Cloudberry Annual report 2022 Financial statements 104 The Group has foreign entities with functional currency other than NOK. At the reporting date, assets and liabilities of foreign entities with functional currencies other than NOK, are translated into NOK at the rate of exchange prevailing at the reporting date and their income statements are translated at annual average exchange rates. The exchange differences arising on translation for consolidation are recognised in other comprehensive income. On disposal of a foreign operation, the component of other comprehensive income relating to that particular foreign operation is recognised in profit or loss. Principles of cash flow statement The cash flow statement has been prepared using the indirect method. Operating activities: changes in working capital comprise of current interest-free receivables and current interest-free liabilities. Effects related to capital expenditures, inventory investments, unrealised changes or reclassifications are not included in changes in working capital. Investing activities: acquisition/divestment of shares includes cash and cash equivalents in the investee that are recognised/divested at the transaction date. Hence, this is presented net together with the cash consideration paid or received. Capitalized costs related to project inventory is presented together with project investments. Financing activities: interest payments from interest rate derivatives, which are used to manage the Group’s debt portfolio, are presented as a part of interests paid. Note 3 Key accounting estimates and judgements The preparation of financial statements in conformity with IFRS requires the use of certain accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies and reported amounts of assets and liabilities, income and expenses. The Group management base its estimates on historical experience, current trends and other various assumptions that are believed to be relevant at the time the consolidated financial statements are prepared. Significant estimates - long term price forecast for power One of the critical assumptions used by management in making business decisions is the long-term price forecast for power and the related market developments. The assumption is also critical input for management related to financial statement processes such as: · Allocation of fair value in business combination note 5 · Impairment testing note 19 Management use Volue, and their base case for long term power price forecasts. Volue is an external source of information which ensures an unbiased estimate. Management review and update the forecast continuously, based on market development. Significant judgement Due to the Group’s business activities, management must apply judgement in determining the appropriate accounting policies in many areas, and for some the application of the Groups accounting may have a material impact on the accounting treatment in the financial statements. Significant judgement includes areas such as: · Assessment of business combination or asset acquisition note 5 and 16 · Assessments related to share-based payments note 12 · Classification of developing projects note 16 and 18 · Assessment of impairment indicators note 19
RkJQdWJsaXNoZXIy NTYyMDE=