English version - Hexagon Composites ASA

COMROD COMMUNICATION ASA – LISTING ON THE OSLO STOCK EXCHANGE
The portion of gain or loss on a hedging instrument that is determined to be a highly effective cash
flow hedge is recognised directly in equity. The ineffective portion of the gain or loss on the hedging
instrument is recognised in the income statement.
If the hedge of a cash flow results in an asset or liability being recognised, all former gains and losses
recognised directly in equity are transferred from equity and included in the initial measurement of the
asset or liability. For other cash flow hedges, associated gains and losses recognised directly in equity
are recognised in the income statement in the same period as the cash flow which comprises the
hedged object is recognised in the income statement.
When a hedging instrument ceases to be highly effective, hedge accounting is discontinued
prospectively. In this case, the cumulative gain or loss on the hedging instrument recognised directly
in equity remains separately recognised in equity until the future identified transaction occurs.
If the hedge transaction is no longer expected to occur, any previously accumulated gain or loss on the
hedging instrument that has been recognised directly in equity will be recognised in profit or loss.
(iii) Hedges of a net investment in a foreign operation
The company has taken positions in EUR in order to hedge its net investment in foreign operations.
Changes in the currency derivatives designated for hedging are reported as exchange differences in the
Group’s equity until the investment is disposed of, after which accumulated exchange differences
relating to the investment are recognised in the income statement. The ineffective portion of the hedge
is recognised in profit or loss.
7.1.8 Inventories
Inventories, including work in progress, are carried at the lower of cost and fair value less costs to sell.
The fair value less cost to sell is the estimated selling price in the ordinary course of business less the
estimated costs of completion, and estimated costs necessary to make the sale. Inventories are
measured by using the weighted average cost formula. Finished goods and work in progress include
variable costs and fixed costs that can be allocated to goods based on normal capacity. Obsolete
inventories have been fully recognised as impairment losses.
7.1.9 Non-current assets
Non-current assets are measured at cost less accumulated depreciation and impairment losses. When
assets are sold or disposed of, the gross carrying amount and accumulated depreciation are
derecognised, and any gain or loss on the sale or disposal is recognised in the income statement.
The cost of a non-current asset comprises its purchase price, including duties/taxes, and any directly
attributable costs of bringing the asset to working condition for its intended use. Subsequent cost on
repairs or maintenance of assets is recognised as an expense when incurred. Subsequent expenditure
on repair and maintenance of property, plant or equipment which will generate future economic
benefits is capitalised.
Depreciable amounts are calculated using the straight-line method over the following periods:
Buildings ..................................................... 6 - 40 years
Plant and equipment ................................... 3 - 8 years
Fixtures & fittings, motor vehicles.............. 4 - 10 years
The depreciation period and method is assessed on an annual basis to ensure that the method and
period used reflect the expected pattern of economic benefits from the asset. The same applies to scrap
value.
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