## Accounting Policies 

The annual accounts have been prepared in accordance with Danish accounting legislation and current Danish accounting standards. The accounting policies are unchanged from last year although there are a few changes in the contents of individual items due to the incorporation of inter alia OrklaGLYPH<213>s beverage activities. 

## Consolidation principles 

The Group accounts of the Carlsberg Group comprise the accounts of the Parent Company, Carlsberg A/S, and its subsidiaries, i.e. companies in which the Parent Company, directly or indirectly, holds the majority of the voting rights or - in some other way - has a controlling interest. Associated companies, which by agreement are managed jointly with one or more other companies are pro rata consolidated with the proportionate share of the individual items being incorporated. Other associated companies are included in the ac- counts at a proportionate share of their financial results and equity. 

The Group accounts are prepared on the basis of the accounts of the Parent Company, its sub- sidiaries and pro rata consolidated companies, by combining items of a uniform nature and eliminat- ing intercompany sales, licences, interest, divi- dends, profit and balances. Shareholdings in sub- sidiaries and pro rata consolidated associated companies are offset against a proportionate share of the equity of the relevant companies, stated in accordance with the accounting policies of the Group. 

Minority shareholdersGLYPH<213> share of profit and equity in subsidiaries is stated separately. 

In the case of acquisition of new subsidiary and associated companies as well as increases in shareholdings therein, any excess of the cost price over net assets stated in accordance with Group accounting policies at the date of acquisi- 

tion is, wherever possible, allocated to the assets and liabilities of the individual companies. Any re- maining amount (Group goodwill) is taken directly to equity. As a starting point, any negative differ- ence in value (reduction in value) is taken to equi- ty. To the extent that a negative difference in value at the time of acquisition is attributable to expect- ed reductions in future operating results, the differ- ence in value is appropriated to other reserves and used when the reductions are realised. In the case of disposal of subsidiaries and associated companies, the companyGLYPH<213>s results are included in the GroupGLYPH<213>s profit and loss account until the date of disposal. Any realised gains or losses com- pared to the book value at the date of disposal are recorded in the profit and loss account. OrklaGLYPH<213>s beverage activities are included at book value as from 1 January 2001. 

## Foreign currencies 

The accounts of foreign subsidiary and associated companies are translated into Danish kroner at the average exchange rates during the financial year for income and expense items and at the ex- change rates ruling at the balance sheet date for assets and liabilities. 

Exchange gains and losses resulting from the translation of the net assets of foreign companies at the exchange rates ruling at the balance sheet date are taken to equity. 

Amounts receivable and payable in foreign cur- rencies are translated into Danish kroner at the exchange rates ruling at the balance sheet date. Hedging arrangements are assessed separately. Realised and unrealised exchange gains and loss- es are recorded in the profit and loss account. Ex- change gains or losses after tax on liabilities to hedge investments in subsidiary or associated companies are taken directly to equity. 

