Page 54 - Mantena Annual report 2019

Mantena Group
NOTES
NOTE 1 - ACCOUNTING POLICIES
General information
Mantena AS and its subsidiaries are active within train and component maintenance.
The company has its head office at Jernbanetorget 1 in Oslo.
• All shares in Mantena AS are owned by the Norwegian State (Ministry of Transport and Communications) as of 31.12.2019.
• All shares in Mantena Sverige AB are owned by Mantena AS
• All shares in Mantena Danmark A/S are owned by Mantena AS
• All shares in Mantena Finland OY are owned by Mantena AS
The financial statements have been prepared in accordance with the Norwegian Accounting Act of 1998 and good accounting practice in Norway.
General rule for valuing and classifying assets and liabilities
Assets intended for long-term ownership or use are classified as fixed assets. Other assets are classified as current assets. Receivables to be repaid within a year are classified as current assets. Similar criteria are used to classify current and noncurrent liabilities.
Current assets are valued at the lower of acquisition cost and fair value.
Fixed assets are valued at acquisition cost, but are written down to the recoverable amount if this is lower than the book value and the impairment is not expected to be transient. Fixed assets with a limited useful life are depreciated over the expected period of use.
Other current and noncurrent liabilities are valued at face value.
Assets and liabilities in foreign currency
Receivables and liabilities in foreign currency are converted at the rate in place on the balance sheet date.
Intangible assets
Expenses for own production of intangible assets, including expenses for internal research and development, are recognised when it is likely that the future financial benefits associated with the assets will fall to the company and the acquisition cost can be reliably measured.
Intangible assets purchased individually are recognised at acquisition cost.
Intangible assets with a limited useful life are depreciated over the expected period of use. Intangible assets are written down to the recoverable amount if the expected financial benefits do not cover the carrying amount and any remaining production costs.
Shares and shares in associated companies and subsidiaries
Investments in subsidiaries are valued by the cost method. Where an impairment is not considered to be transient, and it is considered necessary according to good accounting practice, investments are written down to fair value. Dividends received and Group contributions from the subsidiaries are recognised as other financial income. The same applies to investments in associated companies.
Financial instruments, including fixed income funds, which
• are classified as current assets,
• are included in the company’s liquidity,
• are traded on a stock exchange, authorised marketplace or
similarly regulated market abroad, and
• have diverse ownership and good liquidity, are measured at
54 Annual report 2019
fair value on the balance sheet date.
Goods
Goods are valued at the weighted average purchase price. For raw materials and work in progress, the net sales value is calculated as the market value of finished goods minus any remaining manufacturing costs and sales costs. Goods from production are valued at the lower of full manufacturing cost and fair value.
Income
own
From sales of services: Income is recognised when it is earned, i.e. when claims for payment (consideration) arise. This happens when the service is provided, as and when the work is carried out. The income is recognised at the value of the consideration at the time of the transaction. For contracts with fixed revenues over the contract period and expected to result in net losses as a result of the cost of the deliveries exceeding the revenues, the provision is made for the best estimate of the
net cost of the remaining contract period. Where the contract includes an option for the customer to extend the agreement, there is an assessment of the probability of the option being exercised.
Receivables
Trade accounts receivable and other claims are reported
at face value minus any provision for expected losses. Loss provisions are made on the basis of an individual assessment of the specific receivables.