Gabriel_Annual_Report_2024-25 - Flipbook - Page 98
CONTENTS // CONSOLIDATED FINANCIAL STATEMENTS AND PARENT COMPANY FINANCIAL STATEMENTS // NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AND PARENT COMPANY FINANCIAL STATEMENTS
ACCOUNTING POLICIES APPLIED
Consolidated financial statements
The consolidated financial statements comprise the parent company Gabriel Holding A/S and subsidiaries over which Gabriel Holding
A/S exercises control, i.e. the power to govern the financial and operating policies so as to obtain benefits from its activities. An investor
is deemed to control another enterprise when the investor exercises control (power) over it and has the possibility or right to receive
variable returns from it and the ability to affect the size of the returns through this control. When control is assessed in the terms of
IFRS 10, an investee must be consolidated when the parent has de facto control over it, even if the parent does not own the majority of
shares or votes.
On the basis of the absolute sizes of stakes and the other shareholders’ proportionate stakes, including votes and mutual relationships,
the Group’s management considers its ownership interest to be sufficient to constitute de facto control.
Joint arrangements are activities or businesses over which the Group has a controlling interest, through cooperation agreements with
one or more parties. Joint controlling interest means that decisions about the relevant activities require the unanimous consent of all
parties holding a joint controlling interest. Joint arrangements are classified as joint ventures or joint operations. Joint operations are
activities in which the participants have direct rights over assets and direct obligations for liabilities, while joint ventures are activities
where the participants only have rights over the net assets.
The consolidated financial statements include the parent company Gabriel Holding A/S and the subsidiaries Gabriel A/S, Gabriel
Ejendomme A/S, Gabriel Innovation A/S, Gabriel (Tianjin) International Trading Co. Ltd., UAB FurnMaster, FurnMaster Sp. z o.o., Screen
Solutions Ltd, Gabriel GmbH, Gabriel Sweden AB, Gabriel North America Inc., Gabriel Iberica SL, UAB Gabriel Textiles, UAB Gabriel
Baltics, UAB SampleMaster, Grupo RYL S.A. de C.V. and Visiotex GmbH. UAB Scandye is considered a joint venture and was recognised
under investments in joint ventures in the annual report.
The consolidated financial statements were prepared as a consolidation of the parent company’s and the individual subsidiaries’
financial statements. The consolidated statements were prepared in accordance with the Group’s accounting policies, with elimination of intra-group income and expenses, shareholdings, intra-group balances and dividends and realised and unrealised gains on
intra-group transactions. Unrealised gains on transactions with joint ventures are eliminated in proportion to the Group’s ownership
share of the enterprise. Unrealised losses are eliminated in the same way as unrealised gains, unless impairment has occurred.
Assets held for sale and liabilities related to assets held for sale
Assets held for sale comprise non-current assets and disposal groups held for sale. A disposal group is defined as a group of assets to be
disposed of, by sale or otherwise, together as a group in a single transaction. Liabilities related to assets held for sale are liabilities directly
associated with the assets that will be transferred in the transaction. Assets are classified as “held for sale” when their carrying amount will
be recovered principally through a sale within 12 months in accordance with a formal plan rather than through continuing use.
Assets or disposal groups held for sale are measured at the lower of carrying amount on the date of classification as held for sale and
fair value less selling costs. Assets are not depreciated or amortised from the date when they are classified as held for sale.
The assets and the related liabilities are presented on separate lines in the statement of financial position. Comparative figures are not
restated.
Presentation of discontinued operations
Discontinued operations form a significant part of a business if operations and cash flows can be clearly distinguished, operationally
and for financial reporting purposes, from the rest of the business, and where the component has been disposed of, or is classified as
held for sale, and the sale is expected to be completed within one year in accordance with a formal plan.
Profit after tax from discontinued operations and value adjustments after tax of related assets and liabilities and profit/loss on sale are
shown as a separate line in the income statement and comparative figures are adjusted. Revenue, costs, value adjustment and tax for
the discontinued operations are given in the notes.
Assets and related liabilities for discontinued operations are shown as separate lines in the statement of financial position (see the
section “Assets held for sale and liabilities related to assets held for sale”), and the main items are specified in the notes.
Cash flows from discontinued operations are recognised in the consolidated cash flow statement.
The items of subsidiaries are fully recognised in the consolidated financial statements. The non-controlling parties’ share of the profit
for the year, and of the equity in subsidiaries which are not 100% owned, is included as a part of the Group’s result or equity, but shown
separately.
Foreign currency translation
For each of the reporting entities in the Group, a functional currency is determined. The functional currency is the currency used in the
primary financial environment in which the reporting entity operates. Transactions denominated in currencies other than the functional
currency are foreign currency transactions. On initial recognition, foreign currency transactions are translated into the functional currency
at the exchange rates applicable on the transaction date. Foreign exchange differences arising between the transaction date and the
date of payment are recognised in profit or loss as finance income or finance costs. Receivables, payables and other monetary items
denominated in foreign currencies are translated into the functional currency at the exchange rates applicable at the end of the reporting
period. The difference between the exchange rates at the end of the reporting period and on the date on which the receivable or payable arose or was recognised in the latest annual report is recognised in profit or loss as finance income or finance costs.
Business combinations
Enterprises acquired or formed during the year are included in the consolidated financial statements from the date of acquisition or
formation. Enterprises disposed of are recognised in the consolidated financial statements until the date of disposal. Comparative
figures are not restated for acquisitions.
On recognition in the consolidated financial statements of subsidiaries with a functional currency other than the DKK, the income statements are translated at the exchange rates of the transaction date, and the items in the statement of financial position are translated
at the exchange rates applicable at the end of the reporting period. An average exchange rate for each month is used as the transaction date exchange rate, unless this would significantly distort the presentation of the underlying transactions.
The acquisition method is used on acquisitions of new businesses where the Gabriel Holding A/S Group gains control. The acquired
company’s identifiable assets, liabilities and contingent liabilities are measured at fair value at the acquisition date. Deferred tax on
the revaluations made is recognised.
Foreign exchange differences arising on translation of the opening balance of equity of such foreign operations at the exchange rates
applicable at the end of the reporting period, and on translation of the income statements from the exchange rates of the transaction
date to the exchange rates applicable at the end of the reporting period, are recognised in other comprehensive income, in a separate translation reserve under equity.
The acquisition date is the date on which Gabriel Holding A/S effectively gains control of the acquired business.
Costs attributable to business combinations are recognised directly in the profit for the year in which they were incurred.
On recognition in the consolidated financial statements of joint ventures with a functional currency other than the DKK, the share of
profit/loss for the year is translated at average exchange rates. The share of equity, including goodwill, is translated at the exchange
rates applicable at the end of the reporting period. Foreign exchange differences arising on the translation of the share of the opening
equity of foreign joint ventures, at the exchange rates applicable at the end of the reporting period, and on translation of the share
of profit/loss for the year from average exchange rates to the exchange rates applicable at the end of the reporting period, are recognised in other comprehensive income in a separate translation reserve under equity.
Exchange rate adjustments to the exchange rates applicable at the end of the reporting period of balances which are considered part
of the net investment in foreign activities are recognised in other comprehensive income in the consolidated financial statement as a
separate translation reserve under equity.
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