Annual report 2008 - Comrod

STATEMENT OF CHANGES IN SHAREHOLDER’SEQUITY, CONSOLIDATED(NOK 1 000) Statement of recognized income and expences 2008 2007Translation differences 24 367 (2 604)Cash flow hedges (190) 190Net loss on hedging of net investments (11 884) 0Changes in estimates, pensions 1 624 (3 576)Net profit/loss taken directly to equity 13 917 (5 990)Profit for the period 10 812 12 715Total changes in shareholders equity for the period 24 729 6 725See also notes 19 and 26NOTES TO THE CONSOLIDATED FINANCIALSTATEMENT - IFRSNOTE 1 ORGANIZATION AND BASIS OF PRESENTATIONComrod Communication ASA is a public limited company withits registered office in Norway. The Company’s head office is atFiskaaveien 1, N-4120 TAU, Norway. Comrod CommunicationASA and its subsidiaries are collectively referred to as the Groupor the Comrod Communication Group.Comrod Communication ASA was part of the HexagonComposites Group until 19 January 2007, at which date thedemerger was implemented. Comrod Communication ASA waslisted on the Oslo Stock Exchange on 22 January 2007. SinceComrod Communication ASA was newly established at the dateof the demerger from Hexagon Composites ASA and the mergerwith Comrod AS and its subsidiaries, the creation of the ComrodCommunication Group is accounted for as a reverse acquisition.Comrod AS and its subsidiaries book value has been carriedforward. All comparable and historical figures relates accordinglyto Comrod AS and its subsidiaries.The consolidated financial statements of Comrod CommunicationGroup for the year ended 31 December 2008 were authorized forissue in accordance with a resolution of the Directors on24 March 2009.The principal activities of the Group are described in note 4Operating segments.NOTE 2 ACCOUNTING POLICIES2.1 Basis of preparationsThe consolidated financial statements of Comrod CommunicationASA and all its subsidiaries (the Group) have been prepared inaccordance with International Financial Reporting Standards(IFRS) as determined by the International Accounting StandardsBoard and implemented by EU as per 31.12.2008.The consolidated financial statements are based on a historicalcost basis, except certain financial instruments (includingfinancial derivatives), for which some are recognized at fair valuethrough the income statement and some are recognized to fairvalue directly against equity.The consolidated accounts have been prepared using uniformaccounting policies for equivalent transactions and events, whenall other conditions are equal.2.2. Functional currency and presentation currencyThe Group’s presentation currency is NOK. This is also ComrodCommunication’s functional currency. The functional currencyfor each subsidiary is set separately based on the specificcircumstances and economical environment for each individualsubsidiary, and may differ from the presentation currency.2.3 Consolidation principlesThe consolidated financial statements comprise ComrodCommunication ASA and the companies it controls. Controlnormally exists when the Group owns more than 50 % of theshares in a company, and the Group is in a position to exerciseactual control over the company.Acquisitions and mergers are accounted for using the purchasemethod. Companies that are acquired or disposed of during theyear are included in the consolidated accounts from the point atwhich control is gained and until control ceases. The purchasecost for acquisitions includes direct costs associated with theacquisition itself. Identifiable assets and liabilities taken over areincluded in the accounts at fair value at the time of purchase.If the purchase cost exceeds Comrod’s share not the the fairvalue of identifiable net assets, liabilities and contingent liabilities34 Comrod Communication Group Annual report 2008 2007