DSV Annual Report 2022

82 DSV Annual Report 2022 Consolidated financial statements 2022 6.6 Contingent liabilities and security for debt Contingent liabilities Accounting policies Contingent liabilities comprise possible obligations which have not yet been confirmed, are uncertain or cannot be measured reliably, but which, if realised, may result in a drain on the Group's resources. Obligations are recognised in the financial statements only to the extent that the criteria for recognising a provision are met. Management judgements and estimates Management applies judgements in assessing the existence of contingent liabilities on an ongoing basis and in this regard considers if the criteria for recognising a provision are met. These judgements may involve advice from external experts, legal advisors, etc. Contingent liabilities As an international transport service provider, the Group is regularly in- volved in tax and VAT disputes, legal proceedings or inquiries from compe- tition authorities. Management believes that the cases currently identified will have no material impact on the financial position of the Group. A detailed disclosure of individual contingent liabilities is considered im- practicable and is therefore not included in the notes to the financial statements. Security for debt Bank guarantees As part of its ordinary operations, DSV has provided bank guarantees to authorities, suppliers, etc. The counterparties may claim appropriation of collateral if DSV fails to pay any amount due. Pledges At 31 December 2022, property, plant and equipment and other financial assets with a carrying value of DKK 30.9 million were pledged as security (2021: DKK 140.9 million). The carrying amount of debt secured by pledges amounted to DKK 0 million (2021: DKK 64 million). Contracts DSV has concluded IT service contracts. Costs related to these contracts are recognised as the services are provided. = III

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