Cloudberry Clean Energy Annual report 2020

115 Cloudberry Annual report 2020 Financial statements NOK 1 000 Expected settlement Equity financed Debt Financed Total Purchase of power plants Bjørgelva Kraft AS H1 2021 10 325 24 375 34 700 Nessakraft AS H1 2021 71 700 90 000 161 700 Åmotfoss H2 2021 80 000 80 000 160 000 Selselva Kraft H1 2021 63 600 47 400 111 000 Total 225 625 241 775 467 400 For information about Cloudberry’s share of debt in associated companies, please see note 20. Note 25 Lease agreements The Group have implemented IFRS 16 when implementing IFRS, see note 6 for effects on implementation. Cloudberry has recognised the lease agreement for office lease as a lease liability and a corresponding right to use asset. The contract was entered 1 March 2020, and has a duration of 5 years. The rent is prepaid quarterly, and index regulated annually. The discount rate applied is 3%. Cloudberry’s option to prolong the lease for 5 additional years has not been included in the calculation of the lease liability. NOK 1000 Lease liability at 1.1.2020 - Lease agreements entered into during the year 5 149 Lease payments during the year -903 Interest expense on lease liability 154 Lease liability at 31.12.2020 4 401 The discount rate used to calculate the present value of future lease payments is the lessees marginal loan rate, which consists of a base rate and a credit premium. The base rate is a market rate based on a combination of the lessees home country and the term of the lease. Credit premiums correspond to market credit premiums for compa- nies with similar credit ratings as lessees. Credit rating is determined through individual credit assess- ment of the individual lessee. Interest expenses related to the lease obligations are recognized as a separate line in the income statement. The Group presents its lease liabilities as separate line items in the statement of financial position The table show the cash outflow for the lease office lease agreement. NOK 1 000 Less than a year 1-2 years 2-3 years 3-4 years More than 5 years Total Variable lease payment expenses 1 105 1 127 1 150 1 173 199 4 753 Total lease expense in the income statement 1 105 1 127 1 150 1 173 199 4 753