Accounting policies
DHI, predominantly, performs consultancy services and sells software.

Revenue recognition requires an agreement with the client which creates enforceable rights and obligations between the parties, has commercial substance, and identifies payment terms. In addition, it must be probable that the consideration determined in the contract will be collected.

Revenue generally is recognised net of discounts relating to sales and any taxes collected from customers and subsequently remitted to governmental authorities.

Consultancy services are provided on a time and material basis or as a fixed-price contract. Revenue from time and material contracts is recognised at the contractual rates as labour hours are delivered and direct expenses are incurred. Revenue from fixed-price contracts is recognised under the percentage of completion method. Under the percentage of completion method, revenue is generally recognised based on the services performed to date as a percentage of the total service to be performed.

Revenue includes re-invoicing of work performed by sub-suppliers at the Group’s expense and risk, i.e. where the Group is considered to be principal in the transaction as well as other outlays.

If circumstances arise that may change the original estimates of revenues, costs or extent of progress toward completion, estimates are revised. These revisions may result in increases or decreases in estimated revenues or costs and are reflected in income during the period in which the circumstances that give rise to the revision become known by Management.

Revenue from the Danish GTS-performance contract (Danish Research Contract) and project grants are recognised as they are used at approved rates, adjusted for any self-financing.

Revenue is recognised when the client has obtained control of the license and has the ability to use and obtain substantially all the benefits from the license. License revenue is therefore generally recognised at that point-in-time.

Software as a Service (SaaS), such as digital operational services for ports are revenue recognised over the term of the service.

Receivables are measured in the balance sheet at the lower of amortised cost and net realisable value, which corresponds to nominal value less provisions for bad debts. Provisions for bad debts are determined on the basis of an individual assessment of each receivable, and in respect of trade receivables, a general provision is also made based on the Company’s experience from previous years.