ANNUAL REPORT 2021 slide image

ANNUAL REPORT 2021

LUNDBECK ANNUAL REPORT 2021 = CONTENTS CONSOLIDATED FINANCIAL STATEMENTS NOTES 19-20 19 FINANCIAL INSTRUMENTS - CONTINUED Financial assets and financial liabilities measured or disclosed at fair value 2021 Financial assets Other financial assets¹ Derivatives¹ Total Level 1 Level 2 Level 3 DKKm DKKm DKKm 22 22 35 41 22 41 35 83/111 amounts to a net loss of DKK 133 million and is the result of changes in the time value of the contingent value rights and of the sales milestones dependent on predefined milestones being reached. Total contingent consideration amounted to DKK 1,623 million at 31 December 2021 (DKK 1,108 million at 31 December 2020). Besides the fair value adjustment and the adjustment of the sales milestone (see note 18 Other payables), the only change in contingent consideration is exchange rate adjustments of DKK 109 million. The carrying amount of other receivables, trade receivables, prepayments, bank debt, other debt, trade payables and other payables is believed to be equal to or close to fair value. Financial liabilities Contingent consideration' Derivatives1 Bank debt² Bond debt² Total 1,623 20 AUDIT FEES 243 1,083 3,755 3,755 1,326 1,623 Statutory audit Assurance engagements other than audit 2020 Tax advisory Financial assets Other services Other financial assets¹ 81 35 Fee to PricewaterhouseCoopers Derivatives¹ 697 Total 81 697 35 Financial liabilities Contingent consideration¹ Derivatives¹ Bank debt² Bond debt² Total 1) Measured at fair value. 2) Disclosed at fair value.. 1,108 365 3,698 3,781 3,781 4,063 1,108 The fair value of securities is based on publicly quoted prices of the invested assets. The fair value of derivatives is calculated by applying recognized measurement techniques, whereby assumptions are based on the market conditions prevailing at the balance sheet date. The fair value of contingent consideration is calculated as the discounted cash outflows (DCF method) from future milestone payments, taking probability of success into consideration. The fair value adjustment of contingent consideration 2021 2020 DKKm 9 DKKm 10 1 2 4 4 1 16 15 The fee for non-audit services provided to the Group by PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab, Denmark, amounted to DKK 3 million (DKK 4 million in 2020) and consisted of people service project, other assurance services and other accounting and tax advisory services. Certain subsidiaries of the Group are not subject to audit by PricewaterhouseCoopers.
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