Order on Financial Reports for Credit Institutions and Fund Brokerage Companies etc.

Order on Financial Reports for Credit Institutions and Fund Brokerage Companies etc.1)

Pursuant to Section 188, paragraph 3, Section 192, Section 196, Section 341, paragraph 4, and Section 373, paragraph 4, of the Act on Financial Business, cf. Act Consolidation No. 1013 of 21 August 2024, Section 131, paragraph 6, and Section 190, paragraph 5, of the Act on Alternative Investment Fund Managers, cf. Act Consolidation No. 231 of 1 March 2024, and Section 157, paragraph 4, of the Act on Fund Brokerage Companies and Investment Services and Activities, cf. Act Consolidation No. 232 of 1 March 2024, as amended by Act No. 480 of 22 May 2024, the following is enacted:

Part I
Scope of Application
Chapter 1
Covered Enterprises

Section 1. This Order applies to the following enterprises:
1) Credit institutions.
2) Mortgage credit institutions.
3) Fund brokerage companies.
4) Investment management companies.
5) Alternative investment fund managers with registered domicile in Denmark that are not self-managed and have permission to manage alternative investment funds.
6) Savings institutions.
7) Parent companies, where the business consists exclusively or mainly of holding share capital in subsidiary companies that are credit institutions or financial institutions.
8) Danmarks Skibskredit A/S.

Paragraph 2. Branches of foreign enterprises that are not subject to the legislation of an EU/EEA country, and whose foreign parent company does not have a subsidiary covered by Section 156, are covered by the provisions on a sustainability report in Sections 178-179.

Paragraph 3. The provisions of this Order apply with the necessary adaptations to alternative investment fund managers and the aforementioned investment management companies.

The Covered Reports

Section 2. Enterprises covered by Section 1, paragraph 1, shall prepare and publish an annual report, cf. Section 183 of the Act on Financial Business, and a half-yearly report for each financial year. The annual and half-yearly reports shall include a consolidated financial statement if this follows from Sections 162-165 of this Order.

Paragraph 2. The annual and half-yearly reports shall be drawn up in Danish or English.

Section 3. An enterprise may not designate a financial statement that is not an annual report or a half-yearly report under this Order or under international accounting standards, cf. Section 4, paragraph 1, as an annual or half-yearly report.

Paragraph 2. If an enterprise prepares a financial statement that is exclusively for internal use, the financial statement is not an annual or half-yearly report under this Order. The enterprise must ensure that the financial statement appears in such a way that it cannot be confused with a financial statement submitted under this Order or under international accounting standards.

1) The Order contains provisions that implement parts of Council Directive 86/635/EEC of 8 December 1986 on the annual accounts and consolidated accounts of banks and other financial institutions, OJ 1986, No. L 372, page 1, parts of Directive 2004/25/EC of the European Parliament and of the Council of 21 April 2004 on takeover bids, OJ 2004, No. L 142, page 12, parts of Directive 2004/109/EC of the European Parliament and of the Council of 15 December 2004 on the harmonisation of transparency requirements in relation to information about issuers whose securities are admitted to trading on a regulated market, OJ 2004, No. L 390, page 38, parts of Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, OJ 2013, No. L 176, page 338, parts of Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, OJ 2013, No. L 182, page 19, Directive (EU) 2022/2381 of the European Parliament and of the Council of 23 November 2022 on a more balanced gender representation among board members of listed companies and related measures, OJ 2022, No. L 315, page 44, parts of Directive (EU) 2022/2464 of the European Parliament and of the Council of 14 December 2022 on corporate sustainability reporting, OJ 2022, No. L 322, page 15, and parts of Commission Delegated Directive (EU) 2023/2775 of 17 October 2023 amending Directive 2013/34/EU of the European Parliament and of the Council as regards adjustments to the size criteria for micro, small, medium-sized and large undertakings and groups, OJ L of 21 December 2023.

