The Danish Business Authority has conducted a compliance review of the annual reports of NNIT A/S.
Based on the compliance review, the Danish Business Authority has indicated that the consideration earned in connection with the acquisition of Excellis Health Solutions should not be included in capitalized acquisition costs and goodwill, but instead expensed as remuneration in accordance with IFRS 3, section B55(a), as the gain is partly subject to the continuing employment of the selling shareholders during the accrual period.
If the Danish Business Authority decides in accordance with its indications, NNIT will be required to update the accounting treatment of the payment of profit in the annual reports from goodwill to separate items for 2017-2025 and a similar approach will should also apply to gain recognition for other acquisitions, including SCALES, Valiance Partner, HGP Group, SL Controls and prime4services.
Such technical changes in historical accounting policies will have no impact on total cash flow.
NNIT is currently in dialogue with the Danish Business Authority and awaits the final outcome of such discussions. The final outcome of the discussions with the Danish Business Authority is expected to be communicated as soon as the final decision from the Danish Business Authority is available.
Contact for further information
Pernille Fabricius
EVP & CFO
Tel: +45 3077 9500
pnfa@nnit.com
Tina Joanne Hindsbaugh
Media Relations Manager
Tel: +45 3077 9578
tnjh@nnit.com
NNIT group offers a wide range of IT and consulting services internationally.
In Denmark, where the Group is headquartered, we are one of the leading IT companies, serving private and public sector clients in all industries. In the rest of Europe, Asia and the US, we are focused only on companies within the life sciences.
Supporting the entire supply chain, we help optimize internal company processes, production, sales and customer experiences:
We advise, build, operate and support, enabling digital transformation and clients to realize the full potential of their organizations. Our role is to drive innovation and make the mark that our customers and we aspire to.
The NNIT Group consists of the group company NNIT A/S and subsidiaries Valiance, SCALES, Excellis Health Solutions, SL Controls and prime4services. Read more at www.nnit.com.
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12_2022 Company Notice
