to financial instruments as trade receivables,  

other receivables and bank deposits.  

Trade receivables  

Trade receivables are amounts due from  

customers for goods sold or services per-  

formed in the ordinary course of business.  

They are generally due for settlement within  

30-45 days and are therefore all classified  

as current. Trade receivables are recognised  

initially at the amount of consideration that is  

unconditional, unless they contain significant  

financing components, when they are recog-  

nised at fair value. The group holds the trade  

receivables with the objective of collecting the  

contractual cash flows and therefore measures  

them subsequently at amortised cost using the  

effective interest method. Details about the  

group’s impairment policies and the calculation  

of the loss allowance are provided in note 13.  

useful lives, they are accounted for as separate  

components.  

Gains and losses on disposal are included in  

the operating profit or loss.  

Financial liabilities are recognized at fair value  

and are measured, as a main rule, in subsequent  

periods at amortized cost. Financial liabilities  

like trade payables, leasing, bond, and other  

liabilities are classified as amortized cost.  

Functional currency and presentation currency  

The consolidated financial statements are  

presented in NOK, which are both the func-  

tional currency of the parent company and the  

presentation currency of the group.  

The accounts of individual entities within the  

group are measured in the currency used where  

the entity predominantly operates (functional  

currency). The group have subsidiaries in  

Poland, UK, Thailand, Singapore and Korea  

where the functional currency is PLN, GBP,  

THB, SGD and KRW respectively. However, of  

the groups consolidated revenue more than  

90% is in NOK, thus changes in currencies have  

limited impacts on the consolidated figures  

consideration paid, the excess is immediately  

recognized as income. The allocation of the  

purchase price upon consolidation is amended  

if new information appears about the fair value  

applicable on the date control was obtained,  

no later than 12 months after the acquisition  

took place.  

Intragroup transactions, balances and unre-  

alised gains are eliminated. Unrealised losses  

are also eliminated but are considered to be an  

indicator of impairment, which would require  

an assessment to be made as to whether the  

transferred asset should be written down.  

Goodwill  

The group measures Goodwill as the fair value  

of the consideration transferred, less the net  

amount (normally fair value) of the identifiable  

assets acquired and liabilities assumed, all  

measured as at the acquisition date.  

Goodwill is distributed to cash-generating units  

and is not subject to an amortisation schedule  

but is tested for impairment annually and  

when there is an indication that a write-down  

is necessary. Goodwill write-downs are not  

reversed. For the purpose of testing Goodwill  

for impairment, Goodwill is allocated to the  

cash-generating units that are expected to  

benefit from the acquisition.  

Note 1  

Information about the group  

If an impairment in the fair value of a financial  

asset has been taken directly to other income  

and expenses, and if there is objective evidence  

that the asset has been the subject of an  

impairment, the accumulated loss that has  

been recognized directly in other income and  

expenses in profit or loss will be recognized.  

This applies even if the financial asset has not  

been realised. The loss recognized in profit or  

loss is the difference between the acquisition  

cost at the time of acquisition and the current  

fair value, less any impairment of the financial  

asset previously recognized in profit or loss.  

Beerenberg AS is a limited liability company

registered in Bergen, Norway. The Beerenberg

Group comprises the parent company  

Beerenberg AS and the subsidiaries  

Beerenberg Holding AS, Beerenberg Services

AS, Beerenberg Industri AS, Remotion AS,  

Beerenberg Solutions Poland Sp. z o.o,  

Beerenberg Korea Ltd, Beerenberg Singapore  

Ltd, Beerenberg UK Ltd, Beerenberg Holding  

(Thailand) Co. LTD and Beerenberg Thailand Ltd.  

The head office is in Bergen and the group  

has offices in Stavanger and Skien in Norway,  

in Singapore, in Gościcino in Poland, Busan in  

South-Korea and in Chonburi in Thailand.  

The group delivers expertise and technology  

as well as engineering and inspection services  

in the fields of surface treatment, passive fire  

protection, insulation, architecture/interiors,  

scaffolding, Rope access techniques, and  

habitats as well as mobile machining, cutting  

and decommissioning.  

The consolidated financial statements comprise  

the parent company and subsidiary companies,  

referred to collectively as “the group” and  

individually as “group entities”.  

Refer to note 16 for ownership structure.  

The annual financial statements were author-  

ised for issue by the board of directors on 28  

April 2023.  

Trade payables and other short-term  

payables  

Trade payables are measured at fair value when  

initially recognized and at amortised cost in  

subsequent periods. Due to their short residual  

maturity, the nominal value of the payables is  

deemedtoreflecttheirfairvalue/amortisedcost.  

