NOTES – KIRKBI GROUP PART 3
(m DKK) 2017 2016
Obligations regarding finance leases are as follows:
0-1 year 8 6
1-5 years 10 21
> 5 years – –
Reconciliation of carrying amount:
Carrying amount of the liability 16 23
Interest expenses not yet accrued 2 4
ANNUAL REPORT 2017 | 61 |
Trade receivables are initially recognised at fair
value and subsequently measured at amortised
cost less provisions for bad debt. Provisions for
bad debt are made on the basis of an individual
assessment of the risk relating to each receivable.
5.3. ASSETS HELD FOR SALE
Assets held for sale consist of an asset related to the
investments in renewables. The asset is expected
to be sold in 2018 and is presented at the lower
of carrying amount and fair value. Comparative
figures are not restated.
5.4. OTHER LIABILITIES
(m DKK) 2017 2016
Liabilities related to wages and other charges 1,445 1,643
Other current liabilities 3,568 4,527
Specified as follows:
Non-current 178 250
Current 4,835 5,920
The fair value of obligations regarding assets under
finance leases corresponds to the carrying amount.
The fair value is estimated to equal the present
value of expected future cash flows at a market
interest rate for similar leases.
Other liabilities are measured at amortised cost
unless specifically stated otherwise.
Borrowings are initially recognised at fair value,
net of transaction expenses incurred. Borrowings
are subsequently measured at amortised cost.
Any differences between the proceeds and the
redemption value are recognised in the income
statement over the period of the borrowings using
the effective interest method.
Borrowings are classified as current liabilities unless
the KIRKBI Group has an unconditional right to defer
settlement of the liability for at least 12 months after
the balance sheet date.
The KIRKBI Group has no single significant trade
debtor, nor are the trade receivables concentrated
in specific countries. The KIRKBI Group has fixed
procedures for determining the KIRKBI Group’s
granting of credit. The KIRKBI Group’s risk
relating to trade receivables is considered to