Page 68 - Bouvet årsrapport ENG 2010 ePub

Bouvet annual report 2010 68

Te fnancial statements of Bouvet ASA for the period ending on 31 December 2010 were approved in a board meeting on April 13th 2011.

Bouvet ASA is a public limited company incorporated in Norway and listed on Oslo Børs. Te company’s main ofce is located in Sandakerveien 24C, 0513 Oslo, Norway. Te company delivers consultancy services and training within information technol-ogy. Te company’s business concept is to create opportunities and increase the efciency of their customers’ processes by means of new ideas and new technology in close cooperation with the customer.

The basis for the preparation of the financial statements

Bouvet ASA was listed on Oslo Axess on May 15th 2007, and listed on Oslo Børs from November 24th 2010. Te fnancial statements of Bouvet ASA for the accounting year 2010 have been prepared in accordance with international accounting standards and interpretations accepted by the EU, mandatory for the accounting year 2010.

Te fnancial statements are based on the principles of historic cost.

Te fnancial statements have been prepared on the basis of uniform accounting prin-ciples for uniform transactions and events under otherwise equal circumstances.

Te company’s functional currency and presentation currency is Norwegian Kroner (NOK).

The use of estimates in the preparation of the financial statements

Management has used estimates and assumptions that have afected assets, liabilities, revenue, expenses and informa-tion on potential liabilities. Tis particu-larly applies to the revenue recognition of customer projects and pension obligations. Future events may imply that the estimates change. Estimates and the underlying as-sumptions are considered on a continuous basis. Changes in accounting estimates are recognised in the period the changes arise. In the event that the changes also apply for future periods, the efect is distributed over current and future periods. Ref. note 2.

Currency

Transactions in foreign currency are translated at the rate applicable on the transaction date. Monetary items in foreign currency are translated to Norwegian kro-ner by applying the rate applicable on the balance sheet date. Non-monetary items valued at historic rate denominated in foreign currency are translated to Norwe-gian kroner by applying the rate applicable at the transaction date. Non-monetary items assessed at real value denominated in foreign currency are translated at the rate applicable on the balance sheet date. Exchange rate changes are recognised in the income statement as they occur during the accounting period

Revenue recognition

Bouvet sells services and products. Revenue is recognised when it is probable that transactions will generate future fnancial benefts for the company and the size of the amount can be reliably estimated. Sales

revenue is presented net of value added tax and discounts.

Revenue from the sale of products is recognised when the signifcant risks and rewards of ownership of the products have passed to the buyer.

Revenue from the sale of services is nor-mally recognised after a signed contract is received and in line with the deliveries. Customer projects are recognised in line the with the project’s degree of completion, when the outcome of the transaction can be reliably estimated. Progress is measured as accrued hours in relation to totally esti-mated hours. When the transaction’s result cannot be reliably estimated only revenue equaling accrued project costs are taken to income, provided that it is likely that the revenue will be greater than accrued project costs. Any estimated loss on a project will be fully recognised in the income statement in the period when it is identifed that the contract will result in a loss.

Shares in subsidiaries

Shares in subsidiaries are evaluated at the lower of cost and fair value. Any adjust-ments in values are classifed as fnancial items in the income statement.

Income tax

Te tax expense consists of tax payable and changes in deferred tax. Deferred tax/ tax assets are calculated on all temporary diferences between book and tax value on assets and liabilities, with the exception of • temporary diferences related to not tax deductible goodwill

• temporary diferences related to investments in subsidiaries, associated

Note 1: Accounting principles

NOTES

Bouvet ASA – parent company