Page 69 - Bouvet årsrapport ENG 2010 ePub

Bouvet annual report 2010 69

companies or joint ventures when the company controls the time of reversal of the temporary diferences and it is assumed that this will not happen in the foreseeable future.

Deferred tax assets are recognised when it is probable that the company will make sufcient proft in future periods to utilise the tax asset. Te company recognises previ-ous not recorded deferred tax assets to the extent that it is probable that the company can utilise the deferred tax asset. Likewise, the company will reduce the deferred tax assets when it is considered unlikely that the deferred tax asset can be utilised.

Deferred tax and deferred tax assets are measured on the basis of the expected future tax rate.

Deferred tax is disclosed at a nominal value and classifed as long-term debt in the balance sheet.

Tax payable and deferred tax assets are set-of directly against equity to the extent that the underlying items are booked against equity.

Research and development

Expenses relating to research are recognised in the income statement when incurred. Expenses related to development are balance sheet recorded to the extent that the product or the process is technically and commercially viable, and the company has adequate resources to complete the development. Expenses recorded in the balance sheet include materials, direct salary costs and a portion of directly attributable joint expenses. Development

costs are recorded in the balance sheet at cost less accumulated depreciation and impairment losses. Balance sheet recorded development costs are depreciated on a straight-line basis and over the asset’s estimated useful life. Te company has not recognised any development costs in the balance sheet at 31.12.2010.

Fixed assets

Fixed assets are valued at cost less accumu-lated depreciation and impairment losses. When assets are sold or disposed of, the gross carrying amount and depreciation are derecognised, and any gain or loss on the sale or disposal is recognised in the income statement.

Te gross carrying amount of fxed assets is the purchase price, including duties/taxes and direct acquisition costs related to mak-ing the fxed asset ready for use. Subsequent costs, such as repair and maintenance costs, are normally expensed when incurred, whereas other expenses expected to increase future economic benefts are balance sheet recorded.

Depreciation is calculated using the straight-line method over the following periods.

Ofce equipment 5-10 years Ofce machines and vehicles 5 years IT equipment 3 years

Te depreciation period and method are assessed each year. Te residual value is estimated every year-end and changes in the estimate for residual value is accounted for as an estimation change.

Leasing

Financial leases

Leasing agreements where the company accepts the most signifcant part of the risk and return connected with the ownership of the asset are fnancial leases. At the begin-ning of the leasing period, fnance leases are accounted for at an amount equivalent to the lower of fair value and the minimum lease’s present value. When calculating the lease agreement’s present value, the implicit interest expense of the agreement is applied, if it is possible to calculate this rate. If not, the company’s marginal loan rate is applied. Direct costs related to the establishment of the lease are included in the asset’s cost price.

Te depreciation period is consistent with that applied to other assets owned by the company and is subject to depreciation. If it is uncertain whether the company will take over the asset when the lease expires, the assets is depreciated over the lease’s term or the depreciation period, whichever is the shorter.

Te company has no fnancial leases at 31.12.2010.

Operating leases

Leases where most of the risk lies with the other contracting party are classifed as operating leases. Lease payments are clas-sifed as operating costs and recognised in the income statement during the contract period.

Intangible assets

Intangible assets acquired separately are recorded at cost. Costs related to intangible assets at acquisitions are disclosed at real value in the company’s opening balance.