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"ifrs-full:Equity", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:NOK" } }, "f3779": { "value": "286806000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00", "unit": "iso4217:NOK" } }, "f3793": { "value": "Note 1 General Information Reach Subsea ASA Group offers subsea services as a sub- contractor and/or directly to end clients, based out of our head of\ufb01ce in Haugesund. Reach Subsea ASA\u2019s shares are listed on Oslo Stock Exchange (Oslo B\u00f8rs) under the ticker REACH. Reach Subsea ASA is the parent company in the Group and is domiciled in Norway, with of\ufb01ce address Garpeskj\u00e6rvegen 2, 5527 Haugesund. The Group has a Branch in Trinidad & Tobago. The company\u2019s consolidated \ufb01nancial statements for the 2022 \ufb01nancial year covers Reach Subsea ASA and its subsidiaries Reach Subsea AS, Connect Offshore AS, Reach Remote AS, Reach International AS, Reach Subsea Inc, Gravitude UK Ltd, Octio AS, Monviro AS, iSurvey Group AS, iSurvey AS, iSurvey Assets AS, Reach Subsea UK Ltd, Reach Subsea PTE Ltd and iSurvey LtdBasis of preparation The consolidated \ufb01nancial statements of Reach Subsea ASA have been prepared in accordance with International Financial Reporting Standards and IFRIC interpretations, as adopted by the EU, and in accordance with the additional requirements following the Norwegian Accounting Act. The consolidated \ufb01nancial statements are prepared under the assumption of going concern and on a historical cost basis, with some exceptions as detailed under accounting policies set out below. The preparation of \ufb01nancial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the group\u2019s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are signi\ufb01cant to the consolidated \ufb01nancial statements are disclosed in note 4. The consolidated \ufb01nancial statements have been prepared on a going concern basis. New & amended standards adopted by the Group Certain new standards, amendments to standards, and annual improvements to standards and interpretations are effective for annual periods beginning after January 1, 2022 and have been applied in preparing these consolidated \ufb01nancial statements. These applications did not materially impact the Group\u2019s consolidated \ufb01nancial statements. New standards & interpretations not yet adopted Certain new accounting standards, amendments to accounting standards and interpretations have been published that are not mandatory for 31 December 2022 reporting periods and have not been early adopted by the group. These standards, amendments or interpretations are not expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions. Basis of consolidation SUBSIDIARIES The consolidated \ufb01nancial statements incorporate the \ufb01nancial statements of Reach Subsea ASA, and entities controlled by Reach Subsea ASA. Control is achieved where Reach Subsea ASA is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the group. They are deconsolidated from the date that control ceases. The Group uses the acquisition method of accounting to account for business combinations. Companies that are acquired during the year are consolidated from the date control was obtained. Inter-company transactions, balances, and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. ASSOCIATES Associates are all entities over which the Group has signi\ufb01cant in\ufb02uence but not control, generally accompanying a shareholding of between 20 and 50 % of the voting rights. Investments in associates are accounted for using the equity method of accounting and are initially recognized at cost. The Group\u2019s share of its associates\u2019 income or other comprehensive income is recognized on separate lines in the consolidated statement of comprehensive income or the state- ment of other comprehensive income respectively. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. When the group\u2019s share of losses in an associate equal or exceeds its interest in the associate, including any other unsecured receivables, the group does not recognize further losses, unless it has incurred obligations on behalf of the associate. In the statement of \ufb01nancial position associates are presented as non-current assets. Unrealised gains on transactions between the group and its associates are eliminated to the extent of the group\u2019s interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset trans- ferred. When accounting policies of associates are different from those of the group, the \ufb01gures are amended to ensure consistency. JOINT ARRANGEMENTS The group has applied IFRS 11 to all joint arrangements as of 1 January 2012. Under IFRS 11 investments in joint arrange- ments are classi\ufb01ed as either joint operations or joint ventures depending on the contractual rights and obligations each investor. Reach Subsea ASA has assessed the nature of its joint arrangements and determined them to be joint ventures. Joint ventures are accounted for using the equity method. Under the equity method of accounting, interests in joint ventures are initially recognized at cost and adjusted there- after to recognize the group\u2019s share of the post-acquisition pro\ufb01ts or losses and movements in other comprehensive income. When the group\u2019s share of losses in a joint venture equals or exceeds its interests in the joint ventures (which includes any long-term interests that, in substance, form part of the group\u2019s net investment in the joint ventures), the group does not recognize further losses, unless it has incurred obli- gations or made payments on behalf of the joint ventures. Unrealized gains on transactions between the group and its joint ventures are eliminated to the extent of the group\u2019s interest in the joint ventures. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Note 4 - Accounting Estimates and Judgments Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are assumed to be reasonable under current circumstances. 4.1 Critical Accounting Estimates and Assumptions The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by de\ufb01nition, seldom equal the actual results. The estimates and assumptions that have signi\ufb01cant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next \ufb01nancial year are disclosed below. Impairment of property, plant and equipment A review for indicators of impairment is performed at each reporting date. If there are indicators of impairment, a review for impairment is carried out by management. In order to determine an assets recoverable amount a value-in-use method is used, where management uses judgement in estimating future asset utilisation, cash \ufb02ow and discount rate. For the purpose of assessing impairment of property, plant and equip- ment, management also use judgement to group assets at the lowest levels for which there are separately identi\ufb01able cash \ufb02ows (Cash Generating Units, \u201cCGU\u2019s\u201d). Management has determined that each ROV and associated ROV equipment is considered as separate GCU\u2019s. For right-of-use assets under IFRS 16, each vessel is considered as a separate CGU. Assessment of leases under IFRS 16 The application of IFRS 16 requires signi\ufb01cant judgements and certain key estimations. Critical judgements required in application of IFRS 16 may include, among others, the following: \u2022 Identifying whether a contract includes a lease \u2022 Determination of whether variable payments are in substance \ufb01xed \u2022 Determining whether there are multiple leases in an arrangement. Key sources of estimation uncertainty in the application of IFRS 16 may include, among others, the following: \u2022 Estimation of lease term \u2022 Estimation of lease payments when the contract includes options to extent the lease period \u2022 Determination of the appropriate rate to discount the lease payments \u2022 Assessment of whether a right of use asset is impaired. Management uses judgement in evaluating each con- tract. At each balance sheet date management also assess if there are any impairment indicators for the right-of- use assets. For impairment see section above. Income taxes Judgment is required in determining the provision for income taxes, and the recognition of deferred tax assets. During the ordi- nary course of business, transactions and calculations occur for which the ultimate tax effect is uncertain. The Group recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the \ufb01nal outcome of these matters is different from the amounts that were initially rec- ognized, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. The accounting for deferred income tax asset relies upon management\u2019s judgment of the Group\u2019s ability to generate future positive taxable income in each respective jurisdiction. Business combinations The acquisitions require the use of substantial judgement when assessing the fair value of net identi\ufb01able assets and liabilities in a business combination. Allocation of excess value relating to any business combinations is, amongst other, based on expected cash \ufb02ows and results for certain items of the acquired assets. Refer to note 27 for further information. Note 13 - Climate risk Climate-related risks to Reach Subsea include market effects from changing demand for oil and gas (implying lower demand for our services in this segment), evolving laws and regulations, stricter climate policies, disruptive technology, as well as physical effects of climate change and reputational effects. Reach Subsea assesses climate transition risks into two major cate- gories: (1) risks related to the transition to a low-carbon economy and (2) risks related to the physical impacts of climate change. Risks related to the transition to a low-carbon economy DEMAND Demand for our services within the Oil&Gas segment in the long- term is uncertain due to the global clean energy transition. The groups assessment is that risk of reduced demand for services within Oil&Gas is partly mitigated by correspondingly increased demand for our services within the renewable segment. The groups primary revenue stream is owning, leasing and operat- ing vessels and ROVs. Based on the 2022-levels of revenue and distribution between different segments, the estimated effect of decrease in demand for services within Oil&Gas are as follows: Decline in demand for services related to Oil&Gas Decrease in total revenue (NOK1000) Decrease in operating result (NOK 1000) 10 % 95 440 8 639 20 % 190 880 17 278 30 % 286 320 25 917 IMPAIRMENT/STRANDED ASSETS \u201cReduced demand for services within the Oil&Gas segment in the long term could prompt the groups assets to become stranded. An assessment has been made as to whether the Group has assets that are exposed to signi\ufb01cant environmental risk or climate risk (\u2018stranded assets\u2019). The Group has not identi\ufb01ed any stranded assets at 31 December 2022. The company\u2019s assets are depreci- ated over a lifetime of maximum 8 years, and the groups assess- ment is that the risk of assets being stranded or subject to material impairments within its initial lifetime due to climate risk is low. A sensitivity analysis have been made on the possible impact on impairment charges as a result of a decrease in demand for our services within Oil&Gas: Decline in demand for services related to Oil&Gas Impairment charge (NOK 1000) 10 % - 20 % 642 30 % 3 713 FINANCING AND CAPITAL Reach Subseas future development and investments depend on multiple sources, including operational cash \ufb02ow, capi- tal, and borrowings. Increased concern over climate change could lead to increased cost of capital. To mitigate such risk, the group works closely with \ufb01nancial institutions and inves- tors and continuously evaluates its investment strategy to optimize a strong balance sheet. Risks related to the physical impacts of climate change Reach Subsea is exposed to changing weather conditions caused by climate change as a result of its operation activities offshore. Impact of severe climate change could cause damage to assets, disrupt operational activities and result in signi\ufb01cant costs increased. The company maintain insurance to protect its physical assets and also manage the risk of lost revenue due to weather conditions through its contracts with customers. SUMMARY Impairment testing has been performed in accordance with IAS 36. The impairment testing for 2022 did not result in any impairment. DISCOUNT RATE The discount rate is based on the Weighted Cost of Capital (WACC) pre tax for the Group. The discount rate is 9,0 % REVENUE ASSUMPTIONS The revenue assumption in the cash \ufb02ow forecast is based on a combination of utilisation for assets and selling price. Utilisation is based on \ufb01rm contractual days on a short to medium term and estimated future selling on a medium to longer term. Forecasted utilisation on a longer term is based on historical data, as well as managements expectations of mar- ket development. Forecasted selling rates are based on historical data. No in\ufb02ation adjustments have been made to reve- nue assumptions. Future change in how the world will react in light of the goals set in the Paris-agreement could, depend- ing on the characteristics of the change, have a negative effect on the demand for the companys services. RIGHT-OF USE-ASSETS - VESSELS: The right-of-use assets at 31 December 2022 represents the remaining committed vessel days on charter agreements with ves- sel owners. The impairment testing demonstrated that the recoverable amount is larger than book value, and as such no impair- ment charge is required. The recoverable amount is sensitive to estimated utilisation and selling rate assumptions. Sensitivity analysis show however that a 20% drop in estimated future revenue would not result in an impairment. An increase in WACC of 2 percentage points will not result in any additional impairment due to the short remaining lifetime of the assets. Se note 24 for further information on Right-of-use assets. ROV AND ROV EQUIPMENT Impairment testing has been performed on each ROVs CGU, i.e. both owned and leased ROVs. Other assets, such as acti- vated mobilisation costs and other ROV equipment is not included in the impairment test as these assets do not have impair- ment indicators. The recoverable amount is based on estimated future cash \ufb02ows, which is based on estimated selling price, budgeted maintenance cost and utilisation. The impairment testing demonstrated that the assets recoverable amount is larger than book value, and as such no impairment charge is required. The recoverable amount is sensitive to utilisation and selling rate assumptions. Sensitivity analysis show that a 20% drop in revenue for all ROV CGU\u2019s would result in an impair - ment charge of NOK 1,6 million. An increase in WACC of 2 percentage points will not result in any impairment. Note 14 - Property, plant & equipment, continued SENSITIVITY ON TOTAL FIXED ASSETS Drop in estimated utilisation Impairment charge on \ufb01xed assets (NOK 1000) 10% - 20% 1 622 30% 5 805 \u2018In 2021 the Board of directors of Reach Subsea ASA approved a stock option scheme to further align the interests of the participating employees in Reach Subsea with those of the shareholders. The stock option scheme was \ufb01nalised with a signed agreement between the company and Management and certain key employees 15.12.2021. Management and cer- tain key employees of the Reach Subsea-group is granted the right to acquire up to a certain maximum number of shares in the Company at a \ufb01xed strike price (\u201cthe Option\u201d). The strike price is set equal to the volume weighted average share price of the Company\u00b4s stock traded on the Oslo Stock Exchange 10 days prior to the \ufb01nalization of the option scheme. The options are vested with 1/3 each year, over a period of three years until 31.12.2024. The options are non-tradable and con- ditional upon the participant being employed by the Reach Subsea-group at the vesting date. The stock option plan constitued a maximum of 3,000,000 options equivalent to a similar number of Reach Subsea ASA shares. The fair value at grant date was deter- mined using a Black Scholes Model. The most signi\ufb01cant inputs and assumptions in determining fair value at grant date was: Excercise price: NOK 3.0 Share price at grant date: NOK 3.0 Expected volatility: NOK 56.14% Risk free interest rate: NOK 1.092% Term of options: 3 years Note 18 - Share capital and information about shareholders, continued Note 19 - Sharebased payments 2022 2021 Average exercise price per share option Number of options Average exercise price per share option Number of options At 1 January 3.00 3 000 000 - - Granted - - 3.00 3 000 000 Forfeited - - - - Exercised* 2.82 812 500 - - Expired - 187 500 - - At 31 December 2.82 2 000 000 3.00 3 000 000 * The initial exercise price of 3.0 were in 2022 adjusted for dividends paid in 2022, making the actual exercise price 2.82. The group has recognised NOK 1.6 million (including social security tax) in cost related to the options in 2022 (2021: NOK 0). The group has no legal or constructive obligation to repurchase or settle the options in cash. ", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f3796": { "value": "Reach Subsea ASA Group offers subsea services as a sub- contractor and/or directly to end clients", "dimensions": { "concept": "ifrs-full:DescriptionOfNatureOfEntitysOperationsAndPrincipalActivities", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f3798": { "value": "Reach Subsea ASACOMPENSATION AND BENEFITS TO MANAGEMENT Guidelines for remuneration The company\u2019s guideline for management compensation and bene\ufb01ts is to offer competitive conditions to secure continuity in the management group. Reach Subseas shall offer bene\ufb01ts as for comparable Norwegian companies. In accordance with Section 6-16 b. (2) of the Norwegian Public Limited Liability Companies Act and the Norwegian regulations on guidelines and report on remuneration for executives, the Group will publish a separate report on remuneration to executives for presentation at the Annual General Meeting on 31 May 2023. In addition to detailed information on paid and pending remuneration to directors for the 2022 accounting year, the report on remuneration for directors will contain an overview of performance targets that form the basis for variable remuneration. Shareholdings and allocated shares will also be included. Compensation to CEO, CFO, CCO and COO is speci\ufb01ed below. (NOK 1000) 2022 2021 Salaries and wages including holiday allowance 201 172 98 363 Social security tax 29 004 14 525 Pensions 12 256 7 017 Other bene\ufb01ts 7 363 2 468 Option cost 1 235 - Wages and social costs, in total 251 031 122 374 Number of man-years 253 109 Notes (NOK 1000) Salary Pension costs Other comp Share options /granted 2022 Jostein Alendal, Managing Director CEO 2 039 94 616 300 Birgitte W. Johansen, CFO 1 919 100 583 300 B\u00e5rd Thuen H\u00f8gheim, CCO 1 919 87 616 300 Inge Grutle, COO 1 919 87 616 300 Total 7 795 367 2 431 1 200 (NOK 1000) Position 2022 2021 Rachid Bendriss Chairman of the Board 458 361 K\u00e5re Johannes Lie Vice-Chairman of the Board (until June 2022) 118 183 Anders Onarheim Board member 231 183 Martha K. Bakkevig Board member 231 183 Arvid St\u00e5le Pettersen Board member (from June 2022) 113 - Espen Gjerde Board member (from June 2022) 113 - Sverre B. Mikkelsen Board member (until February 2022) 61 235 Kristine Skeie Board member 256 183 Ingunn \u00d8. Iveland Board member 287 219 (NOK 1000) Salary Pension costs Other comp Share options /granted 2021 Jostein Alendal, Managing Director CEO 1 780 90 300 450 Birgitte W. Johansen, CFO 1 559 82 300 450 B\u00e5rd Thuen H\u00f8gheim, CCO 1 559 82 300 450 Inge Grutle, COO 1 559 89 300 450 Total 6 457 344 1 200 1 800 Managing director has no agreement regarding early retirement. Managing director will receive NOK 1.5 million in payment if employment is terminated. CFO has no agreement regarding early retirement and no agreement on payment in case of termination of employment. Shares owned by members of the Board and by the management at year-end, including shares owned by immediate family members and/or controlled companies are as follows: Notes Note 8 - Personnel expenses, continued 31.12.2022 Number of shares Ownership NORTH ENERGY ASA Partly owned by Rachid Bendriss (COB) and Anders Onarheim (Board member) 46 126 567 20,4 % JT INVEST AS Partly owned by Jostein Alendal (CEO) 5 529 539 2,4 % A-\u00c5 INVEST AS Owned by \u00c5ge Nilsen (management) 1 948 725 0,9 % SMS INVESTERING AS Owned by Svein Magne Storesund (management) 1 662 366 0,7 % INVICTA INVEST AS Partly owned by Inge Grutle (management) 919 179 0,4 % KOLD INVEST AS Owned by Martha Kold Bakkevig (Board member) 867 181 0,4 % BIRGITTE WENDELBO JOHANSEN Management 149 050 0,1 % B\u00c5RD THUEN H\u00d8GHEIM Management 460 625 0,2 % INGUNN \u00d8VERENG IVELAND Board Member 30 000 0,0 % AB INVESTMENT AS Owned by Anders Onarheim (Board member) 500 000 0,2 % VEST-NORSK HANDELSKOMPANI AS Owned by Kristine Skeie (Board member) 35 000 0,0 % KRISTINE SKEIE Board Member 5 0,0 % Total 58 228 237 25,8 % ", "dimensions": { "concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f3799": { "value": "Reach Subsea ASA", "dimensions": { "concept": "ifrs-full:NameOfUltimateParentOfGroup", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f3800": { "value": "Reach Subsea ASA", "dimensions": { "concept": "ifrs-full:NameOfParentEntity", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f3801": { "value": "Reach Subsea", "dimensions": { "concept": "ifrs-full:NameOfReportingEntityOrOtherMeansOfIdentification", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f3802": { "value": "ASA", "dimensions": { "concept": "ifrs-full:LegalFormOfEntity", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f3809": { "value": "Norway", "dimensions": { "concept": "ifrs-full:PrincipalPlaceOfBusiness", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f3810": { "value": "Norway", "dimensions": { "concept": "ifrs-full:DomicileOfEntity", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f3811": { "value": "Norway", "dimensions": { "concept": "ifrs-full:CountryOfIncorporation", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f3812": { "value": "Garpeskj\u00e6rvegen 2, 5527 Haugesund", "dimensions": { "concept": "ifrs-full:AddressOfRegisteredOfficeOfEntity", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f3822": { "value": "Note 2 Summary of signi\ufb01cant accounting policies The principal accounting policies applied in the preparation of these consolidated \ufb01nancial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. Basis of preparation The consolidated \ufb01nancial statements of Reach Subsea ASA have been prepared in accordance with International Financial Reporting Standards and IFRIC interpretations, as adopted by the EU, and in accordance with the additional requirements following the Norwegian Accounting Act. The consolidated \ufb01nancial statements are prepared under the assumption of going concern and on a historical cost basis, with some exceptions as detailed under accounting policies set out below. The preparation of \ufb01nancial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the group\u2019s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are signi\ufb01cant to the consolidated \ufb01nancial statements are disclosed in note 4. The consolidated \ufb01nancial statements have been prepared on a going concern basis. New & amended standards adopted by the Group Certain new standards, amendments to standards, and annual improvements to standards and interpretations are effective for annual periods beginning after January 1, 2022 and have been applied in preparing these consolidated \ufb01nancial statements. These applications did not materially impact the Group\u2019s consolidated \ufb01nancial statements. New standards & interpretations not yet adopted Certain new accounting standards, amendments to accounting standards and interpretations have been published that are not mandatory for 31 December 2022 reporting periods and have not been early adopted by the group. These standards, amendments or interpretations are not expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions. Basis of consolidation SUBSIDIARIES The consolidated \ufb01nancial statements incorporate the \ufb01nancial statements of Reach Subsea ASA, and entities controlled by Reach Subsea ASA. Control is achieved where Reach Subsea ASA is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the group. They are deconsolidated from the date that control ceases. The Group uses the acquisition method of accounting to account for business combinations. Companies that are acquired during the year are consolidated from the date control was obtained. Inter-company transactions, balances, and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. ASSOCIATES Associates are all entities over which the Group has signi\ufb01cant in\ufb02uence but not control, generally accompanying a shareholding of between 20 and 50 % of the voting rights. Investments in associates are accounted for using the equity method of accounting and are initially recognized at cost. The Group\u2019s share of its associates\u2019 income or other comprehensive income is recognized on separate lines in the consolidated statement of comprehensive income or the state- ment of other comprehensive income respectively. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. When the group\u2019s share of losses in an associate equal or exceeds its interest in the associate, including any other unsecured receivables, the group does not recognize further losses, unless it has incurred obligations on behalf of the associate. In the statement of \ufb01nancial position associates are presented as non-current assets. Unrealised gains on transactions between the group and its associates are eliminated to the extent of the group\u2019s interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset trans- ferred. When accounting policies of associates are different from those of the group, the \ufb01gures are amended to ensure consistency. JOINT ARRANGEMENTS The group has applied IFRS 11 to all joint arrangements as of 1 January 2012. Under IFRS 11 investments in joint arrange- ments are classi\ufb01ed as either joint operations or joint ventures depending on the contractual rights and obligations each investor. Reach Subsea ASA has assessed the nature of its joint arrangements and determined them to be joint ventures. Joint ventures are accounted for using the equity method. Under the equity method of accounting, interests in joint ventures are initially recognized at cost and adjusted there- after to recognize the group\u2019s share of the post-acquisition pro\ufb01ts or losses and movements in other comprehensive income. When the group\u2019s share of losses in a joint venture equals or exceeds its interests in the joint ventures (which includes any long-term interests that, in substance, form part of the group\u2019s net investment in the joint ventures), the group does not recognize further losses, unless it has incurred obli- gations or made payments on behalf of the joint ventures. Unrealized gains on transactions between the group and its joint ventures are eliminated to the extent of the group\u2019s interest in the joint ventures. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identi\ufb01ed as the steering committee that makes strategic decisions. The group has two segments. Oil & Gas and Renewable/Other, and Data and Solutions. Revenues are categorized as either Data or Solutions based on the nature of the service delivered to a client. Data represents delivery of various types of maps, models and/or reports collected through subsea survey and/or inspection projects. Solutions represents delivery of a speci\ufb01c client solution such as repair, modi\ufb01cation, installation or removal of subsea equipment and infrastructure. Foreign currency translation FUNCTIONAL CURRENCY AND PRESENTATION CURRENCY The Group presents its \ufb01nancial statements in NOK. The functional currency of the consolidated entities in the Group is the currency of the primary economic environment in which the entity operates. All Norwegian companies have NOK as functional currency. Reach Subsea AS\u2019 branch in Trinidad and Reach Subsea Inc have USD as functional currency, Gravitude UK Ltd and Reach Subsea UK Ltd has GBP as func- tional currency, Reach Subsea PTE Ltd has SGD as functional currency and iSurvey Ltd has EUR as functional currency. TRANSACTIONS AND BALANCES Foreign currency transactions are translated into the func- tional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the consolidated statement of comprehen- sive income within \ufb01nancial income and \ufb01nancial costs. Property, plant and equipment Property, plant and other equipment are stated at historical cost less accumulated depreciation and accumulated impairment losses. Historical cost includes costs related to the purchase of the item. Subsequent costs are included in the asset\u2019s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic bene\ufb01ts associated with the item will \ufb02ow to the group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to the consolidated statement of comprehensive income during the \ufb01nancial period in which they are incurred. Upon acquisition, property, plant and equipment are decom- posed for depreciation purposes if this is material for the determination of the depreciation expense. The components are depreciated on a straight-line basis over expected useful life to estimated residual value at the end of their useful life Depreciation of other assets is calculated using the straight-line method to allocate their cost or revalued amounts less their residual values over their estimated useful lives, as follows: \u2022 Furniture, \ufb01ttings and equipment: 3-8 years \u2022 ROVs: 3-8 years The assets\u2019 residual values and useful lives are reviewed, and the depreciation schedule adjusted, if appropriate, at the end of each reporting period. Impairment of non-\ufb01nancial assets GENERAL At each reporting date the Group assesses whether there is an indication that an asset may be impaired. If any such indication exists, or where annual testing for impairment is required, the Group makes an estimate of the asset\u2019s recoverable amount. An asset\u2019s recoverable amount is the higher of an asset\u2019s fair value less costs to sell or value in use. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash \ufb02ows are discounted to their present value using a pre-tax discount rate that re\ufb02ects current market assessments of the time value of money and the risks speci\ufb01c to the asset. If, in a subsequent period, the amount of the impairment loss decreases, and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed. GOODWILL Goodwill is measured as described in \u2018Business combinations\u2019 in the section below. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill is not amortised, but it is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. CUSTOMER CONTRACTS Customer contracts acquired in a business combination are recognised at fair value at the acquisition date. They have a \ufb01nite useful life and are subsequently carried at cost less accumulated amortisation and impairment losses. Onerous contracts Provisions for onerous contracts are recognized when the Group has a contract under which the unavoidable costs of meeting the obligations under the contract exceed the economic bene\ufb01ts expected to be received from the contract. Leases ACCOUNTING AS LESSEE At inception of a contract, the Company assesses whether a contract is, or contains, a lease based on whether the con- tract includes the right to control the use of an identi\ufb01ed asset for a period of time in exchange for consideration. Short term leases (lease term 12 month or less) and assets that are leased for more than 12 months, but where the lease terms do not contain any commitments (\u201cpay-as-you-go\u201d), are also capitalized as right-of-use assets and depreciated. The impact is that all cost in relation to leases of vessels and ROVs are classi\ufb01ed as depreciation and interest expense. Vessels and ROVs with a \u201cpay-as-you-go\u201d lease structure are treated as short term leases, where the lease expenses are classi\ufb01ed as depreciation, and where the lease is capitalized at the balance sheet date only to the extent a commitment is incurred at the reporting date. The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The lease liability is initially measured at the present value of lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise of: \u2022 Fixed lease payments \u2022 Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date \u2022 Payment of penalties for terminating the lease, if the lease term re\ufb02ects the exercise of an option to terminate the lease. The lease liability is subsequently measured by increasing the carrying amount to re\ufb02ect interest on the lease liability (using the effective interest method) and by reducing the carrying value to re\ufb02ect the lease payments made. The Group remeasures the lease liability (and makes a corre- sponding adjustment to the related right of use asset) whenever: \u2022 the lease term has changed. \u2022 the lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value. \u2022 a lease contract is modi\ufb01ed, and the lease modi\ufb01cation is not accounted for as a separate lease, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate. The right of use asset is initially measured based on the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred. They are subsequently measured at cost less accumulated depreciation and impairment losses. The right of use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. The depre- ciation starts at the commencement date of the lease. The Group applies IAS 36 to determine whether a right of use asset is impaired, and accounts for any identi\ufb01ed impairment loss as described in the \u201cImpairment of non-\ufb01nancial asset\u201d section. Business combinations The acquisition method of accounting is used to account for all business combinations, regardless of whether equity instruments or other assets are acquired. The consideration transferred for the acquisition of a subsidiary comprises the: \u2022 fair values of the assets transferred \u2022 liabilities incurred to the former owners of the acquired business \u2022 equity interests issued by the group \u2022 fair value of any asset or liability resulting from a contingent consideration arrangement, and \u2022 fair value of any pre-existing equity interest in the subsidiary. Identi\ufb01able assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acqui- sition date. The group recognises any non-controlling interest in the acquired entity on an acquisition-by-acquisition basis either at fair value or at the non-controlling interest\u2019s propor - tionate share of the acquired entity\u2019s net identi\ufb01able assets. Acquisition-related costs are expensed as incurred. The excess of the: \u2022 consideration transferred, \u2022 amount of any non-controlling interest in the acquired entity, and \u2022 acquisition-date fair value of any previous equity interest in the acquired entity over the fair value of the net identi\ufb01able assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identi\ufb01able assets of the business acquired, the differ - ence is recognised directly in pro\ufb01t or loss as a bargain purchase. Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of exchange. The discount rate used is the entity\u2019s incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an inde- pendent \ufb01nancier under comparable terms and conditions. Contingent consideration is classi\ufb01ed either as equity or a \ufb01nancial liability. Amounts classi\ufb01ed as a \ufb01nancial liability are subsequently remeasured to fair value, with changes in fair value recognised in pro\ufb01t or loss. If the business combination is achieved in stages, the acquisition date carrying value of the acquirer\u2019s previously held equity interest in the acquiree is remeasured to fair value at the acquisition date. Any gains or losses arising from such remeasurement are recognised in pro\ufb01t or loss. Bunkers Bunkers comprise fuel and lube oil inventory and are valued at the lower of cost and net realisable value. Fuel and lube are expensed to the consolidated statement of comprehensive income based on FIFO principle (First in, \ufb01rst out) as they are consumed. Financial assets The Group classi\ufb01es its \ufb01nancial assets in the following catego- ries: fair value through other comprehensive income (FVOCI), fair value through pro\ufb01t and loss (FVTPL), and amortized cost. The classi\ufb01cation of \ufb01nancial assets under IFRS 9 is generally based on the business model in which a \ufb01nancial instrument is managed and its contractual cash \ufb02ow characteristics. Classi\ufb01cation of \ufb01nancial assets is determined at initial recog- nition and is not reclassi\ufb01ed subsequently unless the Group changes its business model for managing \ufb01nancial assets. A \ufb01nancial asset shall be measured at amortized cost if both of the following conditions are met and it is not designated at FVTPL: \u2022 the \ufb01nancial asset is held within a business model whose objective is to hold \ufb01nancial assets, in order to collect contractual cash \ufb02ows and \u2022 the contractual terms of the \ufb01nancial asset give rise on speci\ufb01ed dates to cash \ufb02ows that are solely payments of principal and interest on the principal amount outstanding. A \ufb01nancial asset shall be measured at FVOCI if both of the following conditions are met and it is not designated at FVTPL: \u2022 the \ufb01nancial asset is held within a business model whose objective is achieved by both collecting contractual cash \ufb02ows and selling \ufb01nancial assets and \u2022 the contractual terms of the \ufb01nancial asset give rise on speci\ufb01ed dates to cash \ufb02ows that are solely payments of principal and interest on the principal amount outstanding. All \ufb01nancial assets not classi\ufb01ed as measured at amortized cost or FVOCI as described above are measured at FVTPL. This includes all derivative \ufb01nancial assets. On initial recognition, the Group may irrevocably designate a \ufb01nancial asset that otherwise meets the requirements to be measured at amortized cost or at FVOCI as at FVTPL if doing so eliminates or signi\ufb01cantly reduces an accounting mismatch that would otherwise arise. FINANCIAL ASSETS AT FVTPL The assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in pro\ufb01t or loss. FINANCIAL ASSETS AT AMORTIZED COST These assets are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognized in pro\ufb01t or loss. Any gain or loss on derecognition is recognized in pro\ufb01t or loss. FINANCIAL ASSETS AT FVOCI These assets are subsequently measured at fair value. Dividends are recognized as income in pro\ufb01t or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are rec- ognized in OCI and are not reclassi\ufb01ed to pro\ufb01t or loss. DERECOGNITION Financial assets are derecognized when the rights to receive cash \ufb02ows from the investments have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership. IMPAIRMENT The Group assesses at the end of each reporting period the expected credit losses for a \ufb01nancial asset or a group of \ufb01nancial assets. Trade receivables Trade receivables are amounts due from customers for merchan- dise sold or services performed in the ordinary course of business. If collection is expected in one year or less (or in the normal operating cycle of the business if longer), they are classi\ufb01ed as current assets. If not, they are presented as non-current assets. Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method, less provision for impairment. Government grants Grants from the government are recognized at their fair value where there is a reasonable assurance that the grant will be received and the group will comply with all attached condi- tions. Government grants relating to costs are deferred and recognized in the consolidated statement of comprehensive over the period necessary to match them with the costs that they are intended to compensate. Government grants relating to property, plant and equipment are included in noncurrent liabilities as deferred government grants and are credited to the consolidated statement of comprehensive income on a straight- line basis over the expected lives of the related assets. Cash and cash equivalents Cash equivalents are short-term liquid investments that can be converted instantly into cash of a known amount and have a maximum maturity of three months. Share capital Ordinary shares are classi\ufb01ed as equity. Incremental cost directly attributable to the issue of new shares is shown in equity as a deduction, net of tax, from the proceeds. Trade payables Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of busi- ness from suppliers. Accounts payable are classi\ufb01ed as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current liabilities. Trade payables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method. Taxes The tax expense in the period comprises current tax and changes in deferred taxes. Tax expense is recognized in the consolidated statement of comprehensive income, except to the extent that it relates to items that are recognized in other comprehensive income, or directly in equity. In such cases the relating tax expense is also recognized in other comprehensive income or directly in equity, respectively. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the bal- ance sheet date in the countries where the company and its subsidiaries operate and generate taxable income. Deferred income tax is recognized, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated \ufb01nancial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realised, or the deferred income tax liability is settled. Deferred income tax assets are recognized only to the extent that it is probable that future taxable pro\ufb01t will be available against which the temporary differences can be utilised. Borrowings Borrowings are recognized initially at fair value, net of trans- action costs incurred. Borrowings are subsequently carried at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the consolidated statement of comprehensive income over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recog- nized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is cap- italized as a pre-payment for liquidity services and amor- tized over the period of the facility to which it relates. Share-based payments The group has an equity-settled, share-based compensation plan, under which the entity receives services from employ- ees as consideration for equity instruments (options) of the group. The fair value of the employee services received in exchange for the grant of the options is recognized as an expense. The total amount to be expensed is determined by reference to the fair value of the options granted: \u2022 including any market performance conditions (for example, an entity\u2019s share price); \u2022 excluding the impact of any service and non-market performance vesting conditions (for example, pro\ufb01tability, sales growth targets and remaining an employee of the entity over a speci\ufb01ed time period); and \u2022 including the impact of any non-vesting conditions (for example, the requirement for employees to save). Non-market performance and service conditions are included in assumptions about the number of options that are expected to vest. The total expense is recognized over the vesting period, which is the period over which all of the speci\ufb01ed vesting conditions are to be satis\ufb01ed. At the end of each reporting period, the group revises its estimates of the number of options that are expected to vest based on the non-market vesting conditions. It rec- ognizes the impact of the revision to original estimates, if any, in the consolidated statement of comprehensive income, with a corresponding adjustment to equity. When the options are exercised, the company issues new shares. The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium. The grant by the company of options over its equity instru- ments to the employees of subsidiary undertakings in the group is treated as a capital contribution. The fair value of employee services received, measured by reference to the grant date fair value, is recognized over the vesting period as an increase to investment in subsidiary undertakings, with a corresponding credit to equity in the parent entity accounts. The social security contributions payable in connection with the grant of the share options is considered an integral part of the grant itself, and the charge will be treated as a cash-settled transaction. Provisions, contingent liabilities and contingent assets Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, and it is probable that an economic settlement will take place in consequence of this obligation, and a reliable estimate can be made of the amount. Provisions are based on best estimate. Contingent liabilities are not recognized in the \ufb01nan- cial statements. Signi\ufb01cant contingent liabilities are dis- closed, with the exception of contingent liabilities where the probability of the liability occurring is remote. A contingent asset is not recognized in the annual \ufb01nancial statements but is disclosed if it is probable that a bene\ufb01t will accrue to the Group. Recognition of revenue GENERAL Revenue from sale of services is recognized in accordance with IFRS 15. Revenues are shown net of value added tax and discounts. SALES OF SERVICES The Group revenue comprises revenue recognized from contracts with customers for the provision of subsea services. Although scope of work varies from project to project, there are similarities in all projects, such as mobilisation and demobilisation of vessel, vessel hire, ROV crewing etc. These elements are highly related and comprise an integrated service negotiated as a whole with the customer. As such, all elements within a contract is normally considered to be one single performance obligation. Reach Subsea reviews all customer contracts to assess if there are elements that may indicate several performance obligations within one contract. Such elements may be use of several vessel spreads or project phases requiring separate mobilisation of vessels. For sales of services under \ufb01xed rate contracts, revenue is recog- nized in the accounting period in which the services are rendered, by reference to stage of completion of the speci\ufb01c transaction and assessed on the basis of the actual service provided as a propor- tion of the total services to be provided. For other services, reve- nue is recognized based on the agreed rate as the services are ren- dered. The transaction price for day-rate contracts is determined by the expected value approach being the number of scheduled days multiplied with dayrate. Where the contracts include multiple performance obligations, the transaction price is allocated to each performance obligation based on the stand-alone selling prices. For contracts with pricing elements that need to be estimated, rev- enue is recognised at best estimate only when it is highly probable that its inclusion will not result in a signi\ufb01cant revenue reversal in the future when the uncertainty has been subsequently resolved. Revenue is recognized as control is passed, either over time or at a point in time. Control of an asset is de\ufb01ned as the ability to direct the use of and obtain substantially all of the remaining bene\ufb01ts from the asset. This includes the ability to prevent others from directing the use of and obtaining the bene\ufb01ts from the asset. The bene\ufb01ts related to the asset are the potential cash \ufb02ows that may be obtained directly or indirectly. Reach Subsea has concluded that customers receive bene\ufb01ts from the subsea services as they are performed, and therefore recog- nize revenue over the time the subsea service is provided. Incremental costs of obtaining a contract is recognized as an asset if we expect to recover these costs. However, incremental costs are limited to the costs that would not have incurred if the contract had not been successfully obtained. No such cost has been recognized in 2022. REVENUE FROM LEASES Revenue from time-charter leases is recognized using a straight-line basis over the term of the contract Cash \ufb02ow statement The cash \ufb02ow statement is prepared according to the indirect method. Assessment of leases under IFRS 16 The application of IFRS 16 requires signi\ufb01cant judgements and certain key estimations. Critical judgements required in application of IFRS 16 may include, among others, the following: \u2022 Identifying whether a contract includes a lease \u2022 Determination of whether variable payments are in substance \ufb01xed \u2022 Determining whether there are multiple leases in an arrangement. Key sources of estimation uncertainty in the application of IFRS 16 may include, among others, the following: \u2022 Estimation of lease term \u2022 Estimation of lease payments when the contract includes options to extent the lease period \u2022 Determination of the appropriate rate to discount the lease payments \u2022 Assessment of whether a right of use asset is impaired. Management uses judgement in evaluating each con- tract. At each balance sheet date management also assess if there are any impairment indicators for the right-of- use assets. For impairment see section above. Income taxes Judgment is required in determining the provision for income taxes, and the recognition of deferred tax assets. During the ordi- nary course of business, transactions and calculations occur for which the ultimate tax effect is uncertain. The Group recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the \ufb01nal outcome of these matters is different from the amounts that were initially rec- ognized, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. The accounting for deferred income tax asset relies upon management\u2019s judgment of the Group\u2019s ability to generate future positive taxable income in each respective jurisdiction. Business combinations The acquisitions require the use of substantial judgement when assessing the fair value of net identi\ufb01able assets and liabilities in a business combination. Allocation of excess value relating to any business combinations is, amongst other, based on expected cash \ufb02ows and results for certain items of the acquired assets. Refer to note 27 for further information. ", "dimensions": { "concept": "ifrs-full:DisclosureOfSummaryOfSignificantAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f3831": { "value": "Basis of preparation The consolidated \ufb01nancial statements of Reach Subsea ASA have been prepared in accordance with International Financial Reporting Standards and IFRIC interpretations, as adopted by the EU, and in accordance with the additional requirements following the Norwegian Accounting Act. The consolidated \ufb01nancial statements are prepared under the assumption of going concern and on a historical cost basis, with some exceptions as detailed under accounting policies set out below. The preparation of \ufb01nancial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the group\u2019s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are signi\ufb01cant to the consolidated \ufb01nancial statements are disclosed in note 4. The consolidated \ufb01nancial statements have been prepared on a going concern basis. ", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f3833": { "value": "The consolidated \ufb01nancial statements of Reach Subsea ASA have been prepared in accordance with International Financial Reporting Standards and IFRIC interpretations, as adopted by the EU, and in accordance with the additional requirements following the Norwegian Accounting Act. ", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f3853": { "value": "New & amended standards adopted by the Group Certain new standards, amendments to standards, and annual improvements to standards and interpretations are effective for annual periods beginning after January 1, 2022 and have been applied in preparing these consolidated \ufb01nancial statements. These applications did not materially impact the Group\u2019s consolidated \ufb01nancial statements. New standards & interpretations not yet adopted Certain new accounting standards, amendments to accounting standards and interpretations have been published that are not mandatory for 31 December 2022 reporting periods and have not been early adopted by the group. These standards, amendments or interpretations are not expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions. ", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesAccountingEstimatesAndErrorsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f3854": { "value": "New & amended standards adopted by the Group Certain new standards, amendments to standards, and annual improvements to standards and interpretations are effective for annual periods beginning after January 1, 2022 and have been applied in preparing these consolidated \ufb01nancial statements. These applications did not materially impact the Group\u2019s consolidated \ufb01nancial statements. New standards & interpretations not yet adopted Certain new accounting standards, amendments to accounting standards and interpretations have been published that are not mandatory for 31 December 2022 reporting periods and have not been early adopted by the group. These standards, amendments or interpretations are not expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions. ", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f3885": { "value": "Basis of consolidation SUBSIDIARIES The consolidated \ufb01nancial statements incorporate the \ufb01nancial statements of Reach Subsea ASA, and entities controlled by Reach Subsea ASA. Control is achieved where Reach Subsea ASA is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the group. They are deconsolidated from the date that control ceases. The Group uses the acquisition method of accounting to account for business combinations. Companies that are acquired during the year are consolidated from the date control was obtained. Inter-company transactions, balances, and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. ASSOCIATES Associates are all entities over which the Group has signi\ufb01cant in\ufb02uence but not control, generally accompanying a shareholding of between 20 and 50 % of the voting rights. Investments in associates are accounted for using the equity method of accounting and are initially recognized at cost. The Group\u2019s share of its associates\u2019 income or other comprehensive income is recognized on separate lines in the consolidated statement of comprehensive income or the state- ment of other comprehensive income respectively. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. When the group\u2019s share of losses in an associate equal or exceeds its interest in the associate, including any other unsecured receivables, the group does not recognize further losses, unless it has incurred obligations on behalf of the associate. In the statement of \ufb01nancial position associates are presented as non-current assets. Unrealised gains on transactions between the group and its associates are eliminated to the extent of the group\u2019s interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset trans- ferred. When accounting policies of associates are different from those of the group, the \ufb01gures are amended to ensure consistency. JOINT ARRANGEMENTS The group has applied IFRS 11 to all joint arrangements as of 1 January 2012. Under IFRS 11 investments in joint arrange- ments are classi\ufb01ed as either joint operations or joint ventures depending on the contractual rights and obligations each investor. Reach Subsea ASA has assessed the nature of its joint arrangements and determined them to be joint ventures. Joint ventures are accounted for using the equity method. Under the equity method of accounting, interests in joint ventures are initially recognized at cost and adjusted there- after to recognize the group\u2019s share of the post-acquisition pro\ufb01ts or losses and movements in other comprehensive income. When the group\u2019s share of losses in a joint venture equals or exceeds its interests in the joint ventures (which includes any long-term interests that, in substance, form part of the group\u2019s net investment in the joint ventures), the group does not recognize further losses, unless it has incurred obli- gations or made payments on behalf of the joint ventures. Unrealized gains on transactions between the group and its joint ventures are eliminated to the extent of the group\u2019s interest in the joint ventures. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. ", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f3887": { "value": "SUBSIDIARIES The consolidated \ufb01nancial statements incorporate the \ufb01nancial statements of Reach Subsea ASA, and entities controlled by Reach Subsea ASA. Control is achieved where Reach Subsea ASA is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the group. They are deconsolidated from the date that control ceases. The Group uses the acquisition method of accounting to account for business combinations. Companies that are acquired during the year are consolidated from the date control was obtained. Inter-company transactions, balances, and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the groupASSOCIATES Associates are all entities over which the Group has signi\ufb01cant in\ufb02uence but not control, generally accompanying a shareholding of between 20 and 50 % of the voting rights. Investments in associates are accounted for using the equity method of accounting and are initially recognized at cost. The Group\u2019s share of its associates\u2019 income or other comprehensive income is recognized on separate lines in the consolidated statement of comprehensive income or the state- ment of other comprehensive income respectively. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. When the group\u2019s share of losses in an associate equal or exceeds its interest in the associate, including any other unsecured receivables, the group does not recognize further losses, unless it has incurred obligations on behalf of the associate. In the statement of \ufb01nancial position associates are presented as non-current assets. Unrealised gains on transactions between the group and its associates are eliminated to the extent of the group\u2019s interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset trans- ferred. When accounting policies of associates are different from those of the group, the \ufb01gures are amended to ensure consistency. JOINT ARRANGEMENTS The group has applied IFRS 11 to all joint arrangements as of 1 January 2012. Under IFRS 11 investments in joint arrange- ments are classi\ufb01ed as either joint operations or joint ventures depending on the contractual rights and obligations each investor. Reach Subsea ASA has assessed the nature of its joint arrangements and determined them to be joint ventures. Joint ventures are accounted for using the equity method. Under the equity method of accounting, interests in joint ventures are initially recognized at cost and adjusted there- after to recognize the group\u2019s share of the post-acquisition pro\ufb01ts or losses and movements in other comprehensive income. When the group\u2019s share of losses in a joint venture equals or exceeds its interests in the joint ventures (which includes any long-term interests that, in substance, form part of the group\u2019s net investment in the joint ventures), the group does not recognize further losses, unless it has incurred obli- gations or made payments on behalf of the joint ventures. Unrealized gains on transactions between the group and its joint ventures are eliminated to the extent of the group\u2019s interest in the joint ventures. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferredCompany Business of\ufb01ce Voting rights and ownership Reach Subsea AS Haugesund 100 % Connect Offshore AS (100% owned by Reach Subsea AS) Haugesund 100 % Reach Remote AS (100% owned by Reach Subsea AS) Haugesund 100 % Octio AS (100% owned by Reach Subsea AS) Bergen 100 % Monviro AS (100% owned by Reach Subsea AS) Bergen 100 % iSurvey AS (100% owned by Reach Subsea AS) Billingstad 100 % iSurvey Assets AS (100% owned by Reach Subsea AS) Billingstad 100 % iSurvey Group AS (100% owned by Reach Subsea AS) Billingstad 100 % Reach Subsea UK Ltd (100% owned by iSurvey Group AS) Scotland, UK 100 % Reach Subsea Pte. Ltd (100% owned by iSurvey Group AS) Singapore 100 % iSurvey Ltd (100% owned by iSurvey Group AS) Limassol, Cyprus 100 % Reach Subsea International AS (100% owned by Reach Subsea AS) Haugesund 100 % Reach Subsea Inc (100% owned by Reach Subsea International AS) Delaware, USA 100 % Gravitude UK Ltd (100% owned by Reach Subsea International AS) Scotland, UK 100 % Company Business of\ufb01ce Voting rights and ownership Reach Subsea AS Haugesund 100 % Connect Offshore AS (100% owned by Reach Subsea AS) Haugesund 100 % Reach Remote AS (100% owned by Reach Subsea AS) Haugesund 100 % Reach Subsea International AS (100% owned by Reach Subsea AS) Haugesund 100 % Reach Subsea UK Ltd (100% owned by Reach Subsea International AS) Scotland, UK 100 % Reach Subsea Pte. Ltd (100% owned by Reach Subsea International AS) Singapore 100 % Reach Subsea Ltd (100% owned by Reach Subsea International AS) Limassol, Cyprus 100 % Reach Subsea Inc (100% owned by Reach Subsea International AS) Delaware, USA 100 % Gravitude UK Ltd (100% owned by Reach Subsea International AS) Scotland, UK 100 % Note 12 - Shares in subsidiaries Notes As of January 1 2023 the following changes have been made in the group structure: \u2022 Octio AS, Monviro AS, iSurvey AS and iSurvey Assets have been merged with Reach Subsea AS. \u2022 iSurvey Group AS have been merged with Reach Subsea International AS. \u2022 iSurvey Ltd have been renamed Reach Subsea Ltd. After completion of the changes, shares in subsidiaries will be as follows: ", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestsInOtherEntitiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f3888": { "value": "SUBSIDIARIES The consolidated \ufb01nancial statements incorporate the \ufb01nancial statements of Reach Subsea ASA, and entities controlled by Reach Subsea ASA. Control is achieved where Reach Subsea ASA is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the group. They are deconsolidated from the date that control ceases. The Group uses the acquisition method of accounting to account for business combinations. Companies that are acquired during the year are consolidated from the date control was obtained. Inter-company transactions, balances, and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the groupCompany Business of\ufb01ce Voting rights and ownership Reach Subsea AS Haugesund 100 % Connect Offshore AS (100% owned by Reach Subsea AS) Haugesund 100 % Reach Remote AS (100% owned by Reach Subsea AS) Haugesund 100 % Octio AS (100% owned by Reach Subsea AS) Bergen 100 % Monviro AS (100% owned by Reach Subsea AS) Bergen 100 % iSurvey AS (100% owned by Reach Subsea AS) Billingstad 100 % iSurvey Assets AS (100% owned by Reach Subsea AS) Billingstad 100 % iSurvey Group AS (100% owned by Reach Subsea AS) Billingstad 100 % Reach Subsea UK Ltd (100% owned by iSurvey Group AS) Scotland, UK 100 % Reach Subsea Pte. Ltd (100% owned by iSurvey Group AS) Singapore 100 % iSurvey Ltd (100% owned by iSurvey Group AS) Limassol, Cyprus 100 % Reach Subsea International AS (100% owned by Reach Subsea AS) Haugesund 100 % Reach Subsea Inc (100% owned by Reach Subsea International AS) Delaware, USA 100 % Gravitude UK Ltd (100% owned by Reach Subsea International AS) Scotland, UK 100 % Company Business of\ufb01ce Voting rights and ownership Reach Subsea AS Haugesund 100 % Connect Offshore AS (100% owned by Reach Subsea AS) Haugesund 100 % Reach Remote AS (100% owned by Reach Subsea AS) Haugesund 100 % Reach Subsea International AS (100% owned by Reach Subsea AS) Haugesund 100 % Reach Subsea UK Ltd (100% owned by Reach Subsea International AS) Scotland, UK 100 % Reach Subsea Pte. Ltd (100% owned by Reach Subsea International AS) Singapore 100 % Reach Subsea Ltd (100% owned by Reach Subsea International AS) Limassol, Cyprus 100 % Reach Subsea Inc (100% owned by Reach Subsea International AS) Delaware, USA 100 % Gravitude UK Ltd (100% owned by Reach Subsea International AS) Scotland, UK 100 % Note 12 - Shares in subsidiaries Notes As of January 1 2023 the following changes have been made in the group structure: \u2022 Octio AS, Monviro AS, iSurvey AS and iSurvey Assets have been merged with Reach Subsea AS. \u2022 iSurvey Group AS have been merged with Reach Subsea International AS. \u2022 iSurvey Ltd have been renamed Reach Subsea Ltd. After completion of the changes, shares in subsidiaries will be as follows: ", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInSubsidiariesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f3889": { "value": "SUBSIDIARIES The consolidated \ufb01nancial statements incorporate the \ufb01nancial statements of Reach Subsea ASA, and entities controlled by Reach Subsea ASA. Control is achieved where Reach Subsea ASA is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the group. They are deconsolidated from the date that control ceases. The Group uses the acquisition method of accounting to account for business combinations. Companies that are acquired during the year are consolidated from the date control was obtained. Inter-company transactions, balances, and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSubsidiariesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f3912": { "value": "ASSOCIATES Associates are all entities over which the Group has signi\ufb01cant in\ufb02uence but not control, generally accompanying a shareholding of between 20 and 50 % of the voting rights. Investments in associates are accounted for using the equity method of accounting and are initially recognized at cost. The Group\u2019s share of its associates\u2019 income or other comprehensive income is recognized on separate lines in the consolidated statement of comprehensive income or the state- ment of other comprehensive income respectively. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. When the group\u2019s share of losses in an associate equal or exceeds its interest in the associate, including any other unsecured receivables, the group does not recognize further losses, unless it has incurred obligations on behalf of the associate. In the statement of \ufb01nancial position associates are presented as non-current assets. Unrealised gains on transactions between the group and its associates are eliminated to the extent of the group\u2019s interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset trans- ferred. When accounting policies of associates are different from those of the group, the \ufb01gures are amended to ensure consistency. JOINT ARRANGEMENTS The group has applied IFRS 11 to all joint arrangements as of 1 January 2012. Under IFRS 11 investments in joint arrange- ments are classi\ufb01ed as either joint operations or joint ventures depending on the contractual rights and obligations each investor. Reach Subsea ASA has assessed the nature of its joint arrangements and determined them to be joint ventures. Joint ventures are accounted for using the equity method. Under the equity method of accounting, interests in joint ventures are initially recognized at cost and adjusted there- after to recognize the group\u2019s share of the post-acquisition pro\ufb01ts or losses and movements in other comprehensive income. When the group\u2019s share of losses in a joint venture equals or exceeds its interests in the joint ventures (which includes any long-term interests that, in substance, form part of the group\u2019s net investment in the joint ventures), the group does not recognize further losses, unless it has incurred obli- gations or made payments on behalf of the joint ventures. Unrealized gains on transactions between the group and its joint ventures are eliminated to the extent of the group\u2019s interest in the joint ventures. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred", "dimensions": { "concept": "ifrs-full:DisclosureOfInvestmentsAccountedForUsingEquityMethodExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f3913": { "value": "ASSOCIATES Associates are all entities over which the Group has signi\ufb01cant in\ufb02uence but not control, generally accompanying a shareholding of between 20 and 50 % of the voting rights. Investments in associates are accounted for using the equity method of accounting and are initially recognized at cost. The Group\u2019s share of its associates\u2019 income or other comprehensive income is recognized on separate lines in the consolidated statement of comprehensive income or the state- ment of other comprehensive income respectively. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. When the group\u2019s share of losses in an associate equal or exceeds its interest in the associate, including any other unsecured receivables, the group does not recognize further losses, unless it has incurred obligations on behalf of the associate. In the statement of \ufb01nancial position associates are presented as non-current assets. Unrealised gains on transactions between the group and its associates are eliminated to the extent of the group\u2019s interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset trans- ferred. When accounting policies of associates are different from those of the group, the \ufb01gures are amended to ensure consistency. ", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInAssociatesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f3914": { "value": "ASSOCIATES Associates are all entities over which the Group has signi\ufb01cant in\ufb02uence but not control, generally accompanying a shareholding of between 20 and 50 % of the voting rights. Investments in associates are accounted for using the equity method of accounting and are initially recognized at cost. The Group\u2019s share of its associates\u2019 income or other comprehensive income is recognized on separate lines in the consolidated statement of comprehensive income or the state- ment of other comprehensive income respectively. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. When the group\u2019s share of losses in an associate equal or exceeds its interest in the associate, including any other unsecured receivables, the group does not recognize further losses, unless it has incurred obligations on behalf of the associate. In the statement of \ufb01nancial position associates are presented as non-current assets. Unrealised gains on transactions between the group and its associates are eliminated to the extent of the group\u2019s interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset trans- ferred. When accounting policies of associates are different from those of the group, the \ufb01gures are amended to ensure consistency. JOINT ARRANGEMENTS The group has applied IFRS 11 to all joint arrangements as of 1 January 2012. Under IFRS 11 investments in joint arrange- ments are classi\ufb01ed as either joint operations or joint ventures depending on the contractual rights and obligations each investor. Reach Subsea ASA has assessed the nature of its joint arrangements and determined them to be joint ventures. Joint ventures are accounted for using the equity method. Under the equity method of accounting, interests in joint ventures are initially recognized at cost and adjusted there- after to recognize the group\u2019s share of the post-acquisition pro\ufb01ts or losses and movements in other comprehensive income. When the group\u2019s share of losses in a joint venture equals or exceeds its interests in the joint ventures (which includes any long-term interests that, in substance, form part of the group\u2019s net investment in the joint ventures), the group does not recognize further losses, unless it has incurred obli- gations or made payments on behalf of the joint ventures. Unrealized gains on transactions between the group and its joint ventures are eliminated to the extent of the group\u2019s interest in the joint ventures. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociatesAndJointVenturesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f3915": { "value": "ASSOCIATES Associates are all entities over which the Group has signi\ufb01cant in\ufb02uence but not control, generally accompanying a shareholding of between 20 and 50 % of the voting rights. Investments in associates are accounted for using the equity method of accounting and are initially recognized at cost. The Group\u2019s share of its associates\u2019 income or other comprehensive income is recognized on separate lines in the consolidated statement of comprehensive income or the state- ment of other comprehensive income respectively. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. When the group\u2019s share of losses in an associate equal or exceeds its interest in the associate, including any other unsecured receivables, the group does not recognize further losses, unless it has incurred obligations on behalf of the associate. In the statement of \ufb01nancial position associates are presented as non-current assets. Unrealised gains on transactions between the group and its associates are eliminated to the extent of the group\u2019s interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset trans- ferred. When accounting policies of associates are different from those of the group, the \ufb01gures are amended to ensure consistency. