Annual Report IPF 2021 - Flipbook - Side 32
INDUSTRIENS PENSIONSFORSIKRING A/S
ANNUAL REPORT 2021
The remaining realised profit from insurance policies with
a bonus entitlement accrues to the insured.
Balance sheet
Property, plant and equipment
Equipment
Equipment is measured at cost less accumulated
depreciation and impairment. Straight-line depreciation
is made over the expected life of assets of 5 years.
On initial recognition, leased operating equipment and
the associated leasing commitment are measured at cost,
corresponding to the discounted value of expected lease
payments for the lease period agreed. Subsequently, the
leased operating equipment is measured at cost less
accumulated depreciation and impairments, which are
recognised in the income statement. Depreciation is
calculated on a straight-line basis over the lease period
and recognised in the income statement. After initial
recognition, the leasing commitment is measured at
amortised cost, and a calculated interest expense is
recognised in the income statement.
Owner-occupied property
Owner-occupied property is measured at revalued
amount, which is the fair value at the date of revaluation
after deduction of subsequent depreciation and
impairment. The revalued amount is calculated according
to a returns model based on a market rent, costs of the
property and a required rate of return for the specific
type of property. Increases in the revalued amount are
recognised in other comprehensive income unless the
increase corresponds to a drop which has previously been
recognised in the income statement. Decreases in the
revalued value of an owner-occupied property are
recognised in the income statement unless the decrease
corresponds to an increase that was previously
recognised in other comprehensive income. Owneroccupied property is depreciated according to the
straight-line method over an expected useful life of 50
years to the estimated scrap value.
Depreciation is calculated on the revalued amount and
recognised in the income statement. No estate agent
valuation was obtained in connection with determining the
fair value as at the reporting date.
On initial recognition, leased properties from where
Industriens Pension operates and the associated leasing
commitment are measured at cost, corresponding to the
discounted value of expected rentals for the period in
which Industriens Pension is entitled and expects to use
the leased properties. Subsequently, the leased properties
are measured at cost less accumulated depreciation and
impairments recognised in the income statement.
Depreciation is calculated on a straight-line basis over the
expected useful life and recognised in the income
statement. After initial recognition, the lease commitment
is measured at amortised cost, and a calculated interest
expense is recognised in the income statement.
Equity investments with group undertakings and
associated undertakings
Undertakings in which Industriens Pension exercises
controlling influence are recognised as group undertakings
(see note 10). Undertakings in which Industriens Pension
holds between 20% and 50% of the voting rights and
exercises significant influence are recognised as associated
undertakings (see note 11). In certain situations,
investments with an equity interest of more than 20% are
recognised as equity investments in the balance sheet.
These are situations in which a specific assessment shows
that Industriens Pension has neither a controlling influence
nor significant influence.
Equity investments in group undertakings and associated
undertakings are measured at initial recognition at cost,
and subsequently according to the equity method.
According to this method, equity investments are
recognised as the proportionate share of the undertakings'
result and equity, calculated according to the accounting
policies of Industriens Pension.
NOTES
This means that property, plant and equipment (e.g. wind
turbines) and investment assets (e.g. investment
properties) in group undertakings and associated
undertakings are valued at cost in the construction phase,
and subsequently at a revalued fair value for property,
plant and equipment and at fair value for investment
assets.
The fair value of wind turbines and investment properties
is calculated as the present value of expected future
cashflows during a planning period of 25-30 years and 10
years, respectively, calculated on the basis of an
individual fixed discount rate.
Increases and decreases in fair values of investment
assets in group undertakings and associated undertakings
are fully recognised in the income statement under
income from such undertakings.
Loans to group and associated undertakings
Loans to group and associated undertakings are
measured at amortised cost.
Other financial investment assets
Listed equity investments and investment units are
measured at fair value, calculated at the official closing
prices on the reporting date. For equity investments and
investment units that are not actively traded, a calculated
rate is used. Unlisted equity investments, investment
units and bonds are measured at estimated fair value
using recognised valuation methods, for example by
comparing with similar assets for which a fair value is
available or by discounting expected future cash flows
etc.
Listed bonds are measured at fair value based on official
market prices on the reporting date, which are modified
according to the trading activity etc. on the individual
markets. A calculated rate is generally used for bonds that
are not actively traded.
Unlisted bonds are measured at an estimated fair value by
means of recognised valuation methods, see above. The fair
value of called bonds is measured at present value.
Bonds that are sold and repurchased forward (genuine sale
and repurchase transactions) are part of the bond portfolio.
The fair value of these at the end of the financial year is
shown in note 16 to on collateral ceded.
Listed and unlisted derivative financial instruments are
measured at fair value on the reporting date. Fair value is
set at the mid-market prices on the reporting date. Positive
fair values are recognised in the balance sheet under other
financial investment assets, and negative values are
recognised in the balance sheet under other debt. Value
adjustments are recognised under value adjustments. Note
21 shows a summary of the derivative financial instruments
with associated fair values.
Information on prices etc. appearing after the closing date
of the financial statements will only be recognised if these
are material to assessment of the annual financial
statements.
Investment assets attached to market-rate
products
Investment assets attached to market-rate products are
recognised and measured according to the same principles
as other investment assets, see above.
Receivables
Receivables are measured at amortised cost, which usually
corresponds to nominal value. Deductions are made to
account for any losses.
Deferred tax assets
Negative tax on yields of certain pension-scheme assets
calculated on a negative tax basis (tax on yields of certain
pension-scheme assets at institution level) is recognised as
an asset in the balance sheet for offsetting in positive tax on
yields of certain pension-scheme assets in subsequent
years, provided it is likely that such offset can be utilised in
the years to come.
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