Tresu Investment Holding A/S
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of the Financial Statements for 2021. These matters were addressed in the context of our audit of the Financial
Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these
matters.
Key audit matter
How our audit addressed the key audit matter
Valuation of goodwill and other intangible assets
In assessing the impairment test performed by
At 31 December 2021 the Group has a carrying value Management, we obtained and evaluated
of goodwill of DKK 174 million (31 December 2020 Management’s future cash flow forecasts, and the
– DKK 174 million). The Group has a carrying value underlying process by which they were prepared
of other intangible assets of DKK 295 million (31 including the mathematical accuracy of the cash
December 2020 – DKK 345 million).
flow model and agreeing future revenue growth,
Goodwill and other intangibles assets with indefinite investment and profit margin assumptions to the
life is tested annually for impairment. Other latest Board approved budgets and financial
intangibles are assessed for impairment annually, forecasts. Furthermore, we assessed whether the
and if indicators exist, an impairment test is model applied by Management comply with the
performed.
requirements of IFRS.
The assessment of the carrying value of intangible
assets is dependent on future cash flows and if these We used our valuation specialist to assist us in
are below initial expectations, there is a risk that the evaluating the appropriateness of key assumptions
assets will be impaired. The reviews of carrying in Management’s discount rates. We challenged the
values performed by the Group contain a number of reasonableness of Management’s future forecasts of
significant assumptions such as revenue growth, revenue growth, investment and profit margin
profit margins and discount rates.
included in the cash flow forecasts in light of the
historical accuracy of such forecasts, the current
We focused on this area because the impairment test operational results and expected market
and the impairment assessment of these assets are development.
complex and are dependent on subjective
judgements by Management.
We performed our own sensitivity analysis around
these key assumptions to evaluate the change in
We refer to notes 2, 13 and 14 in the Consolidated those assumptions that either individually or
Financial Statements.
collectively would be required for the intangible
assets tested to be impaired.
Recognition and measurement of contract work in
progress
We performed risk assessment procedures with the
purpose of achieving an understanding of it-systems,
business procedures and relevant controls regarding
the recognition and measurement of contract work in
progress. In respect of controls, we assessed whether
they were designed and implemented effectively to
address the risk of material misstatement.
At 31 December 2021 the carrying value of contract
work in progress of the group amounts to a net asset
of DKK 5 million (31 December 2020 – DKK -12
million) corresponding to a sales value of contract
work in progress of DKK 139 million (31 December
2020 – DKK 185 million).
We assessed primarily the internal processes relating
to contract acceptance and terms, monitoring of
project development, cost incurred and estimating
costs to complete and assessment provision for
specific project risks.
In accordance with IFRS 15, revenue from and profit
on contract work are recognised over time based on
the progress towards complete satisfaction of the
individual performance obligations of the contract
work (percentage -of-completion method). The
progress (stage of completion) is determined and
assessed by the proportion of the contract costs
incurred at the balance sheet date compared to the
total costs including the estimated cost to complete
the contract.
We assessed the accounting policies applied and the
Group’s application and interpretation of relevant
reporting standards.
We obtained from Management an overview of the
Group’s contract work in progress at 31 December