Lovtidende A
2025 Published on 14 June 2025
23 May 2025. No. 658.
Ministry of Industry, Business and Financial Affairs, Financial Supervisory Authority, ref. no. 25-001191 CQ003198

Paragraph 3. Enterprises may not designate reporting in the management report as sustainability reporting if the reporting does not contain the information in Section 160, paragraphs 2-13, or Section 161, items 1-5.

Annual and Interim Reports Submitted Under International Accounting Standards

Section 4. Annual and interim reports submitted under the international accounting standards prepared by the International Accounting Standards Board and adopted by the Commission, cf. Section 183, paragraphs 3-5, of the Act on Financial Business, are covered only by the provisions dealing with matters not regulated in the aforementioned international accounting standards.

Paragraph 2. Where provisions in the Act on Financial Business or regulations issued pursuant to Section 196 of the Act regulate the same matters as the international accounting standards adopted by the Commission, enterprises whose annual and interim reports are submitted under paragraph 1 shall use the accounting standards instead of the provisions in the Act on Financial Business and in regulations issued pursuant to Section 196 of the Act.

Paragraph 3. If enterprises use only the accounting standards mentioned in paragraph 1 for the consolidated financial statement and not for the individual company financial statement, Sections 4–7 apply only to the consolidated financial statement.

Paragraph 4. Half-yearly reports submitted under paragraph 1 shall be prepared in accordance with the provisions of the international accounting standards adopted by the Commission on the presentation of interim financial reports.

Paragraph 5. If the annual report submitted under paragraph 1 must include a consolidated financial statement, the half-yearly report shall correspondingly include a half-yearly consolidated financial statement prepared in accordance with the provisions of this Order.

Paragraph 6. Enterprises that submit annual and interim reports under paragraph 1 and publish quarterly reports are covered by paragraphs 4 and 5. However, a parent company may omit including its own financial statement, so that the quarterly report covers only the quarterly consolidated financial statement.

Paragraph 7. Enterprises that submit annual and interim reports under paragraph 1 must comply with Section 183, paragraph 1, Sections 184, 185, 190, 191, 193-195, and 198-200 of the Act on Financial Business.

Paragraph 8. Section 183, paragraph 1, Sections 184, 190, 191, and 193-195 of the Act on Financial Business do not, however, apply to half-yearly reports and any quarterly reports submitted under paragraph 1.

Paragraph 9. Annual reports covered by paragraph 1 must, in addition to the provisions prescribed in the international accounting standards adopted by the Commission, comply with Sections 2, 3, 96, 133, 135-137, 141, 145, 148-155, and 170, cf. paragraph 2.

Paragraph 10. The main and key figures that must be disclosed in the annual report in accordance with Section 96 must be calculated in accordance with the accounting practice used in the annual report.

Paragraph 11. Sections 2 and 3, Section 175, paragraph 1, first sentence, Section 175, paragraphs 4 and 6-7, and Section 176, paragraph 2, also apply to half-yearly reports and any quarterly reports.

Section 5. The provisions on the binding of reserves in Section 62, paragraph 4, and Section 67, paragraphs 3 and 4, apply mutatis mutandis to enterprises submitting annual and interim reports under Section 4, paragraph 1, to upward revaluations and write-ups made in accordance with the provisions of the international accounting standards adopted by the Commission.

Paragraph 2. Other upward revaluations and write-ups of assets or downward revaluations and write-downs of liabilities made in accordance with the international accounting standards adopted by the Commission, which are not permitted under paragraph 1, are allocated to the item Revaluation Reserves under equity.

Paragraph 3. Paragraphs 1 and 2 do not apply to the preparation of a consolidated financial statement submitted under the international accounting standards.

Section 6. When, for enterprises submitting annual or interim reports under Section 4, paragraph 1, in connection with a merger, amalgamation, or similar, an opening balance sheet is required to be prepared in accordance with legislation, it shall be prepared in accordance with the international accounting standards adopted by the Commission, subject to paragraph 2.

Paragraph 2. Notwithstanding paragraph 1, the opening balance sheet must be prepared for the continuing enterprise when this is required by legislation.

