145 Cloudberry Annual report 2022 Financial statements Note 21 Cash, cash equivalents and corporate funding Accounting principle Cash and cash equivalents include deposits held at call with financial institutions, commercial papers and other short term interest-bearing securities or highly liquid investments (money market funds) that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. Placements in money market funds are made to diversify risk and at the same time secure high liquidity of the placements to be able to meet short term cash commitments. The funds are larger funds with established low interest rate risk and low credit risk. Placements in money market funds are classified as cash equivalents as the placements are short term placements and can be redeemed at any time without restrictions or cost (2-3 days settlement) to meet short term commitments when needed. The placements have insignificant risk of change in value as they are placements with the lowest risk profiles. The Group has entered into a corporate account agreement with SpareBank 1 SR-Bank for the Norwegian companies. No credit facility is incorporated in this agreement, but a larger facility with SpareBank 1 SR-Bank is established, see note 23 Long term debt. NOK million 2022 2021 Bank deposits 541 383 Money market funds 998 732 Total cash and cash equivalents 1 538 1 115 Investments in money market funds consist of investments in KLP fund and Fondsforvaltning. These placements are short term placements and is readily convertible to cash. Of bank deposits per 31 December, NOK 96m is related to Kraftanmelding AS, which is a company owned 51% in the Operations segment. The company is a power trade agent and receives settlement from spot sales before it settles with the power producers. Hence, the cash position must be seen in relation to other shortterm positions, current accounts payable, current provisions and other current debt and assets (including restricted cash related to settlements). Restricted cash is not included in cash and cash equivalents, this is classified as other current assets and a deposit for office rent of NOK 2m is classified as a non-current financial asset.
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