Group entities  

The statements of financial position and  

comprehensive income of group entities with  

a functional currency that differs from the  

presentation currency are translated as follows:  

a) The statement of financial position is trans-  

lated using the exchange rate at the end of  

the reporting period  

b) The statement of comprehensive income  

is translated using the average exchange  

rate (if the average exchange rate does  

not give a reasonable overall estimate for  

the transaction exchange rate, then the  

transaction exchange rate is used)  

c) Translation differences are taken to other  

revenues and costs and are specified as a  

separate item.  

Basis of calculations  

The consolidated financial statements have  

been prepared using historical cost principles,  

with the exception of  

- Derivatives, which are assesed at fair value.  

Withtheexceptionofinventories(seeInventories)  

and deferred tax assets (see Income tax), the  

carrying amount of the group’s financial assets  

is continually assessed to determine whether  

there is any indication of impairment. If any  

such indication exists, the asset’s recoverable  

amount is estimated.  

Intangible assets  

Research and development  

Expenditure on research activities, undertaken  

with the prospect of gaining new scientific or  

technical knowledge, is recognized in profit or  

loss as incurred.  

Development activities include designs or  

plans for the production of new or substantially  

improved products and processes. Development  

expenditure is capitalized only if it can be  

reliably measured, if the product or process  

is technically or commercially viable, if future  

economic benefits are probable, and if the  

group intends to and has sufficient resources  

to complete the development and to sell or use  

the asset. The expenditure capitalized includes  

materials, direct labour, directly attributable  

overhead costs and borrowing costs. Other  

development expenditure is recognized in profit  

or loss as incurred.  

Capitalized development expenditure is meas-  

ured at cost less accumulated amortisation and  

accumulated impairment losses.  

Cash and cash equivalents  

Cash and cash equivalents comprise cash and  

bank deposits.  

Note 3  

Accounting principles  

Share capital  

Ordinary shares are classed as equity. Costs  

directly attributable to the issue of ordinary  

shares are recognized as a deduction from  

equity (share premium) net of any tax effects.  

Fair value through other comprehensive  

income  

The group has entered into an interest swap  

in order to reduce the risk of variable interest  

rate on Bond. This interest swap is designated  

as a hedge instrument in hedge accounting  

in accordance with IFRS 9, and changes in  

fair value of this interest swap is recognized  

through other comprehensive income. Details  

of this interest swap is further described in  

note 24.  

The accounting principles described below have  

been consistently applied to all companies in  

the group in all periods.  

Tangible non-current assets  

The group’s tangible non-current assets  

comprise production equipment, workshops  

and improvements to buildings and other  

operating equipment. Tangible non-current  

assets are recognized in the statement of  

financial position at cost less accumulated  

depreciation and write-downs. The cost price  

of tangible non-current assets is the purchase  

price including expenses directly attributable  

to the purchase of the asset. The cost of  

self-constructed assets includes the cost  

of materials, direct labour costs, borrowing  

costs and other costs directly attributable to  

bringing the assets to a working condition for  

their intended use, the cost of dismantling and  

removing the items, and restoring the site on  

which they are used.  

Expenses incurred after the non-current asset  

has been put into use, such as ongoing daily  

maintenance, are recognized in profit or loss in  

the period in which they were incurred, except  

for other expenses expected to generate future  

economic benefits that are recognized as a part  

of the non-current asset.  

If substantial, individual components of an item  

of property, plant and equipment have different  

Consolidation principles  

Subsidiary companies  

The subsidiary companies include all entities  

where the group has a deciding influence on  

the entity’s financial and operational strategy,  

normally through the ownership of more than  

50% of the voting capital, and where the  

entity constitutes an enterprise. Subsidiaries  

are consolidated from the date when control  

was transferred to the group. Consolidation  

ceases on the date when the group no longer  

has control.  

Acquired subsidiaries are accounted for in the  

consolidated financial statements based on  

the parent company’s acquisition cost. When  

acquiring a subsidiary company, the purchase  

price of the acquired undertaking must be  

distributed so that the opening balance of  

the group reflects the estimated fair value  

of the assets and liabilities that have been  

acquired. In order to establish the fair value  

of an acquisition, alternative methods must  

be used for assets for which there is no active  

market. Excess value beyond that which can be  

attributed to identifiable assets and liabilities  

is recognized as Goodwill. If the fair value of  

the equity in an acquired company exceeds the  

Conversion reserve  

This fund is a part of the statement of equity  

and includes all foreign exchange differences  

related to the conversion of financial state-  

ments from foreign subsidiaries.  

