Gabriel_Annual_Report_2024-25 - Flipbook - Page 103
CONTENTS // CONSOLIDATED FINANCIAL STATEMENTS AND PARENT COMPANY FINANCIAL STATEMENTS // INDEPENDENT AUDITOR'S REPORT
Independent auditor's report
To the shareholders of Gabriel Holding A/S
Report on the audit of
the consolidated financial statements
and the parent company financial statements
Opinion
In our opinion, the consolidated financial statements and
the parent company financial statements give a true
and fair view of the Group’s and the parent company’s
assets, liabilities and financial position at 30 September
2025 and of the results of the Group’s and the parent
company’s operations and cash flows for the financial
year 1 October 2024 – 30 September 2025 in accordance
with IFRS Accounting Standards as adopted by the EU
and additional requirements in the Danish Financial
Statements Act.
Our opinion is consistent with reporting to the Board of
Directors and the Audit Committee.
Audited financial statements
The consolidated financial statements and the parent
company financial statements of Gabriel Holding A/S for
the financial year 1 October 2024 – 30 September 2025
comprise income statement, statement of comprehensive income, statement of financial position, statement
of changes in equity, cash flow statement and notes,
including accounting policy information for the Group
and parent company (the “financial statements”). The
financial statements are prepared in accordance with
the IFRS Accounting Standards as adopted by the EU
and additional requirements in the Danish Financial
Statements Act.
Basis for opinion
We conducted our audit in accordance with the International Standards on Auditing and the additional
requirements applicable in Denmark.
Our responsibilities under those standards and requirements are further described in the “Auditor’s responsibilities for the audit of the financial statements” section
of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of the Group in accordance with
the International Ethics Standards Board for Accountants’
International Code of Ethics for Professional Accountants
(IESBA Code) and the additional ethical requirements
applicable in Denmark, and we have fulfilled our other
ethical responsibilities in accordance with these requirements and the IESBA Code.
We declare, to the best of our knowledge and belief,
that we have not provided any prohibited non-audit
services, as referred to in Article 5(1) of the Regulation
(EU) 537/2014 and that we remained independent in
conducting the audit.
We were appointed auditors of Gabriel Holding A/S for
the first time on 11 December 2014 for the 2014/15 financial year covering the period 1 October 2014 – 30 September 2015. We have been re-appointed annually by
motion passed by the general meeting for a total consecutive engagement of eleven years up to and including the 2024/25 financial year.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit
of the financial statements for the 2024/25 financial
year. These matters were addressed in the context of
our audit of the financial statements as a whole, and in
the forming of our opinion thereon. We do not provide
a separate opinion on these matters.
note 28, which includes the Group’s accounting policies
for discontinued operations.
Discontinued operations and assets held for sale
On 5 August 2024, the Gabriel Group published a new
growth strategy to intensify development of the Gabriel
Fabrics and SampleMaster business units. Divestment of
the Group’s FurnMaster units was initiated at the same
time. The divestment has not been completed in the
2024/25 financial year as was originally expected, and
the selling process is ongoing at the reporting date. As
a result, the FurnMaster units are still presented as discontinued operations in the consolidated financial statements, and the related assets are classified as assets
held for sale, while the related liabilities are classified
as liabilities related to assets held for sale.
How our audit addressed the matter
For the purpose of our audit, the procedures we carried
out included the following:
• We have carried out risk assessment procedures to
understand the scope of the operations and associated net assets put up for sale, including the accounting
consequences of putting the operations up for sale.
• We have assessed whether management’s basis for
classifying FurnMaster units as assets held for sale
and discontinued operations is still reasonable given
the criteria for this in IFRS 5, including in particular
whether the FurnMaster units can be sold offhand in
their present state, on conditions that are usual for the
sale of such net assets and whether a sale is probable; i.e. whether the sale is expected to be completed
within a year from the classification date.
• We have verified the completeness and accuracy of
the operations that are classified as discontinued operations, and assets held for sale and liabilities relating
to assets held for sale respectively.
• We have assessed and challenged whether management’s valuation of assets classified as held for sale is
appropriate, i.e. that the carrying amount does not
exceed the estimated fair value less expected sales
costs, including whether the valuation models used
are appropriate in the circumstances, and the key assumptions made are reasonable, in particular management’s expectations for the development in revenue
and earnings and the discount rate.
• We have examined the information in the consolidated
financial statements and assessed whether the IFRS 5
disclosure requirements are met, including the description of significant judgments made by management.
• We have involved our internal valuation specialists.
The most significant risks concern management’s
assessment of the criteria for the continued classification of the FurnMaster units as assets held for sale, liabilities relating to assets held for sale and discontinued
operations, the completeness and accuracy of assets
held for sale, liabilities related to assets held for sale and
discontinued operations, the presentation of this in the
consolidated financial statements and the valuation of
assets held for sale.
Given that estimates regarding the valuation of assets
held for sale are subject to material uncertainty, and
that accounting policies in the area are complex and
non-standard and involve material estimates made by
management, this has been a key audit matter.
We refer to note 9 to the consolidated financial statements for a description of the discontinued operations,
including key assumptions and assessments, note 26
concerning accounting estimates and judgments and
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