## SECTION 2.4 Intangible assets and property, plant and equipment 

## 2.4  SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS 

## USEFUL LIFE AND RESIDUAL VALUE OF INTANGIBLE ASSETS WITH FINITE USEFUL LIFE AND PROPERTY, PLANT AND EQUIPMENT 

Useful life and residual value are initially assessed both in acquisitions and in busi- ness combinations, cf. section 5. The value of the trademarks acquired and their ex- pected useful life are assessed based on the trademarks’ market position, expected long-term developments in the relevant markets and the trademarks’ profitability. 

Management assesses trademarks and property, plant and equipment for changes in useful life. When there is an indication of a reduction in the value or useful life, the asset is tested for impairment and is written down if necessary, or the amortisation/deprecia- tion period is reassessed and if necessary adjusted in line with the asset’s changed useful life. 

Reassessment of the expected future use is as a minimum made in connection with an evaluation of changes in production struc- ture, restructuring and brewery closures. The expected future use and residual values may 

not be realised, which will require reassess- ment of useful life and residual value and recognition of impairment losses or losses on disposal of non-current assets. 

When changing the amortisation or depre- ciation period due to a change in the useful life, the effect on the amortisation/deprecia- tion is recognised prospectively as a change in accounting estimates. 

The Group has entered into a number of leases and service contracts. When enter- ing into these agreements, management considers the substance of the service being rendered in order to classify the agreement as either a lease or a service contract. In making this judgement, particular impor- tance is attached to whether fulfilment of the agreement depends on the use of specific assets. The Group assesses whether contracts are onerous by determining only the direct variable costs and not the costs that relate to the business as a whole. 

For leases, an assessment is made as to whether the lease is a finance lease or an operating lease. The Group has mainly en- 

tered into operating leases for standardised assets with a short duration relative to the life of the assets, and accordingly the leases are classified as operating leases. 

Leases are classified as finance leases if they transfer substantially all the risks and rewards incident to ownership to the lessee. All other leases are classified as operating leases. 

Significant accounting estimates and judge- ments related to impairment are described above, cf. section 2.3. 

