Receivables Trade receivables are recognized in the balance sheet after provision for bad debts. Trade receivables in 2022 and 2021 were all internal receivables related to management fee. The bad debts provision is made on basis of an individual assessment of each debtor and an additional provision is made for other debtors to cover expected losses. Significant financial problems at the customers, the likelihood that the customer will become bankrupt or experience financial restructuring and postponements and insufficient payments, are considered indicators that the debtors should be written down. Other receivables, both current and long term, are recognized at the lower of nominal and net realizable value. Net realizable value is the present value of estimated future payments. When the effect of a write down is insignificant for accounting purposes this is, however, not carried out. Provisions for bad debts are valued the same way as for trade debtors. Most of Other Trade receivables in 2022 and 2021 were internal current receivables. See also note 13. Assets and liabilities in foreign currencies are valued at the exchange rate on the balance sheet date. Exchange gains and losses relating to sales and purchases in foreign currencies are recognized as operating income and expenses. Liabilities Interest-bearing liabilities are initially recognized at cost. Fiven ASA has in 2022 repaid the Shareholder loan of 22 mEUR plus accrued interest; see note 11 and cash flow statement for more information. After initial recognition, such financial liabilities are measured at amortized costs using the effective interest method. Transaction costs are taken into account when calculating amortized cost. Trade payables are carried at cost. Pensions The company has a defined contribution plan. With a defined contribution plan the company pays contributions to an insurance company. After the contribution has been made the company has no further commitment to pay. The contribution is recognized as payroll expenses. Prepaid contributions are reflected as an asset (pension fund) to the degree the contribution can be refunded or will reduce future payments. Taxes The tax charge in the income statement includes both payable taxes for the period and changes in deferred tax. Deferred tax is calculated at relevant tax rates on the basis of the temporary differences which exist between accounting and tax values, and any carryforward losses for tax purposes at the year-end. Tax enhancing or tax reducing temporary differences, which are reversed or may be reversed in the same period, have been eliminated. The disclosure of deferred tax benefits on net tax reducing differences which have not been eliminated, and carryforward losses, is based on estimated future earnings. Deferred tax and tax benefits which may be shown in the balance sheet are presented net. Group contribution received is booked as finance income. If received group contribution exceeds retained earnings under Fiven’s ownership, it is booked as a reduction of investments in subsidiaries. Tax related to received group contribution is booked in profit and loss. Deferred tax is reflected at nominal value. Fiven Annual Report 2022 88 Financial statements
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