NOTES – KIRKBI GROUP PART 3
Accounting policies The KIRKBI Group’s investment in entities in which the group has significant influence is allocated to either LEGO Brand Group activities or investment activities. Please refer to section 1.1 for a description of significant accounting estimates and judgements. Merlin Entertainments, which is part of LEGO Brand Group activities is accounted for using the equity method. Under the equity method, investments in associates are initially recognised at cost. The carrying amount of the investment is adjusted to recognise changes in the share of the net assets of the associate since the acquisition date.
At each reporting date, the KIRKBI Group determines whether there is objective evidence that the investment in associate is impaired. If there is such evidence, the KIRKBI Group calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and then recognises the loss in the income statement. The carrying amount of associated companies allocated to LEGO Brand Group activities is classified in the balance sheet as Other non-current assets.
2.4. OTHER SECURITIES AT FAIR VALUE (LEGO VENTURES) LEGO Ventures explores investment opportunities at the intersection of Play, Learning and Creativity to leverage and develop the original LEGO® Idea and support the LEGO brand mission. LEGO Ventures typically invests into start-ups and private growth companies.
investments, and the portfolio of LEGO Ventures’ investments consists of 15 investments end of 2020 (2019 11 investments). For LEGO Ventures’ investments classified as associated companies, please see note 8.10.
During 2020, KIRKBI has made 5 investments (7 in 2019) and 1 divestment (0 in 2019) categorised as LEGO Ventures’ (m DKK)
2020
2019
Operating profit from LEGO Ventures consists of: Change in fair value of financial assets
(3)
Gain from disposals
13
(83) -
Operational costs
(46)
(31)
Net result
(36)
(114)
Fair value 1 January
277
103
Investments during the year
173
257
Divestments
(87)
Fair value:
Change in fair value of financial assets Fair value at 31 December
(3) 360
(83) 277
Fair value measurement hierarchy: Not based on observable market data
360
277
360
277
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