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociates", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f3941": { "value": "JOINT ARRANGEMENTS The group has applied IFRS 11 to all joint arrangements as of 1 January 2012. Under IFRS 11 investments in joint arrange- ments are classi\ufb01ed as either joint operations or joint ventures depending on the contractual rights and obligations each investor. Reach Subsea ASA has assessed the nature of its joint arrangements and determined them to be joint ventures. Joint ventures are accounted for using the equity method. Under the equity method of accounting, interests in joint ventures are initially recognized at cost and adjusted there- after to recognize the group\u2019s share of the post-acquisition pro\ufb01ts or losses and movements in other comprehensive income. When the group\u2019s share of losses in a joint venture equals or exceeds its interests in the joint ventures (which includes any long-term interests that, in substance, form part of the group\u2019s net investment in the joint ventures), the group does not recognize further losses, unless it has incurred obli- gations or made payments on behalf of the joint ventures. Unrealized gains on transactions between the group and its joint ventures are eliminated to the extent of the group\u2019s interest in the joint ventures. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred", "dimensions": { "concept": "ifrs-full:DisclosureOfJointVenturesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f3943": { "value": "JOINT ARRANGEMENTS The group has applied IFRS 11 to all joint arrangements as of 1 January 2012. Under IFRS 11 investments in joint arrange- ments are classi\ufb01ed as either joint operations or joint ventures depending on the contractual rights and obligations each investor. Reach Subsea ASA has assessed the nature of its joint arrangements and determined them to be joint ventures. Joint ventures are accounted for using the equity method. Under the equity method of accounting, interests in joint ventures are initially recognized at cost and adjusted there- after to recognize the group\u2019s share of the post-acquisition pro\ufb01ts or losses and movements in other comprehensive income. When the group\u2019s share of losses in a joint venture equals or exceeds its interests in the joint ventures (which includes any long-term interests that, in substance, form part of the group\u2019s net investment in the joint ventures), the group does not recognize further losses, unless it has incurred obli- gations or made payments on behalf of the joint ventures. Unrealized gains on transactions between the group and its joint ventures are eliminated to the extent of the group\u2019s interest in the joint ventures. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsInJointVentures", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f3974": { "value": "Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identi\ufb01ed as the steering committee that makes strategic decisions. The group has two segments. Oil & Gas and Renewable/Other, and Data and Solutions. Revenues are categorized as either Data or Solutions based on the nature of the service delivered to a client. Data represents delivery of various types of maps, models and/or reports collected through subsea survey and/or inspection projects. Solutions represents delivery of a speci\ufb01c client solution such as repair, modi\ufb01cation, installation or removal of subsea equipment and infrastructure. Note 5 - Segment information* (NOK 1000) 2022 2021 Oil&Gas vs Renewables/other Revenue Oil & Gas 954 399 471 917 Renewable / other 208 422 201 336 Total 1 162 821 673 253 Operating expense Oil & Gas (868 009) (425 853) Renewable / other (189 556) (181 683) Total (1 057 566) (607 537) Operating result Oil & Gas 86 389 46 064 Renewable / other 18 866 19 652 Total 105 255 65 716 Data vs Solutions Revenue Data 735 559 350 695 Solutions 427 262 322 558 Total 1 162 821 673 253 Operating expense Data (668 978) (316 464) Solutions (388 587) (291 073) Total (1 057 567) (607 537) Operating result Data 66 581 34 231 Solutions 38 674 31 485 Total 105 255 65 716 *) Note that the gain from bargain purchase in \u201cOther income\u201d is not related to a segment and therefore excluded from the table in 2021. Refer to note 26 for further information regarding business combinations. All assets and liabilities are used jointly in all segments. ", "dimensions": { "concept": "ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f3975": { "value": "Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identi\ufb01ed as the steering committee that makes strategic decisions. The group has two segments. Oil & Gas and Renewable/Other, and Data and Solutions. Revenues are categorized as either Data or Solutions based on the nature of the service delivered to a client. Data represents delivery of various types of maps, models and/or reports collected through subsea survey and/or inspection projects. Solutions represents delivery of a speci\ufb01c client solution such as repair, modi\ufb01cation, installation or removal of subsea equipment and infrastructure. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSegmentReportingExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4005": { "value": "Foreign currency translation FUNCTIONAL CURRENCY AND PRESENTATION CURRENCY The Group presents its \ufb01nancial statements in NOK. The functional currency of the consolidated entities in the Group is the currency of the primary economic environment in which the entity operates. All Norwegian companies have NOK as functional currency. Reach Subsea AS\u2019 branch in Trinidad and Reach Subsea Inc have USD as functional currency, Gravitude UK Ltd and Reach Subsea UK Ltd has GBP as func- tional currency, Reach Subsea PTE Ltd has SGD as functional currency and iSurvey Ltd has EUR as functional currency. TRANSACTIONS AND BALANCES Foreign currency transactions are translated into the func- tional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the consolidated statement of comprehen- sive income within \ufb01nancial income and \ufb01nancial costs. The following table demonstrates the sensitivity to a reasonably possible change in USD, GBP and EUR, with all other variables held constant. The impact on the Group\u2019s pro\ufb01t before tax is due to changes in the fair value of monetary assets and liabilities. Increase /decrease in USD Effect on pro\ufb01t before tax 2022 5 % 5 703 008 2021 5 % 665 935 Increase /decrease in EUR Effect on pro\ufb01t before tax 2022 5 % 867 596 2021 5 % 1 509 462 Increase /decrease in GBP Effect on pro\ufb01t before tax 2022 5 % 3 754 367 2021 5 % 1 050 224 ", "dimensions": { "concept": "ifrs-full:DisclosureOfEffectOfChangesInForeignExchangeRatesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4006": { "value": "Foreign currency translation FUNCTIONAL CURRENCY AND PRESENTATION CURRENCY The Group presents its \ufb01nancial statements in NOK. The functional currency of the consolidated entities in the Group is the currency of the primary economic environment in which the entity operates. All Norwegian companies have NOK as functional currency. Reach Subsea AS\u2019 branch in Trinidad and Reach Subsea Inc have USD as functional currency, Gravitude UK Ltd and Reach Subsea UK Ltd has GBP as func- tional currency, Reach Subsea PTE Ltd has SGD as functional currency and iSurvey Ltd has EUR as functional currency. TRANSACTIONS AND BALANCES Foreign currency transactions are translated into the func- tional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the consolidated statement of comprehen- sive income within \ufb01nancial income and \ufb01nancial costs. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4008": { "value": "FUNCTIONAL CURRENCY AND PRESENTATION CURRENCY The Group presents its \ufb01nancial statements in NOK. The functional currency of the consolidated entities in the Group is the currency of the primary economic environment in which the entity operates. All Norwegian companies have NOK as functional currency. Reach Subsea AS\u2019 branch in Trinidad and Reach Subsea Inc have USD as functional currency, Gravitude UK Ltd and Reach Subsea UK Ltd has GBP as func- tional currency, Reach Subsea PTE Ltd has SGD as functional currency and iSurvey Ltd has EUR as functional currency. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4028": { "value": "Property, plant and equipment Property, plant and other equipment are stated at historical cost less accumulated depreciation and accumulated impairment losses. Historical cost includes costs related to the purchase of the item. Subsequent costs are included in the asset\u2019s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic bene\ufb01ts associated with the item will \ufb02ow to the group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to the consolidated statement of comprehensive income during the \ufb01nancial period in which they are incurred. Upon acquisition, property, plant and equipment are decom- posed for depreciation purposes if this is material for the determination of the depreciation expense. The components are depreciated on a straight-line basis over expected useful life to estimated residual value at the end of their useful life Depreciation of other assets is calculated using the straight-line method to allocate their cost or revalued amounts less their residual values over their estimated useful lives, as follows: \u2022 Furniture, \ufb01ttings and equipment: 3-8 years \u2022 ROVs: 3-8 years The assets\u2019 residual values and useful lives are reviewed, and the depreciation schedule adjusted, if appropriate, at the end of each reporting period. Impairment of non-\ufb01nancial assets GENERAL At each reporting date the Group assesses whether there is an indication that an asset may be impaired. If any such indication exists, or where annual testing for impairment is required, the Group makes an estimate of the asset\u2019s recoverable amount. An asset\u2019s recoverable amount is the higher of an asset\u2019s fair value less costs to sell or value in use. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash \ufb02ows are discounted to their present value using a pre-tax discount rate that re\ufb02ects current market assessments of the time value of money and the risks speci\ufb01c to the asset. If, in a subsequent period, the amount of the impairment loss decreases, and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed. GOODWILL Goodwill is measured as described in \u2018Business combinations\u2019 in the section below. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill is not amortised, but it is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. CUSTOMER CONTRACTS Customer contracts acquired in a business combination are recognised at fair value at the acquisition date. They have a \ufb01nite useful life and are subsequently carried at cost less accumulated amortisation and impairment losses. ASSET CATEGORY ASSETS UNDER CONSTRUCTION PROPERTY PLANT AND EQUIPMENT PROPERTY PLANT AND EQUIPMENT PROPERTY PLANT AND EQUIPMENT RIGHT-OF-USE ASSETS ASSETS DESCRIPTION (NOK 1000) Assets under construction ROV and ROV equipment Right-of-use asset ROV, leased from \ufb01nancial institutions Equipment and of\ufb01ce mashinery Vessels and other equipment* Total Year ended 31 December 2022 Opening net book amount - 46 709 13 340 13 720 277 212 350 974 Additions 150 499 3 453 - 13 437 126 717 294 106 Additions from acquisition of iSurvey Group** - - - 39 837 10 327 50 163 Adjustment of commitment - - - - (17 203) (17 203) Depreciation - (21 640) (5 394) (18 459) (306 795) (352 282) Closing net book value 150 499 28 530 7 945 48 535 90 258 325 768 At 31 december 2022 Cost 1.1.22 - 155 068 113 884 25 673 601 143 895 768 Additions 150 499 3 453 - 53 274 119 841 327 066 Adjustment fully depreciated items - - - - (335 183) (335 183) Cost 31.12.22 150 499 158 521 113 884 78 947 385 800 887 651 Accumulated depreciation 1.1.22 - (108 387) (100 544) (11 953) (316 426) (537 310) Depreciation - (21 640) (5 394) (18 459) (306 795) (352 282) Adjustment fully depreciated items - - - - 327 678 327 678 Accumulated depreciation 31.12.22 - (130 027) (105 939) (30 412) (295 542) (561 914) Accumulated impairment 1.1.22 - - - - (7 505) (7 505) Adjustment fully depreciated items - - - - 7 505 7 505 Accumulated impairment 31.12.22 - - - - - - Book value 150 499 28 530 7 945 48 535 90 258 325 768 Depreciation plan/useful life 3 - 8 years 3 - 8 years 3 years 1-3 years Depreciation method linear linear linear linear * See note 24 for further information for Right of use asset Vessels and other equipments and note 22 for Right of use asset ROV, leased from \ufb01nancial institutions. **Refer to note 26 for equipment acquired in the iSurvey transaction, and note 24 for Right-of-use assets. Notes Note 14 - Property, plant & equipment Note 14 - Property, plant & equipment, continued Notes ASSETS UNDER CONSTRUCTION CAN BE DIVIDED INTO THE FOLLOWING CATEGORIES: Reach Remote 116 354 Minor capex-projects and mobilizations 4 936 Prepayments acquisition of Edda Sun (Viking Reach) 29 209 Net book value 31.12.22 150 499 ASSET CATEGORY ASSETS UNDER CONSTRUCTION PROPERTY PLANT AND EQUIPMENT PROPERTY PLANT AND EQUIPMENT PROPERTY PLANT AND EQUIPMENT RIGHT-OF-USE ASSETS ASSETS DESCRIPTION (NOK 1000) Assets under construction ROV and ROV equipment Right-of-use asset ROV, leased from \ufb01nancial institutions Equipment and of\ufb01ce mashinery Vessels and other equipment* Total Year ended 31 December 2021 Opening net book amount 51 547 23 976 1 046 13 533 90 103 Additions** 44 672 - 13 589 467 107 525 369 Closing net book value (22 856) (1 862) - - (24 715) At 31 december 2021 (26 681) (8 774) (915) (203 435) (239 807) Cost 1.1.21 46 709 13 340 13 720 277 212 350 974 Additions Disposals at cost 133 253 115 746 12 084 134 029 395 112 Cost 31.12.21 44 672 - 13 589 467 107 525 369 Accumulated depreciation 1.1.21 (22 856) (1 862) - - (24 718) Depreciation 155 068 113 884 25 673 601 143 895 767 Accumulated depreciation 31.12.21 (81 706) (91 770) (11 038) (112 991) (297 505) Accumulated impairment 1.1.21 (26 681) (8 774) (915) (203 435) (239 807) Impairment (108 387) (100 544) (11 953) (316 426) (537 312) Accumulated depreciation 31.12.21 - - - (7 505) (7 505) Book value - - - - - Accumulated impairment 31.12.22 - - - (7 505) (7 505) Book value 46 701 13 340 13 720 277 212 350 974 Depreciation plan/useful life 3 - 8 years 3 - 8 years 3 years 1-3 years Depreciation method linear linear linear linear Bank borrowings are secured on \ufb01xed assets for the value of NOK 37.1 million (2021: 61.0 million). Bank borrowings from the acquired company iSurvey Group are secured on \ufb01xed assets for the value of NOK 20.9 million. See also note 22 Borrowings. Impairment SUMMARY Impairment testing has been performed in accordance with IAS 36. The impairment testing for 2022 did not result in any impairment. DISCOUNT RATE The discount rate is based on the Weighted Cost of Capital (WACC) pre tax for the Group. The discount rate is 9,0 % REVENUE ASSUMPTIONS The revenue assumption in the cash \ufb02ow forecast is based on a combination of utilisation for assets and selling price. Utilisation is based on \ufb01rm contractual days on a short to medium term and estimated future selling on a medium to longer term. Forecasted utilisation on a longer term is based on historical data, as well as managements expectations of mar- ket development. Forecasted selling rates are based on historical data. No in\ufb02ation adjustments have been made to reve- nue assumptions. Future change in how the world will react in light of the goals set in the Paris-agreement could, depend- ing on the characteristics of the change, have a negative effect on the demand for the companys services. RIGHT-OF USE-ASSETS - VESSELS: The right-of-use assets at 31 December 2022 represents the remaining committed vessel days on charter agreements with ves- sel owners. The impairment testing demonstrated that the recoverable amount is larger than book value, and as such no impair- ment charge is required. The recoverable amount is sensitive to estimated utilisation and selling rate assumptions. Sensitivity analysis show however that a 20% drop in estimated future revenue would not result in an impairment. An increase in WACC of 2 percentage points will not result in any additional impairment due to the short remaining lifetime of the assets. Se note 24 for further information on Right-of-use assets. ROV AND ROV EQUIPMENT Impairment testing has been performed on each ROVs CGU, i.e. both owned and leased ROVs. Other assets, such as acti- vated mobilisation costs and other ROV equipment is not included in the impairment test as these assets do not have impair- ment indicators. The recoverable amount is based on estimated future cash \ufb02ows, which is based on estimated selling price, budgeted maintenance cost and utilisation. The impairment testing demonstrated that the assets recoverable amount is larger than book value, and as such no impairment charge is required. The recoverable amount is sensitive to utilisation and selling rate assumptions. Sensitivity analysis show that a 20% drop in revenue for all ROV CGU\u2019s would result in an impair - ment charge of NOK 1,6 million. An increase in WACC of 2 percentage points will not result in any impairment. Note 14 - Property, plant & equipment, continued SENSITIVITY ON TOTAL FIXED ASSETS Drop in estimated utilisation Impairment charge on \ufb01xed assets (NOK 1000) 10% - 20% 1 622 30% 5 805 ", "dimensions": { "concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4029": { "value": "Property, plant and equipment Property, plant and other equipment are stated at historical cost less accumulated depreciation and accumulated impairment losses. Historical cost includes costs related to the purchase of the item. Subsequent costs are included in the asset\u2019s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic bene\ufb01ts associated with the item will \ufb02ow to the group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to the consolidated statement of comprehensive income during the \ufb01nancial period in which they are incurred. Upon acquisition, property, plant and equipment are decom- posed for depreciation purposes if this is material for the determination of the depreciation expense. The components are depreciated on a straight-line basis over expected useful life to estimated residual value at the end of their useful life Depreciation of other assets is calculated using the straight-line method to allocate their cost or revalued amounts less their residual values over their estimated useful lives, as follows: \u2022 Furniture, \ufb01ttings and equipment: 3-8 years \u2022 ROVs: 3-8 years The assets\u2019 residual values and useful lives are reviewed, and the depreciation schedule adjusted, if appropriate, at the end of each reporting period. Impairment of non-\ufb01nancial assets GENERAL At each reporting date the Group assesses whether there is an indication that an asset may be impaired. If any such indication exists, or where annual testing for impairment is required, the Group makes an estimate of the asset\u2019s recoverable amount. An asset\u2019s recoverable amount is the higher of an asset\u2019s fair value less costs to sell or value in use. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash \ufb02ows are discounted to their present value using a pre-tax discount rate that re\ufb02ects current market assessments of the time value of money and the risks speci\ufb01c to the asset. If, in a subsequent period, the amount of the impairment loss decreases, and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed. GOODWILL Goodwill is measured as described in \u2018Business combinations\u2019 in the section below. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill is not amortised, but it is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. CUSTOMER CONTRACTS Customer contracts acquired in a business combination are recognised at fair value at the acquisition date. They have a \ufb01nite useful life and are subsequently carried at cost less accumulated amortisation and impairment losses. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4031": { "value": "Property, plant and other equipment are stated at historical cost less accumulated depreciation and accumulated impairment losses. Historical cost includes costs related to the purchase of the item. Subsequent costs are included in the asset\u2019s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic bene\ufb01ts associated with the item will \ufb02ow to the group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to the consolidated statement of comprehensive income during the \ufb01nancial period in which they are incurred. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRepairsAndMaintenanceExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4044": { "value": "Upon acquisition, property, plant and equipment are decom- posed for depreciation purposes if this is material for the determination of the depreciation expense. The components are depreciated on a straight-line basis over expected useful life to estimated residual value at the end of their useful life Depreciation of other assets is calculated using the straight-line method to allocate their cost or revalued amounts less their residual values over their estimated useful lives, as follows: \u2022 Furniture, \ufb01ttings and equipment: 3-8 years \u2022 ROVs: 3-8 years The assets\u2019 residual values and useful lives are reviewed, and the depreciation schedule adjusted, if appropriate, at the end of each reporting period. Short term leases (lease term 12 month or less) and assets that are leased for more than 12 months, but where the lease terms do not contain any commitments (\u201cpay-as-you-go\u201d), are also capitalized as right-of-use assets and depreciated. The impact is that all cost in relation to leases of vessels and ROVs are classi\ufb01ed as depreciation and interest expense. Vessels and ROVs with a \u201cpay-as-you-go\u201d lease structure are treated as short term leases, where the lease expenses are classi\ufb01ed as depreciation, and where the lease is capitalized at the balance sheet date only to the extent a commitment is incurred at the reporting date. The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The lease liability is initially measured at the present value of lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise of: \u2022 Fixed lease payments \u2022 Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date \u2022 Payment of penalties for terminating the lease, if the lease term re\ufb02ects the exercise of an option to terminate the lease. The lease liability is subsequently measured by increasing the carrying amount to re\ufb02ect interest on the lease liability (using the effective interest method) and by reducing the carrying value to re\ufb02ect the lease payments made. The Group remeasures the lease liability (and makes a corre- sponding adjustment to the related right of use asset) whenever: \u2022 the lease term has changed. \u2022 the lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value. \u2022 a lease contract is modi\ufb01ed, and the lease modi\ufb01cation is not accounted for as a separate lease, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate. The right of use asset is initially measured based on the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred. They are subsequently measured at cost less accumulated depreciation and impairment losses. The right of use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. The depre- ciation starts at the commencement date of the lease. ASSET CATEGORY ASSETS UNDER CONSTRUCTION PROPERTY PLANT AND EQUIPMENT PROPERTY PLANT AND EQUIPMENT PROPERTY PLANT AND EQUIPMENT RIGHT-OF-USE ASSETS ASSETS DESCRIPTION (NOK 1000) Assets under construction ROV and ROV equipment Right-of-use asset ROV, leased from \ufb01nancial institutions Equipment and of\ufb01ce mashinery Vessels and other equipment* Total Year ended 31 December 2022 Opening net book amount - 46 709 13 340 13 720 277 212 350 974 Additions 150 499 3 453 - 13 437 126 717 294 106 Additions from acquisition of iSurvey Group** - - - 39 837 10 327 50 163 Adjustment of commitment - - - - (17 203) (17 203) Depreciation - (21 640) (5 394) (18 459) (306 795) (352 282) Closing net book value 150 499 28 530 7 945 48 535 90 258 325 768 At 31 december 2022 Cost 1.1.22 - 155 068 113 884 25 673 601 143 895 768 Additions 150 499 3 453 - 53 274 119 841 327 066 Adjustment fully depreciated items - - - - (335 183) (335 183) Cost 31.12.22 150 499 158 521 113 884 78 947 385 800 887 651 Accumulated depreciation 1.1.22 - (108 387) (100 544) (11 953) (316 426) (537 310) Depreciation - (21 640) (5 394) (18 459) (306 795) (352 282) Adjustment fully depreciated items - - - - 327 678 327 678 Accumulated depreciation 31.12.22 - (130 027) (105 939) (30 412) (295 542) (561 914) Accumulated impairment 1.1.22 - - - - (7 505) (7 505) Adjustment fully depreciated items - - - - 7 505 7 505 Accumulated impairment 31.12.22 - - - - - - Book value 150 499 28 530 7 945 48 535 90 258 325 768 Depreciation plan/useful life 3 - 8 years 3 - 8 years 3 years 1-3 years Depreciation method linear linear linear linear * See note 24 for further information for Right of use asset Vessels and other equipments and note 22 for Right of use asset ROV, leased from \ufb01nancial institutions. **Refer to note 26 for equipment acquired in the iSurvey transaction, and note 24 for Right-of-use assets. Notes Note 14 - Property, plant & equipment Note 14 - Property, plant & equipment, continued Notes ASSETS UNDER CONSTRUCTION CAN BE DIVIDED INTO THE FOLLOWING CATEGORIES: Reach Remote 116 354 Minor capex-projects and mobilizations 4 936 Prepayments acquisition of Edda Sun (Viking Reach) 29 209 Net book value 31.12.22 150 499 ASSET CATEGORY ASSETS UNDER CONSTRUCTION PROPERTY PLANT AND EQUIPMENT PROPERTY PLANT AND EQUIPMENT PROPERTY PLANT AND EQUIPMENT RIGHT-OF-USE ASSETS ASSETS DESCRIPTION (NOK 1000) Assets under construction ROV and ROV equipment Right-of-use asset ROV, leased from \ufb01nancial institutions Equipment and of\ufb01ce mashinery Vessels and other equipment* Total Year ended 31 December 2021 Opening net book amount 51 547 23 976 1 046 13 533 90 103 Additions** 44 672 - 13 589 467 107 525 369 Closing net book value (22 856) (1 862) - - (24 715) At 31 december 2021 (26 681) (8 774) (915) (203 435) (239 807) Cost 1.1.21 46 709 13 340 13 720 277 212 350 974 Additions Disposals at cost 133 253 115 746 12 084 134 029 395 112 Cost 31.12.21 44 672 - 13 589 467 107 525 369 Accumulated depreciation 1.1.21 (22 856) (1 862) - - (24 718) Depreciation 155 068 113 884 25 673 601 143 895 767 Accumulated depreciation 31.12.21 (81 706) (91 770) (11 038) (112 991) (297 505) Accumulated impairment 1.1.21 (26 681) (8 774) (915) (203 435) (239 807) Impairment (108 387) (100 544) (11 953) (316 426) (537 312) Accumulated depreciation 31.12.21 - - - (7 505) (7 505) Book value - - - - - Accumulated impairment 31.12.22 - - - (7 505) (7 505) Book value 46 701 13 340 13 720 277 212 350 974 Depreciation plan/useful life 3 - 8 years 3 - 8 years 3 years 1-3 years Depreciation method linear linear linear linear Bank borrowings are secured on \ufb01xed assets for the value of NOK 37.1 million (2021: 61.0 million). Bank borrowings from the acquired company iSurvey Group are secured on \ufb01xed assets for the value of NOK 20.9 million. See also note 22 Borrowings. Note 15 - Intangible assets (NOK 1000) Research & development Customer relationships Goodwill Total Year ended 31 December 2022 Opening net book amount 1 457 - - 1 457 Additions 727 - - 727 Addition from business combination (note 26) - 10 000 86 723 96 723 Depreciation - (1 250) - (1 250) Disposals/adjustments (310) - - (310) Closing net book value 1 873 8 750 86 723 97 347 At 31 december 2022 Cost 1.1.22 1 457 - - 1 457 Additions 727 - - 727 Addition from business combination (note 26) - 10 000 86 723 96 723 Disposals/adjustments (310) - - (310) Cost 31.12.22 1 873 10 000 86 723 98 597 Accumulated depreciation 1.1.22 - - - - Depreciation - (1 250) - (1 250) Accumulated depreciation 31.12.22 - (1 250) - (1 250) Accumulated impairment 1.1.22 - - - - Impairment - - - - Accumulated impairment 31.12.22 - - - - Book value 1 873 8 750 86 723 97 347 Depreciation plan/useful life Ongoing project 6 years Inde\ufb01nite Depreciation method linear * Additions from business combination are related to the acquisition of iSurvey Group, refer to note 26 for further information. Research and Development are related to R&D activities in Monviro AS. As of December 31 2022 Monviro has net book values for R&D totaling NOK 1.87 million that apply to development of software/equipment related to the company\u2019s ASUMO project. Hours spent have been capitalized for Monviro personnel, hired personnel from OCTIO as well as other external consultants related to the development of equipment and software. Long and short term leases (committed lease term 12 months or less) of vessels and ROV\u2019s are capitalized as right- of use assets and depreciated under IFRS 16. The impact is that all cost in relation to leases of vessels/ROV\u2019s are presented as depreciation and interest expenses. No other short term leases, except for vessels and ROV\u2019s, are capitalized as right- of use assets and depreciated. As of March 31 2022, the group has recognized a right-of-use asset related to a long-term rental agreement for of\ufb01ces in the acquired company iSurvey Group AS. Capitalized addition related to the rental agreement was NOK 10.3 million, with an ending balance December 31 2022 of NOK 6.4 million (right-of-use) and NOK 6.6 million (lease liability), and is included in the numbers presented in this note. As of December 31 2022, Right of use assets in the balance sheet consist of contractual commitments for vessels and of\ufb01ces. Short term leases with no contractual commitment (pay as you go contracts), are not capitalized. At inception of a contract the lease liability and the corresponding Right-of-use assets is measured at the present value of the estimated lease payments. Short term hired in vessels and ROV\u2019s are treated as short term leases under IFRS 16 and are also recognized as depreciations. The calculated lease liability is calculated with a discount rate of 5%. For leases towards credit institutions please see note 22. The following tables are related to leases, except for leases towards credit institutions. Note 23 - Commitments Note 24 - Leases (Group as lessee) Note 24 - Leases (Group as a lessee), continued Movement schedule for right of use assets and lease liabilities (NOK 1000) Right of use asset Interest-bearing debt non-current Interest-bearing debt, current Opening balance 01.01.2022 277 212 105 171 176 627 Additions 126 717 - 126 717 Additions from acquisition of iSurvey Group (note 26) 10 327 5 337 4 990 Adjusted commitment -17 203 -17 203 - Depreciation -306 795 - - Interests - - 13 090 Reclassed from short to long term - -88 995 88 995 Currency adjustments - - 55 Payments - - -311 814 Ending balance 31.12.2022 90 258 4 310 98 660 Movement schedule for right of use assets and lease liabilities (NOK 1000) Right of use asset Interest-bearing debt non-current Interest-bearing debt, current Opening balance 01.01.2021 13 534 - 15 766 Additions 409 648 - 409 648 Adjusted commitment - - (368) Depreciation (145 975) - - Interests - - 5 861 Reclassed from short to long term - 105 171 (105 171) Currency adjustments - - 131 Payments - - (149 239) Ending balance 31.12.2021 277 212 105 171 176 627 Lease liabilities (NOK 1000) 2022 2021 Amounts due for settlement within 12 months (shown under current liabilities) 98 660 176 627 Amounts due for settlement after 12 months (present value) 4 310 105 171 Total 102 970 281 798 Maturity analysis (NOK 1000) 2022 2021 Not later than 1 year 98 660 176 627 Later than 1 year and not later than 5 years 4 310 105 171 Later than 5 years - - Total instalments 102 970 281 798 Future \ufb01nance charges 3 322 13 798 Total instalments and \ufb01nance charges 106 292 295 596 OTHER INFORMATION RELATED TO LEASES: For information related to leases to credit institutions, see note 22. For information related to cost of short-term leases (except for Vessels and ROV\u2019s), see note 7. For information related to right-of-use assets, see note 14. ", "dimensions": { "concept": "ifrs-full:DisclosureOfDepreciationAndAmortisationExpenseExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4045": { "value": "Upon acquisition, property, plant and equipment are decom- posed for depreciation purposes if this is material for the determination of the depreciation expense. The components are depreciated on a straight-line basis over expected useful life to estimated residual value at the end of their useful life Depreciation of other assets is calculated using the straight-line method to allocate their cost or revalued amounts less their residual values over their estimated useful lives, as follows: \u2022 Furniture, \ufb01ttings and equipment: 3-8 years \u2022 ROVs: 3-8 years The assets\u2019 residual values and useful lives are reviewed, and the depreciation schedule adjusted, if appropriate, at the end of each reporting period. Short term leases (lease term 12 month or less) and assets that are leased for more than 12 months, but where the lease terms do not contain any commitments (\u201cpay-as-you-go\u201d), are also capitalized as right-of-use assets and depreciated. The impact is that all cost in relation to leases of vessels and ROVs are classi\ufb01ed as depreciation and interest expense. Vessels and ROVs with a \u201cpay-as-you-go\u201d lease structure are treated as short term leases, where the lease expenses are classi\ufb01ed as depreciation, and where the lease is capitalized at the balance sheet date only to the extent a commitment is incurred at the reporting date. The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The lease liability is initially measured at the present value of lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise of: \u2022 Fixed lease payments \u2022 Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date \u2022 Payment of penalties for terminating the lease, if the lease term re\ufb02ects the exercise of an option to terminate the lease. The lease liability is subsequently measured by increasing the carrying amount to re\ufb02ect interest on the lease liability (using the effective interest method) and by reducing the carrying value to re\ufb02ect the lease payments made. The Group remeasures the lease liability (and makes a corre- sponding adjustment to the related right of use asset) whenever: \u2022 the lease term has changed. \u2022 the lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value. \u2022 a lease contract is modi\ufb01ed, and the lease modi\ufb01cation is not accounted for as a separate lease, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate. The right of use asset is initially measured based on the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred. They are subsequently measured at cost less accumulated depreciation and impairment losses. The right of use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. The depre- ciation starts at the commencement date of the lease. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4061": { "value": "Impairment of non-\ufb01nancial assets GENERAL At each reporting date the Group assesses whether there is an indication that an asset may be impaired. If any such indication exists, or where annual testing for impairment is required, the Group makes an estimate of the asset\u2019s recoverable amount. An asset\u2019s recoverable amount is the higher of an asset\u2019s fair value less costs to sell or value in use. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash \ufb02ows are discounted to their present value using a pre-tax discount rate that re\ufb02ects current market assessments of the time value of money and the risks speci\ufb01c to the asset. If, in a subsequent period, the amount of the impairment loss decreases, and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed. GOODWILL Goodwill is measured as described in \u2018Business combinations\u2019 in the section below. