Notes to Parent Company Financial Statement

Note 1-8

Note 9-22

 

NOTE 1 ACCOUNTING PRINCIPLES

The parent Company’s accounts have been presented in accordance with the simplified IFRS for the first time in 2009. Comparable figures have also been restated. Restatement of the parent Company’s accounts is explained in a separate note in the company statement.

The parent Company is based on the same accounting principles as the Group statement with the following exceptions:

A. Derivative financial instruments and hedging

The Company enters into derivative financial instruments to reduce currency, interest and bunkers exposure in subsidiaries, these instruments do not qualify for hedge accounting. Changes in fair value of these financial instruments are charged to the respective subsidiary and therefore not recognised in the income statement.

B. Investments in subsidiaries, joint ventures and associates

Investments accounted for are based on the Cost Method.

C. Dividend

Proposed dividend for the parent Company’s shareholders is shown in the parent Company accounts as a liability at 31 December.

 

NOTE 2 Transition from NGAAP to simplified IFRS

The Company has implemented simplified IFRS in 2009. In connection with this the reporting currency is changed from NOK to USD as this is the functional currency for the Company.

Comparable figures for 2008 are also changed. The transition is based on the following major principles:

Transactions earlier presented as off-balance are now classified in the balance sheet, see Statement of Comprehensive Income for additional information. Transactions in non-USD currency are accounted for at the exchange rate on the date of the transaction. Receivables and liabilities in non- USD currencies are translated at the exchange rate on the balance sheet date. All exchange rate differences are taken to the profit and loss statement.
Non-monetary items that are measured in terms of historical cost in a non-USD currency are translated using the exchange rates at the dates of the initial transactions. End rate at 31 December 2008 was 7.0 and average rate of exchange for 2008 was 5.7.

 

NOTE 3 GROSS REVENUE

Gross revenue is related to services performed for other Odfjell Group companies and rental out of real estate and other fixed assets and is recognised as revenue in the period the service is delivered and the period the assets rented.

 

NOTE 4 Salaries, number of employees, benefits to Board of Directors, President/CEO and managers reporting directly to him and auditor’s remuneration

In 2008 Odfjell SE became a pure holding company. Effective as from October 1 2008, Odfjell SE’s 100% owned subsidiaries, Odfjell Management AS and Odfjell Maritime Services AS became operational. Odfjell Management AS and Odfjell Maritime Services AS assumed full responsibility for all employees in Odfjell SE, as well for the services previously provided by Odfjell SE.

For 2009 the company has no employees and the company is not bound to have mandatory occupational pension scheme pursuant to the Norwegian law of Occupational pension scheme.

 

NOTE 5 NON-CURRENT ASSETS

 

NOTE 6 FINANCIAL INCOME AND EXPENSES

 

NOTE 7 SHARES

 

NOTE 8 CURRENCY GAINS (LOSSES)

 

Note 1-8

Note 9-22