Fiven Annual Report 2020

Note 1 General information and basis of preparation Fiven ASA (“the Company”) was incorporated 5 February 2019 and is the parent company in the Fiven Group with registered offices in Oslo, Norway. On 14 May 2019, the Company com- pleted the acquisition of 100 per cent of the shares and voting interests in its operating subsidiaries from Saint-Gobain. The financial statements for Fiven ASA including notes, for the year ended 31 December 2020 were approved by the Board of Directors of Fiven ASA on 23 March 2021. Fiven is a global leader in silicon carbide (“Sic”), a material used in a variety of industrial applications. Sic is recognized for superior hardness and thermal conductivity, making it the preferred material for demanding applications: abrasive, metallurgy, filtration, technical ceramics and other uses. The Fiven Group is headquartered in Oslo (Norway). There are manufacturing entities in Arendal and Lillesand (Norway), Hody (Belgium), Barbacena (Brazil) and Puerto Ordaz (Venezuela). Fiven GmbH located in Cologne (Germany) is a management office. There are also sales representation offices in Shanghai (China) and in Pittsburgh (USA). Note 2 Significant accounting policies The financial statements have been prepared in accordance with the Norwegian Accounting Act and generally accepted accounting principles in Norway. The accounts are prepared based on a going concern assumption. The functional currency of Fiven ASA is Euro. Use of estimates The preparation of financial statements in compliance with the Accounting Act requires the use of estimates. The application of the Company's accounting principles also requires man- agement to apply assessments. Areas which to a great extent contain such assessments, a high degree of complexity, or areas in which assumptions and estimates are significant for the financial statements, are described in the notes. Revenues Income from sales of services are recognized at fair value of the consideration, net after deduction of VAT, returns, discounts and reductions. Sales are taken to income when the Company has delivered its services to the customer and there are no unsatisfied commitments which may influence the customer's acceptance of the service. Classification of balance sheet items Assets intended for long term ownership or use have been classified as fixed assets. Assets relating to the trading cycle have been classified as current assets. Other receivables are classified as current assets if they are to be repaid within one year after the transaction date. Similar criteria apply to liabilities. First year's instalment on long term liabilities and long term receivables are, however, not classified as short term liabilities and current assets. Purchase costs The purchase cost of assets includes the cost price for the asset, adjusted for bonuses, discounts and other rebates received, and purchase costs (freight, customs fees, public fees which are non-refundable and any other direct purchase costs). Purchases in foreign currencies are reflected in the balance sheet at the exchange rate at the transaction date. For fixed assets and intangible assets purchase cost also includes direct expenses to prepare the asset for use, such as expenses for testing of the asset. Fiven Annual Report 2020 Financial statements   79