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill is not amortised, but it is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. CUSTOMER CONTRACTS Customer contracts acquired in a business combination are recognised at fair value at the acquisition date. They have a \ufb01nite useful life and are subsequently carried at cost less accumulated amortisation and impairment losses. Acquisition-related costs are expensed as incurred. The excess of the: \u2022 consideration transferred, \u2022 amount of any non-controlling interest in the acquired entity, and \u2022 acquisition-date fair value of any previous equity interest in the acquired entity over the fair value of the net identi\ufb01able assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identi\ufb01able assets of the business acquired, the differ - ence is recognised directly in pro\ufb01t or loss as a bargain purchase. Note 15 - Intangible assets (NOK 1000) Research & development Customer relationships Goodwill Total Year ended 31 December 2022 Opening net book amount 1 457 - - 1 457 Additions 727 - - 727 Addition from business combination (note 26) - 10 000 86 723 96 723 Depreciation - (1 250) - (1 250) Disposals/adjustments (310) - - (310) Closing net book value 1 873 8 750 86 723 97 347 At 31 december 2022 Cost 1.1.22 1 457 - - 1 457 Additions 727 - - 727 Addition from business combination (note 26) - 10 000 86 723 96 723 Disposals/adjustments (310) - - (310) Cost 31.12.22 1 873 10 000 86 723 98 597 Accumulated depreciation 1.1.22 - - - - Depreciation - (1 250) - (1 250) Accumulated depreciation 31.12.22 - (1 250) - (1 250) Accumulated impairment 1.1.22 - - - - Impairment - - - - Accumulated impairment 31.12.22 - - - - Book value 1 873 8 750 86 723 97 347 Depreciation plan/useful life Ongoing project 6 years Inde\ufb01nite Depreciation method linear * Additions from business combination are related to the acquisition of iSurvey Group, refer to note 26 for further information. Research and Development are related to R&D activities in Monviro AS. As of December 31 2022 Monviro has net book values for R&D totaling NOK 1.87 million that apply to development of software/equipment related to the company\u2019s ASUMO project. Hours spent have been capitalized for Monviro personnel, hired personnel from OCTIO as well as other external consultants related to the development of equipment and software. Note 26 - Business combinations ACQUISITION OF ISURVEY GROUP AS In March 2022 Reach Subsea acquired iSurvey Group AS including its subsidiaries iSurvey AS, iSurvey Assets AS, iSurvey Ltd, iSurvey Pte Ltd and iSurvey Offshore Ltd, \u201ciSurvey Group\u201d. The agreement was \ufb01nalized 22.03.2022 with the effect that the balance sheet for iSurvey Group is consolidated into our Group accounts as per end March 2022. The transaction was closed in March 2022. A preliminary purchase price allocation (PPA) has been performed and all identi\ufb01ed assets and liabilities have been measured at their acquisition date fair values in accordance with the requirements of IFRS 3. The agreed purchase price is NOK 135 million. Adjusted for interim period adjustments and working capital, the total cash consideration is estimated to NOK 138.4 million. At this stage, the purchase price allocation is preliminary. As a result, the \ufb01nal PPA and the impact on the \ufb01nancial statements from the transaction may differ. The \ufb01nal PPA will be completed within 12 months of the acquisition at the latest. The PPA presented below is based on the PPA on the acquisition date. No updates to the initial PPA have been made. The fair values of the identi\ufb01able assets and liabilities in the transaction as at the date of the acquisition have been estimated as follows: Purchase price allocation (NOK 1000) Deferred tax assets 1 254 Property, plant and equipment 19 837 Fair value adjustments property, plant and equipment 20 000 Right-of-use assets 10 327 Trade receivables 27 944 Fair value adjustments customer relationships 10 000 Other receivables 12 639 Cash and cash equivalents 6 132 Total assets 108 133 Interest-bearing debt to credit institutions (non-current) 2 924 Interest-bearing debt, leases (non-current) 5 337 Other long-term debt - Interest-bearing debt to credit institutions (current) 7 784 Interest-bearing debt, leases (current) 4 990 Public duties a.o 5 060 Tax payable 4 Trade payables 8 636 Other current liabilities 18 912 Provisions 2 780 Total liabilities 56 429 Note 26 - Business combinations, continued Total identi\ufb01able net assets at fair value 51 704 Total consideration 138 427 Goodwill 86 723 SUMMARY A goodwill of 86.7 million were recognized as a result of the transaction. ACQUIRED RECEIVABLES The fair value of the aquired trade recievebles equals the book value of recievables in the acquired company. REVENUE AND PROFIT CONTRIBUTION The acquired business contributed with revenues of NOK 178.3 million and net pro\ufb01t of NOK 11.8 million to the group for the period from 1 April to 31 December 2022. If the acquisition had occurred on 1 January 2022, consolidated pro-forma revenue and pro\ufb01t for the year ended 31 December 2022 would have been NOK 1,199 million and NOK 85.7 million respectively. These amounts have been calculated using the subsidiary\u2019s results and adjusting them for: \u2022 differences in the accounting policies between the group and the subsidiary, and \u2022 the additional depreciation and amortisation that would have been charged assuming the fair value adjustments to property, plant and equipment and intangible assets had applied from 1 January 2022, together with the consequential tax effects. 2021 AQUSITION OF SURVEYOR AS In March 2021 our joint venture partner MMT Sweden AB (\u201cMMT\u201d) was acquired by Ocean In\ufb01nity. This transaction triggered an option for Reach Subsea to purchase MMT\u2019s shares (50%) in our jointly owned entity Surveyor AS at book value. This option was exercised 31.03.2021 with the effect that the balance sheet for Surveyor AS is consolidated into our Group accounts as per end March 2021. The transaction was closed in June 2021. After the transaction Reach Subsea holds 100% of the shares in Surveyor AS. A purchase price allocation (PPA) has been performed and all identi\ufb01ed assets and liabilities have been measured at their acquisition date fair values in accordance with the requirements of IFRS 3. The agreed purchase price for MMT\u2019s share was NOK 22.8 million. The fair values of the identi\ufb01able assets and liabilities in the transaction as at the date of the acquisition have been estimated as follows: Note 26 - Business combinations, continued Purchase price allocation (NOK 1000) Property, plant and equipment 44 855 Trade receivables 8 778 Other receivables 8 250 Cash and cash equivalents 12 482 Total assets 74 365 Interest-bearing debt to credit institutions 22 961 Trade payables 5 601 Other current liabilities 246 Total liabilities 28 807 Total identi\ufb01able net assets at fair value 45 558 Whereof 50 % acquired 22 779 Total consideration 22 779 Goodwill - SUMMARY No goodwill or gain from a bargain purchase were recognized as a result of the transaction. ACQUIRED RECEIVABLES The fair value of the acquired trade receivables equals the book value of receivables in the acquired company. REVENUE AND PROFIT CONTRIBUTION The acquired business contributed revenues of NOK 11.6 million and net pro\ufb01t of NOK -6.1 million to the group for the period from 1 April to 31 December 2021. If the acquisition had occurred on 1 January 2021, consolidated pro-forma revenue and pro\ufb01t for the year ended 31 December 2021 would have been NOK 691,269 million and NOK 93.9 million respectively. These amounts have been calculated using the subsidiary\u2019s results and adjusting them for: \u2022 differences in the accounting policies between the group and the subsidiary, and \u2022 the additional depreciation and amortisation that would have been charged assuming the fair value adjustments to property, plant and equipment and intangible assets had applied from 1 January 2021, together with the consequential tax effects. No changes have been made on the preliminary purchase price allocation in 2022, and the allocation is considered \ufb01nal. Note 26 - Business combinations, continued AQUSITION OF OCTIO AS, GRAVITUDE AS, MONVIRO AS AND MONVIRO CCS AS (\u201cOCTIO GROUP\u201d) In December 2021 Reach Subsea acquired Octio AS, Gravitude AS, Monviro AS and Monviro Ccs AS, \u201cOctio Group\u201d. The agree- ment was \ufb01nalized 30.11.2021 with the effect that the balance sheet for Octio Group is consolidated into our Group accounts as per end November 2021. The transaction was closed on 08.12.2021. After the transaction Reach Subsea holds 100% of the shares. A purchase price allocation (PPA) has been performed and all identi\ufb01ed assets and liabilities have been measured at their acquisition date fair values in accordance with the requirements of IFRS 3. The total agreed purchase price for the shares is NOK 32.6 million. The fair values of the identi\ufb01able assets and liabilities in the transaction as at the date of the acquisition have been estimated as follows: Purchase price allocation (NOK 1000) Deferred tax assets 11 231 Research and development 2 825 Property, plant and equipment 13 385 Trade receivables 6 016 Other receivables 2 352 Cash and cash equivalents 19 196 Total assets 55 004 Other long term liabilities 2 840 Trade payables 2 017 Other current liabilities 4 316 Total liabilities 9 172 Total identi\ufb01able net assets at fair value 45 832 Total consideration* 32 567 Goodwill (13 265) * Of the total consideration of NOK 32.6 million, NOK 25.0 million was transferred to the seller in December 2021, and NOK 7.6 million of the consideration was transferred to the seller in January 2022. SUMMARY The Group\u2019s share of the fair value of the identi\ufb01able net assets of the acquired associates exceeds the cost of acquisition paid by the group. The main reason why the transaction resulted in a gain is related to the recognition of deferred tax asset in the purchase price allocation. The gain from the bargain purchase is recognized in other income. ACQUIRED RECEIVABLES The fair value of the acquired trade receivables equals the book value of receivables in the acquired company. REVENUE AND PROFIT CONTRIBUTION The acquired business contributed revenues of NOK 0.87 million and net pro\ufb01t of NOK -3.45 million to the group for the period from 1 December to 31 December 2021. If the acquisition had occurred on 1 January 2021, consolidated pro-forma revenue and pro\ufb01t for the year ended 31 December 2021 would have been NOK 712,536 million and NOK 75.8 million respectively These amounts have been calculated using the subsidiary\u2019s results and adjusting them for: \u2022 differences in the accounting policies between the group and the subsidiary, and \u2022 the additional depreciation and amortisation that would have been charged assuming the fair value adjustments to property, plant and equipment and intangible assets had applied from 1 January 2021, together with the consequential tax effects. No changes have been made on the preliminary purchase price allocation in 2022, and the allocation is considered \ufb01nal. ", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4062": { "value": "Impairment of non-\ufb01nancial assets GENERAL At each reporting date the Group assesses whether there is an indication that an asset may be impaired. If any such indication exists, or where annual testing for impairment is required, the Group makes an estimate of the asset\u2019s recoverable amount. An asset\u2019s recoverable amount is the higher of an asset\u2019s fair value less costs to sell or value in use. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash \ufb02ows are discounted to their present value using a pre-tax discount rate that re\ufb02ects current market assessments of the time value of money and the risks speci\ufb01c to the asset. If, in a subsequent period, the amount of the impairment loss decreases, and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed. GOODWILL Goodwill is measured as described in \u2018Business combinations\u2019 in the section below. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill is not amortised, but it is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. CUSTOMER CONTRACTS Customer contracts acquired in a business combination are recognised at fair value at the acquisition date. They have a \ufb01nite useful life and are subsequently carried at cost less accumulated amortisation and impairment losses. Acquisition-related costs are expensed as incurred. The excess of the: \u2022 consideration transferred, \u2022 amount of any non-controlling interest in the acquired entity, and \u2022 acquisition-date fair value of any previous equity interest in the acquired entity over the fair value of the net identi\ufb01able assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identi\ufb01able assets of the business acquired, the differ - ence is recognised directly in pro\ufb01t or loss as a bargain purchase. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4063": { "value": "Impairment of non-\ufb01nancial assets GENERAL At each reporting date the Group assesses whether there is an indication that an asset may be impaired. If any such indication exists, or where annual testing for impairment is required, the Group makes an estimate of the asset\u2019s recoverable amount. An asset\u2019s recoverable amount is the higher of an asset\u2019s fair value less costs to sell or value in use. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash \ufb02ows are discounted to their present value using a pre-tax discount rate that re\ufb02ects current market assessments of the time value of money and the risks speci\ufb01c to the asset. If, in a subsequent period, the amount of the impairment loss decreases, and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed. GOODWILL Goodwill is measured as described in \u2018Business combinations\u2019 in the section below. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill is not amortised, but it is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. CUSTOMER CONTRACTS Customer contracts acquired in a business combination are recognised at fair value at the acquisition date. They have a \ufb01nite useful life and are subsequently carried at cost less accumulated amortisation and impairment losses. Business combinations The acquisition method of accounting is used to account for all business combinations, regardless of whether equity instruments or other assets are acquired. The consideration transferred for the acquisition of a subsidiary comprises the: \u2022 fair values of the assets transferred \u2022 liabilities incurred to the former owners of the acquired business \u2022 equity interests issued by the group \u2022 fair value of any asset or liability resulting from a contingent consideration arrangement, and \u2022 fair value of any pre-existing equity interest in the subsidiary. Identi\ufb01able assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acqui- sition date. The group recognises any non-controlling interest in the acquired entity on an acquisition-by-acquisition basis either at fair value or at the non-controlling interest\u2019s propor - tionate share of the acquired entity\u2019s net identi\ufb01able assets. Acquisition-related costs are expensed as incurred. The excess of the: \u2022 consideration transferred, \u2022 amount of any non-controlling interest in the acquired entity, and \u2022 acquisition-date fair value of any previous equity interest in the acquired entity over the fair value of the net identi\ufb01able assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identi\ufb01able assets of the business acquired, the differ - ence is recognised directly in pro\ufb01t or loss as a bargain purchase. Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of exchange. The discount rate used is the entity\u2019s incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an inde- pendent \ufb01nancier under comparable terms and conditions. Contingent consideration is classi\ufb01ed either as equity or a \ufb01nancial liability. Amounts classi\ufb01ed as a \ufb01nancial liability are subsequently remeasured to fair value, with changes in fair value recognised in pro\ufb01t or loss. If the business combination is achieved in stages, the acquisition date carrying value of the acquirer\u2019s previously held equity interest in the acquiree is remeasured to fair value at the acquisition date. Any gains or losses arising from such remeasurement are recognised in pro\ufb01t or loss. Business combinations The acquisitions require the use of substantial judgement when assessing the fair value of net identi\ufb01able assets and liabilities in a business combination. Allocation of excess value relating to any business combinations is, amongst other, based on expected cash \ufb02ows and results for certain items of the acquired assets. Refer to note 27 for further information. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsAndGoodwillExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4064": { "value": "Impairment of non-\ufb01nancial assets GENERAL At each reporting date the Group assesses whether there is an indication that an asset may be impaired. If any such indication exists, or where annual testing for impairment is required, the Group makes an estimate of the asset\u2019s recoverable amount. An asset\u2019s recoverable amount is the higher of an asset\u2019s fair value less costs to sell or value in use. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash \ufb02ows are discounted to their present value using a pre-tax discount rate that re\ufb02ects current market assessments of the time value of money and the risks speci\ufb01c to the asset. If, in a subsequent period, the amount of the impairment loss decreases, and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed. GOODWILL Goodwill is measured as described in \u2018Business combinations\u2019 in the section below. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill is not amortised, but it is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. CUSTOMER CONTRACTS Customer contracts acquired in a business combination are recognised at fair value at the acquisition date. They have a \ufb01nite useful life and are subsequently carried at cost less accumulated amortisation and impairment losses. Acquisition-related costs are expensed as incurred. The excess of the: \u2022 consideration transferred, \u2022 amount of any non-controlling interest in the acquired entity, and \u2022 acquisition-date fair value of any previous equity interest in the acquired entity over the fair value of the net identi\ufb01able assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identi\ufb01able assets of the business acquired, the differ - ence is recognised directly in pro\ufb01t or loss as a bargain purchase. Note 26 - Business combinations ACQUISITION OF ISURVEY GROUP AS In March 2022 Reach Subsea acquired iSurvey Group AS including its subsidiaries iSurvey AS, iSurvey Assets AS, iSurvey Ltd, iSurvey Pte Ltd and iSurvey Offshore Ltd, \u201ciSurvey Group\u201d. The agreement was \ufb01nalized 22.03.2022 with the effect that the balance sheet for iSurvey Group is consolidated into our Group accounts as per end March 2022. The transaction was closed in March 2022. A preliminary purchase price allocation (PPA) has been performed and all identi\ufb01ed assets and liabilities have been measured at their acquisition date fair values in accordance with the requirements of IFRS 3. The agreed purchase price is NOK 135 million. Adjusted for interim period adjustments and working capital, the total cash consideration is estimated to NOK 138.4 million. At this stage, the purchase price allocation is preliminary. As a result, the \ufb01nal PPA and the impact on the \ufb01nancial statements from the transaction may differ. The \ufb01nal PPA will be completed within 12 months of the acquisition at the latest. The PPA presented below is based on the PPA on the acquisition date. No updates to the initial PPA have been made. The fair values of the identi\ufb01able assets and liabilities in the transaction as at the date of the acquisition have been estimated as follows: Purchase price allocation (NOK 1000) Deferred tax assets 1 254 Property, plant and equipment 19 837 Fair value adjustments property, plant and equipment 20 000 Right-of-use assets 10 327 Trade receivables 27 944 Fair value adjustments customer relationships 10 000 Other receivables 12 639 Cash and cash equivalents 6 132 Total assets 108 133 Interest-bearing debt to credit institutions (non-current) 2 924 Interest-bearing debt, leases (non-current) 5 337 Other long-term debt - Interest-bearing debt to credit institutions (current) 7 784 Interest-bearing debt, leases (current) 4 990 Public duties a.o 5 060 Tax payable 4 Trade payables 8 636 Other current liabilities 18 912 Provisions 2 780 Total liabilities 56 429 Note 26 - Business combinations, continued Total identi\ufb01able net assets at fair value 51 704 Total consideration 138 427 Goodwill 86 723 SUMMARY A goodwill of 86.7 million were recognized as a result of the transaction. ACQUIRED RECEIVABLES The fair value of the aquired trade recievebles equals the book value of recievables in the acquired company. REVENUE AND PROFIT CONTRIBUTION The acquired business contributed with revenues of NOK 178.3 million and net pro\ufb01t of NOK 11.8 million to the group for the period from 1 April to 31 December 2022. If the acquisition had occurred on 1 January 2022, consolidated pro-forma revenue and pro\ufb01t for the year ended 31 December 2022 would have been NOK 1,199 million and NOK 85.7 million respectively. These amounts have been calculated using the subsidiary\u2019s results and adjusting them for: \u2022 differences in the accounting policies between the group and the subsidiary, and \u2022 the additional depreciation and amortisation that would have been charged assuming the fair value adjustments to property, plant and equipment and intangible assets had applied from 1 January 2022, together with the consequential tax effects. 2021 AQUSITION OF SURVEYOR AS In March 2021 our joint venture partner MMT Sweden AB (\u201cMMT\u201d) was acquired by Ocean In\ufb01nity. This transaction triggered an option for Reach Subsea to purchase MMT\u2019s shares (50%) in our jointly owned entity Surveyor AS at book value. This option was exercised 31.03.2021 with the effect that the balance sheet for Surveyor AS is consolidated into our Group accounts as per end March 2021. The transaction was closed in June 2021. After the transaction Reach Subsea holds 100% of the shares in Surveyor AS. A purchase price allocation (PPA) has been performed and all identi\ufb01ed assets and liabilities have been measured at their acquisition date fair values in accordance with the requirements of IFRS 3. The agreed purchase price for MMT\u2019s share was NOK 22.8 million. The fair values of the identi\ufb01able assets and liabilities in the transaction as at the date of the acquisition have been estimated as follows: Note 26 - Business combinations, continued Purchase price allocation (NOK 1000) Property, plant and equipment 44 855 Trade receivables 8 778 Other receivables 8 250 Cash and cash equivalents 12 482 Total assets 74 365 Interest-bearing debt to credit institutions 22 961 Trade payables 5 601 Other current liabilities 246 Total liabilities 28 807 Total identi\ufb01able net assets at fair value 45 558 Whereof 50 % acquired 22 779 Total consideration 22 779 Goodwill - SUMMARY No goodwill or gain from a bargain purchase were recognized as a result of the transaction. ACQUIRED RECEIVABLES The fair value of the acquired trade receivables equals the book value of receivables in the acquired company. REVENUE AND PROFIT CONTRIBUTION The acquired business contributed revenues of NOK 11.6 million and net pro\ufb01t of NOK -6.1 million to the group for the period from 1 April to 31 December 2021. If the acquisition had occurred on 1 January 2021, consolidated pro-forma revenue and pro\ufb01t for the year ended 31 December 2021 would have been NOK 691,269 million and NOK 93.9 million respectively. These amounts have been calculated using the subsidiary\u2019s results and adjusting them for: \u2022 differences in the accounting policies between the group and the subsidiary, and \u2022 the additional depreciation and amortisation that would have been charged assuming the fair value adjustments to property, plant and equipment and intangible assets had applied from 1 January 2021, together with the consequential tax effects. No changes have been made on the preliminary purchase price allocation in 2022, and the allocation is considered \ufb01nal. Note 26 - Business combinations, continued AQUSITION OF OCTIO AS, GRAVITUDE AS, MONVIRO AS AND MONVIRO CCS AS (\u201cOCTIO GROUP\u201d) In December 2021 Reach Subsea acquired Octio AS, Gravitude AS, Monviro AS and Monviro Ccs AS, \u201cOctio Group\u201d. The agree- ment was \ufb01nalized 30.11.2021 with the effect that the balance sheet for Octio Group is consolidated into our Group accounts as per end November 2021. The transaction was closed on 08.12.2021. After the transaction Reach Subsea holds 100% of the shares. A purchase price allocation (PPA) has been performed and all identi\ufb01ed assets and liabilities have been measured at their acquisition date fair values in accordance with the requirements of IFRS 3. The total agreed purchase price for the shares is NOK 32.6 million. The fair values of the identi\ufb01able assets and liabilities in the transaction as at the date of the acquisition have been estimated as follows: Purchase price allocation (NOK 1000) Deferred tax assets 11 231 Research and development 2 825 Property, plant and equipment 13 385 Trade receivables 6 016 Other receivables 2 352 Cash and cash equivalents 19 196 Total assets 55 004 Other long term liabilities 2 840 Trade payables 2 017 Other current liabilities 4 316 Total liabilities 9 172 Total identi\ufb01able net assets at fair value 45 832 Total consideration* 32 567 Goodwill (13 265) * Of the total consideration of NOK 32.6 million, NOK 25.0 million was transferred to the seller in December 2021, and NOK 7.6 million of the consideration was transferred to the seller in January 2022. SUMMARY The Group\u2019s share of the fair value of the identi\ufb01able net assets of the acquired associates exceeds the cost of acquisition paid by the group. The main reason why the transaction resulted in a gain is related to the recognition of deferred tax asset in the purchase price allocation. The gain from the bargain purchase is recognized in other income. ACQUIRED RECEIVABLES The fair value of the acquired trade receivables equals the book value of receivables in the acquired company. REVENUE AND PROFIT CONTRIBUTION The acquired business contributed revenues of NOK 0.87 million and net pro\ufb01t of NOK -3.45 million to the group for the period from 1 December to 31 December 2021. If the acquisition had occurred on 1 January 2021, consolidated pro-forma revenue and pro\ufb01t for the year ended 31 December 2021 would have been NOK 712,536 million and NOK 75.8 million respectively These amounts have been calculated using the subsidiary\u2019s results and adjusting them for: \u2022 differences in the accounting policies between the group and the subsidiary, and \u2022 the additional depreciation and amortisation that would have been charged assuming the fair value adjustments to property, plant and equipment and intangible assets had applied from 1 January 2021, together with the consequential tax effects. No changes have been made on the preliminary purchase price allocation in 2022, and the allocation is considered \ufb01nal. ", "dimensions": { "concept": "ifrs-full:DisclosureOfGoodwillExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4065": { "value": "Impairment of non-\ufb01nancial assets GENERAL At each reporting date the Group assesses whether there is an indication that an asset may be impaired. If any such indication exists, or where annual testing for impairment is required, the Group makes an estimate of the asset\u2019s recoverable amount. An asset\u2019s recoverable amount is the higher of an asset\u2019s fair value less costs to sell or value in use. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash \ufb02ows are discounted to their present value using a pre-tax discount rate that re\ufb02ects current market assessments of the time value of money and the risks speci\ufb01c to the asset. If, in a subsequent period, the amount of the impairment loss decreases, and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed. GOODWILL Goodwill is measured as described in \u2018Business combinations\u2019 in the section below. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill is not amortised, but it is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. CUSTOMER CONTRACTS Customer contracts acquired in a business combination are recognised at fair value at the acquisition date. They have a \ufb01nite useful life and are subsequently carried at cost less accumulated amortisation and impairment losses. Acquisition-related costs are expensed as incurred. The excess of the: \u2022 consideration transferred, \u2022 amount of any non-controlling interest in the acquired entity, and \u2022 acquisition-date fair value of any previous equity interest in the acquired entity over the fair value of the net identi\ufb01able assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identi\ufb01able assets of the business acquired, the differ - ence is recognised directly in pro\ufb01t or loss as a bargain purchase. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4066": { "value": "Impairment of non-\ufb01nancial assets GENERAL At each reporting date the Group assesses whether there is an indication that an asset may be impaired. If any such indication exists, or where annual testing for impairment is required, the Group makes an estimate of the asset\u2019s recoverable amount. An asset\u2019s recoverable amount is the higher of an asset\u2019s fair value less costs to sell or value in use. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash \ufb02ows are discounted to their present value using a pre-tax discount rate that re\ufb02ects current market assessments of the time value of money and the risks speci\ufb01c to the asset. If, in a subsequent period, the amount of the impairment loss decreases, and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed. GOODWILL Goodwill is measured as described in \u2018Business combinations\u2019 in the section below. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill is not amortised, but it is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. CUSTOMER CONTRACTS Customer contracts acquired in a business combination are recognised at fair value at the acquisition date. They have a \ufb01nite useful life and are subsequently carried at cost less accumulated amortisation and impairment losses. Onerous contracts Provisions for onerous contracts are recognized when the Group has a contract under which the unavoidable costs of meeting the obligations under the contract exceed the economic bene\ufb01ts expected to be received from the contract. Leases ACCOUNTING AS LESSEE At inception of a contract, the Company assesses whether a contract is, or contains, a lease based on whether the con- tract includes the right to control the use of an identi\ufb01ed asset for a period of time in exchange for consideration. Short term leases (lease term 12 month or less) and assets that are leased for more than 12 months, but where the lease terms do not contain any commitments (\u201cpay-as-you-go\u201d), are also capitalized as right-of-use assets and depreciated. The impact is that all cost in relation to leases of vessels and ROVs are classi\ufb01ed as depreciation and interest expense. Vessels and ROVs with a \u201cpay-as-you-go\u201d lease structure are treated as short term leases, where the lease expenses are classi\ufb01ed as depreciation, and where the lease is capitalized at the balance sheet date only to the extent a commitment is incurred at the reporting date. The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The lease liability is initially measured at the present value of lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise of: \u2022 Fixed lease payments \u2022 Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date \u2022 Payment of penalties for terminating the lease, if the lease term re\ufb02ects the exercise of an option to terminate the lease. The lease liability is subsequently measured by increasing the carrying amount to re\ufb02ect interest on the lease liability (using the effective interest method) and by reducing the carrying value to re\ufb02ect the lease payments made. The Group remeasures the lease liability (and makes a corre- sponding adjustment to the related right of use asset) whenever: \u2022 the lease term has changed. \u2022 the lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value. \u2022 a lease contract is modi\ufb01ed, and the lease modi\ufb01cation is not accounted for as a separate lease, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate. The right of use asset is initially measured based on the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred. They are subsequently measured at cost less accumulated depreciation and impairment losses. The right of use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. The depre- ciation starts at the commencement date of the lease. The Group applies IAS 36 to determine whether a right of use asset is impaired, and accounts for any identi\ufb01ed impairment loss as described in the \u201cImpairment of non-\ufb01nancial asset\u201d sectionAssessment of leases under IFRS 16 The application of IFRS 16 requires signi\ufb01cant judgements and certain key estimations. Critical judgements required in application of IFRS 16 may include, among others, the following: \u2022 Identifying whether a contract includes a lease \u2022 Determination of whether variable payments are in substance \ufb01xed \u2022 Determining whether there are multiple leases in an arrangement. Key sources of estimation uncertainty in the application of IFRS 16 may include, among others, the following: \u2022 Estimation of lease term \u2022 Estimation of lease payments when the contract includes options to extent the lease period \u2022 Determination of the appropriate rate to discount the lease payments \u2022 Assessment of whether a right of use asset is impaired. Management uses judgement in evaluating each con- tract. At each balance sheet date management also assess if there are any impairment indicators for the right-of- use assets. For impairment see section above. (NOK 1000) 2022 2021 NOTES Rental cost 12 021 4 041 23 Consultant cost 72 751 35 965 Operating equipment and maintenance 45 919 25 833 Administration costs 49 509 20 883 Other operating costs, in total 180 200 86 722 Note 7 - Other operating costs speci\ufb01ed ASSET CATEGORY ASSETS UNDER CONSTRUCTION PROPERTY PLANT AND EQUIPMENT PROPERTY PLANT AND EQUIPMENT PROPERTY PLANT AND EQUIPMENT RIGHT-OF-USE ASSETS ASSETS DESCRIPTION (NOK 1000) Assets under construction ROV and ROV equipment Right-of-use asset ROV, leased from \ufb01nancial institutions Equipment and of\ufb01ce mashinery Vessels and other equipment* Total Year ended 31 December 2022 Opening net book amount - 46 709 13 340 13 720 277 212 350 974 Additions 150 499 3 453 - 13 437 126 717 294 106 Additions from acquisition of iSurvey Group** - - - 39 837 10 327 50 163 Adjustment of commitment - - - - (17 203) (17 203) Depreciation - (21 640) (5 394) (18 459) (306 795) (352 282) Closing net book value 150 499 28 530 7 945 48 535 90 258 325 768 At 31 december 2022 Cost 1.1.22 - 155 068 113 884 25 673 601 143 895 768 Additions 150 499 3 453 - 53 274 119 841 327 066 Adjustment fully depreciated items - - - - (335 183) (335 183) Cost 31.12.22 150 499 158 521 113 884 78 947 385 800 887 651 Accumulated depreciation 1.1.22 - (108 387) (100 544) (11 953) (316 426) (537 310) Depreciation - (21 640) (5 394) (18 459) (306 795) (352 282) Adjustment fully depreciated items - - - - 327 678 327 678 Accumulated depreciation 31.12.22 - (130 027) (105 939) (30 412) (295 542) (561 914) Accumulated impairment 1.1.22 - - - - (7 505) (7 505) Adjustment fully depreciated items - - - - 7 505 7 505 Accumulated impairment 31.12.22 - - - - - - Book value 150 499 28 530 7 945 48 535 90 258 325 768 Depreciation plan/useful life 3 - 8 years 3 - 8 years 3 years 1-3 years Depreciation method linear linear linear linear * See note 24 for further information for Right of use asset Vessels and other equipments and note 22 for Right of use asset ROV, leased from \ufb01nancial institutions. **Refer to note 26 for equipment acquired in the iSurvey transaction, and note 24 for Right-of-use assets. Notes Note 14 - Property, plant & equipment Note 14 - Property, plant & equipment, continued Notes ASSETS UNDER CONSTRUCTION CAN BE DIVIDED INTO THE FOLLOWING CATEGORIES: Reach Remote 116 354 Minor capex-projects and mobilizations 4 936 Prepayments acquisition of Edda Sun (Viking Reach) 29 209 Net book value 31.12.22 150 499 ASSET CATEGORY ASSETS UNDER CONSTRUCTION PROPERTY PLANT AND EQUIPMENT PROPERTY PLANT AND EQUIPMENT PROPERTY PLANT AND EQUIPMENT RIGHT-OF-USE ASSETS ASSETS DESCRIPTION (NOK 1000) Assets under construction ROV and ROV equipment Right-of-use asset ROV, leased from \ufb01nancial institutions Equipment and of\ufb01ce mashinery Vessels and other equipment* Total Year ended 31 December 2021 Opening net book amount 51 547 23 976 1 046 13 533 90 103 Additions** 44 672 - 13 589 467 107 525 369 Closing net book value (22 856) (1 862) - - (24 715) At 31 december 2021 (26 681) (8 774) (915) (203 435) (239 807) Cost 1.1.21 46 709 13 340 13 720 277 212 350 974 Additions Disposals at cost 133 253 115 746 12 084 134 029 395 112 Cost 31.12.21 44 672 - 13 589 467 107 525 369 Accumulated depreciation 1.1.21 (22 856) (1 862) - - (24 718) Depreciation 155 068 113 884 25 673 601 143 895 767 Accumulated depreciation 31.12.21 (81 706) (91 770) (11 038) (112 991) (297 505) Accumulated impairment 1.1.21 (26 681) (8 