Intangible assets are measured at cost less accumulated amortization and impairment losses.

The cost of software includes costs of projection work, including direct payroll costs and wages and a share of overheads.

Amortization of intangible fixed assets is charged on a straight-line basis over the estimated useful economic lives of the assets:

Goodwill	up to 20 years
Patents, trademarks and rights	up to 10 years
Software	10 years

Intangible fixed assets are written down to the recoverable amount if it is deemed lower than the carrying amount. Assets are evaluated annually, including valuation and assessment of the estimated economic lives.

Gains or losses on the disposal of intangible assets are recognized in the income statement under the same items as the related amortization.

Property, plant and equipment is measured at cost less accumulated depreciation and impairment losses.

Cost includes costs of materials, direct payroll costs and a share of overheads. For capital investments exceeding DKK 25 million, finance costs for loans during the production or installation period are recognized as part of cost.

Depreciation of property, plant and equipment is charged using the straight-line method over the estimated economic lives of the assets. Land is not depreciated. The estimated economic lives are as follows:

Buildings	25-50 years
Plant and machinery	5-10 years
Other fixtures and equipment	5-10 years

Assets held under finance leases are recognized in the balance sheet as property, plant and equipment and measured at the lower of fair value at the time of acquisition and the capital value of future lease payments. Assets held under finance leases are depreciated using the same principles as other property, plant and equipment in the Chr. Hansen Group.

Assets with a short life or of low value are expensed in the year of acquisition.

Property, plant and equipment is written down to the recoverable amount if it is deemed to be lower than the carrying amount. Assets are evaluated annually, including valuation and assessment of the estimated economic lives.

Gains or losses on the disposal or scrapping of property, plant and equipment are recognized in the income statement under the same items as the related depreciation.

Long-term financial assets. Investments in subsidiaries and associates are measured in the Parent Company’s financial statements according to the equity method, under which the investments are measured in the balance sheet at the proportionate share of the equity value of the companies adjusted for intercompany profits/losses plus goodwill.

Subsidiaries with negative book value are accounted for at zero, and receivables from these are depreciated at the company’s share of the negative equity to the extent that the receivable is regarded as uncollectable. If the negative equity exceeds the receivable, the remaining amount is accounted for as a provision for payables to the extent the Parent Company has a judicial or actual obligation to cover the company’s negative balance.

Other securities and receivables that are accounted for as long-term financial assets are measured at fair value.

Inventories are measured at cost using the FIFO method. If the net realizable value is lower, the inventories are written down to such lower value.

Cost includes the costs of raw materials, supplies, direct payroll costs and a proportion of production overheads, including costs for the operation and depreciation of production facilities and the operation, administration and management of factories.

Receivables are measured at amortized cost taking into account a potential lower value on the basis of an individual evaluation of the risk of losses.

Prepayments recognized under receivables comprise costs incurred relating to the following financial year. Prepayments are measured at cost.

Treasury shares. Acquisition and sales sums arising on the purchase and sale of treasury shares and dividends on treasury shares are recognized directly in equity.

Dividends are recognized as a liability when adopted at the annual general meeting or when the Board of Directors resolves an interim dividend. Dividends expected to be paid in respect of the year are stated as a separate line item under equity.

Liabilities concerning share option plan and other plans based on share price are not included in the balance sheet. Amounts paid-in upon exercise concerning such plans are recognized in equity, while costs related to establishment, adjustment or buy-back of share option plans are recognized in the income statement.

Pension liabilities regarding defined benefit plans are calculated on an actuarial basis as the capitalized obligation of the pension benefits and are measured on the basis thereof after deduction of the market value of any assets attached to each plan. Actuarial gains and losses are amortized and recognized in the income statement and the balance sheet over the actuarially determined term.

Fixed periodic pension contributions for defined contribution plans and changes in provisions for defined benefit plans are recognized in the income statement in the period in which they arise.

Other provisions are included when a legal or actual obligation has arisen as a result of an event that occurred before or on the balance sheet date, and if it is likely that the obligation implies drawing on the financial resources. Provisions are measured at net realizable value.

Liabilities. Financial liabilities, including mortgage debt and bank and financial loans are measured when raised at the proceeds received less transaction costs. The liabilities are later measured at amortized cost.

Capitalized residual lease liabilities on finance leases are recognized in the balance sheet as financial liabilities.

Other debt is measured at amortized cost.

Deferred income recognized under debt comprises payments received relating to income in later financial years. Deferred income is measured at cost.