Section 7. Enterprises submitting annual and interim reports under Section 4, paragraph 1, must disclose, specify, and explain any differences between the financial result and equity in the enterprise's annual and interim reports prepared under the international accounting standards approved by the Commission and the corresponding amounts electronically reported to the Financial Supervisory Authority.

Paragraph 2. The enterprise must make the reconciliation publicly available in another way, e.g., on the enterprise's website, at the same time as the publication of the annual and interim reports, if it is not included in the annual and interim reports. The annual and interim reports must indicate how the public can become acquainted with the reconciliation.

Part II
Annual Report
Chapter 2
Classification and Presentation
General Provisions

Section 8. The enterprise must present the balance sheet and income statement in a schematic form in accordance with Annexes 3 and 4, subject to paragraph 2.

Paragraph 2. Alternative investment fund managers and investment management companies that do not have permission to conduct securities trading business, cf. Section 10, paragraph 2, of the Act on Financial Business, must present the balance sheet and income statement in a schematic form in accordance with Annexes 5 and 6.

Paragraph 3. The enterprise must list the items in the schemes in Annexes 3-6 separately and in the specified order. The enterprise may make a more detailed breakdown provided that the structure of the presentation schemes is maintained, if the amount in the new sub-item is material, and if the nature or function of the sub-item differs from other sub-items. New items may be added if the amount for such is material, and if the nature or function of the new item differs from the other items.

Paragraph 4. The enterprise may aggregate items that contain only immaterial amounts with other items of the same nature or function.

Section 9. The enterprise must, for each item in the balance sheet, income statement, and other comprehensive income, state the corresponding amounts for the preceding financial year, and the overview of movements in equity must be accompanied by a corresponding overview from the previous year. Items from the preceding year must be adjusted if the items are not directly comparable with the current year's items. However, the enterprise may omit adjusting comparative figures if it is not practically possible. The enterprise must state and adequately justify in the notes, cf. Section 90, if there is a lack of comparability or if adjustments have been made.

Paragraph 2. The enterprise must only include items in the balance sheet and income statement that do not contain an amount if the preceding year's financial statement contains such an item.

Paragraph 3. Paragraphs 1 and 2 apply mutatis mutandis to note disclosures unless otherwise prescribed in this Order.

The Balance Sheet

Section 10. The enterprise must record legal tender and demand deposits with central banks and state post offices in the countries where the enterprise is established under asset item 1, Cash and Demand Deposits.

Section 11. The enterprise must record securities for which the enterprise has an unconditional right to refinance with central banks in the countries where the enterprise is established under asset item 2, Debt Securities Refinancable with Central Banks. The refinancing arrangement must be established in accordance with legislation or administrative regulation.

Section 12. The enterprise must record all receivables from credit institutions and central banks under asset item 3, Receivables from Credit Institutions and Central Banks.

Paragraph 2. Paragraph 1 does not apply to the receivables mentioned in Sections 10 and 14.

Section 13. The enterprise must record all types of loans measured at amortised cost, including receivables from genuine sale and repurchase transactions with counterparties that are not credit institutions or central banks, as well as margin receivables in connection with futures and options transactions entered into with counterparties that are not credit institutions, under asset item 5, Loans and Other Receivables at Amortised Cost. The item also includes deposit accounts in debit, receivables from financial leasing contracts from the lessor, subordinated receivables in other enterprises, subject to Section 14, as well as claims not priced on active markets, subject to Sections 11 and 12. The enterprise must record loans and other receivables measured at fair value, cf. Section 53, paragraphs 2 and 3, and Section 61, under asset item 4, Loans and Other Receivables at Fair Value.

Section 14. The enterprise must record listed bonds and other claims priced on active markets and measured at fair value, subject to Section 11, under asset item 6, Bonds at Fair Value. The enterprise's own bonds must not be recognised as an asset, cf. Section 55, paragraph 2. The enterprise must record listed bonds and other claims priced on active markets and measured at amortised cost, cf. Section 53, under asset item 7, Bonds at Amortised Cost.

