REC Silicon Annual Report 2019

85 Notes to the financial statements, REC Silicon ASA REC Silicon Annual Report 2019 NOTESTOTHEFINANCIALSTATEMENTS RECSILICONASA SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES AND GENERAL INFORMATION REC Silicon ASA (the Company) is a holding company with corporate management and financial functions. The financial statements have been prepared in compliance with the Norwegian Accounting Act and Norwegian generally accepted accounting principles (NGAAP) in effect at December 31, 2019. The Company’s reporting and functional currency is in US Dollar (USD). The reporting currency used in the consolidated financial statements is US Dollar (USD). The consolidated financial statements of the Group have been prepared in accordance with IFRS. The Company’s accounting principles are similar to the accounting principles for the Group unless otherwise noted. Financial statement disclosures for the Company that are substantially different from the disclosures for the Group are shown below. See notes to the consolidated financial statements. Group contributions and dividends that are subject to approval by the Annual General Meeting are recognized according to IFRS in the consolidated financial statements at the time of approval. For the Company’s financial statements according to NGAAP, these are recognized in the fiscal year they relate to. Group contributions to subsidiaries are recognized as investment in shares in subsidiaries, net of tax. Subsidiaries, jointly controlled entities, and associates are carried at the lower of cost or estimated recoverable amount in the Company’s financial statements. In the consolidated financial statements, these are consolidated or accounted for using the equity method. In the consolidated financial statements, the convertible USD bond loans issued in 2013 have been measured at fair value. In the Company’s financial statements, they are measured at amortized cost. (The convertible USD bond was settled in 2018.) In the Company’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 are presented in USD, rounded to the nearest thousand unless otherwise stated. As a result of rounding adjustments, the figures in one or more rows or columns included in the financial statements may not add up to the total of that row or column. The financial statements of the Company have been approved for issue by the Board of Directors onMarch 23, 2020 and are subject to approval by the Annual General Meeting scheduled forMay 12, 2020. A