Fair value through profit or loss  

By default, other financial instruments that are  

not classified as amortized cost or designated  

as a hedge instrument and recognized as fair  

value through other comprehensive income is  

recognized as fair value through profit or loss.  

Derivatives are classed as financial assets at  

fair value through profit or loss, unless they  

are part of a hedge relationship. The only  

derivative the group have in 2022 is designated  

as a hedge instrument, thus there are now  

no financial instruments recognized through  

profit or loss  

Note 2  

Basis of preparation  

Financial instruments  

The group initially recognizes financial instru-  

ments on the date the group becomes a party  

to the contractual provisions of the instrument.  

Confirmation of financial framework  

The consolidated financial statements have  

been prepared in accordance with EU-approved  

IFRS standards and associated interpreta-  

tions as required as at 31 December 2022  

and in accordance with additional Norwegian  

disclosure requirements under the provisions  

of the Norwegian Accounting Act as at 31  

December 2022. There have been no changes  

in accounting principles from 2021 to 2022.  

The proposed consolidated financial state-  

ments were authorised by the board and CEO  

on the date stated in the signed statement of  

financial position. The consolidated financial  

statements shall be reviewed by an ordinary  

general meeting for final approval.  

Depreciation  

Property, plant and equipment are depreciated  

on a straight-line basis over their estimated  

useful life. Depreciation is calculated on the  

basis of the cost of the asset or other amount  

substituted for cost, less its residual value.  

The economic useful life of scaffolding is  

assessed, and its period of use has been set  

at 15 years. The period of use is the period in  

which the group expects to use the scaffolding  

and may thus be shorter than its economic  

useful life. The period of use and the residual  

value are assessed at the end of each reporting  

period and adjusted if necessary. Scaffolding is  

depreciated over a period of 15 years.  

Classification and measurement  

The group classifies its financial assets in  

the categories (1) amortized cost (2) financial  

assets at fair value through other compre-  

hensive income (3) financial assets at fair  

value through profit or loss. Classification is  

dependent on the objective of the financial  

instrument and the groups business model.  

Amortized cost  

Financial instruments that the group holds in  

order to receive contractual cash flows is recog-  

nized at fair value and is in subsequent periods  

measured at amortized cost. This mainly relates  

Derecognition of financial instruments  

The group derecognizes a financial asset when  

the contractual rights to the cash flows from  

the asset expire, or when the group transfers  

the rights to receive the contractual cash  

flows on the financial asset in a transaction in  

which substantially all the risks and rewards of  

ownership of the financial asset are transferred.  

Containers and workshops are depreciated over  

a period of 10 years, while other production  

equipment and other assets are depreciated  

over a period of 3-7 years.  

Intangible assets are amortised on a straight-  

line basis over their estimated useful life from  

the time they are available for use, since this  

most closely reflects the consumption of the  

future economic benefits embodied in the  

asset. The estimated useful lives for the current  

period and comparative periods are as follows:  

• Customer relationships  

3-10 years  

• Technology  

5-10 years  

Amortisation method, useful life and residual  

value are reviewed annually and adjusted if  

necessary.  

Lease agreements  

IFRS 16 requires all contracts that contain a  

lease to be recognized on the balance sheet  

as a right-of-use asset and a corresponding  

lease liability. The lease liability represents  

the net present value of the lease payments to  

be made over the remaining lease period. The  

right-of-use asset is depreciated over the lease  

term. For Beerenberg this mainly applies to  

office buildings and other facilities. Short-term  

and low value lease agreements are exempted  

from IFRS 16 and accounted for as operating  

expenses.  

Provisions  

Provisions are accounted for when the group  

has an obligation (legal or self-imposed) result-  

ing from a previous event if it is likely (more likely  

than not) that a financial settlement will take  

place as a result of this obligation and the size  

of the amount can be reliably calculated. If the  

effect is significant, the provision is calculated  

by discounting expected future cash flows with  

a discount rate before tax that reflects the  

market’s valuation of the time value of money  

and, if relevant, risks specifically linked to this  

obligation.  

in accordance with measured progress and  

equipment rental is recognized as income in  

the period the equipment is hired out.  

As a general rule, these contracts are agreed  

with a fixed price per unit (unit price contracts)  

or a fixed price per hour, and variations thereof.  

