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Denmark

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 28 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 February 2012, the European Commission published the results of an updated survey of the (then) 27 EU member states and the 3 EEA member states regarding the four options above. For information on each country's plans, click to access:

Use of IFRS options in Denmark

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.

Related news

  • Denmark allows English-only annual reports

  • Jan 09, 2014

  • On 3 December 2013, the Danish Parliament adopted the act modifying the Danish Financial Statements Act and other acts allowing Danish companies subject to the Danish Financial Statements Act to present their annual reports in English only. The provisions are effective as of 1 January 2014 for annual reports adopted at a general meeting held after 1 January 2014. This includes annual reports for the calendar year 2013 — but it is also applies to annual reports for financial years ending on 31 August 2013 or later — provided that the general meeting is held after 1 January 2014 and the decision to prepare the annual report in English is made at the general meeting before considering whether or not to adopt the report.

  • Danish regulator suggests disclosure overload can be dealt with within existing IFRSs

  • Dec 11, 2013

  • The Danish regulator overseeing non-financial entities (Erhvervsstyrelsen or Danish Business Authority (DBA)) has sent out its traditional communication covering relevant topics for consideration at year-end - the so-called 'Christmas letter'. This year, the DBA urges companies to actively look for any immaterial information/disclosure in the financial statements that could be omitted from them.

  • Denmark replaces existing accounting standards for SMEs with one single standard

  • Apr 22, 2013

  • In an effort to modernise accounting for small and medium-sized entities (SMEs) and to inspire the preparation of informative and relevant financial statements, the Accounting Technical Committee of FSR – Danske Revisorer (FSR – Danish Auditors) has published a new accounting standard replacing existing guidelines scattered so far through a number of standards.

  • Rio+20 'encourages' sustainability reporting

  • Jun 24, 2012

  • The outcome document from the United Nations Conference on Sustainable Development (Rio+20) held on 20-22 June 2012 has acknowledged the importance of sustainability reporting. Paragraph 47 of the document 'encourages' companies to integrate sustainability information into their reporting cycle. The development has been championed by the governments of Brazil, Denmark, France and South Africa, which are forming a group of ‘friends of paragraph 47’ to advance corporate sustainability reporting.

  • FEE publishes survey on the accountancy profession in Europe

  • Mar 29, 2012

  • The Federation of European Accountants (Fédération des Experts-comptables Européens, FEE) has released a survey which provides a collection of key features on structure and organisation of the accountancy profession across 30 European countries.

  • Use of Options within the Accounting Directives

  • Sep 20, 2011

  • The European Commission services have published a report on the responses received to the consultation of accounting regulatory committee members on the use of options within the European Accounting Directives.

  • More than 70 jurisdictions apply ISAs

  • Jul 11, 2011

  • On June 30 2011, Prof. Arnold Schilder, the Chairman of the IAASB, delivered a speech on global progress in the use of the Clarified International Standards on Auditing (ISAs) at the 2011 annual conference on Accounting and Accountability for Regional Economic Growth in Latin America and the Caribbean (referred to as CReCER after its Spanish/Portuguese acronym).

  • Update on IASB outreach activities

  • Sep 15, 2010

  • As part of its outreach activities, the IASB regularly undertakes a number of discussion group forums in various locations around the globe.

  • Introduction to IFRSs (Danish)

  • Mar 31, 2009

  • Deloitte Denmark has published IFRS – Introduction to International Financial Reporting Standards (Introduktion til de internationale regnskabsstandarder).

  • European discussion paper on performance reporting

  • Mar 25, 2009

  • EFRAG and the national standard-setters of Denmark, France, Germany, Italy, Poland, Spain, Sweden, and the UK have published a Discussion Paper on Performance Reporting under the PAAinE initiative.

  • Deloitte partner is the new chair of EFRAG

  • Jan 23, 2004

  • Deloitte & Touche partner Stig Enevoldsen has been selected as the new full-time Chairman of the Technical Expert Group (TEG) of the European Financial Reporting Advisory Group (EFRAG) effective 1 April 2004 for a three-year term.

  • Country updates added for Europe, South Africa

  • May 18, 2001

  • The Country Updates on this website have been expanded to include Austria, Denmark, France, Germany, Greece, Italy, Luxembourg, Portugal, Russian Federation, South Africa, and United Kingdom.

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