Page 71 - Bouvet årsrapport ENG 2010 ePub

Bouvet annual report 2010 71

Provisions

A provision is recognised when the company has an obligation as a result of a previous event and it is probable that a fnancial settlement will take place as a result of this obligation and the size of the amount can be measured reliably. If the efect is consid-erable, the provision is calculated by discounting estimated future cash fows using a discount rate before tax that refects the market’s pricing of the time value of money and, if relevant, risks specifcally linked to the obligation.

Restructuring provisions are recognised when the company has approved a detailed, formal restructuring plan and the restruc-turing has either started or been publicly announced within in the company.

Provisions for loss-making contracts are recognised when the company’s estimated revenues from a contract are lower than una-voidable costs which were incurred to meet the obligations pursuant to the contract.

Contingent liabilities and assets

Unlikely contingent liabilities are not rec-ognised in the annual accounts. Signifcant contingent liabilities are disclosed, with the exception of contingent liabilities that are unlikely to be incurred.

Contingent assets are not recognised in the annual accounts but are disclosed if there is a certain probability that a beneft will be added to the company.

Events after the balance sheet date

New information on the company’s position at the balance sheet date is taken into account in the fnancial statements. Events after the balance sheet date that do not afect the company’s position at the balance sheet date, but will afect the company’s position in the future, are stated if signifcant.

New and amended standards and interpretations

IFRS and IFRIC issued but not adopted by the Company

Te following standards and amendments to existing standards have been published and are mandatory for the company’s account-ing periods beginning on or after 1 January 2011 or later periods, but the company has not early adopted them. Efective date is set to EU’s efective date in cases where it difers from the IASB efective date.

• IFRS 9 Financial instruments, efective 1 January 2013.

• IFRS 7 Financial instruments: Disclosures – Transfers of Financial Assets (amended), efective date not determined by EU. (IASB 1. July 2011).

• IAS 12 Income tax (amendment), efective date not determined by EU. (IASB 1. January 2012).

• IAS 24 Related parties (revised), efective 1 January 2011.

• IAS 32 Financial instruments: Presen-tation – Classifcation of Rights Issues (amended), efective 1 February 2010. • IFRIC 14 Prepayment of a Minimum Funding Requirement (amended), efective 1 January 2011. • IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments, efective 1 July 2010

• Improvements to IFRS – May 2010, efective date note determined by EU. (IASB 1 January 2011 to 1 July 2011)

Te Company does not expect that the adoption of these standard or interpretation would have material impact on the fnancial statements or performance of the Company.