Ledelsesberetningen

Ledelsesberetningen, literally the management’s report, is a narrative section commonly found in the annual reports of Danish and Norwegian companies. It provides management’s assessment of the company’s development, performance and significant events during the financial year, and it complements the financial statements by adding qualitative context.

Regulatory context and preparation: In Denmark and Norway, ledelsesberetningen is part of the annual report and is typically prepared by the board of directors together with the executive management. It is usually subject to audit alongside the financial statements and is presented to the general meeting. The exact requirements for content and length can vary depending on company type, size, and applicable accounting or company law.

Typical content: A conventional ledelsesberetningen describes the development of activities and the company’s financial position and results, highlights significant events after the reporting period, and provides an assessment of the going concern assumption. It often covers risk exposure and risk management, material uncertainties, and may include management’s outlook for future performance. In many cases, non-financial factors such as sustainability, governance, and social responsibility are addressed voluntarily or when required by law.

Purpose and use: The report is intended to give stakeholders a coherent narrative that explains the drivers behind the financial numbers and the main factors influencing the company’s trajectory. It enhances transparency by linking strategy, governance, risk, and performance to the figures presented in the statements.