DSV Annual Report 2022

54 DSV Annual Report 2022 Consolidated financial statements 2022 = III 2.2 Revenue Accounting policies Revenue comprises freight forwarding services, contract logistics and other related services delivered in the financial year. Revenue from services delivered is recognised in accordance with the over-time recognition principle following the satisfaction of various mile- stones as the performance obligation is fulfilled towards the customer. Our main services comprise air, sea, road and solutions services as de- scribed in the following. Air services Air services comprise air freight logistics facilitating transportation of goods across the globe. Air services are reported within the Air & Sea re- porting segment. Air services are characterised by short delivery times, as most air transports are completed within a few days. Sea services Sea services comprise sea freight logistics facilitating transportation of goods across the globe. Sea services are reported within the Air & Sea re- porting segment. Sea services are characterised by longer delivery times, averaging one month depending on destination. Road services Road services comprise road freight logistics facilitating transportation of goods by road networks mainly in Europe, Middle East, the US and South Africa. Road services are reported within the Road reporting segment. Road services are characterised by short delivery times, as most road transports are completed within a few days. Solutions services Solutions services comprise contract logistics, incl. warehousing and in- ventory management, across the globe. Solutions services are reported within the Solutions reporting segment. Solutions services are character- ised by very short delivery times, happening almost instantaneously as agreed actions under the customer contract are carried out. General recognition principles Revenue from services delivered are recognised based on the price speci- fied in the contract with the customer. Revenue is measured excluding VAT and other tax collected on behalf of third parties, and any discounts are offset against the revenue. Incremental costs of obtaining a contract with a customer are not recognised as an asset but as an expense when incurred due to the short delivery times. Trade receivables from services delivered are invoiced to the customer and are not adjusted for any financing components, as credit terms are short typically between 14 and 60 days - and the financing component therefore insignificant. Where services delivered have yet to be invoiced and invoices on services received from hauliers have still to be received, contract assets and accrued cost of services are recognised at the re- porting date. Revenue allocated to remaining performance obligations are not disclosed following the practical expedient of IFRS 15. Revenue also comprises Services and geographical segmentation (DKKm) Air services Sea services Road services income from sale of property projects in the form of sale of land and buildings acquired, constructed and held for sale in the ordinary course of business. Revenue from property projects is recognised at a point in time in the reporting segment to which it relates when control of and legal title to the property have been transferred to the customer. Revenue is recognised based on the price specified in the contract with the customer, and the consideration is due upon transfer of the legal title. Delivery times on prop- erty projects are typically 8-18 months. If the property is leased back after completion, the right-of-use asset arising from the leaseback is recognised at the proportion of the previous carrying amount of the asset that relates to the right of use retained by DSV. As such, any gain or loss recognised only corresponds to rights transferred to the buyer. Sale of services and geographical segmentation specify as follows: EMEA Americas APAC Total Solutions services Total 2022 2021 30,258 24,867 41,386 32,053 37,453 32,452 16,537 12,914 125,634 102,286 2022 2021 28,083 19,624 28,494 18,317 4,054 2,964 4,382 3,639 65,013 44,544 2022 2021 32,250 26,355 13,960 10,685 2022 90,591 83,840 2021 70,846 61,055 41,507 35,416 3,490 2,181 49,700 39,221 24,409 240,347 186,051 18,734 Non-allocated items and eliminations Total revenue (4,682) (3,745) 235,665 182,306

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