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NOTES
BRUNVOLL HOLDING AS / BRUNVOLL HOLDING GROUP
Receivables
Receivables are recognized in the balance sheet at face value less provision for foreseeable losses. The provision for foreseeable
losses is based on an individual assessment of the receivables. In addition, an unspecified provision for anticipated losses is made
for the other accounts receivable.
Tax
The tax charge in the income statement includes tax payable for the period that has been assessed and falls due for payment in the
next financial year as well as changes in deferred tax. Deferred tax is estimated at the tax rate at the end of the financial year (27%)
on the basis of deductible and taxable temporary differences between the book value and tax value of assets and liabilities. Temporary
differences that increase or reduce tax are offset and entered net if they are reversed, or may be reversed, in the same period.
Warranty costs, etc.
Provisions are made for expected warranty commitments for sales that have taken place before the financial year-end, where future
liabilities may accrue for warranty costs, etc. Warranty liabilities are recognized under other current liabilities in the balance sheet
and amount to NOK 13.5 million.
Pension liabilities
Pension liabilities related to the scheme for contractual early retirement pensions (AFP) and collective insurance are recognized
on the basis of actuarial calculations. The collective pension agreement is funded through capital accumulation organized in an
insurance company. From 2008, the scheme has been split into a defined-contribution plan and a defined-benefit plan. The pension
liabilities are explained in more detail in Note 3.
Finance leases
Leasing agreements classified as finance leases are recognized in the balance sheet as assets and liabilities. The value of the
consideration is calculated as the net present value of the lease payments. The asset is depreciated over a reasonable depreciation
schedule, which corresponds to the estimated lease term. The liability is classified under «Other non-current liabilities». When
lease payments are made, the interest component is recognized as financial expense, while the principal component reduces the
liability.
Cash flow statements
The cash flow statement has been prepared according to the indirect method. Cash and cash equivalents include cash, bank
deposits, cash in hand and other investments with a maturity of less than three months from the acquisition date.
Brunvoll Group
The Group consists of the following companies:
Brunvoll Holding AS
Brunvoll AS
Brunvoll Årø AS
Brunvoll Strandgata AS
Brunvoll Oppdal AS
Brødr. Brunvoll Motorfabrikk AS
Årøhagen Eiendom AS
Høvdingbygget Årø AS
All companies have the same postal address: Strandgt. 4-6, 6415 Molde.
In the consolidation of the Group’s financial statements, the acquisition method has been used. Internal sales/purchases and
internal receivables/liabilities are eliminated in the consolidated financial statements.
Høvdingbygget Årø AS was acquired on 13 July 2013. In the consolidated financial statements, the income statement items have
been consolidated for the period after the take-over. The excess value of the purchase price over the book value in connection with
the acquisition has been allocated to real estate, corrected for deferred tax. Due to the long reversal period, a rate of 7% has been
used in the calculation. The excess value is amortized on a straight-line basis over the lifetime of the property.
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