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BRUNVOLL HOLDING AS / BRUNVOLL HOLDING GROUP
Accounting policies:
Annual accounts for the Group have been prepared in accordance with the Norwegian Accounting Act and Norwegian generally
accepted accounting principles.
Restructuring, demerger and merger within the Group
In 2014, the Brunvoll Holding Group carried out a restructuring process within the Group. The first stage was the formation of a
new subsidiary to which all assets and liabilities of the parent company were transferred. The continuity principle was used because
the transfer took place with unchanged ownership. This means that the book values from the former parent company are continued
in the newly formed company. The former parent company was then spun off into a number of new companies owned by the
previous individual shareholders. The rest of the original parent company was then merged into the new parent company, which
then changed its name to Brunvoll Holding AS. Both the above-mentioned demerger and the subsequent merger have been
undertaken with continuity for accounting purposes, because the entire reorganization has been carried out with unchanged
ownership. This implies that the company Brunvoll Holding AS (Organization Number 914084156), shown as the parent company
in the consolidated financial statements, is a newly formed company with a different organization number from the company
Brunvoll Holding AS (Organization Number 910860488), which was previously the parent company of the Group. The financial
statements for 2014 show comparative figures for the former company and Group, because these figures provide directly comparable
information for the business conducted by both the company Brunvoll Holding AS and the Group.
Revenue and expense
Revenue is recognized when it is earned, which is normally on the delivery date. Costs are recognized according to the matching
principle; that is, costs are included in the period in which the associated revenue is recognized.
Current assets and current liabilities
Current assets and current liabilities normally include items due for payment within one year after the last day of the financial year,
as well as items related to the operating cycle. Current assets are valued at the lower of cost fair value. Current liabilities are
recognized at nominal value.
Non-current assets and liabilities
Non-current assets comprise of assets intended for permanent ownership and use by the business. Non-current assets are valued
at cost. Property, plant and equipment are capitalized and depreciated linearly over the estimated useful life. Property, plant and
equipment are written down to their fair value in connection with impairment that is not expected to be temporary. Impairment is
reversed if conditions for impairment are no longer present.
Currency
Monetary items in a foreign currency are translated into NOK using the exchange rate applicable on the balance sheet date.
Investment in shares
Investment in shares is recorded at acquisition cost, adjusted for any prolonged decline in value. Dividends received and other
distribution of earnings from the companies are recognized as other financial income.
Cash flow hedging
The Group uses forward contracts to hedge future receipts/payments in foreign currency (cash flow hedging). These forward
contracts are not recognized.
Raw materials
Inventories are valued at the lower of cost and net realizable value (lowest value principle).
Finished goods and work in progress
The cost of these goods is the direct cost and a proportionate share of the indirect variable manufacturing costs. In the calculation
of fair value, the selling price at a future sales date is used, less costs to sell and production costs incurred in completion for sale.
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Annual Report 2014