NNIT A/S: The Danish Business Authority has conducted a compliance review of NNIT A/S’ annual reports

By Globe Newswire Published on October 10, 2022, 11:30 IST

The Danish Business Authority has conducted a compliance review of NNIT A/S’ annual reports.

Based on the compliance review, the Danish Business Authority has indicated that the earn out payment related to 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 earn out in part is subject to the selling shareholders’ continued employment during the accrual period.

If the Danish Business Authority decides in accordance with its indications, NNIT will be required to update its accounting treatment of earn-out payment in the annual reports from goodwill to special items for 2017-2025 and a similar approach would also have to be applied to the recognition of earn out for other acquisitions, including SCALES, Valiance Partner, HGP Group, SL Controls and prime4services.

Such technical changes to historical accounting policies will have no impact on total cash flow.

NNIT is currently in a 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
[email protected]

Tina Joanne Hindsbo
Media Relations Manager
Tel: +45 3077 9578
[email protected]

The NNIT Group provides a wide range of IT and consulting services internationally.

In Denmark, where the Group HQ is based, we are one of the leading IT companies, servicing both private and public sector customers across all industries. In the rest of Europe, Asia and USA, we are solely focused on companies within 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 customers to reap the full potential of their organizations. Our role is to foster innovation and make the mark our customers and we aspire to.

The NNIT Group consists of 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 Announcement

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