Norwegian reports reporting changes

Eleanor Steed
By Eleanor Steed March 16, 2018 14:37

Norwegian reports reporting changes

Norwegian has concluded on the accounting treatment of Norwegian Finans Holding (NOFI), resulting in a change for 2017. It will not have any impact on Norwegian’s book value of equity at 31 March 2018, as the investment in NOFI will be recognized at market value from Q1 2018, instead of the previously announced Q2 2017.

In the interim report for Q4 2017, Norwegian commented that there was a dialogue between the company and Finanstilsynet regarding the accounting treatment of the investment in NOFI. In a recent meeting with Finanstilsynet, Norwegian has been informed that Finanstilsynet recommend accounting treatment for 2017 of the shares according the equity method of accounting. Norwegian has decided to follow the recommendation by Finanstilsynet, resulting in a change in the preliminary full year financial statements presented in connection with the company’s Q4 presentation.

The financial impact on Norwegian’s accounts for 2017 will be as commented in the interim report for Q4. As of December 31, 2017, this will result in a reduction of the recognised value of the investment by NOK 1,993 million with a corresponding decrease in end balance equity. Effects of a change back to IAS 28 will also reverse financial gains in net profits of NOK 1,657 million, reverse fair value changes recorded in other comprehensive income of NOK 498 million and increase share of profit from associated companies by NOK 163 million.

Eleanor Steed
By Eleanor Steed March 16, 2018 14:37