Notes to the financial statements (Unconsolidated Parent Company)
1. General information and summary of significant accounting principles
Polarcus Limited (the “Company”) is a holding company. In addition to owning the subsidiaries, the Company conducts a part of the external debt financing of the Group and provides loans to Group companies. The Company owns and rents in-sea equipment to its subsidiaries and also employs offshore personnel who work onboard the vessels owned by other Group companies. The Company’s accounting principles are consistent to the accounting principles of the Group, as described in Note 2 of the Group’s consolidated financial statements for the year ended 31 December 2011. Note disclosures for the Company that is similar to information in the consolidated financial statements are not repeated in these financial statements. This relates in particular to the notes in the consolidated financial statements on issued share capital and share premium (both Note 14), other reserves (Note 16), senior bonds (Note 17), convertible bonds (Note 18) and the liability for warrants (Note 14). Shares in the subsidiaries and receivables from and loans provided to the subsidiaries are evaluated at the lower of cost and fair value. When the value of estimated future cash flows is lower than the carrying value in the subsidiaries, the Company recognizes impairment charges on investments in subsidiaries and intercompany receivables. If and when estimated recoverable amounts increase, impairment charges are reversed. There is no fixed plan for repayment of long-term intercompany receivables.
2. Revenues
The Company’s revenues are earned mainly from leasing seismic equipment and provision of offshore employees’ services to other Group companies. (In thousands of USD) Crewing services provided to Group companies In-sea equipment leased to Group companies Miscellaneous income Total
Years ended 31-Dec-11 31-Dec-10 44,064 17,355 12,628 12,290 5,616 8,691 62,308 38,336
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