What constitutes a unit varies from contract to  

contract, but as an example it may be a square  

metre of surface treatment.  

At the end of each billing period, the group  

reports to the customer the number of hours  

and/or number of units completed in the  

period. The former is based on the recorded  

and approved number of hours, while the latter  

is based on physical progress. The customer  

reviews the supporting documentation and  

issues a payment certificate to the group. On  

the basis of the payment certificate, the group  

recognizes the revenue for the period as income  

and bills the customer. By having the customer  

review the documentation of work completed  

and issue a payment certificate, the revenue  

has the prior approval of the customer.  

On smaller projects, the work carried out in  

the period is billed and recognized as income  

based on work completed or, as a general rule,  

based on approved timesheets, but without  

the customer issuing a payment certificate in  

advance. Some smaller projects are also billed  

and recognized as income upon completion of  

the project. These types of projects will rarely  

stretch over multiple reporting periods.  

If the outcome of a contract cannot be  

measured reliably, the contract revenues are  

recognized only to the extent that the incurred  

contract expenses are expected to be met by  

the customer. An expected loss on a contract  

is recognized in profit or loss as incurred.  

scaffolding and other equipment is invoiced  

and recognized as income in the period it has  

been let.  

differences are not taken into account:  

•

Goodwill that is not tax deductible  

•

Initial recognition of assets or liabilities that  

affects neither accounting nor taxable profit  

or loss  

•

Differences relating to investments in  

subsidiaries that are not likely to reverse in  

the near future  

Deferred tax is calculated using tax rates  

and tax legislation that have been enacted,  

or substantially enacted, at the end of the  

reporting period.  

Deferred tax assets are recognized to the  

extent that it is probable that future taxable  

income will be generated against which the  

deductible temporary differences can be  

realised.  

Deferred tax assets and deferred tax liabilities  

are offset if there is a legally enforceable right  

to offset them.  

Accrued, not invoiced contract revenues  

Accrued, not invoiced contract revenues rep-  

resent the value of completed contract work  

less payment from the customer. The value of  

completed contract work is measured at cost  

plus accrued net profit to date. Payment from  

customers is offset in the statement of financial  

position against contract work in progress.  

Received customer advances in excess of value  

of work performed are classified as current  

liabilities.  

Inventories  

Inventories are measured at an amount equal  

to the lower of acquisition cost and net real-  

isable value. The net realisable value is the  

estimated selling price in the ordinary course of  

business less the estimated cost of completion  

and selling expenses. The acquisition cost of  

manufactured inventories includes the direct  

cost of materials, direct labour and a share  

of indirect production overheads, while the  

acquisition cost of purchased inventories is  

the cost price based on the first-in-first-out  

principle and includes the cost incurred in  

acquiring the inventories, production or con-  

version overheads and other costs incurred  

in bringing them to their existing location and  

condition. In accordance with IAS 2.28, the  

value of inventories is written down to the net  

realisable value if the inventories have been  

damaged or have become wholly or partially  

obsolete or if the selling price has fallen.  

Warranties  

A provision for warranties is recognized when  

the underlying products or services are deliv-  

ered. The warranty period is normally 2-5 years.  

At the end of a project, a provision is made to  

meet any warranty claims and complaints. The  

provision is based on historical information  

about warranties weighted by the probability  

that a warranty expense will be incurred. It  

is normal for such provisions to be a fixed  

proportion of the contract value, but a larger  

or smaller provision may be made depending on  

the specific assessment of individual projects.  

Experience from previous projects provides the  

best basis for making both general and specific  

warranty provisions. Factors that may affect  

the size of the provision include the group’s  

quality measures and project implementation  

model.  

Government grants  

The group receives various types of government  

grants in relation to its research and develop-  

ment activities. These may be funding through  

the SkatteFUNN scheme or other grants. Such  

grants, whereby the group is compensated  

for expenses incurred, are systematically  

recognized in profit or loss over the period  

that the expenses are recognized. Grants that  

compensate the group for the cost of an asset  

are recognized in profit or loss over the useful  

life of the asset.  

The group also applies for other government  

support schemes where the group is qualified.  

Such grants are recognized as other revenue  

in the period received  

Impairment losses of non-financial assets  

When the carrying amount of a non-current  

asset is higher than the estimated recovera-  

ble amount, the value is written down to the  

recoverable amount. The recoverable amount  

is the greatest of fair value less cost to sell  

and its value in use. The scope for reversing  

any previous write-downs (except Goodwill) is  

assessed on each reporting date.  

