notes to the blom group accounts
subsidiary is recognised in the equity of the parent company's owners. Gains or losses from the sale of non-controlling owners are recognised correspondingly through equity. assosiated companies Associated companies are units where the group has a significant, but not controlling, influence. A significant influence exists normally for investments where the group has between 20 and 50 per cent of the voting capital. Investments in associates are recognised in accordance with the equity method of accounting. At the time of acquisition investments in associates are recognised in the accounts at the historical cost. The group's share of profits or losses in associated companies is recognised in the income statement and added to the carrying value of the investments together with its share of unrecognised changes in equity. The group does not recognise its share of the losses in the income statement if this entails that the book value of the investment becomes negative, unless the group has assumed liabilities or granted guarantees for the associated company’s liabilities. The group’s share of unrealised gains on transactions between the group and its associated companies are eliminated. The same applies to unrealised losses unless the transaction indicates a write-down of the asset transferred. Segment information The operating segments are reported in the same manner as the internal reporting to the group's highest decision-maker. The company’s highest decision-maker, who is responsible for the allocation of resources to and the assessment of earnings in the operating segments, is defined as the corporate management. Foreign currency translation a) Functional and presentation currencies The accounts of the individual units in the group are measured in the currency that is used primarily in the economic area where the unit operates (functional currency). The consolidated accounts are presented in Norwegian kroner
(NOK), which is both the functional and presentation currency for the parent company. b)Transactions and balance sheet items Transactions involving foreign currencies are translated into the functional currency using the exchange rates that are in effect at the time of the transactions. Foreign currency gains and losses that arise from the payment of such transactions and the translation of monetary items (assets and liabilities) at the rates in effect on the balance sheet date are recognised in the income statement. Currency gains and losses linked to loans, cash and cash equivalents are presented on a net basis as financial income or expenses. If the foreign currency position is regarded as the hedging of a net investment in foreign business operations the gains or losses are recognised directly in equity. c) Group companies When consolidating the accounts of foreign subsidiaries, the income statement is translated into the presentation currency according to average exchange rates for the year. Balance sheet items are translated at the exchange rate in effect on the date of the balance sheet. Currency translation gains or losses resulting from differences in the exchange rates in effect on the date of the balance sheet compared to the rates in effect at the previous year-end are recognised directly in equity and specified separately. When consolidating differences from the translation of net investments in foreign business operations, they are posted directly against equity. When portions of a foreign operation are sold the associated exchange difference that was recognised directly in equity is recognised in the income statement as part of the gain or loss on the sale. Goodwill and the fair value adjustments for assets and liabilities associated with the acquisition of a foreign unit are treated as assets and liabilities in the acquired unit and
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