IPF årsrapport 2018 (eng) - Flipbook - Side 28
_____________
26
Notes
Note
1
Accounting policies
GENERAL
All amounts in the financial statements are presented in
This annual report has been prepared in accordance with
whole million DKK. Each figure is rounded separately,
the regulations of the Financial Business Act, as well as the
which means that there may be small differences between
Executive Order from the Danish Financial Supervisory
the totals stated and the total of the underlying figures.
Authority on Financial Reports for Insurance Companies
and Multi-Employer Occupational Pension Funds
Pursuant to section 134(1) of the Executive Order on
(Executive Order on the Presentation of Financial
Presentation of Financial Statements, no consolidated
Statements).
financial statements have been prepared for the company.
The company and its subsidiaries, see note 11 of these
The executive order has been amended in several areas
financial statements, together with the affiliate Industriens
as of 2019. However, three of these amendments have
Pension Service A/S, are included in the consolidated
been subject to early adoption in the current annual report.
financial statements of IndustriPension Holding A/S (CVR
no. 15 89 32 30).
The first amendment concerns recognition of changes to
the revalued amount of tangible non-current assets owned
Accounting estimates and assessments
directly or through group undertakings or associated
Preparation of the annual report requires that management
undertakings, and not held for own use (e.g. wind turbines).
make a number of estimates and assessments regarding
The amendment means that adjustments in the revalued
future conditions which could significantly influence the
amount of this type of asset are now recognised directly in
accounting treatment of assets and liabilities, and thus the
the income statement under investment returns in the
result in the current and coming years. The most
same way as value adjustments of other investment
significant estimates and assessments concern calculation
assets. Until now, increases in the revalued amount of
of provisions for insurance contracts, fair value of unlisted
tangible non-current assets have been recognised in other
financial instruments and fair value of the owner-occupied
comprehensive income unless the increase corresponded
property.
to a drop which had previously been recognised in the
income statement, while decreases in the revalued amount
Provisions for insurance and investment contracts
were recognised in the income statement unless the
The calculation of provisions for insurance contracts (excl.
decrease corresponded to an increase that was previously
the market-rate scheme) is based on actuarial calculations,
recognised in other comprehensive income. Comparative
and applies assumptions on e.g. mortality and disability
figures for 2017 have been adjusted accordingly, and
rates. Assumptions on mortality are based on benchmarks
overall, the amendment means that the profit for the year
from the Danish Financial Supervisory Authority, and like
has been reduced by DKK 1 mill. in 2018 (+ DKK 1 mill. in
other assumptions, they are set as a best estimate based
2017), while comprehensive income and equity have not
on experience with previously held portfolios of insurance
been affected by the amendment.
contracts. The provisions are calculated as the present
value of the future benefits discounted by the yield curve
The second amendment concerns presentation of
defined in the Executive Order on Presentation of Financial
sensitivity information, i.e. the effect on the company's own
Statements. This means that the size of provisions is also
funds and solvency ratio of reasonably likely changes in
affected by the current interest-rate level determining the
relevant risk variables, see the section on risk and
discount rate. Provisions with these uncertainties
solvency. This change obviously has no effect on the
constitute less than 10% of total provisions.
accounting figures.
Fair value of financial investment assets
The third amendment concerns the presentation of the
There are no significant estimates connected with the
solvency ratio which is now shown in the management's
valuation of financial instruments with listed prices on an
review, whereas previously it was shown in the list of key
active market (level 1), or where valuations are based on
figures and financial ratios.
accepted valuation models with observable market data
(level 2).
Apart from these amendments, the accounting policies are
unchanged compared with 2017.