Goodwill and intangible assets with indefinite  

useful lives are tested for impairment annually.  

An impairment loss is recognized when the  

carrying amount of an asset or cash-gener-  

ating unit exceeds the recoverable amount.  

Impairment losses are recognized through  

profit or loss.  

Impairments estimated for cash-generating  

units are allocated so that the carrying amount  

of any Goodwill in the cash-generating units is  

reduced first. Next, the remaining impairment  

losses on the other assets in the unit are allo-  

cated pro rata based on the carrying amount.  

Statement of cash flows  

The group’s consolidated statement of cash  

flows shows the group’s total cash flows spread  

over operating, investing and financing activ-  

ities. The statement shows the effect of each  

activity on the group’s liquid assets.  

The cash flow statement is prepared using the  

indirect method. Cash and cash equivalents  

include cash, bank deposits and other short-  

term highly liquid investments with insignificant  

risk convertible into known amounts of cash  

with maturities less than three months from  

acquisition date.  

Cash flows from operating activities is based  

on result before tax, and adjusted for change in  

working capital and depreciation. Thus, interest  

paid are presented as part of the operating  

cashflow.  

Restructuring  

A provision for restructuring is recognized once  

the group has approved a detailed and formal  

restructuring plan and the restructuring has  

either commenced or been communicated to  

the affected parties.  

Finance income and finance costs  

Finance income comprises interest income on  

funds invested during the year. Finance costs  

comprise interest costs incurred during the  

year.  

Foreign currency gains and losses are reported  

on a net basis.  

Pension costs and pension obligations  

Pension costs and pension obligations are  

treated in accordance with IAS 19R. Pensions  

are described in Note 17. The net pension  

costs for the period are classed as salary and  

personnel costs.  

The group operates a pension scheme financed  

by contributions paid into a separate legal entity  

(insurance company) in the form of a defined  

contribution plan. A defined contribution plan is  

a pension scheme under which the group pays  

fixed contributions to the insurance company.  

The group has no further payment obligations  

once the contributions have been paid. The  

contributions are recognized in profit or loss as  

salary costs as incurred. Prepaid contributions  

are recognized as assets to the extent that they  

can be refunded or reduce future contributions.  

The group is also participant in the AFP scheme  

which is a pension-scheme that pays a lifelong  

supplement to ordinary pension benefits.  

The group has in addition to the ordinary pen-  

sion scheme also a supplementary pension plan  

for executive management and key employees.  

Onerous contracts  

A provision for onerous contracts is recognized  

when the group’s expected revenue from a  

contract is lower than the unavoidable cost  

of meeting its contractual obligations. The  

estimated provision is the present value of the  

lower of the expected cost of terminating the  

contract and the expected net cost of fulfilling  

the contract. Before a provision is made, all  

impairment losses on assets associated with  

the contract are recognized.  

Revenues from sale of goods  

Revenue from the sale of goods is recognized  

when persuasive evidence exists that control of  

the goods have been transferred to the buyer.  

For sales of the group’s products, transfer  

normally occurs once the product is received  

at the customer’s warehouse or installation.  

In some contracts, the delivery of materials  

is incorporated in the fixed hourly price or the  

fixed unit price. In other cases, the delivery of  

materials is billed separately. The delivery of  

materials is recognized as income when the  

materials have been put into use on a project or  

transferred to the customer in some other way.  

Income tax and deferred tax  

Income tax expenses comprise current and  

deferred tax. Tax is recognized in profit or loss,  

except when it relates to items taken to other  

income and expenses or directly to equity or  

are linked to business combinations. If this is  

the case, the tax is also taken to other income  

and expenses or directly to equity.  

Tax payable for the period is calculated in  

accordance with tax laws and rules that have  

been enacted, or substantially enacted, by  

the tax authorities at the end of the reporting  

period. Taxable income is calculated on the  

basis of the legislation in the countries in which  

the group’s subsidiaries operate and generate  

taxable income.  

Using the liability method, deferred tax is calcu-  

lated on all temporary differences between the  

tax value and consolidated accounting value of  

assets and liabilities. The following temporary  

Calculating the recoverable amount  

The recoverable amount of an asset is the  

greater of the net selling price (less cost to sell)  

and value in use. The value in use is estimated  

by discounting expected future cash flows  

to their present value using a market-based  

risk-adjusted discount rate. For assets that  

do not generally generate independent cash  

flows, the recoverable amount is determined  

for the smallest cash-generating unit to which  

the asset belongs.  

