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Investor Presentaiton

nuuday Management review Financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Statements 1.1 | Accounting policies 1.2 | Critical accounting estimates and judgements The Financial statements 2022 of the parent company have been prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the European Union (EU) and further disclosure requirements in the Danish Financial Statements Act (report- ing class "C stor"). The parent company accounting policies are the same as those applied for the Group, with the additions mentioned below. See note 1.1 to the consolidated financial statements for the Group's accounting policies. The accounting policies are unchanged compared with the policies applied in the Annual Report 2021. Supplementary accounting policies for the parent company Investments in subsidiaries, joint ventures and associates The equity method is used for measuring investments in subsidiaries, joint ventures and associates. Under the equity method, investments in a subsidiary, a joint venture or an associate are recog- nised on initial recognition at cost, and the carrying amount is increased or decreased to recognise the parent com- pany's share of the profit or loss of the investment after the date of acquisition. The parent company's share of profit or loss is recognised in the parent com- pany's profit or loss. Dividends received from investments in subsidiaries, joint ventures and associates reduce the carrying amount of the investment. The parent company's share of other com- prehensive income arising from the investment is recognised in other comprehensive income of the parent company. Reserve for capitalised development projects In accordance with the Danish Financial Statements Act, the parent company has established a non-distributable reserve in equity regarding capitalised development projects. This reserve will be reversed as the development projects are amortised or impaired. For information on critical accounting estimates and judgements, see note 1.2 to the consolidated financial statements. 1.3 | New accounting standards For information on new accounting standards for the Group, see note 1.3 to the consolidated financial statements. Nuuday Annual Report 2022 87
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