Investor Presentaiton
Novo Nordisk Annual Report 2023
Introducing Novo Nordisk
Strategic Aspirations
Risks
Management
Consolidated statements
Additional information
79
19
ACCOUNTING POLICIES
The acquisition method of accounting is used to account for all business combinations.
The purchase price for a business comprises the fair values of the assets transferred,
liabilities incurred to the former owners including warrant holders of the acquired
business and the fair value of any asset or liability resulting from a contingent
consideration arrangement. Any amount of the purchase price which effectively
comprises a settlement of a pre-existing relationship is not part of the exchange
for the acquiree and is therefore not included in the consideration for the purpose
of applying the acquisition method. Settlements of pre-existing relationships are
accounted for as separate transactions in accordance with the relevant IFRS standards.
Identifiable assets and liabilities and contingent liabilities assumed are measured
at fair value at the date of acquisition by applying relevant valuation methods.
Acquisition-related costs are expensed as incurred. Goodwill is recognised at the
excess of purchase price over the fair value of net identifiable assets acquired and
liabilities assumed.
KEY ACCOUNTING ESTIMATES IN DETERMINING
THE FAIR VALUE OF INTANGIBLE ASSETS
The application of the acquisition method involves the use of significant estimates
because the identifiable net assets of the acquiree are recognised at their fair value
for which observable market prices are typically not available. This is particularly
relevant for intangible assets which require use of valuation techniques typically
based on estimates of present value of future uncertain cash flows. For the 2022
acquisition of Forma Therapeutics Holdings, Inc. valuations of intellectual property
rights were based on estimated and risk adjusted net present value of future cash flows.
5.4 Related party transactions
5.5 Fees to statutory auditors
Material transactions with related parties
DKK million
2023
2022
2021
DKK million
2023
2022
2021
Novo Holdings A/S
Statutory audit¹
30
38
26
Purchase of Novo Nordisk B shares
8,775
6,984
Dividend payment to Novo Holdings A/S
9,028
7,207
6,695
6,144
Audit-related services
3
2
3
Tax advisory services
8
3
4
NNIT Group
Other services
18
12
4
Services provided by NNIT
436
660
593
Total fees to statutory auditors
59
55
37
(4)
1.2022 statutory audit fee includes DKK 9 million of additional fee related to 2021.
Dividend payment from NNIT
Altasciences Group
Services provided by Novo Nordisk
Services provided by Altasciences
Novozymes Group
Services provided by Novo Nordisk
Services provided by Novozymes
IR
-
229
70
11
(48)
112
(78)
92
(116)
78
Novo Nordisk A/S is controlled by Novo Holdings A/S (incorporated in Denmark), which
owns 28.1% of the share capital in Novo Nordisk A/S, representing 77.1% of the total
number of votes. The remaining shares are widely held. The ultimate parent of the
Group is the Novo Nordisk Foundation (incorporated in Denmark). Both entities are
considered related parties.
As associated companies of Novo Nordisk A/S, NNIT Group and Churchill Stateside
Solar Fund XIV, LLC ('CS Solar Fund XIV') are considered related parties. As associated
companies of Novo Holdings A/S, Unchained Labs, Inc. and Altasciences Company Inc.
are considered related parties to Novo Nordisk A/S. As Novo Holdings is a controlling
shareholder, the Novozymes Group, Sonion Group and Xellia Pharmaceuticals are also
considered to be related parties, as well as the Board of Directors and Executive
Management of Novo Nordisk A/S.
In 2023, Novo Nordisk A/S acquired 14,025 B shares, worth DKK 8.8 billion, from
Novo Holdings A/S as part of the DKK 30.0 billion share repurchase programme. The
transaction price for each transaction was calculated as the average market price in
the open window period following the announcements of the financial results for the
first and third quarters in 2023.
There were no transactions with the Board of Directors or Executive Management
besides remuneration.
There were no material unsettled balances with related parties at the end of the year.
Fees for services other than statutory audit of the financial statements amount to
DKK 29 million (DKK 17 million in 2022 and DKK 11 million in 2021).
In 2023, Deloitte Statsautoriseret Revisionspartnerselskab provided other services
than statutory audit in the amount of DKK 18 million (DKK 12 million in 2022 and
DKK 6 million in 2021) which relate to tax due diligence and transfer pricing,
management consulting for strategic projects, leadership training, review of ESG
data and other assurance assessments and opinions.View entire presentation