774) (915) (203 435) (239 807) Impairment (108 387) (100 544) (11 953) (316 426) (537 312) Accumulated depreciation 31.12.21 - - - (7 505) (7 505) Book value - - - - - Accumulated impairment 31.12.22 - - - (7 505) (7 505) Book value 46 701 13 340 13 720 277 212 350 974 Depreciation plan/useful life 3 - 8 years 3 - 8 years 3 years 1-3 years Depreciation method linear linear linear linear Bank borrowings are secured on \ufb01xed assets for the value of NOK 37.1 million (2021: 61.0 million). Bank borrowings from the acquired company iSurvey Group are secured on \ufb01xed assets for the value of NOK 20.9 million. See also note 22 Borrowings. Impairment SUMMARY Impairment testing has been performed in accordance with IAS 36. The impairment testing for 2022 did not result in any impairment. DISCOUNT RATE The discount rate is based on the Weighted Cost of Capital (WACC) pre tax for the Group. The discount rate is 9,0 % REVENUE ASSUMPTIONS The revenue assumption in the cash \ufb02ow forecast is based on a combination of utilisation for assets and selling price. Utilisation is based on \ufb01rm contractual days on a short to medium term and estimated future selling on a medium to longer term. Forecasted utilisation on a longer term is based on historical data, as well as managements expectations of mar- ket development. Forecasted selling rates are based on historical data. No in\ufb02ation adjustments have been made to reve- nue assumptions. Future change in how the world will react in light of the goals set in the Paris-agreement could, depend- ing on the characteristics of the change, have a negative effect on the demand for the companys services. RIGHT-OF USE-ASSETS - VESSELS: The right-of-use assets at 31 December 2022 represents the remaining committed vessel days on charter agreements with ves- sel owners. The impairment testing demonstrated that the recoverable amount is larger than book value, and as such no impair- ment charge is required. The recoverable amount is sensitive to estimated utilisation and selling rate assumptions. Sensitivity analysis show however that a 20% drop in estimated future revenue would not result in an impairment. An increase in WACC of 2 percentage points will not result in any additional impairment due to the short remaining lifetime of the assets. Se note 24 for further information on Right-of-use assets. ROV AND ROV EQUIPMENT Impairment testing has been performed on each ROVs CGU, i.e. both owned and leased ROVs. Other assets, such as acti- vated mobilisation costs and other ROV equipment is not included in the impairment test as these assets do not have impair- ment indicators. The recoverable amount is based on estimated future cash \ufb02ows, which is based on estimated selling price, budgeted maintenance cost and utilisation. The impairment testing demonstrated that the assets recoverable amount is larger than book value, and as such no impairment charge is required. The recoverable amount is sensitive to utilisation and selling rate assumptions. Sensitivity analysis show that a 20% drop in revenue for all ROV CGU\u2019s would result in an impair - ment charge of NOK 1,6 million. An increase in WACC of 2 percentage points will not result in any impairment. Note 14 - Property, plant & equipment, continued SENSITIVITY ON TOTAL FIXED ASSETS Drop in estimated utilisation Impairment charge on \ufb01xed assets (NOK 1000) 10% - 20% 1 622 30% 5 805 Note 22 - Borrowings (NOK 1000) 2022 2021 Non current Bank borrowings 4 854 13 938 Lease liabilities to credit institutions (IFRS 16) 78 559 Other lease liabilities ( IFRS 16) 4 310 105 171 Total 9 242 119 668 Current Bank borrowings 20 746 11 584 Lease liabilities to credit institutions(IFRS 16) 2 339 4 676 Other lease liabilities ( IFRS 16) 98 661 176 627 121 746 192 887 Total borrowings 130 988 312 556 Lease liabilities to credit institutions Lease liabilities are effectively secured as the rights to the leased asset revert to the lessor in the event of default. (NOK 1000) 2022 2021 Gross lease liabilities - minimum lease payments No later than 1 year 2 339 4 676 Later than 1 year and no later than 5 years 78 559 Later than 5 years - - Total instalments on lease liabilities 2 418 5 235 Future \ufb01nance charges on \ufb01nance lease liabilities 103 82 Total instalments and \ufb01nance charges on lease liabilities 2 520 5 317 Refer to note 14 Property, plant and equiptment for secured assets. For other lease liabilities under IFRS 16 please see note 24. SHORT TERM LEASES Costs relating to operational leases recognized in the income statement for 2022 is NOK 6.4 million, whereof NOK 3.4 million in real estate rental. The real estate rental is short term with 3 months termination notice. CAPEX AND VESSEL CAPACITY The Reach Remote project is expected to amount to approximately NOK 400 million. As of December 31 the company has capitalized NOK 116.4 million as Asset under construction. In addition, the company has \ufb01nanced two eROVs through leasing. As of December 31 the ROVs are under construction, and costs not recognised related to the ROVs amounts to NOK 20.8 million. The ROVs will be recognised in the balance sheet at commencement date. Besides the Reach Remote project, Reach has taken multiple steps to secure vessel capacity at competitive terms. Investments in 2023 associated with these vessels is expected to amount to approximately NOK 260 million (including the acquisition of Edda Sun), and encompass equipment, upgrades and mobilization activities for three vessels (Edda Sun, Deep Cygnus, and Go Electra). Reach has secured bank and lease \ufb01nancing of NOK 160 million to partly fund these investments. On February 23 the company announced a strategic partnership with Eidesvik Offshore for ownership and operation of the ROV sup- port vessel Edda Sun. The new joint venture (JV) is owned 50.1 percent by Eidesvik and 49.9 percent by Reach Subsea. Under its new name, Viking Reach, the vessel will commence on a 6-year contract between the JV and Reach Subsea start- ing in Q2. The contract will increase interest-bearing debt (leases) with an estimated amount of NOK 322 million. In addition to Viking Reach, charter commitments for vessels mobilized in 1Q23 (Deep Cygnus, Go Electra, Olympic Triton, Olympic Zeus) will increase interest bearing debt (leases) with an estimated amount of NOK 750 million. The company has also entered into a new rental agreements for of\ufb01ces in Haugesund in 1Q23 which will inrease interest-bearing debt with an estimated amount of NOK 10 million. Long and short term leases (committed lease term 12 months or less) of vessels and ROV\u2019s are capitalized as right- of use assets and depreciated under IFRS 16. The impact is that all cost in relation to leases of vessels/ROV\u2019s are presented as depreciation and interest expenses. No other short term leases, except for vessels and ROV\u2019s, are capitalized as right- of use assets and depreciated. As of March 31 2022, the group has recognized a right-of-use asset related to a long-term rental agreement for of\ufb01ces in the acquired company iSurvey Group AS. Capitalized addition related to the rental agreement was NOK 10.3 million, with an ending balance December 31 2022 of NOK 6.4 million (right-of-use) and NOK 6.6 million (lease liability), and is included in the numbers presented in this note. As of December 31 2022, Right of use assets in the balance sheet consist of contractual commitments for vessels and of\ufb01ces. Short term leases with no contractual commitment (pay as you go contracts), are not capitalized. At inception of a contract the lease liability and the corresponding Right-of-use assets is measured at the present value of the estimated lease payments. Short term hired in vessels and ROV\u2019s are treated as short term leases under IFRS 16 and are also recognized as depreciations. The calculated lease liability is calculated with a discount rate of 5%. For leases towards credit institutions please see note 22. The following tables are related to leases, except for leases towards credit institutions. Note 24 - Leases (Group as a lessee), continued Lease liabilities (NOK 1000) 2022 2021 Amounts due for settlement within 12 months (shown under current liabilities) 98 660 176 627 Amounts due for settlement after 12 months (present value) 4 310 105 171 Total 102 970 281 798 Maturity analysis (NOK 1000) 2022 2021 Not later than 1 year 98 660 176 627 Later than 1 year and not later than 5 years 4 310 105 171 Later than 5 years - - Total instalments 102 970 281 798 Future \ufb01nance charges 3 322 13 798 Total instalments and \ufb01nance charges 106 292 295 596 OTHER INFORMATION RELATED TO LEASES: For information related to leases to credit institutions, see note 22. For information related to cost of short-term leases (except for Vessels and ROV\u2019s), see note 7. For information related to right-of-use assets, see note 14. Reconciliation of depreciation (NOK 1000) 2022 2021 Depreciations of long term right- of use assets 254 580 145 975 Depreciations of short term right- of use assets (Pay as you go contracts) 52 215 57 459 Depreciations of other assets (Note 14) 46 737 36 370 Total depreciations 353 532 239 807 ", "dimensions": { "concept": "ifrs-full:DisclosureOfLeasesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4067": { "value": "Impairment of non-\ufb01nancial assets GENERAL At each reporting date the Group assesses whether there is an indication that an asset may be impaired. If any such indication exists, or where annual testing for impairment is required, the Group makes an estimate of the asset\u2019s recoverable amount. An asset\u2019s recoverable amount is the higher of an asset\u2019s fair value less costs to sell or value in use. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash \ufb02ows are discounted to their present value using a pre-tax discount rate that re\ufb02ects current market assessments of the time value of money and the risks speci\ufb01c to the asset. If, in a subsequent period, the amount of the impairment loss decreases, and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed. GOODWILL Goodwill is measured as described in \u2018Business combinations\u2019 in the section below. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill is not amortised, but it is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. CUSTOMER CONTRACTS Customer contracts acquired in a business combination are recognised at fair value at the acquisition date. They have a \ufb01nite useful life and are subsequently carried at cost less accumulated amortisation and impairment losses. Onerous contracts Provisions for onerous contracts are recognized when the Group has a contract under which the unavoidable costs of meeting the obligations under the contract exceed the economic bene\ufb01ts expected to be received from the contract. Leases ACCOUNTING AS LESSEE At inception of a contract, the Company assesses whether a contract is, or contains, a lease based on whether the con- tract includes the right to control the use of an identi\ufb01ed asset for a period of time in exchange for consideration. Short term leases (lease term 12 month or less) and assets that are leased for more than 12 months, but where the lease terms do not contain any commitments (\u201cpay-as-you-go\u201d), are also capitalized as right-of-use assets and depreciated. The impact is that all cost in relation to leases of vessels and ROVs are classi\ufb01ed as depreciation and interest expense. Vessels and ROVs with a \u201cpay-as-you-go\u201d lease structure are treated as short term leases, where the lease expenses are classi\ufb01ed as depreciation, and where the lease is capitalized at the balance sheet date only to the extent a commitment is incurred at the reporting date. The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The lease liability is initially measured at the present value of lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise of: \u2022 Fixed lease payments \u2022 Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date \u2022 Payment of penalties for terminating the lease, if the lease term re\ufb02ects the exercise of an option to terminate the lease. The lease liability is subsequently measured by increasing the carrying amount to re\ufb02ect interest on the lease liability (using the effective interest method) and by reducing the carrying value to re\ufb02ect the lease payments made. The Group remeasures the lease liability (and makes a corre- sponding adjustment to the related right of use asset) whenever: \u2022 the lease term has changed. \u2022 the lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value. \u2022 a lease contract is modi\ufb01ed, and the lease modi\ufb01cation is not accounted for as a separate lease, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate. The right of use asset is initially measured based on the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred. They are subsequently measured at cost less accumulated depreciation and impairment losses. The right of use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. The depre- ciation starts at the commencement date of the lease. The Group applies IAS 36 to determine whether a right of use asset is impaired, and accounts for any identi\ufb01ed impairment loss as described in the \u201cImpairment of non-\ufb01nancial asset\u201d sectionAssessment of leases under IFRS 16 The application of IFRS 16 requires signi\ufb01cant judgements and certain key estimations. Critical judgements required in application of IFRS 16 may include, among others, the following: \u2022 Identifying whether a contract includes a lease \u2022 Determination of whether variable payments are in substance \ufb01xed \u2022 Determining whether there are multiple leases in an arrangement. Key sources of estimation uncertainty in the application of IFRS 16 may include, among others, the following: \u2022 Estimation of lease term \u2022 Estimation of lease payments when the contract includes options to extent the lease period \u2022 Determination of the appropriate rate to discount the lease payments \u2022 Assessment of whether a right of use asset is impaired. Management uses judgement in evaluating each con- tract. At each balance sheet date management also assess if there are any impairment indicators for the right-of- use assets. For impairment see section above. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4068": { "value": "Impairment of non-\ufb01nancial assets GENERAL At each reporting date the Group assesses whether there is an indication that an asset may be impaired. If any such indication exists, or where annual testing for impairment is required, the Group makes an estimate of the asset\u2019s recoverable amount. An asset\u2019s recoverable amount is the higher of an asset\u2019s fair value less costs to sell or value in use. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash \ufb02ows are discounted to their present value using a pre-tax discount rate that re\ufb02ects current market assessments of the time value of money and the risks speci\ufb01c to the asset. If, in a subsequent period, the amount of the impairment loss decreases, and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed. GOODWILL Goodwill is measured as described in \u2018Business combinations\u2019 in the section below. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill is not amortised, but it is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. CUSTOMER CONTRACTS Customer contracts acquired in a business combination are recognised at fair value at the acquisition date. They have a \ufb01nite useful life and are subsequently carried at cost less accumulated amortisation and impairment losses. Onerous contracts Provisions for onerous contracts are recognized when the Group has a contract under which the unavoidable costs of meeting the obligations under the contract exceed the economic bene\ufb01ts expected to be received from the contract. Leases ACCOUNTING AS LESSEE At inception of a contract, the Company assesses whether a contract is, or contains, a lease based on whether the con- tract includes the right to control the use of an identi\ufb01ed asset for a period of time in exchange for consideration. Short term leases (lease term 12 month or less) and assets that are leased for more than 12 months, but where the lease terms do not contain any commitments (\u201cpay-as-you-go\u201d), are also capitalized as right-of-use assets and depreciated. The impact is that all cost in relation to leases of vessels and ROVs are classi\ufb01ed as depreciation and interest expense. Vessels and ROVs with a \u201cpay-as-you-go\u201d lease structure are treated as short term leases, where the lease expenses are classi\ufb01ed as depreciation, and where the lease is capitalized at the balance sheet date only to the extent a commitment is incurred at the reporting date. The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The lease liability is initially measured at the present value of lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise of: \u2022 Fixed lease payments \u2022 Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date \u2022 Payment of penalties for terminating the lease, if the lease term re\ufb02ects the exercise of an option to terminate the lease. The lease liability is subsequently measured by increasing the carrying amount to re\ufb02ect interest on the lease liability (using the effective interest method) and by reducing the carrying value to re\ufb02ect the lease payments made. The Group remeasures the lease liability (and makes a corre- sponding adjustment to the related right of use asset) whenever: \u2022 the lease term has changed. \u2022 the lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value. \u2022 a lease contract is modi\ufb01ed, and the lease modi\ufb01cation is not accounted for as a separate lease, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate. The right of use asset is initially measured based on the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred. They are subsequently measured at cost less accumulated depreciation and impairment losses. The right of use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. The depre- ciation starts at the commencement date of the lease. The Group applies IAS 36 to determine whether a right of use asset is impaired, and accounts for any identi\ufb01ed impairment loss as described in the \u201cImpairment of non-\ufb01nancial asset\u201d section. Financial assets The Group classi\ufb01es its \ufb01nancial assets in the following catego- ries: fair value through other comprehensive income (FVOCI), fair value through pro\ufb01t and loss (FVTPL), and amortized cost. The classi\ufb01cation of \ufb01nancial assets under IFRS 9 is generally based on the business model in which a \ufb01nancial instrument is managed and its contractual cash \ufb02ow characteristics. Classi\ufb01cation of \ufb01nancial assets is determined at initial recog- nition and is not reclassi\ufb01ed subsequently unless the Group changes its business model for managing \ufb01nancial assets. A \ufb01nancial asset shall be measured at amortized cost if both of the following conditions are met and it is not designated at FVTPL: \u2022 the \ufb01nancial asset is held within a business model whose objective is to hold \ufb01nancial assets, in order to collect contractual cash \ufb02ows and \u2022 the contractual terms of the \ufb01nancial asset give rise on speci\ufb01ed dates to cash \ufb02ows that are solely payments of principal and interest on the principal amount outstanding. A \ufb01nancial asset shall be measured at FVOCI if both of the following conditions are met and it is not designated at FVTPL: \u2022 the \ufb01nancial asset is held within a business model whose objective is achieved by both collecting contractual cash \ufb02ows and selling \ufb01nancial assets and \u2022 the contractual terms of the \ufb01nancial asset give rise on speci\ufb01ed dates to cash \ufb02ows that are solely payments of principal and interest on the principal amount outstanding. All \ufb01nancial assets not classi\ufb01ed as measured at amortized cost or FVOCI as described above are measured at FVTPL. This includes all derivative \ufb01nancial assets. On initial recognition, the Group may irrevocably designate a \ufb01nancial asset that otherwise meets the requirements to be measured at amortized cost or at FVOCI as at FVTPL if doing so eliminates or signi\ufb01cantly reduces an accounting mismatch that would otherwise arise. FINANCIAL ASSETS AT FVTPL The assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in pro\ufb01t or loss. FINANCIAL ASSETS AT AMORTIZED COST These assets are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognized in pro\ufb01t or loss. Any gain or loss on derecognition is recognized in pro\ufb01t or loss. FINANCIAL ASSETS AT FVOCI These assets are subsequently measured at fair value. Dividends are recognized as income in pro\ufb01t or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are rec- ognized in OCI and are not reclassi\ufb01ed to pro\ufb01t or loss. DERECOGNITION Financial assets are derecognized when the rights to receive cash \ufb02ows from the investments have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership. IMPAIRMENT The Group assesses at the end of each reporting period the expected credit losses for a \ufb01nancial asset or a group of \ufb01nancial assets. Borrowings Borrowings are recognized initially at fair value, net of trans- action costs incurred. Borrowings are subsequently carried at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the consolidated statement of comprehensive income over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recog- nized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is cap- italized as a pre-payment for liquidity services and amor- tized over the period of the facility to which it relates. 3.1.1 Market Risk FOREIGN EXCHANGE RISK The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, pri- marily with respect to the NOK, USD, GBP and EUR. Foreign exchange risk arises from future commercial transactions and recognized assets or liabilities. Potential currency \ufb02uc- tuations are taken into account during the tendering phase. Long term contracts in a foreign currency will be consid- ered hedged to be consistent with the currency of costs. Foreign exchange risk arises when future commercial transactions or recognized assets or liabilities are denominated in a currency that is not an entity\u2019s functional currency. The Group aims at achieving a natural hedge between cash in\ufb02ows and cash out\ufb02ows and manages remaining foreign exchange risk arising from future commercial transactions and recognized assets and liabilities, by forward contracts and similar instruments as appropriate. The Group\u2019s risk management policy is to continuously review its exposure against foreign exchange risk, and consider the need for hedging activities on transactions in each major currency. The following table demonstrates the sensitivity to a reasonably possible change in USD, GBP and EUR, with all other variables held constant. The impact on the Group\u2019s pro\ufb01t before tax is due to changes in the fair value of monetary assets and liabilities. Increase /decrease in USD Effect on pro\ufb01t before tax 2022 5 % 5 703 008 2021 5 % 665 935 Increase /decrease in EUR Effect on pro\ufb01t before tax 2022 5 % 867 596 2021 5 % 1 509 462 Increase /decrease in GBP Effect on pro\ufb01t before tax 2022 5 % 3 754 367 2021 5 % 1 050 224 PRICE RISK The Group is exposed to commodity price risk at two main levels: \u2022 The demand for ROV units is sensitive to changes in the offshore energy industry, for example oil price developments, \ufb02uctuation in production levels, exploration results and general activity levels. Market \ufb02uctuations may affect asset utilization and earnings. \u2022 The cost of construction of future units is sensitive to changes in market prices of the input factors. The risks are managed by having focus on targeting moder- ate risk contracts, signing contracts with suppliers with the necessary \ufb01nancial strength and using our expertise to com- plete projects in accordance with agreements. The Group also monitors commodity prices, evaluate the need for hedging activities, and consider commodity prices in our tender process. 3.1.2 Credit Risk Credit risk arises from cash and cash equivalents and deposits with banks and \ufb01nancial institutions, as well as credit exposures to customers. The Group has no signi\ufb01cant concentration of credit risk towards single \ufb01nancial institutions and has policies that limit the amount of credit exposure to any single \ufb01nancial institution. Credit exposures to customers arise when enter- ing into medium- or short-term contracts and are managed by performing a \ufb01nancial risk evaluation in the tendering process. The level of \ufb01nancial risk analysis performed in each case depends on the nature of the contract (including volume). Where the \ufb01nancial risk is substantial, bank guarantees are requested. 3.1.3 Liquidity Risk Prudent liquidity risk management implies maintaining suf\ufb01- cient cash and marketable securities, the availability of funding through an adequate amount of committed credit facilities, and the ability to close out market positions. The Group aims to maintain \ufb02exibility in its liquidity by keeping committed credit lines available. The need for working capital is continuously being considered based on payment terms and \ufb01nancial status of clients and the Group\u2019s \ufb01rm expenses (including loan instalments and interest). Please refer to note 21 for maturity analyses. The Group entered into a one-year bank overdraft agree- ment in January 2022, securing access to NOK 20 million in excess funds. The agreement was extended for one year from January 2023. Further extensions will be considered based on liquidity position and needs at expiry date. As the Group\u2019s business is capital intensive, the Group may need to raise additional funds in the future to execute the Group\u2019s strategies. The Group\u2019s loan agreement, and bank overdraft agreement include terms, conditions and covenants. The Group monitors its future liquidity positions on an ongoing basis, with monthly reports on cash \ufb02ow forecasts and covenants. 3.1.4 Cash Flow and Fair Value Interest Rate Risk The Group\u2019s interest rate risk arises from bank deposit held at \ufb02oating rates, and the possible impact on the \ufb01nancial statement is estimated to be immaterial. Note 16 - Trade and other receivables (NOK 1000) 2022 2021 Trade receivables 216 328 149 633 Less: provision for impairment of trade receivables - - Current portion trade receivables 216 328 149 633 Prepayments 5 782 7 619 Revenue recognised, not billed 67 451 31 747 Other receivable 13 019 7 781 Current portion other receivables 86 252 47 150 Non-current positions - - The fair values of trade and other receivables are as follows: (NOK 1000) 2022 2021 Trade receivable 216 328 149 633 Receivables from related parties - - Loans to related parties - - Total trade receivables 216 328 149 633 Transactions with subsidiaries have been eliminated in the Group\u2019s \ufb01nancial statements and do not represent related party transactions. CHANGES IN ALLOCATION FOR LOSSES OF ACCOUNT RECEIVABLES There has been no losses or provisions for impairment of recievables in 2021 and 2022 As of 31.12., the Group had the following trade receivables which was due, but not been paid: Trade receivables Total Not due < 30 d 30-90 d 90 - 360 d > 361 d 2022 216 328 158 342 48 893 7 958 1 134 - 2021 149 633 89 452 48 472 11 673 36 - Based on previous experience with customers and assessment of intial credit risk and expected credit losses as at 31 December 2022, there is no allowance for bad debt on receivables in 2022. The main portion of overdue receivables has been paid after balance sheet date. 2022 (NOK 1000) Financial instruments measured at amortised cost Financial instruments at fair value through pro\ufb01t or loss Financial instruments measured at fair value through other comprehensive income Fair value Financial assets Trade receivables 216 328 - - 216 328 Other receivables 86 252 - - 86 252 Cash and cash equivalents 191 591 - - 191 591 Assets, in total 494 171 - - 494 171 2021 (NOK 1000) Financial instruments measured at amortised cost Financial instruments at fair value through pro\ufb01t or loss Financial instruments measured at fair value through other comprehensive income Fair value Financial assets Trade receivables 149 633 - - 149 633 Other receivables 47 150 - - 47 150 Cash and cash equivalents 149 035 - - 149 035 Assets, in total 345 818 - - 345 818 Financial liabilites Borrowings (long & short term interest bearing debt) 130 988 - - 130 988 Trade payables 102 430 - - 102 430 Other current liabilities 112 541 - - 112 541 Liabilites, in total 345 959 - - 345 959 Financial liabilites Borrowings (long & short term interest bearing debt) 312 556 - - 312 556 Trade payables 63 467 - - 63 467 Public duties - - - - Other current liabilities 75 203 - - 75 203 Liabilites, in total 451 225 - - 451 225 Note 21 - Classi\ufb01cation of \ufb01nancial assets and liabilities The following of the Group\u2019s \ufb01nancial instruments are measured at amortised cost: cash and cash equivalents, trade receivables, other current receivables, trade payables, other current liabilities and all interest bearing debt. The carrying amount of cash and cash equivalens is approximately similar to fair value since these instruments have a short term to maturity. Similarly, the carrying amount of trade receivables, trade payables and other receivables/liabilities is approximately equal to fair value since they are entered into at standard terms and conditions. The fair value of the interest-bearing debt is the disclosed face value of the loans. Note 21 - Classi\ufb01cation of \ufb01nancial assets and liabilities, continued Financial liabilities 2022 Remaining contractual maturities (NOK 1000) 0-180 days 180 d-1 year 1-3 years > 3 years Total Trade payables 102 430 - - - 102 430 Other current liabilities 112 541 - - - 112 541 Interest-bearing debt to credit institutions 19 506 3 580 4 932 - 28 018 Interest-bearing debt, leases 52 871 45 800 4 179 120 102 970 Interest on interest-bearing debt to credit institutions 753 317 183 - 1 252 Interest on interest-bearing debt, leases 2 213 943 166 0 3 322 Financial liabilities, in total 290 313 50 639 9 460 121 350 533 Financial liabilities 2021 Remaining contractual maturities (NOK 1000) 0-180 days 180 d-1 year 1-3 years > 3 years Total Trade payables 63 467 - - - 63 467 Other current liabilities 75 203 - - - 75 203 Interest-bearing debt to credit institutions 8 290 7 471 14 997 - 30 757 Interest-bearing debt, leases 85 800 90 827 103 732 1 439 281 798 Interest on interest-bearing debt to credit institutions 620 444 596 - 1 660 Interest on interest-bearing debt, leases 6 407 4 301 3 047 43 13 798 Financial liabilities, in total 239 786 103 043 122 372 1 482 466 683 Note 21 - Classi\ufb01cation of \ufb01nancial assets and liabilities, continued Changes in interest-bearing debt 2022 2021 (NOK 1000) Interest bearing debt, leases Interest bearing debt to credit institutions Interest bearing debt, leases Interest bearing debt to credit institutions Opening balance 281 798 30 757 15 766 25 590 Drawdowns - - - - Repayment incl interest -311 814 -13 448 -207 185 -17 793 Interest-bearing debt from acquisition of iSurvey Group AS* - 10 709 - 22 961 Non-cash changes: Interest-bearing debt from acquisition of iSurvey Group AS* 10 327 - - - Addition IFRS 16 lease liability throughout the year 126 717 - 467 226 - Adjustment IFRS 16 lease liability -17 203 - - - Currency adjustment 55 - 131 - Accrued interest 13 090 - 5 861 - Closing balance 102 970 28 018 281 798 30 757 * Refer to note 26 for debt acquired in the iSurvey Group transaction. DISTRIBUTION NON-CURRENT AND CURRENT DEBT (NOK 1000) 2022 2021 Non-current interest-bearing debt to credit institutions 4 932 14 497 Non-current interest-bearing debt, leases 4 310 105 171 Current interest-bearing debt to credit institutions 23 086 16 260 Current interest-bearing debt, leases 98 660 176 627 Closing balance 130 988 312 556 Note 22 - Borrowings (NOK 1000) 2022 2021 Non current Bank borrowings 4 854 13 938 Lease liabilities to credit institutions (IFRS 16) 78 559 Other lease liabilities ( IFRS 16) 4 310 105 171 Total 9 242 119 668 Current Bank borrowings 20 746 11 584 Lease liabilities to credit institutions(IFRS 16) 2 339 4 676 Other lease liabilities ( IFRS 16) 98 661 176 627 121 746 192 887 Total borrowings 130 988 312 556 Bank borrowings \u2018Bank borrowings mature until 2024 and bear average coupons of 5.0 % annually. The bank borrowings are subject to industry- relevant covenants. Due to changes in equity and the \ufb01nancing of ongoing capex-projects the existing covenants have been updated in 2022. The \ufb01nancial covenants are as follows: \u2022 Minimum liquidity: Cash and cash equivalents, including any undrawn and available part of the over- draft facility with SR-Bank, shall at all times to be minimum NOK 40 million. \u2022 Debt service Coverage Ratio: The ratio of last 12 months\u2019 (LTM) EBITDA1) to the next 12 months\u2019 total estimated interest and instalments on Interest Bearing Debt 1) (excl IFRS16 install- ments/incl. lease liabilities to credit institutions) shall at all times be minimum 2.00. \u2022 Booked Equity shall be minimum NOK 350 million and Booked Equity Ratio shall be minimum 25%. As of 31 December 2022 the liquidity position (including overdraft facility) is 211.5 million, the Debt service Coverage Ratio is 6.9, and Booked equity NOK 579.4 million/60.9%. All \ufb01nancial covenants are well within the thresholds mentioned above. Please note that the \ufb01nancial covenants in the groups debt facilities exclude the effects from IFRS 16, and therefore can not be directly derived from the groups \ufb01nancial statements. Total borrowings to bank and \ufb01nancial institutions includes secured liabilities (bank and collateralised borrowings) of NOK 28.0 million (2021: NOK 30.8 million). Bank borrowings are secured by equipment and receivables of the group (note 14). The carrying amounts and fair value of the interest-bearing debts are as follows: Carrying amount Fair value (NOK 1000) 2022 2021 2022 2021 Bank borrowings 25 600 25 522 25 600 25 522 Lease liabilities to credit institutions(IFRS 16) 2 418 5 235 2 418 5 235 Other lease liabilities (IFRS 16) 102 970 281 798 102 970 281 798 Sum 130 988 312 556 130 988 312 556 The fair value of Bank borrowings equals their carrying amount, as the impact of discounting is not signi\ufb01cant. The fair values are based on cash \ufb02ows discounted using a rate based on the borrowing rate of 5.0 % and are within level 3 of the fair value hierarchy. The carrying amounts of the group\u2019s borrowings are all denominated in Norwegian kroner. ", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4069": { "value": "Impairment of non-\ufb01nancial assets GENERAL At each reporting date the Group assesses whether there is an indication that an asset may be impaired. If any such indication exists, or where annual testing for impairment is required, the Group makes an estimate of the asset\u2019s recoverable amount. An asset\u2019s recoverable amount is the higher of an asset\u2019s fair value less costs to sell or value in use. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash \ufb02ows are discounted to their present value using a pre-tax discount rate that re\ufb02ects current market assessments of the time value of money and the risks speci\ufb01c to the asset. If, in a subsequent period, the amount of the impairment loss decreases, and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed. GOODWILL Goodwill is measured as described in \u2018Business combinations\u2019 in the section below. