Komplett Bank Annual Report 2021

4b. Tax expense Tax expense in the income statement includes both changes to deferred tax and tax payable for the period. Tax expense also includes under- or over-provisions for tax payable relating to previous periods. 4c. Tax payable Tax payable for current and previous periods, to the extent it has not been paid, is recognised as a liability. Tax payable is tax calculated on the taxable profit of the year. The applicable rate of tax forming the basis for the calculation of tax payable is 25 %. The tax rate is industry-specific. Tax on paid interest related to Tier 1 capital is recognised against equity and reduces the tax payable. 5. Pensions The Bank is subject to the Compulsory Occupational Pensions Act and has a pension plan that satisfies the statutory requirements. The Bank has a defined contribution plan that applies to all employees. Contributions to the plan are paid on an ongoing basis and, for this reason, no provision is made for future pension liabilities at the end of the period. 6. Currency The Bank uses NOK as its presentation currency. Balance sheet items in foreign currency are converted to NOK using the currency exchange rate at the balance sheet date. Items in foreign currency included in the income statement are converted to NOK using the average exchange rate. Over the course of the year, the Bank did not receive any significant revenue in any currency other than NOK, SEK and EUR. The Bank also did not incur any significant costs in any currency other than NOK, SEK and EUR. The Bank’s functional currency is NOK. The Bank’s currency exposure as at 31 December 2021 was EUR 3.8 million (31 December 2020: EUR 2.7 million) and SEK 45.8 million (31 December 2020: SEK 59.2 million). 7. Estimates The estimation of valuation items and discretionary valuations is based on the Bank’s historical experience and likely expectations of future events. The Bank regards loss provisions as described in item 1 as a central valuation item where discretionary valuations also act as a basis. 8. Business areas The Bank views its business as a collective business area. The business area is linked to unsecured financing and as at 31 December 2021 consisted of three loan products (credit card and loans, and POS solutions in cooperation with the Komplett Group) and deposit products for Norwegian, Swedish and German customers. In 2021, all business were directed at the Norwegian, Swedish and Finnish markets and there was no significant differentiation connected with regular monitoring, management and controls in the Bank’s geographical business area. The management of the Bank also calls for uniform reporting of business areas. 9. Statement of cash flow The statement of cash flow has been prepared according to the indirect method. Cash and cash equivalents consist of bank deposits. 10. Share-based remuneration Options value for the granted options are established based on the full market value calculated using observed trading prices at the grant date and Black & Scholes’s option pricing model. Risk-free interest, using 5-year government bonds, is used as a prerequisite in the calculation. The fixed price for exercising the positions is NOK 1 for all outstanding options. In the case of options granted in 2015 and later, there is also a variable price for exercising the positions, which is equivalent to the employer’s contribution at the date of exercise. The value of vested options is recognised in other paid-in equity. 11. Lease agreements When entering into a contract, the Bank assesses whether the contract contains a lease agreement. The contracts contain a lease agreement if the contract transfers the right to control the use of an identified asset for a period in exchange for a consideration. IFRS 16 contains the option to not recognise the right-of-use asset and the lease liability for a lease agreement if the lease agreement is short-term (less than 12 months) or the underlying asset has a low value. The bank uses this exception. For these leases, the expense is recognised on a straight-line basis over the lease term. For other leases, the Bank recognises a right-of-use asset and a lease liability at commencement date. At initial recognition, the lease liability is measured as the present value of future lease payments at commencement date. The discount rate used is the Bank’s marginal borrowing rate. In subsequent measurements, the lease liability is measured at amortised cost using the effective interest method. The lease liability is re-measured when there is a change in future lease payments, which arises as a result of a change in an index or if the Bank changes its assessment of whether it will exercise extension or termination options. When the lease liability is remeasured, a corresponding adjustment of the right-of-use asset is recognised, or the effect is taken over the result if the book value of right-of-use asset is reduced to zero. Upon initial recognition in the balance sheet, the right-of-use asset is recognised at acquisition cost, i.e. the lease liability (present value of future lease payments) plus advance lease payments and any other direct acquisition costs. The right-of-use asset is depreciated over the lease term. The right-of-use asset is presented as part of fixed assets, while the lease liability is presented as part of other debt. 52 Notes to the financial statements

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