Section 15. The enterprise must record shares, partnership interests, certificates of guarantee capital in savings banks, units in investment funds, and other capital interests, except for interests in affiliated and associated enterprises, under asset item 8, Shares etc.

Section 16. The enterprise must record assets in pools, where it applies that the enterprise has no risk, under asset item 11, Assets Linked to Pool Arrangements. The enterprise's own shares and own debt instruments included in the pools must not be included in the item, cf. Section 55.

Section 17. The enterprise must record activated goodwill, activated development costs, and other intangible assets, including computer software, under asset item 12, Intangible Assets. However, goodwill from the acquisition of an associated enterprise must be recognised as part of the associated enterprise under asset item 9, Capital Interests in Associated Enterprises, cf. Section 62, paragraph 6.

Section 18. The enterprise must record investment properties and owner-occupied properties, subject to Section 20, under asset item 13, Land and Buildings. The item includes land and buildings from financial leasing contracts from the lessee and land and buildings from operating lease contracts from the lessor.

Section 19. The enterprise must record fixed assets, including fixed assets from financial leasing contracts from the lessee and fixed assets from operating lease contracts from the lessor, subject to Section 20, under asset item 14, Other Tangible Assets. The item also includes activated costs for the fitting out of rented premises.

Section 20. The enterprise must record tangible fixed assets or groups of fixed assets, as well as subsidiaries and associated enterprises, that are only temporarily in the enterprise's possession and awaiting sale in the near future, where a sale is highly probable, under asset item 17, Assets Held for Sale. A sale is highly probable if:
1) the enterprise's management is actively seeking a buyer for the assets,
2) the assets are offered for sale at a price that is reasonable in relation to the fair value of the assets, and
3) the assets are expected to be sold within 12 months.

Section 21. The enterprise must record other assets that do not fall under other asset items under asset item 18, Other Assets.

Paragraph 2. The item includes a positive fair value of spot transactions and derivative financial instruments, cf. Section 48, paragraph 4.

Paragraph 3. The item includes the enterprise's revenues that become due for payment only after the end of the financial year, including accrued interest and accrued dividends. However, the enterprise's accrued interest may alternatively be posted as part of the value of the assets to which the interest relates.

Section 22. The enterprise must record expenses incurred before the balance sheet date but relating to a later financial year, including prepaid commission and rent, as well as prepaid interest, under asset item 19, Prepaid Expenses.

Section 23. The enterprise must record, among other things, customers' margin receivables in connection with futures and options transactions, when the customer is a credit institution, under liability item 1, Debt to Credit Institutions and Central Banks.

Paragraph 2. The item includes priority debt when the priority holder is a credit institution, including priority debt in properties taken over in connection with the settlement of an exposure.

Section 24. The enterprise must record all deposits, including obligations in connection with genuine sale and repurchase transactions with counterparties that are not credit institutions or central banks, under liability item 2, Deposits and Other Debt.

Paragraph 2. The item includes customers' margin receivables in connection with futures and options transactions when the customer is not a credit institution.

Section 25. The enterprise must record obligations under listed bonds issued pursuant to the Act on Mortgage Loans and Mortgage Bonds, cf. Section 54, paragraph 2, item 3, under liability item 4, Issued Bonds at Fair Value.

Section 26. The enterprise must record bonds and other debt obligations for which the enterprise has issued securities that are bulk debt instruments, including commercial paper notes, except for mortgage bonds etc., cf. Section 25, and except for subordinated capital contributions, cf. Section 31, under liability item 5, Issued Bonds at Amortised Cost.

Section 27. The enterprise must record non-derivative financial liabilities held for trading purposes, cf. Section 61, paragraph 1, and non-derivative financial liabilities covered by Section 61, paragraph 2, under liability item 6, Other Non-Derivative Financial Liabilities at Fair Value.

Paragraph 2. Paragraph 1 does not apply to the obligations mentioned in Section 25.

