ANNUAL REPORT 2021
LUNDBECK
ANNUAL REPORT 2021
E CONTENTS
CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1
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1 BASIS OF PREPARATION
1.1 Reporting entity
H. Lundbeck A/S (herein denominated the "Parent company" or "Company") is domiciled in Denmark. The
Company's registered office is at Ottiliavej 9, 2500 Valby. These consolidated financial statements comprise
the Parent company and its subsidiaries (together referred to as the "Group" or "Lundbeck"). The Group is
engaged in research, development, production and sale of pharmaceuticals for the treatment of psychiatric
and neurological disorders. See note 2 Revenue and segment information.
1.2 Basis of accounting
The consolidated financial statements have been prepared in accordance with International Financial
Reporting Standards (IFRS) as adopted by the EU and further requirements in the Danish Financial
Statements Act. The consolidated financial statements were approved by the Board of Directors and
authorized for issue on 9 February 2022.
The statement of financial position is also referred to as "balance sheet".
Details of the Group's accounting policies are included in note 25 Significant accounting policies and in note
1.7 New standards and amendments issued but not yet effective.
1.3 Functional and presentation currency
Items included in the financial statements of each of the Group's entities are measured using the currency
of the primary economic environment in which the entity operates ("the functional currency").
The consolidated financial statements are presented in Danish kroner (DKK), which is also the functional
currency of the Parent company. All amounts have been rounded to the nearest DKK million, unless
otherwise indicated.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions of estimates are
recognized prospectively.
Management believes that the following accounting estimates, assumptions and judgments are significant to
the consolidated financial statements.
Principal accounting policies
Provision for discounts and rebates
Income taxes and deferred income
taxes
Impairment of product rights
Key accounting estimates, assumptions and
judgments
Notes
Estimate of discounts and rebates in the U.S.
Judgment and estimate of deferred tax assets and
liabilities and provision for uncertain tax positions
Estimate of the value-in-use methodology for
impairment of product rights
2,15
5
6
Estimate of ongoing legal disputes, litigations and
investigations
15,16
contingent
Assumptions and estimates used in the calculation of
the fair value related to contingent consideration from
the businesses acquired in 2019
18
Provisions for legal disputes,
contingent assets and liabilities
Other payables
consideration
1.6 Changes in significant accounting policies
New and amended standards adopted by the group
Effective 1 January 2021, a number of amendments to the accounting standards were implemented.
None of the amendments have a material impact on the accounting policies and/or on the consolidated
financial statements, consequently, no changes to the accounting policies or retrospective adjustments have
been made as a result of adopting these standards and/or amendments.
1.4 Principal accounting policies
The consolidated financial statements have been prepared to give a true and fair view of the Group's financial
position at 31 December 2021 and financial performance for the year. The significant accounting policies are
described in note 25 Significant accounting policies. Management believes that the accounting policies listed
in note 1.5 Use of judgments and estimates are principal to the financial statements.
1.5 Use of judgments and estimates
In preparing the consolidated financial statements, Management has made estimates and judgments that
affect the application of the Group's accounting policies and the reported amounts of assets, liabilities,
income and expenses. Actual results may differ from these estimates.View entire presentation