Page 69 - Sector Alarm Annual Report 2020

Sector Alarm / Annual Report 2020
Notes
Amounts in TNOK
Accounting principles
The financial statement is prepared in accordance with the Norwegian Accounting Act and generally accepted accounting practice in Norway.
Revenue recognition
Revenues from sale of services is recognized when delivered. All revenues are related to sale of services to subsidiaries.
Balance sheet items
Current assets and current liabilities comprise items related to purchase and sale of goods. For items other than accounts receivable,
items that fall due within one year of the transaction date are included. Fixed assets are assets intended for permanent ownership and use. Long-term debt is debt that matures later than one year after the transaction date.
Current assets are valued at the lower of cost and fair value. Short-term debt is capitalized at the nominal amount at the time of establishment.
Fixed assets are valued at cost. Fixed assets are depreciated according to a reasonable depreciation plan. Fixed assets are written down to fair value in the event of impairment that is not expected to be temporary. Long-term debt with the exception of other provisions is capitalized at nominal amount at the time of establishment.
Receivables
Accounts receivables and other receivables are recognized at denominated value.
Intangible assets
Intangible assets (brand names and licenses / software) are capitalized at cost and amortized on a straight-line basis over their expected useful lives.
Fixed assets
Tangible fixed assets are capitalized and depreciated over the useful life of the fixed assets if they have assumed a useful life of more than 3 years and have a cost price exceeding NOK 15,000. Maintenance of fixed assets is expensed as operating costs on an ongoing basis, while costs or improvements are added to the acquisition cost of the fixed asset and depreciated in line with the fixed asset.
Pension
The employees of the company have a defined contribution pension schemes that meet the requirements for compulsory occupational pension (OTP) according to Norwegian law.
Currency items
Foreign currency items are valued at the exchange rate at the end of the financial year.
Financial market risk
The company has only intra-group customers and has historically not had any losses on claims. Investments in subsidiaries are monitored on an ongoing basis, and corrective measures are implemented if operations deviate from the plan. As of 31.12.2020, the company has cash and unused credit facilities that are sufficient in relation to expected payments and expected organic growth.
Cash flow
The cash flow statement has been prepared using the indirect method. Bank accounts that is part of the Group’s cash pool scheme is presented as cash in the balance sheet and cash flow statement
Income tax
The tax expense in the income statement includes both the tax payable for the period and the change in deferred tax. Deferred tax is calculated at 22% on the basis of the temporary differences that exist between accounting and tax values, as well as tax loss carryforwards at the end of the financial year. Tax-increasing and tax-reducing temporary differences that reverse or can reverse in the same period are offset and the tax effect is calculated on the net basis.