English version - Hexagon Composites ASA

COMROD COMMUNICATION ASA – LISTING ON THE OSLO STOCK EXCHANGE
Foreign operations
Assets and liabilities in foreign operations, including goodwill and fair value adjustments, which arise
on consolidation, are translated to presentation currency at the closing rate. Income and expense from
foreign operations is translated to presentation currency using the average monthly rate as an
approximation for transaction rate. Exchange differences are recognised in equity.
7.1.22 Employee benefits
Defined benefit pension plans
The group’s Norwegian companies offer their employees defined benefit pension plans. The defined
benefit liability is the net total of the present value of future pension benefits accrued at the balance
sheet date, minus the fair value of plan assets. The discount rate applies to interest on a 10-year
government bond with a margin to take into consideration the bond’s maturity. The pension assets are
valued by actuaries each year. The pension commitments and pension costs are determined using a
linear accrual formula. A linear accrual formula distributes the accrual of future pension benefits in a
straight line over the accrual period, and regards the employees’ accrued pension rights during a
period as the pension costs for the year.
The introduction of a new defined benefit plan or an improvement to the present plan will involve
changes to the pension liability. These are recognised as an expense on a straight-line basis until the
effect of the change has been accommodated. The introduction of new plans or changes to existing
plans which take place retrospectively, thereby qualifying employees for a paid-up policy (or change
to a paid-up policy), are recognised immediately. Gains or losses on the curtailment or settlement of
pension plans are recognised when the curtailment or settlement occurs.
Actuarial gains or losses are recognised directly in equity (net of tax).
The French companies have a retirement indemnity obligation to their employees. The obligation is
calculated based on assumptions regarding period of employment, discount rate, salary increase, age
of retirement and social charges.
7.1.23 Share-based payment
Senior executives in the group have received options to subscribe for shares in Hexagon Composites
ASA. The fair value of the share options is measured at the date on which they are granted and the
cost is recognised, together with a corresponding increase in other paid-in capital, over the period in
which the performance and/or service conditions are fulfilled.
It is not established a new share-based payment program in Comrod Communication ASA.
7.1.24 Government grants
A government grant is recognised when there is reasonable assurance that the company will comply
with the conditions attaching to it, and that the grant will be received. When the grant relates to an
expense item, it is recognised as income over the period necessary to match it on a systematic basis
with the related costs it is intended to compensate. Grants relating to assets are capitalised and
recognised as income on a systematic basis over the useful life of the asset. Grants related to assets are
presented either by setting up the grant as deferred income or by deducting the grant when establishing
the asset’s carrying amount.
7.1.25 Income taxes
Tax expense comprises current tax expense and deferred tax expense. Deferred tax liabilities are
recognised for all accounting and taxable temporary differences, except to the extent that the deferred
tax liability arises from:
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