Page 72 - Bouvet årsrapport ENG 2010 ePub

Bouvet annual report 2010 72

Note 2: Estimation uncertainty

In preparing the fnancial statements in accordance with IFRS, the Company’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 Company’s most signifcant accounting estimations concern the following items: • Estimations relating to the degree of completion of customer projects • Net pension liabilities.

Te Company’s is primarily delivering its services based on account. To the extent that the company has income from fxed price or target price projects, where the company 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, 5 percent (2009, 4 percent) of the company’s income was generated by projects with such an element of uncertainty and the income is recorded based on the degree of completion.

Te net pension obligation is calculated with actuarial models based on assumptions such as discount rate, future salary levels, pension regulations, expected return on pension funds, normal attrition and demographic issues of disability and mortality rates. Te assumptions are based on observable market prices and the historic development of the Company and society in general. Changes in the assumptions may have a material efect on the calculated net pension obligation and the pension cost.

Note 3: Cost of sales

NOK 1 000 2010 2009

Hired consultants 98 419 69 219 Hired training instructors 6 724 5 752 Purchase of training documentation 858 2 949 Out-of-pocket expenses and travels invoiced customers 6 507 6 673 Purchase of goods for resale 5 899 5 299 Total cost of sales 118 407 89 892