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Denmark Denmark is included in the IFAD GAAP Convergence Studies National Professional Organisation Website: Foreningen af Registrerede Revisorer National Professional Organisation Website: Foreningen af Statsautoriserede Revisorer Response to IFAC Member Body Survey on Standard Setting and Regulation Update for September 2007 Update for July 2007 Update for March 2007 Update for March 2006 Update for August 2005 Update for May 2005 Copenhagen: Financial Reporting Framework in Denmark Adoption of IFRSs in Europe Effective in 2005 In June 2002, the European Union adopted an IAS Regulation requiring European companies listed in an EU securities market, including banks and insurance companies, to prepare their consolidated financial statements in accordance with IFRSs starting with financial statements for financial year 2005 onwards. EU countries have the option to: Require or permit IFRSs for unlisted companies. Require or permit IFRSs in parent company (unconsolidated) financial statements. Permit companies whose only listed securities are debt securities to delay IFRS adoption until 2007. Permit companies that are listed on exchanges outside of the EU and that currently prepare their primary financial statements using a non-EU GAAP (in most cases this would be US GAAP) to delay IFRS adoption until 2007. The European IAS regulation applies not only to the 27 EU Member States but also to the three members of the European Economic Area (EEA) – Iceland, Liechtenstein, and Norway. Denmark is an EU Member State. Consequently, Danish companies companies listed in an EU/EEA securities market have been following IFRSs starting in 2005. In January 2005, the European Commission published the results of a survey of the 25 EU member states and the 3 EEA member states on their plans regarding the four options above. For information on each country's plans, click to download: Table on Use of IFRS Options in 25 Member and 3 EEA States (PDF 40k) Use of IFRS Options in Denmark All listed companies that are already using IFRSs in their consolidated financial statements must prepare separate financial statements in accordance with IFRSs starting in 2009. Listed companies that do not prepare consolidated financial statements are not required to apply IFRSs until 2009. Unlisted companies are not required to prepare IFRS financial statements. Auditor's Report The European Commission has adopted the following wording for use in the notes to the accounts and in the audit reports of companies subject to EU Regulation 1606/2002/EC (the 'IAS regulation'): "in accordance with International Financial Reporting Standards as adopted by the EU" or "in accordance with IFRSs as adopted by the EU". Companies may also state, in a footnote, compliance with IFRSs as adopted by the IASB, if that is the case. September 2007: Overview and impact of the IASB's insurance DP in Denmark (in Danish) Deloitte in Denmark has published a booklet about the IASB's Discussion Paper (DP) on Insurance Contracts. The DP is the first step in the IASB's project to develop a comprehensive global financial reporting standard for accounting for all insurance contracts from the perspective of the insurer. The publication (which is in the Danish language) provides an overview of the DP and examines the expected impact on Danish life and non-life insurance companies, including numerical examples. Click to Download the Deloitte Denmark Publication (PDF 1,082k). July 2007: Videocasts on interim reporting in Denmark (in Danish) A current issue in Denmark is the application of new accounting requirements for half-yearly reports for listed companies and financial institutions (both banks and insurance companies) due to file their half-yearly reports at the end of August 2007. Listed financial institutions that prepare consolidated financial statements will be applying IAS 34 Interim Financial Reporting for the first time. This will most likely result in significant changes compared to previous interim reporting. Deloitte Denmark offers insight into the topic via three videocasts. Click here to View the Webcasts (in Danish). March 2007: Update on Use of IFRS Options in Denmark All listed companies that are already using IFRSs in their consolidated financial statements must prepare separate financial statements in accordance with IFRSs starting in 2009. Listed companies that do not prepare consolidated financial statements are not required to apply IFRSs until 2009. Unlisted companies are not required to prepare IFRS financial statements. March 2007: IFRS modelregnskab 2006 (Model Financial Statements in Danish) Deloitte (Denmark) has published the Danish Language Model IFRS Financial Statements for 2006 (PDF 758k, 142 pages). The statements reflect the requirements of Danish law as well as IFRSs. Each item in the financial statements is cross-referenced to the relevant source. March 2006: Model IFRS 2005 Financial Statements in Danish   In March 2006, Deloitte (Denmark) published a Danish-language translation of the 2005 model IFRS financial statements, updated from the January 2006 version to reflect disclosures required by new Standards/Interpretations issued but not yet effective. Click to download IFRS Modelregnskab 2005 (Model Financial Statements 2005) (PDF 539k) August 2005: Checklist for Transition from Danish GAAP to IFRSs in 2005 Deloitte in Denmark has developed a Checklist for Transition from Danish GAAP to IFRSs in 2005 (PDF 685k). It describes in English the areas of IFRSs that differ from Danish GAAP. This checklist is likely to be a useful tool for non-Danish speakers needing to know about the impact of IFRSs for entities listed on the Copenhagen Stock Exchange. May 2005: Introduktion til de internationale regnskabsstandarder In May 2005, Deloitte (Denmark) published IFRS – Introduction to International Financial Reporting Standards (in Danish). The publication summarises each IFRS/IAS together with relevant interpretations (IFRIC/SIC) as well as the main differences between IFRSs and Danish GAAP. The publication also includes a short introduction to key factors in a successful conversion to IFRSs as well as helpful checklists on key differences between IFRSs and Danish GAAP and on Danish accounting rules that must be applied even if the company is reporting under IFRSs. Click here to download IFRS – Introduction to International Financial Reporting Standards (PDF 2.4mb, 244 pages).