145 Cloudberry Annual report 2021 Financial statements Note 24 Provisions, guarantees and other contractual obligations Long term provisions The table shows the long-term provisions on 31 December NOK 1 000 2021 2020 PPA contract termination - 4 641 Resell obligation 9 108 9 920 Asset retirement obligation 948 914 Other 745 393 Total long term provisions 10 801 15 868 Due 1-3 years 9 108 14 561 Due > 3 years 1 693 1 307 The PPA contract termination is related to the PPA contract for the power production at Røyrmyra Wind farm is due in February 2022 and has hence been reclassified to short term. The provisions for “resell obligation” are related to obligations to prior owners of projects that will be realised. The provisions are based om estimates and are not interest bearing. The amounts are in SEK and therefor subject to currency variations. The amounts are due at FID taken on the projects. No long-term provision has been payable in 2021, movements are related to reclassification, change in currency effect, provision for interest and additions from acquisitions. NOK 1 000 PPA contract termination obligation Resell obligation Asset retirement obligation Other Total Provisions at 1.1 4 641 9 920 915 393 15 869 Change in accounting policy - - - - - Provision made during the year - - - - - Additions of acquisitions - - - 352 352 Provisions reversed during the year - - - - - Change in estimates - - - - - Interest elements of provisions - - 32 - 32 Disposals / reclassified to short term provision (4 652) - - - (4 652) Effects of movement in foreign exchange 11 (812) - - (801) Total provisions 31.12 - 9 108 948 745 10 801 Asset retirement obligation Provision for asset retirement costs is recognized when the Group has an obligation to dismantle and remove a hydro or wind power plant and to restore the site where it is located after a concession period is over. As of time of writing, the Group only have wind power assets that have recognised this obligation. Asset retirement obligations have not been made for the Group’s current hydro plants, please see note 2 accounting policies and principles. The assessment is evaluated annually. The provision for asset retirement obligation related to Røyrmyra Wind farm was established after the acquisition of the CB Nordic Renewable and Infrastructure Fund I AS (now Cloudberry Production AS), and implementation of IFRS in the consolidated group accounts.
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