REACH SUBSEA ASA

laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred
income tax asset is realised or the deferred income tax liability is settled.
Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which
the temporary differences can be utilised.
Pension obligations
For defined contribution plans, the contributions are recognized as employee benefit expense over the period the contribution will
cover.
Provisions, contingent liabilities and contingent assets
Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, and it is probable
that an economic settlement will take place in consequence of this obligation, and a reliable estimate can be made of the amount.
Provisions are based on best estimate.
Contingent liabilities are not recognized in the financial statements. Significant contingent liabilities are disclosed, with the exception of
contingent liabilities where the probability of the liability occurring is remote.
A contingent asset is not recognized in the annual financial statements, but is disclosed if it is probable that a benefit will accrue to
the Group.
Recognition of revenue
General
Revenue from sale of services is recognized when it is probable that transactions will generate future economic benefits that will flow
to the Group, and the amount can be reliably measured. Revenues are shown net of value added tax and discounts.
Sales of services
The group sells design services to other. For sales of services under fixed rate contracts, revenue is recognised in the accounting
period in which the services are rendered, by reference to stage of completion of the specific transaction and assessed on the basis
of the actual service provided as a proportion of the total services to be provided. For other services, revenue is recognised based
on the agreed rate as the services are rendered.
Revenue from leases
Revenue from time-charter leases is recognized as operational leases using a straight-line basis over the term of the contract. TC hire
is presented separately in the income statement.
Cash flow statement
The cash flow statement is prepared according to the indirect method.
// Note 2 - Regnskapsprinsipper
Rammeverk for regnskapsavleggelse
Konsernregnskapet til Reach Subsea ASA er utarbeidet i samsvar med internasjonale regnskapsstandarder (IFRS) og fortolkninger fra
IFRS fortolkningskomité (IFRIC), som fastsatt av EU.
Konsernregnskapet er basert på et modifisert historisk kostprinsipp. Avvikene gjelder i hovedsak finansielle eiendeler og forpliktelser
(herunder derivater) til virkelig verdi over resultatet.
Utarbeidelse av regnskaper i samsvar med IFRS krever bruk av estimater. Videre krever anvendelse av selskapets regnskapsprinsipper
at ledelsen må utøve skjønn. Områder med stor grad av skjønnsmessige vurderinger, høy kompleksitet, eller områder hvor forutsetninger
og estimater er vesentlige for regnskapet, er beskrevet i note 4
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