Den regnskabsmæssige behandling af investeringsejendomme

Jonas Holmestad Johansen

Student thesis: Master thesis


The executive summary is a short resumé of the assignment content. The basis of the assignment is the accounting treatment of investment properties, in Denmark.
On the basis of the everchanging property market and the new accounting law in Denmark, this assignment tries to clear the difficulties and regulations, regarding the treatment of property investments, in annual reports. The assignment will first try to give an insight, into the basic demands of the annual report. Here it will introduce the term: ”retvisende billede”, which is the true and fair view of the financial position of the entity. The true and fair value, is the groundstone of any annual report and are therefore the essential, when treating and valueing investments properties in Denmark.
When the presentation and general demands for treating investments properties, in the annualreport, is presented, the assignment will focus on the valueing of the properties. There are 3 ways to value investment properties, under the Danish Financial Statements Act, two of which deals with a fairvalue assessment and the other takes a cost aproach. The posibilties are as followed:
- Cost method
- Fair value pursuant to section § 41
- Fair value pursuant to section § 38
The main problem in the assignment, is regarding the fair value and especially the recognized income capitalization models, to value investments. This includes the two methods: DCF and the ”afkastbaserede” model.
The two methods will be introduced and the pros and cons will be discussed. Futhermore there will be a practical empirical research, of a certain amount of Danish companies and their treatment of investement properties, in their annual reports. Which is done to link the theory in the area with some practical information. In the empirical research, the main objective is to assess, how the different companies use the different possiblities, in the Danish Financial Statement Act and the recognized valuation options.
At last other possibilities, to value and treat the accounting part of property invesment, is discussed. Here the IFRS and US GAAP are introduced, and the main differences to the Danish Financial Statement Act is discussed.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2018
Number of pages81