Note 1 Accounting principles Komplett Bank ASA (“the Bank”) offer consumer loans and credit cards to private individuals in Norway (“NO”), Sweden (“SE”) and Finland (“FI”). The Bank also offers high yield accounts in Norway and Sweden, and point of sales finance products in collaboration with the Komplett Group. In Germany, The Bank offers euro denominated deposit products to private individuals. The Bank’s headquarter is in Vollsveien 2, 1366 Lysaker, in Norway. The financial statements for 2021 have been prepared in accordance with International Financial Reporting Standards (IFRS) as 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 consist of loans to and deposits with credit institutions, loans to customers, certificates and bonds, deposits from customers and subordinated loans. 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, which consist of deposits from customers, subordinated loans and parts of other debt, are recognised 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 as 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 assets and the hallmarks of the assets contractual cash flow. Komplett Bank / Annual Report 2021 47
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