Arrow Prospectus - PGS

ARROW SEISMIC ASA – INITIAL PUBLIC OFFERING
• temporary differences related to investments in subsidiaries, associated companies or joint ventures,
since the group determines when the temporary differences will be reversed and this is not assumed to occur in
the foreseeable future.
Deferred tax assets are recorded in the accounts when it is probable that the company will have sufficient taxable
profit to benefit from the tax asset. On the date of each balance sheet the group will review unrecognised
deferred tax assets and the book value of such assets. The companies record prior unrecognised deferred tax
assets in the accounts if it becomes probable that the company can use the deferred tax asset. Moreover, the
company will reduce the deferred tax asset if the company can no longer benefit from the deferred tax asset.
Deferred tax liabilities and assets are measured based on the current tax rates that apply to the companies in the
group where temporary differences have arisen.
Deferred tax liabilities and assets are recorded in the accounts regardless of when the differences will be
reversed. Deferred tax liabilities and assets are recorded at their nominal value and are classified as fixed asset
investments (long-term liabilities) on the balance sheet.
Tax payable and deferred tax are recorded directly against equity if the tax is related to transactions that are
recorded directly against equity.
Tax payable and deferred tax assets/liabilities are measured at the tax rate that applies to accrued, undistributed
equity. The tax effects of dividends are taken into account when the company has incurred a liability to distribute
a dividend.
For Norwegian companies a tax rate of 28% is employed. For UK companies the tax rate is 30 %,
8.3.17 Classification of assets and liabilities on the balance sheet
Assets intended for permanent ownership or use and receivables that mature later than one year after the end of
the accounting period are identified as fixed assets. Other assets are classified as current assets. Liabilities that
mature later than one year after the end of the accounting period are classified as long-term liabilities. Other
liabilities are classified as current liabilities. The first year’s instalments on long-term loans are classified as
current liabilities in the balance sheet.
8.3.18 Business areas
The Group presents financial numbers for the business areas as seismic operations and offshore subsea support.
Indirect attributable costs are allocated to the business areas. Financial information regarding the segments is
presented in note 5.
Internal profit from sale between the business areas is eliminated in the segment reporting.
8.3.19 Contingent liabilities and assets
Contingent liabilities are defined as:
(i) Possible liabilities resulting from prior events where the existence of the liability is dependent on
future events.
(ii) Liabilities that have not been recognised because it is not probable that they will entail any
payment.
(iii) Liabilities that cannot be measured with an adequate degree of reliability.
Contingent liabilities are not recorded in the annual accounts. Significant contingent liabilities are disclosed
unless the probability of the liability occurring is low.
A contingent asset is not recorded in the annual financial statements, but it will be disclosed if there is a certain
probability that it will benefit the group.
8.3.20 Events after the date of the balance sheet
New information on the company’s positions on the balance sheet date has been incorporated into the annual
financial statements. Events after the balance sheet date that do not affect the company’s position on the balance
sheet date, but will affect the company’s position in the future, have been disclosed if they are material.
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