The Danish Securities Council carried out a compliance check of Nordicom's 2008 annual report and has made the following decisions concerning the accounts: 1. In the annual report the company has recognized and presented investment properties with development projects, including the company's three large land assets on Amager Strandvej, Enghave Brygge and Ved Stigborderne, under the item “investment properties under development”. The original investment properties were valued at fair value at the time of initiation of the project, whilst the development costs incurred were carried at cost price. Investment properties under development were tested for impairment on an annual basis. According to the Danish Securities Council the company should carry the three plots of land at fair value and present the incurred development costs separately from the original investment properties. The description under accounting policy should be changed accordingly. 2. In Q4 2008 the company transferred the residential property at Lindholm from project holdings to completed investment properties on completion of the property and on entering into an agreement with an external estate agent to let the apartments. According to the Danish Securities Council the property must be divided into individual apartments and apartments can only be reclassified from project holdings to finished investment properties if a rental contract has been entered into for the specific apartment. The company has decided to take note of these decisions and will incorporate these matters in the coming 2009 annual report by adjusting figures for comparison etc. The company has not been asked to change previous annual reports. As the company's three large land assets on Amager Strandvej, Enghave Brygge and Ved Stigborderne had been written down to fair value as at December 31st 2008, this decision does not affect the company's owner's equity, income statement, or earnings per share. In the 2009 annual reports the company will present project costs of DKK 107.5 m, measured according to IAS 16, separately in the figures for comparison. Regarding the property at Lindholm, the apartments not yet let at the time of the balance sheet will be classified under project holdings. This means that 70 apartments (out of 85 apartments) as at December 31st will be included under project holdings, which represents an amount of DKK 195.6 m compared to the previous classification as investment properties. In 2009 a further 39 apartments on Lindholm were let and these will be transferred back to completed investment properties in 2009. The items in the statement of financial position as at December 31st 2008 were affected in the following way: DKK 1,000 Group (before) Change Group (after) Completed investment properties 3,867,786 -195,631 3,672,155 Investment properties under development 1,370,141 -107,509 1,262,632 Development projects on investment properties 0 107,509 107,509 Project holdings 57,420 195,631 253,051 … Total assets 5,625,325 0 5,625,325 The error has not affected the accounts of the parent company.