Investor Presentaiton
Novo Nordisk Annual Report 2023
5.6 General accounting policies
Principles of consolidation
The consolidated financial statements incorporate the financial statements of the
parent company Novo Nordisk A/S and entities controlled by Novo Nordisk A/S.
Control exists when Novo Nordisk has effective power over the entity and has the
right to variable returns from the entity. The results of subsidiaries acquired or
disposed of during the year are included in the consolidated income statement
from the effective date of acquisition and up to the effective date of disposal.
Functional and presentation currency
Items included in the financial statements of Novo Nordisk's entities are measured using
the currency of the primary economic environment in which the entity operates (functional
currency). The consolidated financial statements are presented in Danish kroner (DKK),
which is also the functional and presentation currency of the parent company.
Translation of transactions and balances
Foreign currency transactions are translated into the functional currency using
the prevailing exchange rates at the transaction dates. Foreign exchange gains and
losses resulting from the settlement of such transactions and from the translation
at year-end exchange rates of monetary assets and liabilities are recognised in the
income statement. Foreign currency differences arising from the translation of
effective qualifying cash flow hedges are recognised in other comprehensive income.
Translation of Group companies
Financial statements of foreign subsidiaries are translated into DKK at the exchange
rates prevailing at the end of the reporting period for balance sheet items, and at
average exchange rates for income statement items. All effects of exchange rate
adjustments are recognised in other comprehensive income.
Cash flow statement
The Cash flow statement is presented in accordance with the indirect method
commencing with net profit for the year.
Introducing Novo Nordisk Strategic Aspirations
Risks
Management
Consolidated statements
Additional information.
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