findings are explained below. IFRS 9 Financial Instruments IFRS 9 is the new standard for classification and measure- ment of financial instruments. Among other amendments, it introduces a new hedge accounting model that is designed to be more closely aligned with risk management activities. It includes amendments to the treatment of option premiums and the possibility to hedge net positions. Furthermore, IFRS 9 requires for loss allowances to be recognized and mea- sured in accordance with the “expected credit loss” model.
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