Page 44 - Bouvet årsrapport ENG 2010 ePub

Bouvet annual report 2010 44

Note 2: Overview of subsidiaries

Te following subsidiaries are included in the consolidated accounts:

Company Country Main business line Ownership Voting share

Ontopia AS 1) Norway IT consultancy company 100 % 100 % Nordic Integrator Management AS 2) Norway IT consultancy company 100 % 100 % Olavstoppen AS 3) Norway IT consultancy company 60 % 60 % Bouvet Sverige AB (former Zekundera AB) 4) Sweden Holding company 100 % 100 % Bouvet Stockholm AB 5) Sweden IT consultancy company 100 % 100 % Bouvet Syd AB 5) Sweden IT consultancy company 100 % 100 %

1) Consolidated from 1 April 2007 2) Consolidated from 1 July 2007 3) Established in March 2010 4) Consolidated from 1 October 2008 5) Subsidiaries of Bouvet Sverige AB

Note 3: Estimation uncertainty

In preparing the fnancial statements in accordance with IFRS, the Group’s management has applied estimations based on their best judgement and on assumptions considered to be realistic. Unexpected situations or changes in market conditions can result in changed estimations and thereby have an efect on the company’s assets, liabilities, equity and result.

Te Group’s most signifcant accounting estimations concern the following items: • Estimations relating to the degree of completion of customer projects • Write-down/reversal of goodwill and other intangible assets • Fair value of assets and liabilities at acquisitions • Net pension liabilities.

Te Group is primarily delivering its services based on time and material used. Tthe Group has some income from fxed price or target price projects where the Group shall deliver a predefned result at a price that is either fxed or has elements causing income per hour not to be known before the projects are fnalised. For these projects the income is recorded in correlation with the degree of completion. Progress is measured as incurred hours in relation to totally estimated hours. For the accounting year 2010, 4,9 percent of the Group’s income was generated by projects with such an element of uncertainty and the income is recorded based on the degree of completion.

Te Group’s balance recorded goodwill and other intangible assets are annually assessed for impairment and any reversal of previous write-downs (ref. note 13).

Bouvet ASA must distribute costs for acquired businesses on acquired assets and liabilities based on an estimated fair value at acquisition. Te Group has performed the necessary analysis to decide the fair value of acquired assets and liabilities. Te management has to perform substantial judgement in deciding on methods, estimates and assumptions for these valuations. Signifcant puchased intangible assets recognised comprise a customer contracts and customer relations. Assumptions used for assessing intangible assets include, but are not limited to, the expected average economic life of customer contracts and and the customer relationship based on lapse of customers. Assumptions used for assessing assets include, but are not limited to, the replacement costs for fxed assets. Management’s calculations of fair value are based on assumptions considered to be fair, but with an inherent uncertainty. As a consequence, the actual result may deviate from the calculations.