English version - Hexagon Composites ASA

COMROD COMMUNICATION ASA – LISTING ON THE OSLO STOCK EXCHANGE
Comrod Communication ASA
Financial Statements 2006
NOTE 1 GENERAL INFORMATION
Comrod Communication ASA is a public limited company with its registered office in Norway. The
company’s head office is at Fiskåvegen 1, 4120 Tau, Norway.
The board of directors authorised the financial statements for publication on 11. January 2007.
Comrod Communication ASA was incorporated as a wholly owned subsidiary of Hexagon Composites ASA
on 19 September 2006 for the purpose of acting as the transferee company in a Demerger of the
Communication Business of Hexagon Composites ASA. Comrod Communication ASA has not had, and will
not have, any operational activity prior to the Completion Date of the Demerger. The expected date for final
approval of the Demerger is 17 January 2007. Also see note 11.
NOTE 2 ACCOUNTING PRINCIPLES
Basis for preparation
The following financial statements for Comrod Communication ASA are prepared in accordance with the
international reporting standards published by the International Accounting Standards Board, as adopted
by the European Union (EU). Since the company was incorporated in 2006 there are no comparative
figures for 2005.The measurement basis used is historical cost.
Accounting principles and disclosure requirements deriving from the following standards are not adopted
as per 31 December 2006:
- Amendment to IAS 1 “Presentation of Financial Statements”. The amendment is effective for the
period beginning on or after 1 January 2007.
- IFRS 7 “Financial instruments: disclosures”. The standard is effective for the period beginning on or
after 1 January 2007.
Functional currency and presentation currency
The company presents its financial statements in NOK. Functional currency for the company is NOK.
Cash & cash equivalents
Cash includes bank and cash balances. The Cash-Flow statement is prepared using the indirect method.
Provisions
A provision is recognised when, and only when, the company has a present obligation (legal or
constructive) as a result of a past event and it is probable (more likely than not) that an outflow of
resources embodying economic benefits will be required to settle the obligation, and a reliable estimate
can be made of the amount of the obligation. Provisions are reviewed at each balance sheet date and
adjusted to reflect the current best estimate. If the effect of the time value of money is immaterial, the
amount of the provision will be equal to the expenditures required to be free of the obligation. If the effect
of the time value of money is material, the amount of the provision will be the present value of the
expenditures required to settle the obligation. Any increase in the provisions due to time is presented as
interest costs.
Equity
Equity and liabilities
Financial instruments are classified as liabilities or equity in accordance with the underlying financial
reality.
Comrod Communication ASA
Financial Statements 2006
Costs arising from equity transactions
Transaction costs directly linked to an equity transaction are recognised directly in equity after a deduction
for tax.
Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company
and the revenue can be measured reliably.
Interest income is recognised as interest accrues.
Income taxes
Tax expense comprises current tax expense and deferred tax expense. Deferred tax liabilities are
recognised for all accounting and taxable temporary differences.
Deferred tax assets are recognised when it is probable that the company will have a sufficient profit for tax
purposes to utilise the tax asset. Deferred tax assets and liabilities are measured at the future tax rates
that are expected. Deferred tax assets and liabilities are recognised at nominal value and designated as
financial assets (non-current liabilities) in the balance sheet. Current tax and deferred tax is charged or
credited directly to equity if the tax relates to items that are credited or charged directly to equity.
Segments
The company has not had any operational activity in 2006. Therefore the company does not report in
business areas. All activity in 2006 has been in Norway.
Contingent liabilities and contingent assets
Contingent liabilities are defined as:
i) possible obligations resulting from past events whose existence depends on future events.
ii) obligations that are not recognised because it is not probable that they will lead to an outflow of
resources
iii) obligations that cannot be measured with sufficient reliability.
Contingent liabilities are not recognized in the financial statements. Material contingent liabilities are
disclosed, unless the possibility of any outflow in settlement is remote.
Contingent assets are not recognised, but are disclosed where an inflow of economic benefits is probable.
Events after the balance sheet date
New information received after the balance sheet date about the Company’s financial position at the
balance sheet date is taken into account in the annual report. Material events after the balance sheet date
which do not affect the company’s financial position at the balance sheet date, but which will affect the
company’s financial position in the future are disclosed.
Use of estimates
Management has used estimates and sources of estimation that have affected assets, liabilities, income,
expense and disclosures about potential liabilities. There are no significant accounting estimates in the
financial statements for 2006.
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