English version - Hexagon Composites ASA
English version - Hexagon Composites ASA
English version - Hexagon Composites ASA
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COMROD COMMUNICATION <strong>ASA</strong> – LISTING ON THE OSLO STOCK EXCHANGE<br />
Comrod AS<br />
Annual Accounts 2005<br />
Notes<br />
Note 1 Accounting principles continued<br />
Financial instruments<br />
In addition to traditional financial instruments as trade receivables, accounts payable and interest-bearing liabilities,<br />
the company has entered into forward exchange contracts. Gains or losses from the forward exchange contracts<br />
classified as hedging is accrued for and offset against the item which is hedged. Forward exchange contracts which<br />
not meet the hedging criteria are measured at fair value and recognised in the balance sheet. Gains or losses is<br />
recognised as financial income or financial expenses.<br />
Income tax<br />
The tax expense in the profit and loss account consists of both tax payable for the accounting period and changes in<br />
deferred tax. Deferred tax is calculated as 28 percent of temporary differences between accounting profit and<br />
taxable profit considering the tax effect of former operating losses. Temporary differences, both positive and<br />
negative, are offset within the same period. Deferred tax assets are recorded in the balance sheet when it is more<br />
likely than not that the tax assets will be utilized.<br />
Change of accounting principles<br />
a) Pensions<br />
Until 2004 actuarial gains and losses (if they exceeded 10% of the highest of total pension assets or liabilities<br />
(corridor)) were amortized over the remaining average period for accumulated actuarial gains or losses. From 2005<br />
actuarial gains or losses is recognised directly in equity (net of tax). Accumulated actuarial gains from former<br />
periods (net of tax) at a total of NOK 143 850 has reduced the equity in 2005.<br />
Effective from 2005 pension obligations is treated in accordance with NRS 6 (correspond with IAS 19 "Employee<br />
Benefits"). The effect of the transition NOK 2.241 418 (net of tax) is set of against equity.<br />
b) Financial derivatives<br />
Forward exchange contracts which did meet the hedging criteria were until 2004 not recognised until the transaction<br />
was realised, while only unrealized losses on other foreign currency transactions were recognised. From 2005 also<br />
unrealised gains on other exchange contracts is recognised. In 2005 gains (net of tax) of<br />
NOK 946 080 were recognised in the income statement.<br />
Forward exchange contracts which met the hedging criteria were until 2004 not recognised. From 2005 these<br />
forward exchange contracts are measured at fair value and recognised in the balance sheet. Revaluations relating to<br />
foreign currency transactions which meet the hedging criteria are recognised directly in equity until the object of the<br />
hedge transaction is realised, or the hedging is evaluated not to be effective. The value of unrealised gains was NOK<br />
5 781 265 (net of tax) at 31.12.2004<br />
The figures from former years are not restated and are not directly comparable.<br />
Comrod AS<br />
Annual Accounts 2005<br />
Note 2 Revenue<br />
Amounts in NOK 1000<br />
2 005 2004<br />
By business area<br />
Marine/civil 20 109 21 458<br />
Defence 89 450 85 279<br />
Total 109 559 106 737<br />
Geographical distribution<br />
Europe 69 574 88 983<br />
America 14 113 10 619<br />
Asia 5 895<br />
Middle East 17 343<br />
Other countries 2 634 7 135<br />
Total 109 559 106 737<br />
Revenue from other countries includes 34 countries all over the world.<br />
Note 3 Inventories<br />
2 005 2004<br />
Raw materials 8 717 000 8 314 000<br />
Work in progress 4 140 914 4 599 914<br />
Finished goods 3 342 251 4 533 000<br />
Total 16 200 165 17 446 914<br />
Note 4 Salaries / Number of employees / Benefits<br />
Payroll and related cost<br />
2 005 2 004<br />
Payroll 31 217 364 28 173 604<br />
Social security costs 4 599 340 4 187 630<br />
Pension costs 1 280 252 1 196 255<br />
Other employee related costs 913 245 596 890<br />
Payroll and related cost 38 010 201 34 154 379<br />
Average number of employees: 74 74<br />
Management remuneration Salary<br />
Other<br />
benefits<br />
Managing Director 1 390 708 167 867<br />
Board of Directors 30 000<br />
In addition to salary paid to Managing Director in 2005, an accrual for earned bonus of NOK 500 000,- are made.<br />
Included in salary to Managing Director for 2005, NOK 500 000,- is bonus earned in 2004.<br />
Audit<br />
Expensed audit fee for 2005 was NOK 131 650,-. In addition there has been other services of NOK 71 922,-.<br />
VAT is not included.<br />
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