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IND E P E N D E N T AU D ITOR ’S R E P O RT
INDEPENDENT AUDITOR’S REPORTS To the shareholders of Asetek A/S REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS OUR OPINION In our opinion, the Consolidated Financial Statements and the Parent Company Financial Statements give a true and fair view of the Group’s and the Parent Company’s financial position at 31 December 2020 and of the results of the Group’s and the Parent Company’s operations and cash flows for the financial year 1 January to 31 December 2020 in accordance with International Financial Reporting Standards as adopted by the EU and further requirements in the Danish Financial Statements Act. Our opinion is consistent with our Auditor’s Long-form Report to the Audit Committee and the Board of Directors. What we have audited The Consolidated Financial Statements and Parent Company Financial Statements of Asetek A/S for the financial year 1 January to 31 December 2020 comprise statement of comprehensive income, balance sheet, statement of changes in equity, cash flow statement and notes, including summary of significant accounting policies for the Group as well as for the Parent Company. Collectively referred to as the “Financial Statements”.
BASIS FOR OPINION
KEY AUDIT MATTERS
We assessed relevant internal controls and performed sub-
We conducted our audit in accordance with International
Key audit matters are those matters that, in our professional
stantive audit procedures to verify capitalized amounts.
Standards on Auditing (ISAs) and the additional require-
judgment, were of most significance in our audit of the Fi-
ments applicable in Denmark. Our responsibilities under
nancial Statements for 2020. These matters were addressed
We evaluated and challenged Management’s assessment of
those standards and requirements are further described in
in the context of our audit of the Financial Statements as a
impairment indicators of completed development projects
the Auditor’s responsibilities for the audit of the Financial
whole, and in forming our opinion thereon, and we do not
based on the commercial prospects of the projects. For
Statements section of our report.
provide a separate opinion on these matters.
in-progress development projects, we challenged the key
We believe that the audit evidence we have obtained is
Capitalization of development costs
sufficient and appropriate to provide a basis for our opinion.
The Group capitalizes development costs when certain cri-
Our work was based on our understanding of the business
teria according to IFRS are met. The criteria for recognition
cases and key assumptions applied.
assumptions applied in the value-in-use calculations.
Independence
and measurement of development costs is subject to Man-
We are independent of the Group in accordance with the
agement’s judgment and assumptions, which is uncertain
We challenged whether the intent to finalize the projects
International Ethics Standards Board for Accountants’
by nature. Completed development projects are assessed
remain and whether the projects are expected to generate
Code of Ethics for Professional Accountants (IESBA Code)
quarterly for impairment indications. For in-progress devel-
future economic benefits exceeding the carrying values.
and the additional requirements applicable in Denmark.
opment projects impairment tests are performed quarterly.
We have also fulfilled our other ethical responsibilities in
The impairment tests are based on strategy plan approved
Valuation of deferred tax assets
accordance with the IESBA Code.
by Management and value-in-use calculations based on
The Group capitalizes deferred tax assets when certain cri-
expected future cash flows.
teria are met. The criteria for recognition and measurement is subject to Management’s judgment and assumptions
To the best of our knowledge and belief, prohibited non-audit services referred to in Article 5(1) of Regulation (EU) No
We focused on this area because the criteria for recognition
regarding the future taxable income, which is uncertain by
537/2014 were not provided.
and measurement of development projects are subject to
nature. The deferred tax assets relate to net operating losses
Management judgments and assumptions.
in Denmark and the US.
Refer to note 15 in the Consolidated Financial Statements.
We focused on this area due to the size of the deferred tax
Appointment Following the admission of the shares of Asetek A/S for
asset and the size of the total tax losses. Furthermore, there
listing on Oslo Stock Exchange, we were first appointed auditors of Asetek A/S on 24 April 2014. We have been
How our audit addressed the key audit matter
is judgment involved in assessing whether the criteria set out
reappointed annually by shareholder resolution for a total
We selected a sample of in-progress development projects
in the accounting standards (IAS 12) for recognizing deferred
period of uninterrupted engagement of 7 years including
and considered whether all criteria described in IFRS were
tax assets have been met, and estimates over the value of
the financial year 2020.
met as basis for capitalization.
deferred tax assets are subjective and uncertain by nature. Refer to note 11 in the Consolidated Financial Statements.
L I Q UI D CO OLI NG DO N E RIGHT
