DSV Annual Report 2022
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DSV Annual Report 2022 Consolidated financial statements 2022
= III
Chapter 6
Other notes
This chapter includes disclosures on other
statutory information not directly related
to the operating activities of the Group.
The chapter describes the acquisition and
disposal of entities during the year, contingent
liabilities and security for debt as well as trans-
actions with Group Management, auditors
and other related parties.
6.1 Acquisition and disposal of entities
Accounting policies
When accounting for business combinations, the acquisition method is
applied in accordance with IFRS 3.
Acquirees are recognised in the consolidated financial statements from
the date of acquisition. The date of acquisition is the date on which DSV
obtains control of the company. Entities disposed of are recognised in the
consolidated financial statements until the date of disposal. The date of
disposal is the date on which DSV surrenders control of the company.
The consideration transferred as payment for the acquiree consists of the
fair value of assets transferred, liabilities incurred to former owners of the
acquiree and equity instruments issued. Contingent considerations de-
pendent on future events or the performance of contractual obligations
are also recognised at fair value and form part of the total consideration
transferred. Fair value changes in contingent considerations are recog-
nised in the income statement until final settlement.
Identifiable assets, liabilities and contingent liabilities of the acquiree are
measured at fair value at the date of acquisition by applying relevant val-
uation methods. Identifiable intangible assets are recognised if they are
separable or arise from a contractual right. Deferred tax is recognised
for identifiable tax benefits existing at the date of acquisition and from
the perspective of the new combined Group in compliance with local
tax legislation.
The excess of the total consideration transferred, value of non-controlling
interests and the fair value of any equity investments previously held in
the acquiree over the total identifiable net assets measured at fair value
are recognised as goodwill.
If measurement of the identifiable net assets is uncertain at the date
of acquisition, initial recognition is done based on provisional amounts.
Measurement period adjustments to the provisional amounts may be
done for up to 12 months following the date of acquisition.
The effects of cross-period measurement period adjustments are recog-
nised in equity at the beginning of the financial year, and comparative
figures are restated.
After the end of the measurement period, goodwill is no longer adjusted.
Transaction costs inherent from the acquisition are recognised in the in-
come statement when incurred.
Goodwill and fair value adjustments arising from the acquisition of an ac-
quiree whose functional currency differs from the presentation currency
of the Group are translated into the functional currency of the foreign
entity using the exchange rate ruling at the date of acquisition.
Other than cross-period measurement period adjustments, comparative
figures are not adjusted when acquiring or disposing of entities.
Management judgements and estimates
In applying the acquisition method of accounting, estimates are an inte-
gral part of assessing fair values of several identifiable assets acquired and
liabilities assumed, as observable market prices are typically not available.
Valuation techniques where estimates are applied typically relate to de-
termining the present value of future uncertain cash flows or assessing
other events in which the outcome is uncertain at the date of acquisition.
More significant estimates are typically applied in accounting for property,
plant and equipment, customer relationships, trade receivables, deferred
tax, debt and contingent liabilities. As a result of the uncertainties inherent
in fair value estimation, measurement period adjustments may be applied.View entire presentation