Order inflow is determined as the total contract sum of new contracts and agreements on consultancy services and software, where a commercial and identifiable agreement has been entered into with the customer on delivery and payment that has been approved by both parties and which both parties have committed to performing, and where it is probable that the consideration will be received from the customer.

The calculation of the carrying amount of certain assets and liabilities requires assessments, estimates and assumptions concerning future events.

The estimates and assumptions made are based on historical experience and other factors that Management finds reasonable in the circumstances, but which are inherently uncertain and unpredictable. The assumptions may be incomplete or inaccurate, and unexpected events or circumstances may arise. Moreover, the Group is subject to risks and uncertainties that may entail those actual results differ from these estimates.

It may be necessary to change previous estimates due to changes in the conditions on which these previous estimates were based or due to new knowledge or subsequent events. Estimates that are significant to the financial reporting are made by determining revenue and selling price on contract, including valuation of deferred tax assets.

Revenue from fixed-price contracts is recognised based on the stage of completion of the services, which is determined based on time spent and an assessment of the fee value thereof. The assessment of the stage of completion is part of the continuous internal management control and budgetary control over the individual projects, which reduces the uncertainty related to the determination thereof. Reference is made to note 10 for an overview of contract work in progress.

The write-down is based on historical data based on expected losses over the total term of the receivable, corrected for estimates of the effect of expected changes in relevant parameters such as economic development.

Deferred tax balances relate in all material matters to goodwill which arose as a result of the group-internal restructuring as of 31 December 2018. The Group has chosen to recognise EUR 4.3 million as a deferred tax asset based on the projected Danish taxable income for the next 3-5 years. The valuation of the deferred tax asset is especially dependent on DHI A/S being able to realise the projected growth in projects and achieving the necessary market shares to profit from the investments in development projects. The remaining amount relates to foreign subsidiaries. Reference is made to note 11 for an overview of deferred tax assets.