GN Store Nord A/S – Annual report – 31 December 2023
Industry: manufacturing
2.1 Segment disclosures (extract 1)
Other segment disclosures 2023
Other segment disclosures 2022
* Please refer to Key Ratio Definitions on page 145 for definition of EBITA
** Excluding gain (loss) on divestments of operations etc. but including amortization of development projects
*** Does not include amortization and impairment of acquired intangible assets, as per definition of EBITA on page 132
3.1 Intangible assets (extract)
Accounting policies (extract)
Development projects, Software, Patents, Licenses and Other Intangible Assets
Intangible assets are measured at cost less accumulated amortization and impairment. Amortization is provided on a straight-line basis over the expected useful lives of the assets. When changing the depreciation period, the effect on the depreciation is recognized prospectively as a change in accounting estimates. Amortization and impairment is recognized in the income statement as production costs, development costs, distribution costs and administrative expenses.
The expected useful lives are as follows:
Completed development projects 1-5 years
Software 3-10 years
Customer relationships up to 10 years
Patents, licenses, trademarks and other
intellectual property rights up to 20 years
Development projects that are clearly defined and identifiable, where the technical utilization degree, sufficient resources and a potential future market or development opportunities in the Company is evidenced, and where GN Store Nord intends to produce, market or use the project, are recognized as intangible assets if it is probable that costs incurred will be covered by future earnings. The cost of such development projects includes direct wages, salaries, materials and other direct and indirect costs attributable to the development projects. Amortization and write-down of such capitalized development projects are started at the date of completion and are included in development costs. Other development costs are recognized in the income statement as incurred.
Gains or losses on the disposal of intangible assets are determined as the difference between the selling price less selling costs and the carrying amount at the disposal date, and are recognized in the income statement as other operating income or other operating costs, respectively.
Significant accounting estimates and judgments (extract)
Development projects
Development projects are measured at cost less accumulated amortization and impairment. An impairment test is performed of the carrying amount of recognized development projects. The impairment test is based on assumptions regarding strategy, product life cycle, market conditions, discount rates and budgets, etc., after the project has been completed and production has commenced. If market-related assumptions etc., are changed, development projects may have to be written down. Management examines and assesses the underlying assumptions when determining whether or not the carrying amount should be written down. In addition, Management continuously assess the useful lives of its products to ensure that amortization of development projects reflects the useful lives.
Accounts examples 