151 Cloudberry Annual report 2022 Financial statements Other obligations not recognised in the balance sheet is related to financial close of secured portfolio. The Group has per 31. December 2022 signed sale and purchase agreement to the following power plants with financial close after 31 December 2022: NOK million Expected settlement Equity financed Debt Financed Total Øvre Kvemma Kraftverk H1 2024 60 60 120 Total 60 60 120 The power plant is under construction and risk of the assets is not yet transferred to the Group. Because the risk is not transferred and there are conditions precedent up until the takeover e.g. that the power plants shall function according to the agreement, the assets and the obligations are not recognised in the balance sheet. In February 2023 the Group signed a share purchase agreement to the Danish Odin wind portfolio, see note 29 subsequent events. For information about the Group’s share of debt in associated companies, please see note 20. Note 25 Lease agreements Accounting principle Leases At the lease commencement date, the Group recognises a lease liability and corresponding right of use asset for all lease agreements in which it is the lessee, except for the following exemptions applied: · Short-term leases (defined as 12 months or less) · Low value assets For these leases, the Group recognises the lease payments as other operating expenses in the statement of profit or loss when they incur. Lease liabilities The Group measures the lease liability at the present value of the lease payments for the right to use the underlying asset during the lease term that are not paid at the commencement date. The lease term represents the non-cancellable period of the lease, together with periods covered by an option either to extend or to terminate the lease when the Group is reasonably certain to exercise this option. In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. The lease payments included in the measurement comprise of: · Fixed lease payments (including in-substance fixed payments), less any lease incentives receivable · Variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date · Payments of penalties for terminating the lease, if the lease term reflects the Group exercising an option to terminate the lease. The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made and remeasuring the carrying amount to reflect any reassessment or lease modifications, or to reflect adjustments in lease payments due to an adjustment in an index or rate. The Group does not include variable lease payments in the lease liability arising from future events, such as lease payments which depend on production volume. Instead, the Group recognises these variable lease expenses in profit or loss, se under description of water right lease agreement.
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