1. Publication of financial statements in Denmark By Chief Special Advisor Jan-Christian Nilsen – Danish Commerce and Companies Agency

2. Legal background Before 1981 – only Danish legislation From 1981 – EU’s 4.th. directive and later on also 7.th. directive Regulated by Danish Annual Accounts Act, which can be found on: –http://www.eogs.dk/graphics/Regnskab/Regnskabslov _en.htmlhttp://www.eogs.dk/graphics/Regnskab/Regnskabslov _en.html The act covers all economic entities except financial companies like banks and insurance companies

3. EU-regulation – sufficient? Regulation requiring publication No regulation on deadlines for filing –Result: no harmonization of deadlines No specific sanctions required –Are all countries using sanctions? Efficient internal market without harmonization?

4. What is subject to publication? Annual report, which contains: –Managements report –Auditors report –Financial statements including: Profit and loss Balance sheet Notes –Consolidated financial statements (if prepared) Approved by the general meeting

5. Which companies? All companies with limited liability –Also required to prepare financial statements in accordance with Danish GAAP Other entities are not required to - or even able to - have their statements made public in the DCCA –Not required to prepare financial statements – only tax-statements

6. Where? All annual reports are available at the DCCA Can be ordered via internet –Deliverance via e-mail within minutes –Payment by credit card or invoice Also possible to buy other information about the company The address is www.cvr.dkwww.cvr.dk

7. Sanctions ”Charge” on each member of the board if the annual report is filed too late –From 70-400 EUR, depending on the period –Personal ”charge” The company may be dissolved by the court

8. Why? Limited liability is a privilege! –Cost of privilege: more transparency No supervisory authority – everyone must take care of themselves! Protection of: –Suppliers –Customers –Future employees

9. Current approach An old annual report are like yesterdays newspapers –Maybe interesting for historians, but no use for anybody else More important with timely annual report than a 100% correct annual reports –More important to file them, than to wait until all uncertainties are solved

10. Change in 2001 Filing within 5 months after the date of the balance sheet (before 2001: 6 months) –4 months for listed companies Shorter notice before a company is sent to court in order to be dissolved Shortest period for filing in EU? Only companies which are required to file their financial statements for publication are required to prepare financial statements

11. Example Balance sheet date is 31. December Due date for filing is 31. May A reminder is sent to the companies in late April In the start of June a final warning is sent to the companies In mid August the companies are sent to court in order to be dissolved

12. Experiences YearAnnual reports received at DCCA Not received on time and warning sent Sent to court to be dissolved 2001104.83910.0001.304 2002112.86510.0001.565 2003123.42716.0002.655 2004126.69220.0002.149 2005135.96823.0002.178

13. The future Electronic annual reports –XBRL? –Easier to exchange information rapidly Internal market –Language? –One stop for ordering financial statements?