Earnings per share  

Basic earnings per share and diluted earnings  

per share are presented for ordinary shares.  

Basic earnings per share are calculated by  

dividing the profit or loss for the period attrib-  

utable to ordinary shareholders of the group  

by the weighted average number of ordinary  

shares outstanding during the period, adjusted  

for own shares held. Diluted earnings per share  

are determined by adjusting the profit or loss  

and the weighted average number of ordinary  

shares outstanding, adjusted for own shares  

held, for dilutive potential.  

Revenue recognition  

Revenues from sale of services  

Most of the group’s revenue is associated with  

long-term maintenance contracts. Revenues  

are recognized in accordance with IFRS 15  

Revenue from contracts with customers. The  

groups primarily customers are within onshore/  

offshore oil service. The contracts are invoiced  

and recognized as income on basis of hours  

incurred multiplied by a defined hourly rate  

associated with the services provided, unit  

price contracts are recognized as income  

Reversing impairment losses  

Impairment losses on Goodwill are not reversed.  

In respect of other assets, impairment losses  

are reversed if there is any change to the  

estimates used to calculate the recoverable  

amount.  

Revenues from hiring of equipment  

Normally revenue from hiring of equipment is  

considered as revenue from sale of service as  

the letting of scaffolding is part of the same  

performance obligation. The group also have  

some letting of scaffolding without connection  

to revenue from sale of service. Such letting of  

Determination of fair values  

The group’s accounting principles and note  

information require the determination of fair  

value for both financial and non-financial assets  

and liabilities. Fair values are determined for  

measurement and/or disclosure purposes  

based on the methods described below. If rele-  

vant, further information about the assumptions  

made is disclosed in the notes relating to the  

respective assets and liabilities.  

results may deviate from estimated amounts.  

Estimates and their associated assumptions  

are based on historical data and other factors  

that are deemed to be relevant and represent  

-

ative. These calculations form the basis for  

assessing the amounts recognized in respect of  

assets and liabilities that cannot be determined  

on the basis of other sources.  

Estimates and underlying assumptions are  

reviewed continually. Changes to accounting  

estimates are recognized in the period in which  

they occur if they only apply to that period.  

If the changes also pertain to future periods,  

the effect is distributed over the current and  

future periods.  

Estimates and judgements are reviewed on  

an ongoing basis and are based on historical  

information and other factors, including  

assumptions and future events that are deemed  

likely under the current circumstances.  

circumstances that may have an effect on  

time use.  

Revenue recognition of contracts with mobi-  

lisation and demobilisation costs requires  

assumptions to be made about the duration  

of the contract, including potential extension  

options, in order to allocate expenses and  

revenues from the mobilisation/demobilisation  

period over the delivery period. Changes in the  

delivery period may result in adjustments being  

made to the accrued amount.  

ii) Goodwill

– In

accordance with the accounting  

principles, the group performs tests annually,  

or more frequently if necessary, to determine  

whether Goodwill recognized in the statement  

of financial position should be written down. The  

estimated recoverable amount is calculated on  

the basis of the present value of budgeted cash  

flows for the cash-generating unit. The calcula-  

tions require the use of estimates and that they  

are consistent with the market valuation of the  

group. Specific information about Goodwill and  

the testing of carrying amounts is provided in  

Note 12 Intangible assets.  

for shareholders, to be of benefit to other  

interested parties, and to maintain an optimal  

capital structure in order to reduce the cost  

of capital.  

Risk management for the group is undertaken  

centrally in accordance with guidelines  

approved by the board of directors. The group  

identifies, measures, manages and reports  

financial risks in collaboration with the various  

operating units.  

Managing the capital structure involves actively  

monitoring and adjusting the composition in  

accordance with changes in financial and  

economic circumstances and in the risk linked  

to underlying assets. In order to maintain  

the desired capital structure, the group may  

refinance debts, buy or issue new shares or  

debt instruments, or it may sell assets.  

The group continuously monitors counterpar-  

ties in order to reduce risk relating to financing,  

investing excess liquidity, bank balances  

from operations and derivatives. The group’s  

guidelines impose limitations on exposure  

to individual counterparties and contain  

procedures for identifying risk factors when  

they occur.  

The board produces principles for the risk  

management policy and issues guidelines  

for specific areas such as exchange rate risk,  

interest rate risk, credit risk, the use of financial  

derivatives and other financial instruments and  

for investing excess liquidity.  

exchange rates, the effects have now been  

calculated at +/- 30%.  

existing contracts, alternative financing and  

hedging. The groups calculation of interest on  

contracts is entirely linked to liabilities.  

