annual report 2020 - Flipbook - Side 32
INDUSTRIENS PENSIONSFORSIKRING A/S ANNUAL REPORT 2020
Tax on yields of certain pension-scheme
assets
The tax on yields of certain pension-scheme
assets for the financial year is recognised as an
income/expense in the income statement. Tax
includes tax on the return ascribed individually
to members' deposits as well as tax on the return
ascribed to collective reserves (equity and
collective bonus potential, etc.). Tax is calculated
at 15.3% of the tax base, which is calculated on
the basis of the annual investment return.
Deferred tax on yields of certain pensionscheme assets is also provided at 15.3%.
Expenses of insurance activities
Insurance benefits paid net of reinsurance
Includes pension scheme benefits due in the
year.
Change in life-assurance provisions
Includes change in life-assurance provisions for
the year.
Change in excess capital
Change in excess capital includes the change in
excess capital (special bonus provision type B)
and other subordinated loan capital (special
bonus provisions type A).
The change includes return and net
accumulation during the year, any risk return for
this and previous years, and a proportionate
share of the result of sickness and accident
insurance etc.
Administration costs
Retained investment returns
Retained investment returns make up the part of
the investment returns not included in the
technical result.
NOTES
Retained investment returns therefore comprise
investment returns regarding sickness and
accident insurance, as well as investment
returns on equity.
insurance policies with a bonus entitlement,
accrues to the insured.
Technical result of sickness and accident
insurance, net of reinsurance
Equipment
Equipment is measured at cost less
accumulated depreciation and impairment.
Straight-line depreciation is made over the
expected life of assets of 5 years.
The result of sickness and accident insurance
has been calculated according to the accounting
rules for non-life insurance. The result is detailed
in the notes.
Contribution and profit
Appropriation of the realised profit is described
in agreement with the members. Therefore,
Industriens Pension is not subject to the
Executive Order on the Contribution Principle
and therefore members with insurance policies
entitled to a bonus are not divided into
contribution classes.
The realised profit is calculated and
appropriated in accordance with reported
principles for appropriation of profits.
The return after tax on the associated
investment assets is added to the equity and
subordinated loan capital, and a risk return for
providing risk capital can also be added to
equity and subordinated loan capital.
Excess capital, which comprises special bonus
provisions type B, is composed of the realised
profit or positive sub-elements of this. The
percentage corresponds to the percentage
deduction in contributions, deposits and
transfers, excluding unit supplement.
The remaining realised profit from insurance
policies with a bonus entitlement, including
returns on hedging instruments linked to
Balance sheet
Property, plant and equipment
On initial recognition, leased operating
equipment and the associated leasing
commitment
are
measured
at
cost,
corresponding to the discounted value of
expected lease payments for the lease period
agreed. Subsequently, the leased operating
equipment is measured at cost less
accumulated depreciation and impairments
recognised
in the income statement.
Depreciation is calculated on a straight-line
basis over the lease period and recognised in
the income statement. After initial recognition,
the leasing commitment is measured at
amortised cost, and a calculated interest
expense is recognised in the income statement.
Owner-occupied property
Owner-occupied property is measured at
revalued amount, which is the fair value at the
date of revaluation after deduction of
subsequent depreciation and impairment. The
revalued amount is calculated according to a
returns model based on a market rent, costs of
the property and a required rate of return for the
specific type of property. Increases in the
revalued amount are recognised in other
comprehensive income unless the increase
corresponds to a drop which has previously
been recognised in the income statement.
Decreases in the revalued value of an owner-
occupied property are recognised in the income
statement unless the decrease corresponds to
an increase that was previously recognised in
other comprehensive income. Owner-occupied
property is depreciated according to the
straight-line method over an expected useful life
of 50 years to the estimated scrap value.
Depreciation is calculated on the revalued
amount and recognised in the income
statement. No estate agent valuation was
obtained in connection with determining the fair
value as at the reporting date.
On initial recognition, leased properties from
where Industriens Pension operates and the
associated leasing commitment are measured at
cost, corresponding to the discounted value of
expected rentals for the period in which
Industriens Pension is entitled and expects to
use the leased properties. Subsequently, the
leased properties are measured at cost less
accumulated depreciation and impairments
recognised in the income statement.
Depreciation is calculated on a straight-line
basis over the expected useful life and
recognised in the income statement. After initial
recognition, the lease commitment is measured
at amortised cost, and a calculated interest
expense is recognised in the income statement.
Equity investments with group
undertakings and associated
undertakings
Undertakings in which Industriens Pension
exercises controlling influence are recognised
as group undertakings (see note 10 of these
financial statements). Undertakings in which
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