• 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 January 2010
Update for March 2009
Update for September 2007
Update for July 2007
Update for March 2007
Update for March 2006

Copenhagen:

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 listed in an EU/EEA securities market follow IFRSs since 2005. In July 2010, the European Commission published the results of a survey of the 27 EU member states and the 3 EEA member states regarding the four options above. For information on each country's plans, click to download:

• Table on Use of IFRS Options in 30 EU Member and EEA States (PDF 64k)

Use of IFRS Options in Denmark (updated March 2009)

Starting in 2009, Denmark has eliminated the requirement for listed companies to apply IFRS in their separate financial statements. Listed non-group companies are, however, still required to prepare their financial statements in accordance with IFRS as from 2009 calendar year.

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.

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.

Note: The videocasts are outdated and no longer available on www.deloitte.dk. (Note added August 2010)

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.

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)