Annual Report 2011 - Kongsberg Maritime - Kongsberg Gruppen

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The financial statements for Kongsberg Gruppen ASA have been
prepared in accordance with the Norwegian Accounting Act and
generally accepted accounting practices in Norway.
Subsidiaries and associates
Subsidiaries and associates are measured at cost in the statutory
accounts. The investments are measured at acquisition cost, unless
impairment has been necessary. Such assets are deemed to be impaired
at fair value when a decrease in value cannot be considered to be of
temporary nature and in accordance with generally accepted accounting
principles. Impairments are reversed when the basis for the impairment
no longer applies. Dividends and other disbursements are recognised in
the same period as provisions are appropriated in the subsidiary.
Classification and valuation of balance sheet items
Current assets and current liabilities include items due for payment
within one year after the date of acquisition, as well as items associated
with the operational cycle. Other items are classified as fixed assets/
non-current liabilities. Current assets are measured at the lower of cost
and fair value. Current liabilities are recorded at their nominal values on
the date of acquisition. Fixed assets are measured at acquisition cost
less depreciation. However, fixed assets are impaired when a decrease in
value is not expected to be of temporary nature. Non-current liabilities
are measured at nominal value at the date they are incurred.
Receivables
Accounts receivables and other receivables are measured on the balance
sheet at nominal values less provision for doubtful debts. Provision for
doubtful debts is made on the basis of individual assessment of each
receivable. In addition, a unspecified provision is made to cover expected
losses on other receivables.
Foreign currency
Monetary items in a foreign currency are translated into NOK using the
exchange rate applicable at the end of the reporting period.
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ACCOUNTING POLICIES
EQUITY RECONCILIATION
Short-term investments
Short-term investments (shares and units considered to be current
assets) are measured at the lower of acquisition cost and fair value at
the date of the balance sheet. Dividends and other allocations from the
companies are recognised as “Other financial income”.
Pensions
The defined contribution plan
The Group introduced a defined contribution pension plan in 2007 for all
employees under age 52 on 1 January 2008. Employees aged 52 or more
at the time of the transition remained with the defined benefit plan.
Deposit is expensed as incurred.
The defined benefit plan
Pension expenses and pension liabilities are calculated using linear
accrual based on estimated salary level at retirement and on a number of
assumptions including discount rates, future salary adjustments, pensions
and benefits from the National Insurance Scheme, and future interest
income on pension fund assets, as well as actuarial assumptions on
mortality and voluntary retirement. Pension fund assets are measured at
their fair value, less net pension liabilities at date of the balance sheet.
Income tax
The tax expense consists of the tax payable and changes to deferred
tax. Deferred tax/tax assets are calculated at 28 per cent on all
differences between the book value and tax value of assets and liabilities,
and loss carried forward at the end of the reporting period. Taxable and
deductible temporary differences that reverse or may reverse in the
same period are offset. Deferred tax assets are recognised when it is
probable that the company will have a sufficient profit for tax purposes
in subsequent periods to utilise the tax asset. The companies recognise
previously unrecognised deferred tax assets to the extent it has become
probable that the company can utilise the deferred tax asset. Similarly,
the company will reduce a deferred tax asset to the extent that the
company no longer regards it as probable that it can utilise the deferred
tax asset.
Cash flow statement
The cash flow statement presents cash flow using the indirect method.
Cash and short-term deposits comprise cash reserves, bank deposits
and other short-term liquid investments.
Amounts in MNOK Share capital
Retained
earnings Total equity
Equity at 31 December 2009 150 1 084 1 234
Profit for the year - 474 474
Dividends for 2010 - (450) (450)
Actuarial gains/loss on pension expenses - (5) (5)
Equity at 31 December 2010 150 1 103 1 253
Profit for the year - 437 437
Treasury shares - (6) (6)
Dividends for 2011 - (450) (450)
Actuarial gains/loss on pension expenses - (17) (17)
Equity at 31 December 2011 150 1 067 1 217
Other information about the company’s share capital is provided in Note 22 “Share capital” to the consolidated financial statements.
2 INTRODUCTION
7 DIRECTORS’ REPORT AND
18 FINANCIAL STATEMENTS
64 CORPORATE GOVERNANCE
76 FINANCIAL CALENDAR AND ADDRESSES
KONGSBERG Annual Report 2011 57