REC Silicon Annual Report 2019

54 Notes to the consolidated financial statements, REC Silicon Group REC Silicon Annual Report 2019 The following table presents a reconciliation of the Group’s investment in in the Yulin Joint Venture in China using the equity method of accounting: Investment in associates - equity method (USD INMILLION) 2019 2018 Carrying value at January 1 34.2 -34.7 Share of joint venture profit/loss -0.3 -0.5 Deferred income/expense 0.0 0.8 Change in deferred gain of tech transfer 29.7 67.2 Change in retained earnings due to change in ownership 0.0 5.0 Effects of changes in currency exchange rates -1.9 -3.7 Impairment of investment in associates -43.6 0.0 New cost basis of fair value Investment -18.0 0.0 Carrying value at December 31 0.0 34.2 OTHER INVESTMENTS In accordance with International Accounting Standard (IAS) 28, the carrying amount of the investment at the date the equity method was discontinued has been reported as the initial new cost basis of the investment in the Yulin JVat fair value and has been reported in the line other investments in the consolidated statement of financial position at December 31, 2019. The Company has designated the investment in the Yulin JVas an equity security at FVTPL. RELATED PARTY TRANSACTIONS The Group has related party relationships with its subsidiaries, associates, joint ventures and with its GroupManagement and Board of Directors. Transactions with subsidiaries have been eliminated on consolidation and are not reported as related party transactions in the consolidated financial statements for the Group. KEYMANAGEMENT COMPENSATION, SHAREHOLDINGS, LOANS ETC. GroupManagement and Board of Directors’ compensation, ownership of REC Silicon ASA shares, options and bonds, loan agreements and guarantees are shown in note 16. RELATED COMPANIES REC Silicon Inc. invoiced the Yulin JVUSD 3.4million in 2019 and USD 7.5million in 2018 for engineering and project services. In addition, REC Silicon sold product to the JV for USD 0.0million in 2019. REC Silicon paid an installment of USD 3.1million in 2019 in relation to the deferred payment of the USD 15.0million contribution due July 2016. See note 9 above. 10