Koncernregnskabets

Koncernregnskabet (the consolidated financial statements) presents the financial position, performance, and cash flows of a group as if it were a single economic entity. It combines the parent company and its subsidiaries, excludes intra-group revenue and expenses, and eliminates intra-group profits and losses. Non-controlling interests are shown separately within equity and in the consolidated income statement.

Consolidation scope and methods typically involve identifying entities that the parent controls, meaning it has power over those entities and benefits from their activities. Subsidiaries are fully consolidated, while associates and joint ventures are often accounted for using the equity method under IAS 28. Where control is not present, investments may be measured differently. Intra-group transactions and balances are eliminated in full, and gains or losses on intercompany sales of assets may be deferred until they are realized outside the group.

The consolidated financial statements include the main components of financial reporting: the consolidated balance sheet, the income statement or statement of comprehensive income, the statement of changes in equity, and the cash flow statement, along with notes that disclose accounting policies, segment information, and other significant matters. Foreign operations are translated into the group’s presentation currency using specified exchange-rate rules, with translation differences typically recognized in other comprehensive income or equity, depending on the standard.

Regulatory context varies by jurisdiction. Consolidated statements are often prepared in accordance with IFRS (notably IFRS 10 on consolidated financial statements) or with national GAAP with adaptations. In Denmark, koncernregnskabet is required under the Danish Financial Statements Act (Årsregnskabsloven) and aligns with IFRS for larger groups or national standards for smaller groups.