If effective interest rates had been 1% (per-  

centage point) higher/lower on loans in NOK  

in 2022 and all other variables were constant,  

this would have resulted in a reduction/increase  

in profit/loss after tax of NOK 5,3 million in  

2022 (2021: 5,5 million) Equity would have  

been similarly affected.  

This is due to higher/lower interest costs on  

variable rate loans.  

The group’s interest-bearing assets comprise  

as of 31.12 of bank deposits of NOK 113.3  

million. Changes in market interest rates would  

affect operating cash flows related to these  

interest-bearing assets, but to a relatively  

modest degree.  

Market risk  

The Beerenberg group operates in the oil and  

gas market, which due to price fluctuations  

can be volatile. Beerenberg is affected by the  

oil companies’ actions and the prevailing oil and  

gas prices. To mitigate this, Beerenberg has  

diversified into various segments of the market,  

e.g. new-build and maintenance and modifi-  

cation projects. Beerenberg is also expanding  

internationally, with the proprietary Benarx®  

product range and it is looking into related  

market segments, such as infrastructure for  

both products and services.  

There is reason to believe that investment  

growth on the Norwegian Continental Shelf will  

abate in the long term, which in turn will impact  

investment. In order to expand its operations  

and customer base, the group has therefore  

been working to grow its international presence.  

Tangible non-current assets  

The fair value of property, plant and equipment  

is recognized at fair value if part of a business  

combination. The fair value of plant, equipment,  

fixtures and fittings is based on the market  

approach and cost approaches using quoted  

market prices for similar items when available  

and replacement cost when appropriate.  

Intangible assets  

The fair value of customer relationships  

acquired in a business combination is deter-  

mined using the multi-period excess earnings  

method. The value is established residually by  

deducting a fair return on all other assets that  

together with customer relationships generate  

the cash flows used in the calculation.  

The fair value of other intangible assets is based  

on the discounted expected cash flows derived  

from the use and subsequent sale of the assets.  

Financial derivative instruments  

The group holds a limited number of financial  

derivative instruments to hedge its foreign  

currency and interest rate risk exposures. The  

management strategy is, at present, to use  

hedging instruments in order to mitigate the  

effect of changes in variable interest rates.  

The long-term financing of the group is based  

on variable interest rates (3 mnth Nibor) which  

is subject to fluctuations. The strategy is to  

minimize this risk by entering into interest  

swaps agreements to swap variable interest  

rates to fixed rates at a proportion of around  

70 % of total outstanding loans.  

Derivatives are recognized initially at fair value.  

Changes in fair value are recognized in profit or  

loss, except for hedging instruments that meet  

the criteria for hedge accounting.  

The group follows IFRS 9 criteria’s for clas-  

sifying a derivative instrument as a hedging  

instrument. These are as follows:  

Estimates/assumptions  

The group produces estimates and makes  

judgements/assumptions about the future.  

The resulting accounting estimates will rarely  

correspond fully to the final outcome. Estimates  

and assumptions that entail a risk of substantial  

changes in the carrying amounts of assets and  

liabilities during the next accounting year are:  

i) Revenue recognition - As described in the  

section revenue recognition, often a meas-  

urement of physical progress in the service  

delivery is applied, which in some cases lead  

to use of estimates.  

The most significant source of uncertainty  

in respect of revenues from contracts with  

customers relates to the estimation of sup-  

plementary work, additional requirements and  

bonus payments that are recognized as income  

to the extent that the group finds it highly  

probable that a significant reverse of revenue  

will not occur. For many projects, there may  

be substantial changes to the agreed scope of  

work that may lead to a number of variations  

in contract work. It is normal for contracts to  

contain provisions for how such changes should  

be handled. At any given time there will be  

unapproved variations in contract work and  

requirements included in the contract revenues.  

Although the management has extensive  

experience in assessing the outcome of such  

negotiations, there will always be an element  

of uncertainty.  

The cost of completion depends on both  

productivity factors and salary levels. Factors  

that may substantially affect cost estimates,  

requirements and variations in contract work  

include weather conditions, access to work  

sites, the price of raw materials and other  

Technology risk  

The market in which Beerenberg operates  

will continue to seek improved solutions and  

products for the future. To maintain its compet-  

itive edge, the group has adopted a strategy of  

continued investment in engineering services,  

digitalization, and R&D along with an ambition  

to protect its assets through patents and other  

proprietary rights.  

