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Notes to the financial statements,
Renewable Energy Corporation ASA
REC Annual Report 2011
NOTESTOTHEFINANCIALSTATEMENTS
RENEWABLEENERGYCORPORATIONASA
SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES AND GENERAL
Renewable Energy Corporation ASA (REC ASA) is a holding
company and consists of parts of the GroupManagement,
corporate functions, corporate research and development, a
corporate project management organization and the REC Group’s
inhouse bank. Revenues comprise sales of Group services to REC
subsidiaries, primarily on a cost-plus basis. The activities have been
scaled down in 2011, especially at the end of the year, in light of the
reduced activities in Norway for the REC Group. Due to significant
losses and write downs of assets in its subsidiaries, REC ASA had to
contribute capital during the year to subsidiaries and recognized
significant write downs and losses on shares in, and loans to
subsidiaries.
The financial statements of REC ASA have been prepared in
compliance with the Norwegian Accounting Act and Norwegian
generally accepted accounting principles (NGAAP) in effect at
December 31, 2011. The functional and reporting currency of
REC ASA is Norwegian Krone (NOK). The consolidated financial
statements of the REC Group have been prepared in accordance
with IFRS. However, except as stated, REC ASA’s accounting
principles are similar to the accounting principles for the
REC Group, as described in the notes to the consolidated financial
statements. Where the notes for the parent company are
substantially different from the notes for the Group, these are
shown below. Otherwise, refer to the notes to the consolidated
financial statements for the Group.
Group contributions and dividends that are subject to approval by
the Annual General Meeting are according to IFRS recognized in
the consolidated financial statements at the time of approval. For
REC ASA’s financial statements according to NGAAP, these are
recognized in the fiscal year they relate to. For REC ASA this is
relevant for Group contributions recognized in 2010, approved by
the Annual General Meeting of REC ASA and paid to subsidiaries
in 2011. Group contributions to subsidiaries are recognized as
investment in shares in subsidiaries, net of tax. In REC ASA’s
financial statements, subsidiaries, jointly controlled entities and
associates are carried at the lower of cost and estimated
recoverable amount. In the consolidated financial statements, these
are consolidated, proportionately consolidated and accounted for
using the equity method, respectively. In the consolidated financial
statements, the convertible EUR bond issued in 2009 has been
measured at fair value. In REC ASA’s financial statements it is
measured at amortized cost.
In REC ASA’s financial statements, payments expected to be
made during the next 12months on non-current financial assets
or liabilities are not reclassified to current financial assets or
liabilities. In the consolidated financial statements, these are
reclassified.
The financial statements of REC ASA have been approved for issue
by the Board of Directors on March 20, 2012 and are subject to
approval by the Annual General Meeting on May 22, 2012.
INTANGIBLE ASSETS
(NOK INMILLION)
INTERNALLY
GENERATED
INTANGIBLES
ASSETS UNDER
CONSTRUCTION
OTHER
INTANGIBLE
ASSETS
2011 TOTAL
2010 TOTAL
Cost at January 1
20
62
10
93
91
Additions
3
0
0
3
2
Disposals
0
0
0
0
0
Reclassification
0
0
0
0
0
Cost at December 31
22
62
11
96
93
Accumulated amortization at December 31
11
0
6
17
10
Accumulated impairment at December 31
0
62
0
62
0
Carrying value at December 31
11
0
5
17
82
Amortization for the year
4
0
3
7
6
Impairment for the year
0
62
0
62
0
Estimated useful life, years
3
N/A
3-10
Amortization method
Straight line
N/A Straight line
In 2011 REC ASA recognized impairment loss on a technology development agreement with SiGen for mono wafer cutting. Remaining
intangible assets are to a large extent related to IT systems.
A
B