Arla Foods Consolidated Annual Report 2021
69
Arla Foods Consolidated Annual Report 2021 / Consolidated Financial Statements / Primary Statements
EQUITY / CONTINUED
Understanding equity
Equity accounts regulated by the Articles of Association
can be split into three main categories: common
capital, individual capital and other equity accounts.
The characteristics of each account are explained below.
Common capital
Common capital is by nature unallocated to individual
members and consists of the capital account and the
reserve for special purposes. The capital account
represents a strong foundation for the cooperative's
equity, as the non-impairment clause, described on
page 70, ensures that the account cannot be used for
payments to owners. The reserve for special purposes is
an account that in extraordinary situations can be used
to compensate owners for losses or impairments
affecting the profit for appropriation. Amounts
transferred from the annual profit appropriation to
common capital are recognised in this account.
Individual capital
Individual capital is capital allocated to each owner
based on their delivered milk volume. Individual capital
consists of contributed individual capital, delivery-based
owner certificates and injected individual capital.
Amounts registered to these accounts will, subject to
approval by the Board of Representatives, be paid out
when owners leave the cooperative. Amounts allocated
to contributed individual capital as part of the annual
profit appropriation are interest-bearing. The account
for proposed supplementary payment that will be paid
out following the approval of the annual report is also
classified as individual capital.
Other equity accounts
Other equity accounts include accounts prescribed
by IFRS. These include reserves for value adjustments
of hedging instruments, the reserve for fair value
adjustments of certain financial assets and the reserve
for foreign currency translation adjustments.
Non-controlling interests
Non-controlling interests represent the share of group
equity attributable to holders of non-controlling
interests in group companies.
EQUITY SHARE 37 PER CENT
Development in equity
(EURM)
3,000
2,900
2,800
2,700
2,639
During 2021 equity increased by EUR 271 million
compared to last year and totalled EUR 2,910 million at
31 December 2021.
2,600
2,500
2,400
Transactions with farmer owners
2,300
2,200
2,100
A supplementary payment related to 2020 totalling
EUR 227 million was paid out in March 2021.
Additionally, EUR 20 million was paid out to owners
resigning or retiring from the cooperative, while an
amount of EUR 2 million was paid in. The Board of
Directors proposed to pay EUR 207 million in March
2022 as a supplementary payment including interest
on individual capital instruments for 2021. Furthermore,
it is expected that EUR 21 million will be paid out in
2022 to owners resigning or retiring.
Other equity adjustments
Other equity adjustments of EUR 170 million related to
other comprehensive income of EUR 171 million,
transactions with non-controlling interests of EUR -6
million and foreign exchange rate adjustments of EUR 5
million. Other comprehensive income included income
and expenses as well as gains and losses that are
excluded from the income statement and often not
realised at the balance sheet date. The net income of
EUR 171 million was due to positive value adjustments
on net assets measured in foreign currencies, positive
value adjustments on hedging instruments and
remeasurement of pension assets and liabilities.
The equity share of 37 per cent is calculated as equity
excluding non-controlling interests at EUR 2,857
million divided by total assets of EUR 7,813 million.
2,000
Equity including non-controlling
interests 1 January 2021
Profit for the year
346
-227
related to 2020
Supplementary payment
Other payments to farmer owners
-18
Other equity adjustments
170
2,910
Equity including non-controlling
interests 31 December 2021
Contents
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