Section 28. The enterprise must record other liabilities that do not fall under other liability items, including debt not covered by Section 23, paragraph 2, obligations arising from financial leasing contracts from the lessee, acceptance of long remburser, and a negative fair value of spot transactions and derivative financial instruments, under liability item 8, Other Liabilities.

Paragraph 2. The item also includes expenses that become due for payment only after the end of the financial year, including accrued interest, unless the interest is posted as part of the liability item to which the interest relates.

Section 29. The enterprise must record revenues received before the balance sheet date but relating to a later financial year, including prepaid interest and commission, under liability item 9, Accrued Income.

Section 30. The enterprise must record obligations that are uncertain regarding size or timing of settlement, cf. Sections 72 and 73 and Section 77, paragraph 2, under liability items 10-14, Provisions.

Paragraph 2. Provisions must not be used to adjust the value of assets.

Section 31. The enterprise must record debt obligations, including debt obligations incurred by issuing securities that, in the event of liquidation or bankruptcy, can only be honoured after satisfaction of other creditor claims in accordance with the loan terms, under liability item 15, Subordinated Capital Contributions.

Section 32. The enterprise must record shares in the enterprise's equity, including guarantee capital in savings banks, where the savings bank is entitled but not obliged to pay interest and redeem the guarantee capital, under liability item 16, Share Capital/Partnership Capital/Guarantee Capital. Interest and dividends as well as losses and gains relating to equity items must not be recognised in the income statement or other comprehensive income.

The Income Statement

Section 33. The enterprise must record interest and interest-like revenues, including received interest-like commission that forms an integrated part of the effective interest, index adjustments on assets, term premiums on fund and currency forward transactions, as well as amortisation over the term of financial assets measured at amortised cost, where the cost price differs from the redemption price, under income statement item 1, Interest Income.

Paragraph 2. Reversal of previously accrued interest from previous years must not take place.

Section 34. The enterprise must record, among other things, amortisation over the term of financial liabilities measured at amortised cost, where the cost price differs from the redemption price, under income statement item 2, Interest Expenses.

Section 35. The enterprise must record dividends and similar revenues from shares and other similar securities, including distributions from investment funds, under income statement item 3, Dividends from Shares etc. The result of capital interests in associated and affiliated enterprises valued using the equity method must be recorded under income statement item 12, Result of Capital Interests in Associated and Affiliated Enterprises.

Section 36. The enterprise must record revenues regarding services for customers' accounts, including guarantee commission and management fees, under income statement item 4, Fees and Commission Income.

Section 37. The enterprise must record all revaluations of assets and liabilities measured at fair value, subject to Section 40, foreign exchange revaluations, subject to Section 87, paragraph 1, item 2, as well as revaluations of assets linked to pool arrangements and deposits in pool arrangements, under income statement item 6, Exchange Gains and Losses.

Section 38. The enterprise must record other revenues that do not fall under other items of the income statement, including revenues from the operation of the enterprise's investment properties, under income statement item 7, Other Operating Income. The enterprise must record the revaluation of investment properties under item 6, Exchange Gains and Losses.

Section 39. The enterprise must record salaries and remuneration etc. to staff and management, as well as administrative expenses, including rent of rented premises, under income statement item 8, Personnel and Administrative Expenses.

Section 40. The enterprise must record changes in the total write-downs in connection with expected credit losses on financial assets measured at amortised cost and at fair value through other comprehensive income, as well as provisions for guarantees and undrawn credit facilities, and subsequent revaluations of the value of these items, under income statement item 11, Write-downs on Loans and Receivables etc. The item includes the part of the revaluation of loans and receivables at fair value through the income statement that relates to credit risk. The item also includes the revaluation of temporarily taken-over assets in connection with the settlement of an exposure.

Section 41. The enterprise must record the tax levied on the year's result under income statement item 13, Tax.

Movements in Equity

Section 42. The enterprise must show movements in equity as follows:
1) Total comprehensive income consisting of the sum of the result for the period and other comprehensive income.
2) The effect of changes in accounting policies and error corrections for each item under Equity, cf. Sections 88 and 90.

Paragraph 2