Asset Buyout Partners Annual Report 2019

Notes to the Financial statements for the parent company Note 1 Accounting principles The financial statements have been prepared in compliance with the Accounting Act and good accounting practice. Classification and assessment of balance sheet items Assets intended for long-term ownership or use have been classified as fixed assets. Assets relating to the operating cycle have been classified as current assets. Other receivables are classified as current assets if they are to be repaid within one year of the transaction date. Similar criteria apply to liabilities. First year’s instalment on long-term liabilities and long-term receivables are however not classified as short-term liabilities and current assets. Investments in other companies The cost method is applied to investments in other companies. The carrying amount is increased when funds are added through capital increases or when group contributions are made to subsidiaries. Dividends received are generally recognized as income. Dividends/ group contribution from subsidiaries are booked in the same year as the subsidiary makes the provision for the amount. Dividends from other companies are reflected as financial income when dividends is approved. Investments are written down to fair value if the fair value is lower than the carrying amount. Receivables Accounts receivables and other receivables are recorded in the bal- ance sheet at face value after deduction of provisions for expected loss. Provisions for losses are made based on individual assessments of the individual receivables. Additionally, for accounts receivables, an unspecified provision is made to cover expected losses. Tax The tax charge in the income statement consists of tax payable and changes in deferred tax. Deferred tax is calculated at 22% based on the temporary differences that exist between accounting and tax values, as well as any possible taxable loss carried forwards at the end of the accounting year. Tax enhancing or tax reducing tempo- rary differences, which are reversed or may be reversed in the same period, have been offset and netted. Cash Flow Statement The cash flow statement has been prepared by NRS indirect model. Cash and cash equivalents include cash, bank deposits and other short-term liquid assets. Note 2 Investments in subsidiaries, associates and joint ventures Investments in subsidiaries are booked according to the cost method. Figures in NOK Location Ownership / voting rights Equity at year end Profit for the year Book value at year end Asset Buyout Partners AS Oslo 100 % 1 665 550 492 126 062 182 1 510 219 298 Asset Buyout Partners | Annual Report 2019 51