Torp Computing Group ASA

Torp Computing Group ASA
Short-term investments
Taxes
Translated into English for information purposes only
Notes to the accounts for 2006
Foreign currencies
Items denomiated in foreign currencies are translated into Norske Kroner at the exchange rate on the balance sheet date. In the income
statement transactions in foreign currency are booked using the average exchange rate.
Short term investments (shares and investments which are considered current assets) are carried at the lower of average purchase cost and
net realisable value at the balance sheet date. Dividends and other distributions received are recognised as other financial income.
The tax expense in the income statement consists both of taxes payable for the accounting period, and the period's changes in deferred tax.
Deferred tax is calculated as 28% of the temporary differences between the tax bases of assets and liabilities and their carrying amounts in
the financial statements. Temporary differences, both positive and negative, are offset within the same period. Deferred tax assets are
recorded in the balance sheet when it is more likely than not that the tax assets will be utilized. Deferred tax assets and deferred tax liabilities
are presented net in the balance sheet.
Cash flow statement
The cash flow statement has been prepared according to the indirect method. Cash and cash equivalents include cash, bank deposits, and
other short term highly liquid investments.
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