Ledelsesberetning

Ledelsesberetning, or management's report, is a section of the annual report in Danish and Norwegian corporate reporting. It presents management's assessment of the year's activities, financial position and future prospects and is prepared by the board of directors and executive management as a complement to the financial statements.

The report typically covers the description of the business and market conditions, significant events and strategic developments, financial performance and liquidity, capital structure, risk exposure and risk management, and the going concern assessment. It may also include after-the-period events, non-financial information such as sustainability, environmental and social factors, employees, governance, and compliance. The content and level of detail vary with jurisdiction and company size.

Legal framework: In Denmark and Norway, ledelsesberetningen is generally required by national accounting or company law as part of the annual report. The exact scope, required topics and whether the section is subject to audit depend on country rules and company size. The report is read alongside the financial statements by investors, creditors and other stakeholders to gain insight into management's view of performance and risks.

Purpose and use: The ledelsesberetning aims to provide a coherent management perspective, enhance transparency, and supplement numerical information with narrative context about strategy, risk, governance and sustainability. It supports accountability and informed decision-making for readers of the annual report.