Note 1 General information and basis of preparation Fiven ASA is a limited liability company domiciled in Norway, and the parent company of the Fiven Group. Fiven is a global leader in silicon carbide (“Sic”), a material used in a variety of industrial applications. Fiven ASA is owned 100 percent by Tosca Intermediate Holdings Sàrl, a private limited liability company incorporated in Luxembourg, the ultimate parent of which is OpenGate Capital. The financial statements for Fiven ASA (hereafter Fiven), including notes, for the year ended 31 December 2021 were approved by the Board of Directors of Fiven ASA on 22 March 2022. 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 require management to apply judgements. Areas which to a great extent contain such judgements, a high degree of complexity, or areas in which assumptions and estimates are significant for the financial statements, are described in the notes. Foreign currency translation Transactions in foreign currencies are translated at the exchange rate applicable at the date of the transaction. Monetary items in a foreign currency are translated to NOK using the exchange rate applicable on the balance sheet date. Foreign exchange differences arising on translation are recognized in the income statement as they occur. Revenues Income from sale of services is 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. The first year's instalment on long term liabilities and long term receivables are, however, not classified as short term liabilities and current assets. Investments in other companies Except for short term investments in listed shares, the cost method is applied to investments in other companies. The cost price is increased when funds are added through capital increases or when group contributions are made to subsidiaries. Dividends/Group contribution received are initially taken to finance income. Dividends/Group contribution exceeding the portion of retained earnings after the acquisition are reflected as a reduction in cost. Dividend/group contribution from subsidiaries are reflected in the same year as the subsidiary makes a provision for the amount. Dividend from other companies are reflected as financial income when it has been approved. Fiven Annual Report 2021 Financial statements 85
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