New and amended standards adopted by  

the group  

The group has applied the following amend-  

ments for the first time for their annual  

reporting period commencing 1 January 2022:  

•

Property, Plant and Equipment: Proceeds  

before Intended Use – Amendments to IAS  

16  

•

Onerous Contracts – Cost of Fulfilling a  

Contract – Amendments to IAS 37  

•

Annual Improvements to IFRS Standards  

2018-2020, and  

•

Reference to the Conceptual Framework –  

Amendments to IFRS 3.  

The amendments listed above did not have  

any impact on the amounts recognised in prior  

periods and are not expected to significantly  

affect the current or future periods.  

Inventories  

The fair value of inventories acquired in a  

business combination is the estimated selling  

price in the ordinary course of business less  

the cost of completion and sale, to include a  

profit margin based on the effort required to  

complete and sell the inventories.  

Cyber Risk  

The risks posed by cyber criminals continue to  

be a threat to both the business and operations.  

This risk is managed by the IT-Department  

who closely monitors new Cyber threats that  

continues to emerge and take actions to protect  

Beerenberg against these threats.  

Phishing emails are the most typical cyber-at-  

tacks. However, as more devices are being  

connected to internet there is increasing risk  

linked to these devices and the systems they  

are connected to. Measures is taken to secure  

email, improve capabilities to identify ongoing  

malicious activities, and increase employee  

awareness of cyber threats.  

Trade receivables and other receivables  

The fair value of trade and other receivables  

is estimated as the present value of future  

cash flows, discounted at the market rate of  

interest at the end of the reporting period (the  

reporting date).  

Exchange rate risk  

The group predominantly operates in Norway,  

but some of its activities are international and  

thus exposed to exchange rate risks in several  

currencies. Exchange rate risks emerge from  

current and future assignments and from  

recognized assets. The group is exposed to  

exchange rate fluctuations because a limited  

portion of the group’s revenue and cost  

is in other currencies. According to group  

policy, customer- and supplier contracts with  

exchange rate risk exceeding defined limits  

shall be hedged.  

The parent company uses NOK as its functional  

currency. An assessment is made annually as to  

what is the actual functional currency of each  

entity in the group.  

The group has relatively insignificant invest  

-

ments in overseas subsidiaries where net  

assets are exposed to exchange rate risks  

upon translation.  

Sensitivity analyzes related to exchange rate  

fluctuations is described in note 13. Normally  

these sensitivities are calculated at +/- 10  

% change, but due to increased volatility in  

Accounts payable and other liabilities  

Trade payables are obligations to pay for goods  

and services from suppliers to the ordinary  

operations and are measured at fair value  

(historical cost)  

Loans are recognized initially at fair value when  

the loan is paid, net of transaction costs. In  

subsequent periods, loans are measured at  

amortized cost using effective interest rate.  

Other liabilities are measured at fair value.  

a. the hedging relationship consists only of  

eligible hedging instruments and eligible  

hedged items.  

b. at the inception of the hedging relationship  

there is formal designation and documen-  

tation of the hedging relationship and the  

entity’s risk management objective and  

strategy for undertaking the hedge.  

c. the hedging relationship meets all of the  

following hedge effectiveness requirements:  

i. there

between the hedged item and the hedging  

instrument  

ii. the

the value changes that result from that  

economic relationship and  

iii. the hedge ratio of the hedging relationship  

Note 4  

Financial risk management  

Cash flows and fair value interest rate risk  

Variable rate loans pose an interest rate risk to  

the group’s cash flows. The group is exposed to  

interest rate risks relating to debts, including  

financial leasing. Interest bearing debt as at  

31.12.22 is a Bond issue and financial leasing,  

refer to note 25.  

The weighted average effective rate of interest  

in relation to debt, was 10,4% in 2022 (2021:  

9,9%).  

Interest rate risks are continually reviewed by  

looking at potential refinancing, renewal of  

As a global supplier of oil services, the group  

is exposed to market risks, exchange rate risk  

and interest rate risk, credit risk, inflation risk  

and liquidity risk.  

The group has established procedures and  

guidelines for setting appropriate risk levels  

for its main risks and for monitoring its risk  

exposure. The group’s objectives for capital  

management are to sustain the group’s position  

as a going concern in order to generate a return  

Estimates and judgements  

Preparing the financial accounts in accordance  

with IFRS requires the management to make  

assessments, estimates and assumptions  

that affect the application of the accounting  

principles. The carrying amounts of assets  

and liabilities, as well as revenues and costs,  

are affected by these assessments. Actual