ANNUAL REPORT 2021
LUNDBECK
ANNUAL REPORT 2021
= CONTENTS
CONSOLIDATED FINANCIAL STATEMENTS
NOTES 4-5
4 FINANCIAL INCOME AND EXPENSES
5 INCOME TAXES
Tax on profit for the year
60/111
2021
2020
2021
2020
DKKm
DKKm
DKKm
DKKm
Interest income from financial assets measured at amortized costs
7
6
Current tax
342
735
Gain on other financial assets, measured at fair value through profit or loss, incl. dividends
Fair value adjustment of contingent consideration
7
92
Prior-year adjustments, current tax
(51)
1
102
Prior-year adjustments, deferred tax
36
(41)
Exchange gains
76
Change in deferred tax for the year
(200)
(284)
Other financial income
1
Financial income
14
277
Change in deferred tax as a result of changed income tax rates
Total tax for the year
(1)
36
126
447
Interest expenses from financial liabilities measured at amortized costs
146
173
Tax for the year is composed of:
Interest expenses relating to lease liabilities
7
8
Tax on profit for the year
Loss on other financial assets, measured at fair value through profit or loss, incl. dividends
Fair value adjustment of contingent consideration
65
12
Tax on other comprehensive income
133
99
Tax on other transactions in equity
Exchange losses
31
Total tax for the year
263
325
(137)
123
(1)
126
447
Other financial expenses
61
69
Financial expenses
Net financials, expenses
443
361
429
84
For a specification of tax on comprehensive income, see note 12 Equity.
Uncertain tax positions
The Group operates in a multinational tax environment. Complying with tax rules can be complex as the
interpretation of legislation and case law may not always be clear or may change over time. In addition,
transfer pricing disputes with tax authorities may occur. Management's judgments are applied to assess the
possible effect of exposures and the possible outcome of disputes or interpretational uncertainties.
Uncertain tax positions comprise of a liability of DKK 497 million and an asset of DKK 66 million (a liability of
DKK 484 million and an asset DKK 78 million in 2020). Management believes that the accrual is adequate.
However, the actual obligation may differ from the accrual made and depends on the outcome of litigations
and settlements with the relevant tax authorities.View entire presentation