Komplett Bank annual report 2019

Note 1 Accounting principles At the end of 2019, Komplett Bank offered consumer loans, credit cards and high-interest accounts to private individuals in Norway and consumer loans and credit cards to private individ- uals in Finland and Sweden. The Bank also offers point of sales finance products in Norway and Sweden in collaboration with the Komplett Group. The Bank offers deposit products to German customers and have launched a deposit product to Swedish cus- tomers in Q1 2020. The company is headquartered at Vollsveien 2, 1366 Lysaker. The financial statements for 2018 have been prepared in accor- dance with International Financial Reporting Standards (IFRS) approved by the European Union. Unless otherwise directly indicated in the notes, amounts are stated in NOK millions. 1. Financial instruments Financial assets and liabilities mainly cover loans to and deposits with credit institutions, loans to customers, certificates and bonds , other receivables, subordinated loans, senior unsecured bond, other debt and deposits from and debt to customers . Financial instruments are recognised in the balance sheet on the date the Bank will become party to the instrument’s contractual terms. Loans to customers are recognised in the financial position at the time when the loan is paid out to the customer. Financial assets are derecognised when the Bank’s rights to receive cash flows from the asset cease. Financial liabilities are derecognised from the date the rights to the contractual terms are fulfilled, expired or cancelled. 1a. Financial liabilities Financial liabilities covering deposits from and debt to customers, subordinated loans, other debt and senior unsecured bond are recognised on initial recognition at fair value less any transaction costs on establishment. In subsequent periods, the liabilities are measured at amortised cost in accordance with the effective interest method (internal rate of return), and the difference between two periods is recognised through profit or loss under the item interest expenses. 1b. Financial assets On initial recognition, financial assets are classed in one of the categories pursuant to the table below, depending on the Bank’s business model for management of the financial assets and the hallmarks of the financial assets contractual cash flow. Komplett Bank Annual Report 2019 41