CONTENTS
MANAGEMENT´S REVIEW
LUNDBECKFONDEN ANNUAL REPORT 2016
FINANCIAL STATEMENTS
PAGE 115
NOTE 33 33. General accounting policies
IFRS 15 Revenue from Contracts with Customers was issued in May 2014 and is effective for an-
The consolidated financial statements have been prepared in accordance with International Fi-
to determine when, how and at what amount revenue is to be recognised depending on whether
nancial Reporting Standards (IFRS) as endorsed by the EU and Danish disclosure requirements
certain criteria are met. Furthermore, a change in the agent-principal assessment and other crite-
for annual reports for large enterprises of reporting class C and industrial foundations.
ria for recognition will apply. The Group has made an overall analysis of how the standard will
nual reporting periods beginning on or after 1 January 2018. Entities will apply a five-step model
impact current and new agreements. The Group expect to finish the analysis and review of seThe consolidated financial statements are presented in Danish kroner (DKK), which also is the
lected contracts during 2017. Furthermore, the implementation will result in additional disclo-
functional currency of Lundbeckfonden (the parent entity).
sures.
The consolidated financial statements have been prepared in accordance with the new and re-
Amendments to IAS 7 Statement of Cash Flows were issued in January 2016 and are effective for
vised standards (IFRS/IAS) and interpretations (IFRIC), which apply to the financial year. The
annual reporting periods beginning on or after 1 January 2017. The implementation will result in
implementation of the new and revised standards has not resulted in any changes in accounting
additional disclosures regarding the development in cash flows from financing activities.
policies that have affected recognition and measurement in the current year and previous years. IFRS 16 Leases was issued in January 2016. The standard will replace IAS 17 Leases currently in See Note 1 Significant accounting policies and Note 2 Significant accounting estimates and
force and is effective for annual reporting periods beginning on or after 1 January 2019. The
judgements.
standard has not yet been endorsed by the EU. The new standard is expected to have an impact on the Group as a lessee, as all leases (except for short-term leases and leases of low-value assets) will
FUTURE IFRS CHANGES
be recognised in the balance sheet as a right-of-use asset and a lease liability measured at the pre-
At the date of the approval of the consolidated financial statements, a number of new and
sent value of future lease payments. The right-of-use asset is subsequently depreciated over the
amended standards and interpretations have not yet come into effect or have not yet been en-
lease term in a similar way to other assets such as property, plant and equipment, and interest on
dorsed by the EU and have therefore not been incorporated in the consolidated financial state-
the lease liability is calculated in a similar way to finance leases under IAS 17 Leases. Conse-
ments.
quently, the change will also impact the presentation of the income statement, balance sheet and cash flow statement. The Group has not yet made a detailed assessment of the impact on future
IFRS 9 Financial Instruments is effective for annual reporting periods beginning on or after 1
financial statements. The group’s operating lease commitments at 31 December 2016 are pre-
January 2018. The standard is part of IASB’s project to replace IAS 39 Financial Instruments:
sented in Note 30.
Recognition and Measurement, and the new standard will change the classification, presentation and measurement of financial instruments and hedging requirements. The implementation of the
RECOGNITION AND MEASUREMENT
new standard is expected to result in higher impairment losses on receivables as the standard requires recognition of expected losses, whereas under the current standard impairment losses are
Consolidated financial statements
not charged until there are indications of impairment. Further impact of this standard is expected
The consolidated financial statements comprise the parent entity Lundbeckfonden and entities
to be limited.
controlled by the Foundation.