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill is not amortised, but it is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. CUSTOMER CONTRACTS Customer contracts acquired in a business combination are recognised at fair value at the acquisition date. They have a \ufb01nite useful life and are subsequently carried at cost less accumulated amortisation and impairment losses. Onerous contracts Provisions for onerous contracts are recognized when the Group has a contract under which the unavoidable costs of meeting the obligations under the contract exceed the economic bene\ufb01ts expected to be received from the contract. Leases ACCOUNTING AS LESSEE At inception of a contract, the Company assesses whether a contract is, or contains, a lease based on whether the con- tract includes the right to control the use of an identi\ufb01ed asset for a period of time in exchange for consideration. Short term leases (lease term 12 month or less) and assets that are leased for more than 12 months, but where the lease terms do not contain any commitments (\u201cpay-as-you-go\u201d), are also capitalized as right-of-use assets and depreciated. The impact is that all cost in relation to leases of vessels and ROVs are classi\ufb01ed as depreciation and interest expense. Vessels and ROVs with a \u201cpay-as-you-go\u201d lease structure are treated as short term leases, where the lease expenses are classi\ufb01ed as depreciation, and where the lease is capitalized at the balance sheet date only to the extent a commitment is incurred at the reporting date. The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The lease liability is initially measured at the present value of lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise of: \u2022 Fixed lease payments \u2022 Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date \u2022 Payment of penalties for terminating the lease, if the lease term re\ufb02ects the exercise of an option to terminate the lease. The lease liability is subsequently measured by increasing the carrying amount to re\ufb02ect interest on the lease liability (using the effective interest method) and by reducing the carrying value to re\ufb02ect the lease payments made. The Group remeasures the lease liability (and makes a corre- sponding adjustment to the related right of use asset) whenever: \u2022 the lease term has changed. \u2022 the lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value. \u2022 a lease contract is modi\ufb01ed, and the lease modi\ufb01cation is not accounted for as a separate lease, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate. The right of use asset is initially measured based on the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred. They are subsequently measured at cost less accumulated depreciation and impairment losses. The right of use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. The depre- ciation starts at the commencement date of the lease. The Group applies IAS 36 to determine whether a right of use asset is impaired, and accounts for any identi\ufb01ed impairment loss as described in the \u201cImpairment of non-\ufb01nancial asset\u201d section. IMPAIRMENT The Group assesses at the end of each reporting period the expected credit losses for a \ufb01nancial asset or a group of \ufb01nancial assets. 3.1.2 Credit Risk Credit risk arises from cash and cash equivalents and deposits with banks and \ufb01nancial institutions, as well as credit exposures to customers. The Group has no signi\ufb01cant concentration of credit risk towards single \ufb01nancial institutions and has policies that limit the amount of credit exposure to any single \ufb01nancial institution. Credit exposures to customers arise when enter- ing into medium- or short-term contracts and are managed by performing a \ufb01nancial risk evaluation in the tendering process. The level of \ufb01nancial risk analysis performed in each case depends on the nature of the contract (including volume). Where the \ufb01nancial risk is substantial, bank guarantees are requested. Note 16 - Trade and other receivables (NOK 1000) 2022 2021 Trade receivables 216 328 149 633 Less: provision for impairment of trade receivables - - Current portion trade receivables 216 328 149 633 Prepayments 5 782 7 619 Revenue recognised, not billed 67 451 31 747 Other receivable 13 019 7 781 Current portion other receivables 86 252 47 150 Non-current positions - - The fair values of trade and other receivables are as follows: (NOK 1000) 2022 2021 Trade receivable 216 328 149 633 Receivables from related parties - - Loans to related parties - - Total trade receivables 216 328 149 633 Transactions with subsidiaries have been eliminated in the Group\u2019s \ufb01nancial statements and do not represent related party transactions. CHANGES IN ALLOCATION FOR LOSSES OF ACCOUNT RECEIVABLES There has been no losses or provisions for impairment of recievables in 2021 and 2022 As of 31.12., the Group had the following trade receivables which was due, but not been paid: Trade receivables Total Not due < 30 d 30-90 d 90 - 360 d > 361 d 2022 216 328 158 342 48 893 7 958 1 134 - 2021 149 633 89 452 48 472 11 673 36 - Based on previous experience with customers and assessment of intial credit risk and expected credit losses as at 31 December 2022, there is no allowance for bad debt on receivables in 2022. The main portion of overdue receivables has been paid after balance sheet date. ", "dimensions": { "concept": "ifrs-full:DisclosureOfCreditRiskExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4070": { "value": "Impairment of non-\ufb01nancial assets GENERAL At each reporting date the Group assesses whether there is an indication that an asset may be impaired. If any such indication exists, or where annual testing for impairment is required, the Group makes an estimate of the asset\u2019s recoverable amount. An asset\u2019s recoverable amount is the higher of an asset\u2019s fair value less costs to sell or value in use. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash \ufb02ows are discounted to their present value using a pre-tax discount rate that re\ufb02ects current market assessments of the time value of money and the risks speci\ufb01c to the asset. If, in a subsequent period, the amount of the impairment loss decreases, and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed. GOODWILL Goodwill is measured as described in \u2018Business combinations\u2019 in the section below. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill is not amortised, but it is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. CUSTOMER CONTRACTS Customer contracts acquired in a business combination are recognised at fair value at the acquisition date. They have a \ufb01nite useful life and are subsequently carried at cost less accumulated amortisation and impairment losses. Onerous contracts Provisions for onerous contracts are recognized when the Group has a contract under which the unavoidable costs of meeting the obligations under the contract exceed the economic bene\ufb01ts expected to be received from the contract. Leases ACCOUNTING AS LESSEE At inception of a contract, the Company assesses whether a contract is, or contains, a lease based on whether the con- tract includes the right to control the use of an identi\ufb01ed asset for a period of time in exchange for consideration. Short term leases (lease term 12 month or less) and assets that are leased for more than 12 months, but where the lease terms do not contain any commitments (\u201cpay-as-you-go\u201d), are also capitalized as right-of-use assets and depreciated. The impact is that all cost in relation to leases of vessels and ROVs are classi\ufb01ed as depreciation and interest expense. Vessels and ROVs with a \u201cpay-as-you-go\u201d lease structure are treated as short term leases, where the lease expenses are classi\ufb01ed as depreciation, and where the lease is capitalized at the balance sheet date only to the extent a commitment is incurred at the reporting date. The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The lease liability is initially measured at the present value of lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise of: \u2022 Fixed lease payments \u2022 Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date \u2022 Payment of penalties for terminating the lease, if the lease term re\ufb02ects the exercise of an option to terminate the lease. The lease liability is subsequently measured by increasing the carrying amount to re\ufb02ect interest on the lease liability (using the effective interest method) and by reducing the carrying value to re\ufb02ect the lease payments made. The Group remeasures the lease liability (and makes a corre- sponding adjustment to the related right of use asset) whenever: \u2022 the lease term has changed. \u2022 the lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value. \u2022 a lease contract is modi\ufb01ed, and the lease modi\ufb01cation is not accounted for as a separate lease, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate. The right of use asset is initially measured based on the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred. They are subsequently measured at cost less accumulated depreciation and impairment losses. The right of use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. The depre- ciation starts at the commencement date of the lease. The Group applies IAS 36 to determine whether a right of use asset is impaired, and accounts for any identi\ufb01ed impairment loss as described in the \u201cImpairment of non-\ufb01nancial asset\u201d section. IMPAIRMENT The Group assesses at the end of each reporting period the expected credit losses for a \ufb01nancial asset or a group of \ufb01nancial assets. Note 16 - Trade and other receivables (NOK 1000) 2022 2021 Trade receivables 216 328 149 633 Less: provision for impairment of trade receivables - - Current portion trade receivables 216 328 149 633 Prepayments 5 782 7 619 Revenue recognised, not billed 67 451 31 747 Other receivable 13 019 7 781 Current portion other receivables 86 252 47 150 Non-current positions - - The fair values of trade and other receivables are as follows: (NOK 1000) 2022 2021 Trade receivable 216 328 149 633 Receivables from related parties - - Loans to related parties - - Total trade receivables 216 328 149 633 Transactions with subsidiaries have been eliminated in the Group\u2019s \ufb01nancial statements and do not represent related party transactions. CHANGES IN ALLOCATION FOR LOSSES OF ACCOUNT RECEIVABLES There has been no losses or provisions for impairment of recievables in 2021 and 2022 As of 31.12., the Group had the following trade receivables which was due, but not been paid: Trade receivables Total Not due < 30 d 30-90 d 90 - 360 d > 361 d 2022 216 328 158 342 48 893 7 958 1 134 - 2021 149 633 89 452 48 472 11 673 36 - Based on previous experience with customers and assessment of intial credit risk and expected credit losses as at 31 December 2022, there is no allowance for bad debt on receivables in 2022. The main portion of overdue receivables has been paid after balance sheet date. ", "dimensions": { "concept": "ifrs-full:DisclosureOfAllowanceForCreditLossesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4071": { "value": "Impairment of non-\ufb01nancial assets GENERAL At each reporting date the Group assesses whether there is an indication that an asset may be impaired. If any such indication exists, or where annual testing for impairment is required, the Group makes an estimate of the asset\u2019s recoverable amount. An asset\u2019s recoverable amount is the higher of an asset\u2019s fair value less costs to sell or value in use. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash \ufb02ows are discounted to their present value using a pre-tax discount rate that re\ufb02ects current market assessments of the time value of money and the risks speci\ufb01c to the asset. If, in a subsequent period, the amount of the impairment loss decreases, and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed. GOODWILL Goodwill is measured as described in \u2018Business combinations\u2019 in the section below. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill is not amortised, but it is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. CUSTOMER CONTRACTS Customer contracts acquired in a business combination are recognised at fair value at the acquisition date. They have a \ufb01nite useful life and are subsequently carried at cost less accumulated amortisation and impairment losses. Onerous contracts Provisions for onerous contracts are recognized when the Group has a contract under which the unavoidable costs of meeting the obligations under the contract exceed the economic bene\ufb01ts expected to be received from the contract. Leases ACCOUNTING AS LESSEE At inception of a contract, the Company assesses whether a contract is, or contains, a lease based on whether the con- tract includes the right to control the use of an identi\ufb01ed asset for a period of time in exchange for consideration. Short term leases (lease term 12 month or less) and assets that are leased for more than 12 months, but where the lease terms do not contain any commitments (\u201cpay-as-you-go\u201d), are also capitalized as right-of-use assets and depreciated. The impact is that all cost in relation to leases of vessels and ROVs are classi\ufb01ed as depreciation and interest expense. Vessels and ROVs with a \u201cpay-as-you-go\u201d lease structure are treated as short term leases, where the lease expenses are classi\ufb01ed as depreciation, and where the lease is capitalized at the balance sheet date only to the extent a commitment is incurred at the reporting date. The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The lease liability is initially measured at the present value of lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise of: \u2022 Fixed lease payments \u2022 Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date \u2022 Payment of penalties for terminating the lease, if the lease term re\ufb02ects the exercise of an option to terminate the lease. The lease liability is subsequently measured by increasing the carrying amount to re\ufb02ect interest on the lease liability (using the effective interest method) and by reducing the carrying value to re\ufb02ect the lease payments made. The Group remeasures the lease liability (and makes a corre- sponding adjustment to the related right of use asset) whenever: \u2022 the lease term has changed. \u2022 the lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value. \u2022 a lease contract is modi\ufb01ed, and the lease modi\ufb01cation is not accounted for as a separate lease, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate. The right of use asset is initially measured based on the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred. They are subsequently measured at cost less accumulated depreciation and impairment losses. The right of use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. The depre- ciation starts at the commencement date of the lease. The Group applies IAS 36 to determine whether a right of use asset is impaired, and accounts for any identi\ufb01ed impairment loss as described in the \u201cImpairment of non-\ufb01nancial asset\u201d section. Financial assets The Group classi\ufb01es its \ufb01nancial assets in the following catego- ries: fair value through other comprehensive income (FVOCI), fair value through pro\ufb01t and loss (FVTPL), and amortized cost. The classi\ufb01cation of \ufb01nancial assets under IFRS 9 is generally based on the business model in which a \ufb01nancial instrument is managed and its contractual cash \ufb02ow characteristics. Classi\ufb01cation of \ufb01nancial assets is determined at initial recog- nition and is not reclassi\ufb01ed subsequently unless the Group changes its business model for managing \ufb01nancial assets. A \ufb01nancial asset shall be measured at amortized cost if both of the following conditions are met and it is not designated at FVTPL: \u2022 the \ufb01nancial asset is held within a business model whose objective is to hold \ufb01nancial assets, in order to collect contractual cash \ufb02ows and \u2022 the contractual terms of the \ufb01nancial asset give rise on speci\ufb01ed dates to cash \ufb02ows that are solely payments of principal and interest on the principal amount outstanding. A \ufb01nancial asset shall be measured at FVOCI if both of the following conditions are met and it is not designated at FVTPL: \u2022 the \ufb01nancial asset is held within a business model whose objective is achieved by both collecting contractual cash \ufb02ows and selling \ufb01nancial assets and \u2022 the contractual terms of the \ufb01nancial asset give rise on speci\ufb01ed dates to cash \ufb02ows that are solely payments of principal and interest on the principal amount outstanding. All \ufb01nancial assets not classi\ufb01ed as measured at amortized cost or FVOCI as described above are measured at FVTPL. This includes all derivative \ufb01nancial assets. On initial recognition, the Group may irrevocably designate a \ufb01nancial asset that otherwise meets the requirements to be measured at amortized cost or at FVOCI as at FVTPL if doing so eliminates or signi\ufb01cantly reduces an accounting mismatch that would otherwise arise. FINANCIAL ASSETS AT FVTPL The assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in pro\ufb01t or loss. FINANCIAL ASSETS AT AMORTIZED COST These assets are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognized in pro\ufb01t or loss. Any gain or loss on derecognition is recognized in pro\ufb01t or loss. FINANCIAL ASSETS AT FVOCI These assets are subsequently measured at fair value. Dividends are recognized as income in pro\ufb01t or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are rec- ognized in OCI and are not reclassi\ufb01ed to pro\ufb01t or loss. DERECOGNITION Financial assets are derecognized when the rights to receive cash \ufb02ows from the investments have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership. IMPAIRMENT The Group assesses at the end of each reporting period the expected credit losses for a \ufb01nancial asset or a group of \ufb01nancial assets. Borrowings Borrowings are recognized initially at fair value, net of trans- action costs incurred. Borrowings are subsequently carried at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the consolidated statement of comprehensive income over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recog- nized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is cap- italized as a pre-payment for liquidity services and amor- tized over the period of the facility to which it relates. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4072": { "value": "Impairment of non-\ufb01nancial assets GENERAL At each reporting date the Group assesses whether there is an indication that an asset may be impaired. If any such indication exists, or where annual testing for impairment is required, the Group makes an estimate of the asset\u2019s recoverable amount. An asset\u2019s recoverable amount is the higher of an asset\u2019s fair value less costs to sell or value in use. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash \ufb02ows are discounted to their present value using a pre-tax discount rate that re\ufb02ects current market assessments of the time value of money and the risks speci\ufb01c to the asset. If, in a subsequent period, the amount of the impairment loss decreases, and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed. GOODWILL Goodwill is measured as described in \u2018Business combinations\u2019 in the section below. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill is not amortised, but it is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. CUSTOMER CONTRACTS Customer contracts acquired in a business combination are recognised at fair value at the acquisition date. They have a \ufb01nite useful life and are subsequently carried at cost less accumulated amortisation and impairment losses. Onerous contracts Provisions for onerous contracts are recognized when the Group has a contract under which the unavoidable costs of meeting the obligations under the contract exceed the economic bene\ufb01ts expected to be received from the contract. Leases ACCOUNTING AS LESSEE At inception of a contract, the Company assesses whether a contract is, or contains, a lease based on whether the con- tract includes the right to control the use of an identi\ufb01ed asset for a period of time in exchange for consideration. Short term leases (lease term 12 month or less) and assets that are leased for more than 12 months, but where the lease terms do not contain any commitments (\u201cpay-as-you-go\u201d), are also capitalized as right-of-use assets and depreciated. The impact is that all cost in relation to leases of vessels and ROVs are classi\ufb01ed as depreciation and interest expense. Vessels and ROVs with a \u201cpay-as-you-go\u201d lease structure are treated as short term leases, where the lease expenses are classi\ufb01ed as depreciation, and where the lease is capitalized at the balance sheet date only to the extent a commitment is incurred at the reporting date. The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The lease liability is initially measured at the present value of lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise of: \u2022 Fixed lease payments \u2022 Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date \u2022 Payment of penalties for terminating the lease, if the lease term re\ufb02ects the exercise of an option to terminate the lease. The lease liability is subsequently measured by increasing the carrying amount to re\ufb02ect interest on the lease liability (using the effective interest method) and by reducing the carrying value to re\ufb02ect the lease payments made. The Group remeasures the lease liability (and makes a corre- sponding adjustment to the related right of use asset) whenever: \u2022 the lease term has changed. \u2022 the lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value. \u2022 a lease contract is modi\ufb01ed, and the lease modi\ufb01cation is not accounted for as a separate lease, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate. The right of use asset is initially measured based on the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred. They are subsequently measured at cost less accumulated depreciation and impairment losses. The right of use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. The depre- ciation starts at the commencement date of the lease. The Group applies IAS 36 to determine whether a right of use asset is impaired, and accounts for any identi\ufb01ed impairment loss as described in the \u201cImpairment of non-\ufb01nancial asset\u201d section. Financial assets The Group classi\ufb01es its \ufb01nancial assets in the following catego- ries: fair value through other comprehensive income (FVOCI), fair value through pro\ufb01t and loss (FVTPL), and amortized cost. The classi\ufb01cation of \ufb01nancial assets under IFRS 9 is generally based on the business model in which a \ufb01nancial instrument is managed and its contractual cash \ufb02ow characteristics. Classi\ufb01cation of \ufb01nancial assets is determined at initial recog- nition and is not reclassi\ufb01ed subsequently unless the Group changes its business model for managing \ufb01nancial assets. A \ufb01nancial asset shall be measured at amortized cost if both of the following conditions are met and it is not designated at FVTPL: \u2022 the \ufb01nancial asset is held within a business model whose objective is to hold \ufb01nancial assets, in order to collect contractual cash \ufb02ows and \u2022 the contractual terms of the \ufb01nancial asset give rise on speci\ufb01ed dates to cash \ufb02ows that are solely payments of principal and interest on the principal amount outstanding. A \ufb01nancial asset shall be measured at FVOCI if both of the following conditions are met and it is not designated at FVTPL: \u2022 the \ufb01nancial asset is held within a business model whose objective is achieved by both collecting contractual cash \ufb02ows and selling \ufb01nancial assets and \u2022 the contractual terms of the \ufb01nancial asset give rise on speci\ufb01ed dates to cash \ufb02ows that are solely payments of principal and interest on the principal amount outstanding. All \ufb01nancial assets not classi\ufb01ed as measured at amortized cost or FVOCI as described above are measured at FVTPL. This includes all derivative \ufb01nancial assets. On initial recognition, the Group may irrevocably designate a \ufb01nancial asset that otherwise meets the requirements to be measured at amortized cost or at FVOCI as at FVTPL if doing so eliminates or signi\ufb01cantly reduces an accounting mismatch that would otherwise arise. FINANCIAL ASSETS AT FVTPL The assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in pro\ufb01t or loss. FINANCIAL ASSETS AT AMORTIZED COST These assets are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognized in pro\ufb01t or loss. Any gain or loss on derecognition is recognized in pro\ufb01t or loss. FINANCIAL ASSETS AT FVOCI These assets are subsequently measured at fair value. Dividends are recognized as income in pro\ufb01t or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are rec- ognized in OCI and are not reclassi\ufb01ed to pro\ufb01t or loss. DERECOGNITION Financial assets are derecognized when the rights to receive cash \ufb02ows from the investments have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership. IMPAIRMENT The Group assesses at the end of each reporting period the expected credit losses for a \ufb01nancial asset or a group of \ufb01nancial assets. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4073": { "value": "Impairment of non-\ufb01nancial assets GENERAL At each reporting date the Group assesses whether there is an indication that an asset may be impaired. If any such indication exists, or where annual testing for impairment is required, the Group makes an estimate of the asset\u2019s recoverable amount. An asset\u2019s recoverable amount is the higher of an asset\u2019s fair value less costs to sell or value in use. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash \ufb02ows are discounted to their present value using a pre-tax discount rate that re\ufb02ects current market assessments of the time value of money and the risks speci\ufb01c to the asset. If, in a subsequent period, the amount of the impairment loss decreases, and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed. GOODWILL Goodwill is measured as described in \u2018Business combinations\u2019 in the section below. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill is not amortised, but it is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. CUSTOMER CONTRACTS Customer contracts acquired in a business combination are recognised at fair value at the acquisition date. They have a \ufb01nite useful life and are subsequently carried at cost less accumulated amortisation and impairment losses. Onerous contracts Provisions for onerous contracts are recognized when the Group has a contract under which the unavoidable costs of meeting the obligations under the contract exceed the economic bene\ufb01ts expected to be received from the contract. Leases ACCOUNTING AS LESSEE At inception of a contract, the Company assesses whether a contract is, or contains, a lease based on whether the con- tract includes the right to control the use of an identi\ufb01ed asset for a period of time in exchange for consideration. Short term leases (lease term 12 month or less) and assets that are leased for more than 12 months, but where the lease terms do not contain any commitments (\u201cpay-as-you-go\u201d), are also capitalized as right-of-use assets and depreciated. The impact is that all cost in relation to leases of vessels and ROVs are classi\ufb01ed as depreciation and interest expense. Vessels and ROVs with a \u201cpay-as-you-go\u201d lease structure are treated as short term leases, where the lease expenses are classi\ufb01ed as depreciation, and where the lease is capitalized at the balance sheet date only to the extent a commitment is incurred at the reporting date. The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The lease liability is initially measured at the present value of lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise of: \u2022 Fixed lease payments \u2022 Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date \u2022 Payment of penalties for terminating the lease, if the lease term re\ufb02ects the exercise of an option to terminate the lease. The lease liability is subsequently measured by increasing the carrying amount to re\ufb02ect interest on the lease liability (using the effective interest method) and by reducing the carrying value to re\ufb02ect the lease payments made. The Group remeasures the lease liability (and makes a corre- sponding adjustment to the related right of use asset) whenever: \u2022 the lease term has changed. \u2022 the lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value. \u2022 a lease contract is modi\ufb01ed, and the lease modi\ufb01cation is not accounted for as a separate lease, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate. The right of use asset is initially measured based on the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred. They are subsequently measured at cost less accumulated depreciation and impairment losses. The right of use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. The depre- ciation starts at the commencement date of the lease. The Group applies IAS 36 to determine whether a right of use asset is impaired, and accounts for any identi\ufb01ed impairment loss as described in the \u201cImpairment of non-\ufb01nancial asset\u201d section. IMPAIRMENT The Group assesses at the end of each reporting period the expected credit losses for a \ufb01nancial asset or a group of \ufb01nancial assets. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfFinancialAssetsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4135": { "value": "Onerous contracts Provisions for onerous contracts are recognized when the Group has a contract under which the unavoidable costs of meeting the obligations under the contract exceed the economic bene\ufb01ts expected to be received from the contract. Provisions, contingent liabilities and contingent assets Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, and it is probable that an economic settlement will take place in consequence of this obligation, and a reliable estimate can be made of the amount. Provisions are based on best estimate. Contingent liabilities are not recognized in the \ufb01nan- cial statements. Signi\ufb01cant contingent liabilities are dis- closed, with the exception of contingent liabilities where the probability of the liability occurring is remote. A contingent asset is not recognized in the annual \ufb01nancial statements but is disclosed if it is probable that a bene\ufb01t will accrue to the Group. ", "dimensions": { "concept": "ifrs-full:DisclosureOfProvisionsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4136": { "value": "Onerous contracts Provisions for onerous contracts are recognized when the Group has a contract under which the unavoidable costs of meeting the obligations under the contract exceed the economic bene\ufb01ts expected to be received from the contract. Provisions, contingent liabilities and contingent assets Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, and it is probable that an economic settlement will take place in consequence of this obligation, and a reliable estimate can be made of the amount. Provisions are based on best estimate. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForProvisionsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4281": { "value": "Bunkers Bunkers comprise fuel and lube oil inventory and are valued at the lower of cost and net realisable value. Fuel and lube are expensed to the consolidated statement of comprehensive income based on FIFO principle (First in, \ufb01rst out) as they are consumed. ", "dimensions": { "concept": "ifrs-full:DisclosureOfInventoriesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4282": { "value": "Bunkers Bunkers comprise fuel and lube oil inventory and are valued at the lower of cost and net realisable value. Fuel and lube are expensed to the consolidated statement of comprehensive income based on FIFO principle (First in, \ufb01rst out) as they are consumed. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForMeasuringInventories", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4283": { "value": "Bunkers Bunkers comprise fuel and lube oil inventory and are valued at the lower of cost and net realisable value. Fuel and lube are expensed to the consolidated statement of comprehensive income based on FIFO principle (First in, \ufb01rst out) ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForOilAndGasAssetsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4351": { "value": "FINANCIAL ASSETS AT FVTPL The assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in pro\ufb01t or loss. 2022 (NOK 1000) Financial instruments measured at amortised cost Financial instruments at fair value through pro\ufb01t or loss Financial instruments measured at fair value through other comprehensive income Fair value Financial assets Trade receivables 216 328 - - 216 328 Other receivables 86 252 - - 86 252 Cash and cash equivalents 191 591 - - 191 591 Assets, in total 494 171 - - 494 171 2021 (NOK 1000) Financial instruments measured at amortised cost Financial instruments at fair value through pro\ufb01t or loss Financial instruments measured at fair value through other comprehensive income Fair value Financial assets Trade receivables 149 633 - - 149 633 Other receivables 47 150 - - 47 150 Cash and cash equivalents 149 035 - - 149 035 Assets, in total 345 818 - - 345 818 Financial liabilites Borrowings (long & short term interest bearing debt) 130 988 - - 130 988 Trade payables 102 430 - - 102 430 Other current liabilities 112 541 - - 112 541 Liabilites, in total 345 959 - - 345 959 Financial liabilites Borrowings (long & short term interest bearing debt) 312 556 - - 312 556 Trade payables 63 467 - - 63 467 Public duties - - - - Other current liabilities 75 203 - - 75 203 Liabilites, in total 451 225 - - 451 225 Note 21 - Classi\ufb01cation of \ufb01nancial assets and liabilities The following of the Group\u2019s \ufb01nancial instruments are measured at amortised cost: cash and cash equivalents, trade receivables, other current receivables, trade payables, other current liabilities and all interest bearing debt. The carrying amount of cash and cash equivalens is approximately similar to fair value since these instruments have a short term to maturity. Similarly, the carrying amount of trade receivables, trade payables and other receivables/liabilities is approximately equal to fair value since they are entered into at standard terms and conditions. The fair value of the interest-bearing debt is the disclosed face value of the loans. Note 21 - Classi\ufb01cation of \ufb01nancial assets and liabilities, continued Financial liabilities 2022 Remaining contractual maturities (NOK 1000) 0-180 days 180 d-1 year 1-3 years > 3 years Total Trade payables 102 430 - - - 102 430 Other current liabilities 112 541 - - - 112 541 Interest-bearing debt to credit institutions 19 506 3 580 4 932 - 28 018 Interest-bearing debt, leases 52 871 45 800 4 179 120 102 970 Interest on interest-bearing debt to credit institutions 753 317 183 - 1 252 Interest on interest-bearing debt, leases 2 213 943 166 0 3 322 Financial liabilities, in total 290 313 50 639 9 460 121 350 533 Financial liabilities 2021 Remaining contractual maturities (NOK 1000) 0-180 days 180 d-1 year 1-3 years > 3 years Total Trade payables 63 467 - - - 63 467 Other current liabilities 75 203 - - - 75 203 Interest-bearing debt to credit institutions 8 290 7 471 14 997 - 30 757 Interest-bearing debt, leases 85 800 90 827 103 732 1 439 281 798 Interest on interest-bearing debt to credit institutions 620 444 596 - 1 660 Interest on interest-bearing debt, leases 6 407 4 301 3 047 43 13 798 Financial liabilities, in total 239 786 103 043 122 372 1 482 466 683 Note 21 - Classi\ufb01cation of \ufb01nancial assets and liabilities, continued Changes in interest-bearing debt 2022 2021 (NOK 1000) Interest bearing debt, leases Interest bearing debt to credit institutions Interest bearing debt, leases Interest bearing debt to credit institutions Opening balance 281 798 30 757 15 766 25 590 Drawdowns - - - - Repayment incl interest -311 814 -13 448 -207 185 -17 793 Interest-bearing debt from acquisition of iSurvey Group AS* - 10 709 - 22 961 Non-cash changes: Interest-bearing debt from acquisition of iSurvey Group AS* 10 327 - - - Addition IFRS 16 lease liability throughout the year 126 717 - 467 226 - Adjustment IFRS 16 lease liability -17 203 - - - Currency adjustment 55 - 131 - Accrued interest 13 090 - 5 861 - Closing balance 102 970 28 018 281 798 30 757 * Refer to note 26 for debt acquired in the iSurvey Group transaction. DISTRIBUTION NON-CURRENT AND CURRENT DEBT (NOK 1000) 2022 2021 Non-current interest-bearing debt to credit institutions 4 932 14 497 Non-current interest-bearing debt, leases 4 310 105 171 Current interest-bearing debt to credit institutions 23 086 16 260 Current interest-bearing debt, leases 98 660 176 627 Closing balance 130 988 312 556 ", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4352": { "value": "FINANCIAL ASSETS AT FVTPL The assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in pro\ufb01t or loss. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4369": { "value": "DERECOGNITION Financial assets are derecognized when the rights to receive cash \ufb02ows from the investments have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerecognitionOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4382": { "value": "Trade receivables Trade receivables are amounts due from customers for merchan- dise sold or services performed in the ordinary course of business. If collection is expected in one year or less (or in the normal operating cycle of the business if longer), they are classi\ufb01ed as current assets. If not, they are presented as non-current assets. Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method, less provision for impairment. Note 16 - Trade and other receivables (NOK 1000) 2022 2021 Trade receivables 216 328 149 633 Less: provision for impairment of trade receivables - - Current portion trade receivables 216 328 149 633 Prepayments 5 782 7 619 Revenue recognised, not billed 67 451 31 747 Other receivable 13 019 7 781 Current portion other receivables 86 252 47 150 Non-current positions - - The fair values of trade and other receivables are as follows: (NOK 1000) 2022 2021 Trade receivable 216 328 149 633 Receivables from related parties - - Loans to related parties - - Total trade receivables 216 328 149 633 Transactions with subsidiaries have been eliminated in the Group\u2019s \ufb01nancial statements and do not represent related party transactions. CHANGES IN ALLOCATION FOR LOSSES OF ACCOUNT RECEIVABLES There has been no losses or provisions for impairment of recievables in 2021 and 2022 As of 31.12., the Group had the following trade receivables which was due, but not been paid: Trade receivables Total Not due < 30 d 30-90 d 90 - 360 d > 361 d 2022 216 328 158 342 48 893 7 958 1 134 - 2021 149 633 89 452 48 472 11 673 36 - Based on previous experience with customers and assessment of intial credit risk and expected credit losses as at 31 December 2022, there is no allowance for bad debt on receivables in 2022. The main portion of overdue receivables has been paid after balance sheet date. ", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4383": { "value": "Trade receivables Trade receivables are amounts due from customers for merchan- dise sold or services performed in the ordinary course of business. If collection is expected in one year or less (or in the normal operating cycle of the business if longer), they are classi\ufb01ed as current assets. If not, they are presented as non-current assets. Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method, less provision for impairment. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4393": { "value": "Government grants Grants from the government are recognized at their fair value where there is a reasonable assurance that the grant will be received and the group will comply with all attached condi- tions. Government grants relating to costs are deferred and recognized in the consolidated statement of comprehensive over the period necessary to match them with the costs that they are intended to compensate. Government grants relating to property, plant and equipment are included in noncurrent liabilities as deferred government grants and are credited to the consolidated statement of comprehensive income on a straight- line basis over the expected lives of the related assets. ", "dimensions": { "concept": "ifrs-full:DisclosureOfGovernmentGrantsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4394": { "value": "Government grants Grants from the government are recognized at their fair value where there is a reasonable assurance that the grant will be received and the group will comply with all attached condi- tions. Government grants relating to costs are deferred and recognized in the consolidated statement of comprehensive over the period necessary to match them with the costs that they are intended to compensate. Government grants relating to property, plant and equipment are included in noncurrent liabilities as deferred government grants and are credited to the consolidated statement of comprehensive income on a straight- line basis over the expected lives of the related assets. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGovernmentGrants", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4407": { "value": "Cash and cash equivalents Cash equivalents are short-term liquid investments that can be converted instantly into cash of a known amount and have a maximum maturity of three months. Note 17 - Cash and cash equivalents (NOK 1000) 2022 2021 Cash and cash equivalents in NOK 99 497 111 211 Cash and cash equivalents in USD 53 615 16 551 Cash and cash equivalents in EUR 15 382 11 141 Cash and cash equivalents in GBP 23 097 10 132 Restricted cash equivalence hereof - - Cash and cash equivalents, in total 191 591 149 035 The company also has restricted cash related to withheld tax of NOK 10.3 million in 2022 (2021: NOK 6.4 million). The Group has a bank overdraft agreement. As at 31.12.22 the Group had NOK 20 million in unused drawing rights. RATING ON BANKS FOR CASH AA+ 56 28 A+ 11 209 - A- 180 310 148 992 BBB- 16 14 Total cash and cash equivalents 191 591 149 035 ", "dimensions": { "concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4408": { "value": "Cash and cash equivalents Cash equivalents are short-term liquid investments that can be converted instantly into cash of a known amount and have a maximum maturity of three months. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4413": { "value": "Share capital Ordinary shares are classi\ufb01ed as equity. Incremental cost directly attributable to the issue of new shares is shown in equity as a deduction, net of tax, from the proceeds. The 20 largest shareholders as of 31.12. 2021 Number of shares Ownership in per cent 1. NORTH ENERGY ASA 46 126 567 20.4% 2. WILHELMSEN NEW ENERGY AS 46 126 567 20.4% 3. SURVEY HOLDING AS 29 116 897 12.9% 4. SOBER AS 10 963 446 4.9% 5. JOSO INVEST AS 7 267 928 3.2% 6. HOLME HOLDING AS 6 338 000 2.8% 7. JT INVEST AS 5 739 539 2.5% 8. NORMAND DRIFT AS 5 000 000 2.2% 9. Danske Invest Norge Vekst 2 820 462 1.2% 10. LION INVEST AS 2 400 000 1.1% 11. CORUNA AS 2 250 000 1.0% 12. STAVA INVEST AS 2 010 000 0.9% 13. RMS INVEST AS 2 000 000 0.9% 14. TEOMAR AS 2 000 000 0.9% 15. A-\u00c5 INVEST AS 1 988 725 0.9% 16. BARRUS CAPITAL AS 1 510 090 0.7% 17. N\u00c6RINGSLIVETS HOVEDORGANISASJON 1 499 799 0.7% 18. CASTEL AS 1 144 687 0.5% 19. CONSUS AS 960 425 0.4% 20. INVICTA INVEST AS 909 179 0.4% Sum 20 largest 178 172 311 78.9% The rest of shareholders 47 553 617 21.1% Total number of shares 225 725 928 100.0% Notes Note 18 - Share capital and information about shareholders Reach Subsea\u2019s share capital amounts to NOK 225,725,928 divided into 225,725,928 shares, each with a nominal value of NOK 1. This includes 812,500 shares not yet registered. Shares not registered is related to the Companys stock option scheme. Refer to stock exchange notice on 8th of December 2022 and note 19 for further information. On 17 February 2022 the Group announced the acquisition of 100% of the shares in iSurvey Group AS from iSurvey Holding AS for NOK 135 million. The transaction was settled through the issuance of 33,846,153 shares in Reach, valued at NOK 3.25 per share, and NOK 25 million in cash. The transaction was closed in the \ufb01rst quarter of 2022. On 17 February 2022, Wilhelmsen New Energy AS, a wholly owned subsidiary of Wilh. Wilhelmsen Holding ASA, agreed to subscribe for, and be allocated, 46,126,567 new shares in Reach Subsea ASA at a subscription price of NOK 3.25 per share. The agreement also included the issuance of warrants, whereby Wilhelmsen New Energy AS have received the right to subscribe for and be allocated an additional 44,766,864 new shares in Reach Subsea ASA at a subscription price of NOK 4.00 per share, corresponding to 20% of the shares in Reach Subsea ASA after the abovementioned issue of shares to iSurvey Holding AS. The warrants have a duration of three years and can be exercised at any time. The private placement and the issuance of the war- rants was approved on an extraordinary general meeting in Reach Subsea ASA, held on 15 March 2022. After the approval by the extraordinary general meeting, Wilhelmsen New Energy AS have a combined holding of shares and warrants of 90,893,431. On February 15 2023 Reach Subsea announced and successfully executed a private placement. A total of 29,411,000 new shares was allocated by the Board of Directors. In addition the company also announced that the Board has resolved to undertake a subsequent offering of up to 3,000,000 new shares. The subscription period for the subsequent offering ended on 27 March 2023 and resulted in a total subscription of 312,635 new shares. After the completion of the private placement and the subsequent offering, the new share capital of the company is NOK 255,449,563 divided into the equivalent number of shares, each with a nominal value of NOK 1.00 Refer to note 27 for further information about the private placement and changes in owner structure. ", "dimensions": { "concept": "ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4414": { "value": "Share capital Ordinary shares are classi\ufb01ed as equity. Incremental cost directly attributable to the issue of new shares is shown in equity as a deduction, net of tax, from the proceeds. The 20 largest shareholders as of 31.12. 2021 Number of shares Ownership in per cent 1. NORTH ENERGY ASA 46 126 567 20.4% 2. WILHELMSEN NEW ENERGY AS 46 126 567 20.4% 3. SURVEY HOLDING AS 29 116 897 12.9% 4. SOBER AS 10 963 446 4.9% 5. JOSO INVEST AS 7 267 928 3.2% 6. HOLME HOLDING AS 6 338 000 2.8% 7. JT INVEST AS 5 739 539 2.5% 8. NORMAND DRIFT AS 5 000 000 2.2% 9. Danske Invest Norge Vekst 2 820 462 1.2% 10. LION INVEST AS 2 400 000 1.1% 11. CORUNA AS 2 250 000 1.0% 12. STAVA INVEST AS 2 010 000 0.9% 13. RMS INVEST AS 2 000 000 0.9% 14. TEOMAR AS 2 000 000 0.9% 15. A-\u00c5 INVEST AS 1 988 725 0.9% 16. BARRUS CAPITAL AS 1 510 090 0.7% 17. N\u00c6RINGSLIVETS HOVEDORGANISASJON 1 499 799 0.7% 18. CASTEL AS 1 144 687 0.5% 19. CONSUS AS 960 425 0.4% 20. INVICTA INVEST AS 909 179 0.4% Sum 20 largest 178 172 311 78.9% The rest of shareholders 47 553 617 21.1% Total number of shares 225 725 928 100.0% Notes Note 18 - Share capital and information about shareholders Reach Subsea\u2019s share capital amounts to NOK 225,725,928 divided into 225,725,928 shares, each with a nominal value of NOK 1. This includes 812,500 shares not yet registered. Shares not registered is related to the Companys stock option scheme. Refer to stock exchange notice on 8th of December 2022 and note 19 for further information. On 17 February 2022 the Group announced the acquisition of 100% of the shares in iSurvey Group AS from iSurvey Holding AS for NOK 135 million. The transaction was settled through the issuance of 33,846,153 shares in Reach, valued at NOK 3.25 per share, and NOK 25 million in cash. The transaction was closed in the \ufb01rst quarter of 2022. On 17 February 2022, Wilhelmsen New Energy AS, a wholly owned subsidiary of Wilh. Wilhelmsen Holding ASA, agreed to subscribe for, and be allocated, 46,126,567 new shares in Reach Subsea ASA at a subscription price of NOK 3.25 per share. The agreement also included the issuance of warrants, whereby Wilhelmsen New Energy AS have received the right to subscribe for and be allocated an additional 44,766,864 new shares in Reach Subsea ASA at a subscription price of NOK 4.00 per share, corresponding to 20% of the shares in Reach Subsea ASA after the abovementioned issue of shares to iSurvey Holding AS. The warrants have a duration of three years and can be exercised at any time. The private placement and the issuance of the war- rants was approved on an extraordinary general meeting in Reach Subsea ASA, held on 15 March 2022. After the approval by the extraordinary general meeting, Wilhelmsen New Energy AS have a combined holding of shares and warrants of 90,893,431. On February 15 2023 Reach Subsea announced and successfully executed a private placement. A total of 29,411,000 new shares was allocated by the Board of Directors. In addition the company also announced that the Board has resolved to undertake a subsequent offering of up to 3,000,000 new shares. The subscription period for the subsequent offering ended on 27 March 2023 and resulted in a total subscription of 312,635 new shares. After the completion of the private placement and the subsequent offering, the new share capital of the company is NOK 255,449,563 divided into the equivalent number of shares, each with a nominal value of NOK 1.00 Refer to note 27 for further information about the private placement and changes in owner structure. ", "dimensions": { "concept": "ifrs-full:DisclosureOfIssuedCapitalExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4415": { "value": "Share capital Ordinary shares are classi\ufb01ed as equity. Incremental cost directly attributable to the issue of new shares is shown in equity as a deduction, net of tax, from the proceeds. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIssuedCapitalExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4420": { "value": "Trade payables Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of busi- ness from suppliers. Accounts payable are classi\ufb01ed as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current liabilities. Trade payables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method. ", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4421": { "value": "Trade payables Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of busi- ness from suppliers. Accounts payable are classi\ufb01ed as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current liabilities. Trade payables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4444": { "value": "Taxes The tax expense in the period comprises current tax and changes in deferred taxes. Tax expense is recognized in the consolidated statement of comprehensive income, except to the extent that it relates to items that are recognized in other comprehensive income, or directly in equity. In such cases the relating tax expense is also recognized in other comprehensive income or directly in equity, respectively. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the bal- ance sheet date in the countries where the company and its subsidiaries operate and generate taxable income. Deferred income tax is recognized, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated \ufb01nancial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realised, or the deferred income tax liability is settled. Deferred income tax assets are recognized only to the extent that it is probable that future taxable pro\ufb01t will be available against which the temporary differences can be utilised. Income taxes Judgment is required in determining the provision for income taxes, and the recognition of deferred tax assets. During the ordi- nary course of business, transactions and calculations occur for which the ultimate tax effect is uncertain. The Group recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the \ufb01nal outcome of these matters is different from the amounts that were initially rec- ognized, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. The accounting for deferred income tax asset relies upon management\u2019s judgment of the Group\u2019s ability to generate future positive taxable income in each respective jurisdiction. Note 10 - Taxes (NOK 1000) 2022 2021 Taxes payable 9 344 - Changes in deferred taxes 16 490 (20 760) Taxes, in total 25 838 (20 760) DEFERRED TAXES / (DEFERRED TAX ASSETS) Temporary differences: Other \ufb01xed assets (31 709) (17 537) Financial leases 1 509 2 943 Fixed-price contracts - - Inventories (934) (4 790) Accruals (4 025) (3 669) Right-of-use assets (12 657) Intangible assets 25 750 Tax loss carried forward (91 184) (159 469) Temporary differences, in total (113 251) (182 521) Deferred tax assets (24 915) (40 151) Not recognized deferred tax assets - - Deferred tax assets in balance sheet* 24 915 40 151 *In March 2022 Reach Subsea aquired iSurvey Group AS. The transaction was completed in end March 2022. Deferred tax assets incorporated at closing was NOK 7.85 million while deferred tax related to exess values was estimated to NOK 6.60 million. Net deferred tax asset related to the acquisition was NOK 1.25 million and were recognized in the balance sheet as per end March 2022. Refer to note 26 for further details. Deferred tax assets are recognized in the balance sheet based on expected utilization of tax losses carried forward and temporary differences. The carrying amount of deferred income tax assets are reviewed at each balance sheet date and reduced to the extent that it is no longer probable that suf\ufb01cient taxable pro\ufb01t will be available to allow all or part of the deferred income tax asset to be utilized. Unrecognized deferred income tax assets are reassessed at each balance sheet dateand are recognized to the extent that it has become probable that future taxable pro\ufb01t will allow the deferred tax asset to be recovered. Note 10 - Taxes, continued (NOK 1000) 31.12.2022 31.12.2021 Reconciliation from nominal to actual tax rate: Pro\ufb01t & loss before taxes 98 023 73 046 Nominal tax rate 22 % 22 % Anticipated income tax due to nominal tax rate 21 565 16 070 Actual tax cost 25 838 (20 760) Deviation 4 272 (36 830) Tax effects of: Permanent differences (1 421) 3 878 Effect of tax rates outside Norway different from 22% (2 852) - Changes in deferred tax assets, previously not recognized - 32 952 Explanation (4 272) 36 830 Effective tax rate 26 % -28 % Payable taxes in the balance sheet Payable tax in the tax charge (9 344) - Advances paid on tax charge 1 491 - Payable tax in the balance sheet (7 853) - ", "dimensions": { "concept": "ifrs-full:DisclosureOfIncomeTaxExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4445": { "value": "Taxes The tax expense in the period comprises current tax and changes in deferred taxes. Tax expense is recognized in the consolidated statement of comprehensive income, except to the extent that it relates to items that are recognized in other comprehensive income, or directly in equity. In such cases the relating tax expense is also recognized in other comprehensive income or directly in equity, respectively. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the bal- ance sheet date in the countries where the company and its subsidiaries operate and generate taxable income. Deferred income tax is recognized, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated \ufb01nancial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realised, or the deferred income tax liability is settled. Deferred income tax assets are recognized only to the extent that it is probable that future taxable pro\ufb01t will be available against which the temporary differences can be utilised. Income taxes Judgment is required in determining the provision for income taxes, and the recognition of deferred tax assets. During the ordi- nary course of business, transactions and calculations occur for which the ultimate tax effect is uncertain. The Group recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the \ufb01nal outcome of these matters is different from the amounts that were initially rec- ognized, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. The accounting for deferred income tax asset relies upon management\u2019s judgment of the Group\u2019s ability to generate future positive taxable income in each respective jurisdiction. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4458": { "value": "Deferred income tax is recognized, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated \ufb01nancial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realised, or the deferred income tax liability is settled. Deferred income tax assets are recognized only to the extent that it is probable that future taxable pro\ufb01t will be available against which the temporary differences can be utilised. Note 10 - Taxes (NOK 1000) 2022 2021 Taxes payable 9 344 - Changes in deferred taxes 16 490 (20 760) Taxes, in total 25 838 (20 760) DEFERRED TAXES / (DEFERRED TAX ASSETS) Temporary differences: Other \ufb01xed assets (31 709) (17 537) Financial leases 1 509 2 943 Fixed-price contracts - - Inventories (934) (4 790) Accruals (4 025) (3 669) Right-of-use assets (12 657) Intangible assets 25 750 Tax loss carried forward (91 184) (159 469) Temporary differences, in total (113 251) (182 521) Deferred tax assets (24 915) (40 151) Not recognized deferred tax assets - - Deferred tax assets in balance sheet* 24 915 40 151 *In March 2022 Reach Subsea aquired iSurvey Group AS. The transaction was completed in end March 2022. Deferred tax assets incorporated at closing was NOK 7.85 million while deferred tax related to exess values was estimated to NOK 6.60 million. Net deferred tax asset related to the acquisition was NOK 1.25 million and were recognized in the balance sheet as per end March 2022. Refer to note 26 for further details. Deferred tax assets are recognized in the balance sheet based on expected utilization of tax losses carried forward and temporary differences. The carrying amount of deferred income tax assets are reviewed at each balance sheet date and reduced to the extent that it is no longer probable that suf\ufb01cient taxable pro\ufb01t will be available to allow all or part of the deferred income tax asset to be utilized. Unrecognized deferred income tax assets are reassessed at each balance sheet dateand are recognized to the extent that it has become probable that future taxable pro\ufb01t will allow the deferred tax asset to be recovered. Note 10 - Taxes, continued (NOK 1000) 31.12.2022 31.12.2021 Reconciliation from nominal to actual tax rate: Pro\ufb01t & loss before taxes 98 023 73 046 Nominal tax rate 22 % 22 % Anticipated income tax due to nominal tax rate 21 565 16 070 Actual tax cost 25 838 (20 760) Deviation 4 272 (36 830) Tax effects of: Permanent differences (1 421) 3 878 Effect of tax rates outside Norway different from 22% (2 852) - Changes in deferred tax assets, previously not recognized - 32 952 Explanation (4 272) 36 830 Effective tax rate 26 % -28 % Payable taxes in the balance sheet Payable tax in the tax charge (9 344) - Advances paid on tax charge 1 491 - Payable tax in the balance sheet (7 853) - ", "dimensions": { "concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4459": { "value": "Deferred income tax is recognized, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated \ufb01nancial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realised, or the deferred income tax liability is settled. Deferred income tax assets are recognized only to the extent that it is probable that future taxable pro\ufb01t will be available against which the temporary differences can be utilised. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4473": { "value": "Borrowings Borrowings are recognized initially at fair value, net of trans- action costs incurred. Borrowings are subsequently carried at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the consolidated statement of comprehensive income over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recog- nized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is cap- italized as a pre-payment for liquidity services and amor- tized over the period of the facility to which it relates. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4474": { "value": "Borrowings Borrowings are recognized initially at fair value, net of trans- action costs incurred. Borrowings are subsequently carried at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the consolidated statement of comprehensive income over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recog- nized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is cap- italized as a pre-payment for liquidity services and amor- tized over the period of the facility to which it relates. Note 22 - Borrowings (NOK 1000) 2022 2021 Non current Bank borrowings 4 854 13 938 Lease liabilities to credit institutions (IFRS 16) 78 559 Other lease liabilities ( IFRS 16) 4 310 105 171 Total 9 242 119 668 Current Bank borrowings 20 746 11 584 Lease liabilities to credit institutions(IFRS 16) 2 339 4 676 Other lease liabilities ( IFRS 16) 98 661 176 627 121 746 192 887 Total borrowings 130 988 312 556 Bank borrowings \u2018Bank borrowings mature until 2024 and bear average coupons of 5.0 % annually. The bank borrowings are subject to industry- relevant covenants. Due to changes in equity and the \ufb01nancing of ongoing capex-projects the existing covenants have been updated in 2022. The \ufb01nancial covenants are as follows: \u2022 Minimum liquidity: Cash and cash equivalents, including any undrawn and available part of the over- draft facility with SR-Bank, shall at all times to be minimum NOK 40 million. \u2022 Debt service Coverage Ratio: The ratio of last 12 months\u2019 (LTM) EBITDA1) to the next 12 months\u2019 total estimated interest and instalments on Interest Bearing Debt 1) (excl IFRS16 install- ments/incl. lease liabilities to credit institutions) shall at all times be minimum 2.00. \u2022 Booked Equity shall be minimum NOK 350 million and Booked Equity Ratio shall be minimum 25%. As of 31 December 2022 the liquidity position (including overdraft facility) is 211.5 million, the Debt service Coverage Ratio is 6.9, and Booked equity NOK 579.4 million/60.9%. All \ufb01nancial covenants are well within the thresholds mentioned above. Please note that the \ufb01nancial covenants in the groups debt facilities exclude the effects from IFRS 16, and therefore can not be directly derived from the groups \ufb01nancial statements. Total borrowings to bank and \ufb01nancial institutions includes secured liabilities (bank and collateralised borrowings) of NOK 28.0 million (2021: NOK 30.8 million). Bank borrowings are secured by equipment and receivables of the group (note 14). The carrying amounts and fair value of the interest-bearing debts are as follows: Carrying amount Fair value (NOK 1000) 2022 2021 2022 2021 Bank borrowings 25 600 25 522 25 600 25 522 Lease liabilities to credit institutions(IFRS 16) 2 418 5 235 2 418 5 235 Other lease liabilities (IFRS 16) 102 970 281 798 102 970 281 798 Sum 130 988 312 556 130 988 312 556 The fair value of Bank borrowings equals their carrying amount, as the impact of discounting is not signi\ufb01cant. The fair values are based on cash \ufb02ows discounted using a rate based on the borrowing rate of 5.0 % and are within level 3 of the fair value hierarchy. The carrying amounts of the group\u2019s borrowings are all denominated in Norwegian kroner. ", "dimensions": { "concept": "ifrs-full:DisclosureOfBorrowingsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4475": { "value": "Borrowings Borrowings are recognized initially at fair value, net of trans- action costs incurred. Borrowings are subsequently carried at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the consolidated statement of comprehensive income over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recog- nized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is cap- italized as a pre-payment for liquidity services and amor- tized over the period of the facility to which it relates. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4483": { "value": "Fees paid on the establishment of loan facilities are recog- nized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is cap- italized as a pre-payment for liquidity services and amor- tized over the period of the facility to which it relates", "dimensions": { "concept": "ifrs-full:DisclosureOfBorrowingCostsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4484": { "value": "Fees paid on the establishment of loan facilities are recog- nized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is cap- italized as a pre-payment for liquidity services and amor- tized over the period of the facility to which it relates", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingCostsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4495": { "value": "Share-based payments The group has an equity-settled, share-based compensation plan, under which the entity receives services from employ- ees as consideration for equity instruments (options) of the group. The fair value of the employee services received in exchange for the grant of the options is recognized as an expense. The total amount to be expensed is determined by reference to the fair value of the options granted: \u2022 including any market performance conditions (for example, an entity\u2019s share price); \u2022 excluding the impact of any service and non-market performance vesting conditions (for example, pro\ufb01tability, sales growth targets and remaining an employee of the entity over a speci\ufb01ed time period); and \u2022 including the impact of any non-vesting conditions (for example, the requirement for employees to save). Non-market performance and service conditions are included in assumptions about the number of options that are expected to vest. The total expense is recognized over the vesting period, which is the period over which all of the speci\ufb01ed vesting conditions are to be satis\ufb01ed. At the end of each reporting period, the group revises its estimates of the number of options that are expected to vest based on the non-market vesting conditions. It rec- ognizes the impact of the revision to original estimates, if any, in the consolidated statement of comprehensive income, with a corresponding adjustment to equity. When the options are exercised, the company issues new shares. The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium. The grant by the company of options over its equity instru- ments to the employees of subsidiary undertakings in the group is treated as a capital contribution. The fair value of employee services received, measured by reference to the grant date fair value, is recognized over the vesting period as an increase to investment in subsidiary undertakings, with a corresponding credit to equity in the parent entity accounts. The social security contributions payable in connection with the grant of the share options is considered an integral part of the grant itself, and the charge will be treated as a cash-settled transaction. Wages and social costs The company has a de\ufb01ned contribution plan that complies with the requirements of the Mandatory Occupational Pension Act. Total cost during the year is as speci\ufb01ed above. COMPENSATION AND BENEFITS TO MANAGEMENT Guidelines for remuneration The company\u2019s guideline for management compensation and bene\ufb01ts is to offer competitive conditions to secure continuity in the management group. Reach Subseas shall offer bene\ufb01ts as for comparable Norwegian companies. In accordance with Section 6-16 b. (2) of the Norwegian Public Limited Liability Companies Act and the Norwegian regulations on guidelines and report on remuneration for executives, the Group will publish a separate report on remuneration to executives for presentation at the Annual General Meeting on 31 May 2023. In addition to detailed information on paid and pending remuneration to directors for the 2022 accounting year, the report on remuneration for directors will contain an overview of performance targets that form the basis for variable remuneration. Shareholdings and allocated shares will also be included. Compensation to CEO, CFO, CCO and COO is speci\ufb01ed below. (NOK 1000) 2022 2021 Salaries and wages including holiday allowance 201 172 98 363 Social security tax 29 004 14 525 Pensions 12 256 7 017 Other bene\ufb01ts 7 363 2 468 Option cost 1 235 - Wages and social costs, in total 251 031 122 374 Number of man-years 253 109 Notes (NOK 1000) Salary Pension costs Other comp Share options /granted 2022 Jostein Alendal, Managing Director CEO 2 039 94 616 300 Birgitte W. Johansen, CFO 1 919 100 583 300 B\u00e5rd Thuen H\u00f8gheim, CCO 1 919 87 616 300 Inge Grutle, COO 1 919 87 616 300 Total 7 795 367 2 431 1 200 Note 8 - Personnel expenses (NOK 1000) Position 2022 2021 Rachid Bendriss Chairman of the Board 458 361 K\u00e5re Johannes Lie Vice-Chairman of the Board (until June 2022) 118 183 Anders Onarheim Board member 231 183 Martha K. Bakkevig Board member 231 183 Arvid St\u00e5le Pettersen Board member (from June 2022) 113 - Espen Gjerde Board member (from June 2022) 113 - Sverre B. Mikkelsen Board member (until February 2022) 61 235 Kristine Skeie Board member 256 183 Ingunn \u00d8. Iveland Board member 287 219 (NOK 1000) Salary Pension costs Other comp Share options /granted 2021 Jostein Alendal, Managing Director CEO 1 780 90 300 450 Birgitte W. Johansen, CFO 1 559 82 300 450 B\u00e5rd Thuen H\u00f8gheim, CCO 1 559 82 300 450 Inge Grutle, COO 1 559 89 300 450 Total 6 457 344 1 200 1 800 Managing director has no agreement regarding early retirement. Managing director will receive NOK 1.5 million in payment if employment is terminated. CFO has no agreement regarding early retirement and no agreement on payment in case of termination of employment. \u2018In 2021 the Board of directors of Reach Subsea ASA approved a stock option scheme to further align the interests of the participating employees in Reach Subsea with those of the shareholders. The stock option scheme was \ufb01nalised with a signed agreement between the company and Management and certain key employees 15.12.2021. Management and cer- tain key employees of the Reach Subsea-group is granted the right to acquire up to a certain maximum number of shares in the Company at a \ufb01xed strike price (\u201cthe Option\u201d). The strike price is set equal to the volume weighted average share price of the Company\u00b4s stock traded on the Oslo Stock Exchange 10 days prior to the \ufb01nalization of the option scheme. The options are vested with 1/3 each year, over a period of three years until 31.12.2024. The options are non-tradable and con- ditional upon the participant being employed by the Reach Subsea-group at the vesting date. The stock option plan constitued a maximum of 3,000,000 options equivalent to a similar number of Reach Subsea ASA shares. The fair value at grant date was deter- mined using a Black Scholes Model. The most signi\ufb01cant inputs and assumptions in determining fair value at grant date was: Excercise price: NOK 3.0 Share price at grant date: NOK 3.0 Expected volatility: NOK 56.14% Risk free interest rate: NOK 1.092% Term of options: 3 years Note 18 - Share capital and information about shareholders, continued Note 19 - Sharebased payments 2022 2021 Average exercise price per share option Number of options Average exercise price per share option Number of options At 1 January 3.00 3 000 000 - - Granted - - 3.00 3 000 000 Forfeited - - - - Exercised* 2.82 812 500 - - Expired - 187 500 - - At 31 December 2.82 2 000 000 3.00 3 000 000 * The initial exercise price of 3.0 were in 2022 adjusted for dividends paid in 2022, making the actual exercise price 2.82. The group has recognised NOK 1.6 million (including social security tax) in cost related to the options in 2022 (2021: NOK 0). The group has no legal or constructive obligation to repurchase or settle the options in cash. ", "dimensions": { "concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4496": { "value": "Share-based payments The group has an equity-settled, share-based compensation plan, under which the entity receives services from employ- ees as consideration for equity instruments (options) of the group. The fair value of the employee services received in exchange for the grant of the options is recognized as an expense. The total amount to be expensed is determined by reference to the fair value of the options granted: \u2022 including any market performance conditions (for example, an entity\u2019s share price); \u2022 excluding the impact of any service and non-market performance vesting conditions (for example, pro\ufb01tability, sales growth targets and remaining an employee of the entity over a speci\ufb01ed time period); and \u2022 including the impact of any non-vesting conditions (for example, the requirement for employees to save). Non-market performance and service conditions are included in assumptions about the number of options that are expected to vest. The total expense is recognized over the vesting period, which is the period over which all of the speci\ufb01ed vesting conditions are to be satis\ufb01ed. At the end of each reporting period, the group revises its estimates of the number of options that are expected to vest based on the non-market vesting conditions. It rec- ognizes the impact of the revision to original estimates, if any, in the consolidated statement of comprehensive income, with a corresponding adjustment to equity. When the options are exercised, the company issues new shares. The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium. The grant by the company of options over its equity instru- ments to the employees of subsidiary undertakings in the group is treated as a capital contribution. The fair value of employee services received, measured by reference to the grant date fair value, is recognized over the vesting period as an increase to investment in subsidiary undertakings, with a corresponding credit to equity in the parent entity accounts. The social security contributions payable in connection with the grant of the share options is considered an integral part of the grant itself, and the charge will be treated as a cash-settled transaction. \u2018In 2021 the Board of directors of Reach Subsea ASA approved a stock option scheme to further align the interests of the participating employees in Reach Subsea with those of the shareholders. The stock option scheme was \ufb01nalised with a signed agreement between the company and Management and certain key employees 15.12.2021. Management and cer- tain key employees of the Reach Subsea-group is granted the right to acquire up to a certain maximum number of shares in the Company at a \ufb01xed strike price (\u201cthe Option\u201d). The strike price is set equal to the volume weighted average share price of the Company\u00b4s stock traded on the Oslo Stock Exchange 10 days prior to the \ufb01nalization of the option scheme. The options are vested with 1/3 each year, over a period of three years until 31.12.2024. The options are non-tradable and con- ditional upon the participant being employed by the Reach Subsea-group at the vesting date. The stock option plan constitued a maximum of 3,000,000 options equivalent to a similar number of Reach Subsea ASA shares. The fair value at grant date was deter- mined using a Black Scholes Model. The most signi\ufb01cant inputs and assumptions in determining fair value at grant date was: Excercise price: NOK 3.0 Share price at grant date: NOK 3.0 Expected volatility: NOK 56.14% Risk free interest rate: NOK 1.092% Term of options: 3 years Note 18 - Share capital and information about shareholders, continued Note 19 - Sharebased payments 2022 2021 Average exercise price per share option Number of options Average exercise price per share option Number of options At 1 January 3.00 3 000 000 - - Granted - - 3.00 3 000 000 Forfeited - - - - Exercised* 2.82 812 500 - - Expired - 187 500 - - At 31 December 2.82 2 000 000 3.00 3 000 000 * The initial exercise price of 3.0 were in 2022 adjusted for dividends paid in 2022, making the actual exercise price 2.82. The group has recognised NOK 1.6 million (including social security tax) in cost related to the options in 2022 (2021: NOK 0). The group has no legal or constructive obligation to repurchase or settle the options in cash. ", "dimensions": { "concept": "ifrs-full:DisclosureOfSharebasedPaymentArrangementsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4497": { "value": "Share-based payments The group has an equity-settled, share-based compensation plan, under which the entity receives services from employ- ees as consideration for equity instruments (options) of the group. The fair value of the employee services received in exchange for the grant of the options is recognized as an expense. The total amount to be expensed is determined by reference to the fair value of the options granted: \u2022 including any market performance conditions (for example, an entity\u2019s share price); \u2022 excluding the impact of any service and non-market performance vesting conditions (for example, pro\ufb01tability, sales growth targets and remaining an employee of the entity over a speci\ufb01ed time period); and \u2022 including the impact of any non-vesting conditions (for example, the requirement for employees to save). Non-market performance and service conditions are included in assumptions about the number of options that are expected to vest. The total expense is recognized over the vesting period, which is the period over which all of the speci\ufb01ed vesting conditions are to be satis\ufb01ed. At the end of each reporting period, the group revises its estimates of the number of options that are expected to vest based on the non-market vesting conditions. It rec- ognizes the impact of the revision to original estimates, if any, in the consolidated statement of comprehensive income, with a corresponding adjustment to equity. When the options are exercised, the company issues new shares. The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium. The grant by the company of options over its equity instru- ments to the employees of subsidiary undertakings in the group is treated as a capital contribution. The fair value of employee services received, measured by reference to the grant date fair value, is recognized over the vesting period as an increase to investment in subsidiary undertakings, with a corresponding credit to equity in the parent entity accounts. The social security contributions payable in connection with the grant of the share options is considered an integral part of the grant itself, and the charge will be treated as a cash-settled transaction. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4498": { "value": "Share-based payments The group has an equity-settled, share-based compensation plan, under which the entity receives services from employ- ees as consideration for equity instruments (options) of the group. The fair value of the employee services received in exchange for the grant of the options is recognized as an expense. The total amount to be expensed is determined by reference to the fair value of the options granted: \u2022 including any market performance conditions (for example, an entity\u2019s share price); \u2022 excluding the impact of any service and non-market performance vesting conditions (for example, pro\ufb01tability, sales growth targets and remaining an employee of the entity over a speci\ufb01ed time period); and \u2022 including the impact of any non-vesting conditions (for example, the requirement for employees to save). Non-market performance and service conditions are included in assumptions about the number of options that are expected to vest. The total expense is recognized over the vesting period, which is the period over which all of the speci\ufb01ed vesting conditions are to be satis\ufb01ed. At the end of each reporting period, the group revises its estimates of the number of options that are expected to vest based on the non-market vesting conditions. It rec- ognizes the impact of the revision to original estimates, if any, in the consolidated statement of comprehensive income, with a corresponding adjustment to equity. When the options are exercised, the company issues new shares. The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium. The grant by the company of options over its equity instru- ments to the employees of subsidiary undertakings in the group is treated as a capital contribution. The fair value of employee services received, measured by reference to the grant date fair value, is recognized over the vesting period as an increase to investment in subsidiary undertakings, with a corresponding credit to equity in the parent entity accounts. The social security contributions payable in connection with the grant of the share options is considered an integral part of the grant itself, and the charge will be treated as a cash-settled transaction. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSharebasedPaymentTransactionsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4572": { "value": "Contingent liabilities are not recognized in the \ufb01nan- cial statements. Signi\ufb01cant contingent liabilities are dis- closed, with the exception of contingent liabilities where the probability of the liability occurring is remote. A contingent asset is not recognized in the annual \ufb01nancial statements but is disclosed if it is probable that a bene\ufb01t will accrue to the Group. ", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherProvisionsContingentLiabilitiesAndContingentAssetsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4573": { "value": "Contingent liabilities are not recognized in the \ufb01nan- cial statements. Signi\ufb01cant contingent liabilities are dis- closed, with the exception of contingent liabilities where the probability of the liability occurring is remote. A contingent asset is not recognized in the annual \ufb01nancial statements but is disclosed if it is probable that a bene\ufb01t will accrue to the Group. SHORT TERM LEASES Costs relating to operational leases recognized in the income statement for 2022 is NOK 6.4 million, whereof NOK 3.4 million in real estate rental. The real estate rental is short term with 3 months termination notice. CAPEX AND VESSEL CAPACITY The Reach Remote project is expected to amount to approximately NOK 400 million. As of December 31 the company has capitalized NOK 116.4 million as Asset under construction. In addition, the company has \ufb01nanced two eROVs through leasing. As of December 31 the ROVs are under construction, and costs not recognised related to the ROVs amounts to NOK 20.8 million. The ROVs will be recognised in the balance sheet at commencement date. Besides the Reach Remote project, Reach has taken multiple steps to secure vessel capacity at competitive terms. Investments in 2023 associated with these vessels is expected to amount to approximately NOK 260 million (including the acquisition of Edda Sun), and encompass equipment, upgrades and mobilization activities for three vessels (Edda Sun, Deep Cygnus, and Go Electra). Reach has secured bank and lease \ufb01nancing of NOK 160 million to partly fund these investments. On February 23 the company announced a strategic partnership with Eidesvik Offshore for ownership and operation of the ROV sup- port vessel Edda Sun. The new joint venture (JV) is owned 50.1 percent by Eidesvik and 49.9 percent by Reach Subsea. Under its new name, Viking Reach, the vessel will commence on a 6-year contract between the JV and Reach Subsea start- ing in Q2. The contract will increase interest-bearing debt (leases) with an estimated amount of NOK 322 million. In addition to Viking Reach, charter commitments for vessels mobilized in 1Q23 (Deep Cygnus, Go Electra, Olympic Triton, Olympic Zeus) will increase interest bearing debt (leases) with an estimated amount of NOK 750 million. The company has also entered into a new rental agreements for of\ufb01ces in Haugesund in 1Q23 which will inrease interest-bearing debt with an estimated amount of NOK 10 million. Note 23 - Commitments ", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4574": { "value": "Contingent liabilities are not recognized in the \ufb01nan- cial statements. Signi\ufb01cant contingent liabilities are dis- closed, with the exception of contingent liabilities where the probability of the liability occurring is remote. A contingent asset is not recognized in the annual \ufb01nancial statements but is disclosed if it is probable that a bene\ufb01t will accrue to the Group. ", "dimensions": { "concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4575": { "value": "Contingent liabilities are not recognized in the \ufb01nan- cial statements. Signi\ufb01cant contingent liabilities are dis- closed, with the exception of contingent liabilities where the probability of the liability occurring is remote. A contingent asset is not recognized in the annual \ufb01nancial statements but is disclosed if it is probable that a bene\ufb01t will accrue to the Group. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForContingentLiabilitiesAndContingentAssetsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4585": { "value": "Recognition of revenue GENERAL Revenue from sale of services is recognized in accordance with IFRS 15. Revenues are shown net of value added tax and discounts. SALES OF SERVICES The Group revenue comprises revenue recognized from contracts with customers for the provision of subsea services. Although scope of work varies from project to project, there are similarities in all projects, such as mobilisation and demobilisation of vessel, vessel hire, ROV crewing etc. These elements are highly related and comprise an integrated service negotiated as a whole with the customer. As such, all elements within a contract is normally considered to be one single performance obligation. Reach Subsea reviews all customer contracts to assess if there are elements that may indicate several performance obligations within one contract. Such elements may be use of several vessel spreads or project phases requiring separate mobilisation of vessels. For sales of services under \ufb01xed rate contracts, revenue is recog- nized in the accounting period in which the services are rendered, by reference to stage of completion of the speci\ufb01c transaction and assessed on the basis of the actual service provided as a propor- tion of the total services to be provided. For other services, reve- nue is recognized based on the agreed rate as the services are ren- dered. The transaction price for day-rate contracts is determined by the expected value approach being the number of scheduled days multiplied with dayrate. Where the contracts include multiple performance obligations, the transaction price is allocated to each performance obligation based on the stand-alone selling prices. For contracts with pricing elements that need to be estimated, rev- enue is recognised at best estimate only when it is highly probable that its inclusion will not result in a signi\ufb01cant revenue reversal in the future when the uncertainty has been subsequently resolved. Revenue is recognized as control is passed, either over time or at a point in time. Control of an asset is de\ufb01ned as the ability to direct the use of and obtain substantially all of the remaining bene\ufb01ts from the asset. This includes the ability to prevent others from directing the use of and obtaining the bene\ufb01ts from the asset. The bene\ufb01ts related to the asset are the potential cash \ufb02ows that may be obtained directly or indirectly. Reach Subsea has concluded that customers receive bene\ufb01ts from the subsea services as they are performed, and therefore recog- nize revenue over the time the subsea service is provided. Incremental costs of obtaining a contract is recognized as an asset if we expect to recover these costs. However, incremental costs are limited to the costs that would not have incurred if the contract had not been successfully obtained. No such cost has been recognized in 2022. REVENUE FROM LEASES Revenue from time-charter leases is recognized using a straight-line basis over the term of the contract 2022 (NOK 1000) Oil and gas Renewable/Other Total Revenue from contracts with customers 831 413 186 715 1 018 127 Revenue from other contracts* 122 986 21 707 144 693 Segment revenue 954 399 208 422 1 162 821 2021 (NOK 1000) Oil and gas Renewable/Other Total Revenue from contracts with customers 296 823 135 963 432 786 Revenue from other contracts* 175 094 65 373 240 467 Segment revenue 471 917 201 336 673 253 Timing of revenue recognition Oil and gas Renewable/Other Total At a point in time - - - Over time 954 399 208 422 1 162 821 Sum 471 917 201 336 673 253 Timing of revenue recognition Oil and gas Renewable/Other Total At a point in time - - - Over time 471 917 201 336 673 253 Sum 471 917 201 336 673 253 Note 25 - Contract with customers The Groups revenue comprises of revenue recognized from contract with customers for the provision of subsea services. Reach Subsea has assessed its contracts with customers and concluded that these fall under the de\ufb01nition of customer contracts in IFRS 15, with one exception. Revenue derived from services provided to projects that fall under the cooperation agreement with Ocean In\ufb01nity Sweden AB (OI) does not constitute as revenue from a customer contract. As such, this revenue is recognised on a monthly basis in line with rendering of services to OI. Note 25 - Contract with customers REVENUE BY REGION (NOK 1000) 2022 2021 Norway 387 938 232 074 UK 262 720 133 942 US 156 730 92 740 Egypt 114 337 - Sweden 77 753 34 800 Germany 51 553 63 464 Trinidad og Tobago 39 856 57 307 Singapore 29 499 - France 21 491 7 098 Greece 8 463 - Ivory Coast 5 293 - Malta 2 437 - Morocco 1 963 - Denmark 1 200 8 575 Spain 932 34 847 Israel 631 - Philippines 23 - Brazil - 8 406 Total 1 162 821 673 253 FIXED-PRICE CONTRACTS No \ufb01xed-price contracts were entered into in 2022. (NOK 1000) 31.12.2022 31.12.2021 Revenue recognised from \ufb01xed-price contract - - Cost recognised for \ufb01xed-price contract - - Net - - ASSETS AND LIABILITIES RELATED TO CONTRACTS WITH CUSTOMERS The group has recognized the following assets and liabilities related to contracts with customers: (NOK 1000) 31.12.2022 31.12.2021 Current contract assets 67 451 31 747 Loss allowance - - Total contract assets 67 451 31 747 Contract liabilities - - Total current contract liabilities - - Revenue recognised that was included in contract liability balance at beginning of period - - Revenue recognised from performance obligations satis\ufb01ed in previous periods - 75 The group has not recognised any assets from costs incurred to ful\ufb01l a contract at 31 December 2022 (2021: 0). Note 25 - Contract with customers, continued ", "dimensions": { "concept": "ifrs-full:DisclosureOfRevenueExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4586": { "value": "Recognition of revenue GENERAL Revenue from sale of services is recognized in accordance with IFRS 15. Revenues are shown net of value added tax and discounts. SALES OF SERVICES The Group revenue comprises revenue recognized from contracts with customers for the provision of subsea services. Although scope of work varies from project to project, there are similarities in all projects, such as mobilisation and demobilisation of vessel, vessel hire, ROV crewing etc. These elements are highly related and comprise an integrated service negotiated as a whole with the customer. As such, all elements within a contract is normally considered to be one single performance obligation. Reach Subsea reviews all customer contracts to assess if there are elements that may indicate several performance obligations within one contract. Such elements may be use of several vessel spreads or project phases requiring separate mobilisation of vessels. For sales of services under \ufb01xed rate contracts, revenue is recog- nized in the accounting period in which the services are rendered, by reference to stage of completion of the speci\ufb01c transaction and assessed on the basis of the actual service provided as a propor- tion of the total services to be provided. For other services, reve- nue is recognized based on the agreed rate as the services are ren- dered. The transaction price for day-rate contracts is determined by the expected value approach being the number of scheduled days multiplied with dayrate. Where the contracts include multiple performance obligations, the transaction price is allocated to each performance obligation based on the stand-alone selling prices. For contracts with pricing elements that need to be estimated, rev- enue is recognised at best estimate only when it is highly probable that its inclusion will not result in a signi\ufb01cant revenue reversal in the future when the uncertainty has been subsequently resolved. Revenue is recognized as control is passed, either over time or at a point in time. Control of an asset is de\ufb01ned as the ability to direct the use of and obtain substantially all of the remaining bene\ufb01ts from the asset. This includes the ability to prevent others from directing the use of and obtaining the bene\ufb01ts from the asset. The bene\ufb01ts related to the asset are the potential cash \ufb02ows that may be obtained directly or indirectly. Reach Subsea has concluded that customers receive bene\ufb01ts from the subsea services as they are performed, and therefore recog- nize revenue over the time the subsea service is provided. Incremental costs of obtaining a contract is recognized as an asset if we expect to recover these costs. However, incremental costs are limited to the costs that would not have incurred if the contract had not been successfully obtained. No such cost has been recognized in 2022. REVENUE FROM LEASES Revenue from time-charter leases is recognized using a straight-line basis over the term of the contract ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4638": { "value": "Cash \ufb02ow statement The cash \ufb02ow statement is prepared according to the indirect method. ", "dimensions": { "concept": "ifrs-full:DisclosureOfCashFlowStatementExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4639": { "value": "Cash \ufb02ow statement The cash \ufb02ow statement is prepared according to the indirect method. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForCashFlowsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4655": { "value": "Note 3 - Financial Risk Management 3.1 Financial Risk Factors The Group\u2019s activities expose it to a variety of \ufb01nancial risks: market risk (including currency risk, fair value interest rate risk, cash \ufb02ow interest rate risk and price risk), credit risk and liquidity risk. The Group\u2019s overall risk management program focuses on the unpredictability of \ufb01nancial markets and seeks to minimise potential adverse effects on the Group\u2019s \ufb01nancial performance. Risk management for the Group is carried out by Management. Management identi\ufb01es, evaluates, and hedges \ufb01nancial risks in close co-operation with the operating units within the Group. The Board approves the principles for overall risk management, as well as policies covering speci\ufb01c areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative \ufb01nancial instruments and investment of excess liquidity. 3.1.1 Market Risk FOREIGN EXCHANGE RISK The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, pri- marily with respect to the NOK, USD, GBP and EUR. Foreign exchange risk arises from future commercial transactions and recognized assets or liabilities. Potential currency \ufb02uc- tuations are taken into account during the tendering phase. Long term contracts in a foreign currency will be consid- ered hedged to be consistent with the currency of costs. Foreign exchange risk arises when future commercial transactions or recognized assets or liabilities are denominated in a currency that is not an entity\u2019s functional currency. The Group aims at achieving a natural hedge between cash in\ufb02ows and cash out\ufb02ows and manages remaining foreign exchange risk arising from future commercial transactions and recognized assets and liabilities, by forward contracts and similar instruments as appropriate. The Group\u2019s risk management policy is to continuously review its exposure against foreign exchange risk, and consider the need for hedging activities on transactions in each major currency. The following table demonstrates the sensitivity to a reasonably possible change in USD, GBP and EUR, with all other variables held constant. The impact on the Group\u2019s pro\ufb01t before tax is due to changes in the fair value of monetary assets and liabilities. Increase /decrease in USD Effect on pro\ufb01t before tax 2022 5 % 5 703 008 2021 5 % 665 935 Increase /decrease in EUR Effect on pro\ufb01t before tax 2022 5 % 867 596 2021 5 % 1 509 462 Increase /decrease in GBP Effect on pro\ufb01t before tax 2022 5 % 3 754 367 2021 5 % 1 050 224 PRICE RISK The Group is exposed to commodity price risk at two main levels: \u2022 The demand for ROV units is sensitive to changes in the offshore energy industry, for example oil price developments, \ufb02uctuation in production levels, exploration results and general activity levels. Market \ufb02uctuations may affect asset utilization and earnings. \u2022 The cost of construction of future units is sensitive to changes in market prices of the input factors. The risks are managed by having focus on targeting moder- ate risk contracts, signing contracts with suppliers with the necessary \ufb01nancial strength and using our expertise to com- plete projects in accordance with agreements. The Group also monitors commodity prices, evaluate the need for hedging activities, and consider commodity prices in our tender process. 3.1.2 Credit Risk Credit risk arises from cash and cash equivalents and deposits with banks and \ufb01nancial institutions, as well as credit exposures to customers. The Group has no signi\ufb01cant concentration of credit risk towards single \ufb01nancial institutions and has policies that limit the amount of credit exposure to any single \ufb01nancial institution. Credit exposures to customers arise when enter- ing into medium- or short-term contracts and are managed by performing a \ufb01nancial risk evaluation in the tendering process. The level of \ufb01nancial risk analysis performed in each case depends on the nature of the contract (including volume). Where the \ufb01nancial risk is substantial, bank guarantees are requested. 3.1.3 Liquidity Risk Prudent liquidity risk management implies maintaining suf\ufb01- cient cash and marketable securities, the availability of funding through an adequate amount of committed credit facilities, and the ability to close out market positions. The Group aims to maintain \ufb02exibility in its liquidity by keeping committed credit lines available. The need for working capital is continuously being considered based on payment terms and \ufb01nancial status of clients and the Group\u2019s \ufb01rm expenses (including loan instalments and interest). Please refer to note 21 for maturity analyses. The Group entered into a one-year bank overdraft agree- ment in January 2022, securing access to NOK 20 million in excess funds. The agreement was extended for one year from January 2023. Further extensions will be considered based on liquidity position and needs at expiry date. As the Group\u2019s business is capital intensive, the Group may need to raise additional funds in the future to execute the Group\u2019s strategies. The Group\u2019s loan agreement, and bank overdraft agreement include terms, conditions and covenants. The Group monitors its future liquidity positions on an ongoing basis, with monthly reports on cash \ufb02ow forecasts and covenants. 3.1.4 Cash Flow and Fair Value Interest Rate Risk The Group\u2019s interest rate risk arises from bank deposit held at \ufb02oating rates, and the possible impact on the \ufb01nancial statement is estimated to be immaterial. 3.1.5 Capital Management The Group\u2019s objectives when managing capital are to: \u2022 safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and bene\ufb01ts for other stakeholders, and \u2022 maintain an optimal capital structure to reduce the cost of capital. The Group has de\ufb01ned KPI levels for equity, liquidity and earning. The KPIs are consistent with loan covenants, and are being reported on a monthly basis as well as in budgets/forecasts. The development of the KPIs are being monitored closely. Breach of covenants request a waiver from the bank (measured quarterly) to avoid a formal breach of the loan agreement. If a breach of one or more KPI is discovered in the forecast, the Board will consider taking actions such as provision capital from existing and/or new owners. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. ", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialRiskManagementExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4672": { "value": "3.1.1 Market Risk FOREIGN EXCHANGE RISK The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, pri- marily with respect to the NOK, USD, GBP and EUR. Foreign exchange risk arises from future commercial transactions and recognized assets or liabilities. Potential currency \ufb02uc- tuations are taken into account during the tendering phase. Long term contracts in a foreign currency will be consid- ered hedged to be consistent with the currency of costs. Foreign exchange risk arises when future commercial transactions or recognized assets or liabilities are denominated in a currency that is not an entity\u2019s functional currency. The Group aims at achieving a natural hedge between cash in\ufb02ows and cash out\ufb02ows and manages remaining foreign exchange risk arising from future commercial transactions and recognized assets and liabilities, by forward contracts and similar instruments as appropriate. The Group\u2019s risk management policy is to continuously review its exposure against foreign exchange risk, and consider the need for hedging activities on transactions in each major currency. The following table demonstrates the sensitivity to a reasonably possible change in USD, GBP and EUR, with all other variables held constant. The impact on the Group\u2019s pro\ufb01t before tax is due to changes in the fair value of monetary assets and liabilities. Increase /decrease in USD Effect on pro\ufb01t before tax 2022 5 % 5 703 008 2021 5 % 665 935 Increase /decrease in EUR Effect on pro\ufb01t before tax 2022 5 % 867 596 2021 5 % 1 509 462 Increase /decrease in GBP Effect on pro\ufb01t before tax 2022 5 % 3 754 367 2021 5 % 1 050 224 PRICE RISK The Group is exposed to commodity price risk at two main levels: \u2022 The demand for ROV units is sensitive to changes in the offshore energy industry, for example oil price developments, \ufb02uctuation in production levels, exploration results and general activity levels. Market \ufb02uctuations may affect asset utilization and earnings. \u2022 The cost of construction of future units is sensitive to changes in market prices of the input factors. The risks are managed by having focus on targeting moder- ate risk contracts, signing contracts with suppliers with the necessary \ufb01nancial strength and using our expertise to com- plete projects in accordance with agreements. The Group also monitors commodity prices, evaluate the need for hedging activities, and consider commodity prices in our tender process. 3.1.4 Cash Flow and Fair Value Interest Rate Risk The Group\u2019s interest rate risk arises from bank deposit held at \ufb02oating rates, and the possible impact on the \ufb01nancial statement is estimated to be immaterial. ", "dimensions": { "concept": "ifrs-full:DisclosureOfMarketRiskExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4774": { "value": "3.1.3 Liquidity Risk Prudent liquidity risk management implies maintaining suf\ufb01- cient cash and marketable securities, the availability of funding through an adequate amount of committed credit facilities, and the ability to close out market positions. The Group aims to maintain \ufb02exibility in its liquidity by keeping committed credit lines available. The need for working capital is continuously being considered based on payment terms and \ufb01nancial status of clients and the Group\u2019s \ufb01rm expenses (including loan instalments and interest). Please refer to note 21 for maturity analyses. The Group entered into a one-year bank overdraft agree- ment in January 2022, securing access to NOK 20 million in excess funds. The agreement was extended for one year from January 2023. Further extensions will be considered based on liquidity position and needs at expiry date. As the Group\u2019s business is capital intensive, the Group may need to raise additional funds in the future to execute the Group\u2019s strategies. The Group\u2019s loan agreement, and bank overdraft agreement include terms, conditions and covenants. The Group monitors its future liquidity positions on an ongoing basis, with monthly reports on cash \ufb02ow forecasts and covenants. ", "dimensions": { "concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4803": { "value": "3.1.5 Capital Management The Group\u2019s objectives when managing capital are to: \u2022 safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and bene\ufb01ts for other stakeholders, and \u2022 maintain an optimal capital structure to reduce the cost of capital. The Group has de\ufb01ned KPI levels for equity, liquidity and earning. The KPIs are consistent with loan covenants, and are being reported on a monthly basis as well as in budgets/forecasts. The development of the KPIs are being monitored closely. Breach of covenants request a waiver from the bank (measured quarterly) to avoid a formal breach of the loan agreement. If a breach of one or more KPI is discovered in the forecast, the Board will consider taking actions such as provision capital from existing and/or new owners. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. FINANCING AND CAPITAL Reach Subseas future development and investments depend on multiple sources, including operational cash \ufb02ow, capi- tal, and borrowings. Increased concern over climate change could lead to increased cost of capital. To mitigate such risk, the group works closely with \ufb01nancial institutions and inves- tors and continuously evaluates its investment strategy to optimize a strong balance sheet. ", "dimensions": { "concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4826": { "value": "Note 4 - Accounting Estimates and Judgments Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are assumed to be reasonable under current circumstances. 4.1 Critical Accounting Estimates and Assumptions The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by de\ufb01nition, seldom equal the actual results. The estimates and assumptions that have signi\ufb01cant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next \ufb01nancial year are disclosed below. Impairment of property, plant and equipment A review for indicators of impairment is performed at each reporting date. If there are indicators of impairment, a review for impairment is carried out by management. In order to determine an assets recoverable amount a value-in-use method is used, where management uses judgement in estimating future asset utilisation, cash \ufb02ow and discount rate. For the purpose of assessing impairment of property, plant and equip- ment, management also use judgement to group assets at the lowest levels for which there are separately identi\ufb01able cash \ufb02ows (Cash Generating Units, \u201cCGU\u2019s\u201d). Management has determined that each ROV and associated ROV equipment is considered as separate GCU\u2019s. For right-of-use assets under IFRS 16, each vessel is considered as a separate CGU. Assessment of leases under IFRS 16 The application of IFRS 16 requires signi\ufb01cant judgements and certain key estimations. Critical judgements required in application of IFRS 16 may include, among others, the following: \u2022 Identifying whether a contract includes a lease \u2022 Determination of whether variable payments are in substance \ufb01xed \u2022 Determining whether there are multiple leases in an arrangement. Key sources of estimation uncertainty in the application of IFRS 16 may include, among others, the following: \u2022 Estimation of lease term \u2022 Estimation of lease payments when the contract includes options to extent the lease period \u2022 Determination of the appropriate rate to discount the lease payments \u2022 Assessment of whether a right of use asset is impaired. Management uses judgement in evaluating each con- tract. At each balance sheet date management also assess if there are any impairment indicators for the right-of- use assets. For impairment see section above. Income taxes Judgment is required in determining the provision for income taxes, and the recognition of deferred tax assets. During the ordi- nary course of business, transactions and calculations occur for which the ultimate tax effect is uncertain. The Group recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the \ufb01nal outcome of these matters is different from the amounts that were initially rec- ognized, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. The accounting for deferred income tax asset relies upon management\u2019s judgment of the Group\u2019s ability to generate future positive taxable income in each respective jurisdiction. Business combinations The acquisitions require the use of substantial judgement when assessing the fair value of net identi\ufb01able assets and liabilities in a business combination. Allocation of excess value relating to any business combinations is, amongst other, based on expected cash \ufb02ows and results for certain items of the acquired assets. Refer to note 27 for further information. Note 13 - Climate risk Climate-related risks to Reach Subsea include market effects from changing demand for oil and gas (implying lower demand for our services in this segment), evolving laws and regulations, stricter climate policies, disruptive technology, as well as physical effects of climate change and reputational effects. Reach Subsea assesses climate transition risks into two major cate- gories: (1) risks related to the transition to a low-carbon economy and (2) risks related to the physical impacts of climate change. Risks related to the transition to a low-carbon economy DEMAND Demand for our services within the Oil&Gas segment in the long- term is uncertain due to the global clean energy transition. The groups assessment is that risk of reduced demand for services within Oil&Gas is partly mitigated by correspondingly increased demand for our services within the renewable segment. The groups primary revenue stream is owning, leasing and operat- ing vessels and ROVs. Based on the 2022-levels of revenue and distribution between different segments, the estimated effect of decrease in demand for services within Oil&Gas are as follows: Decline in demand for services related to Oil&Gas Decrease in total revenue (NOK1000) Decrease in operating result (NOK 1000) 10 % 95 440 8 639 20 % 190 880 17 278 30 % 286 320 25 917 IMPAIRMENT/STRANDED ASSETS \u201cReduced demand for services within the Oil&Gas segment in the long term could prompt the groups assets to become stranded. An assessment has been made as to whether the Group has assets that are exposed to signi\ufb01cant environmental risk or climate risk (\u2018stranded assets\u2019). The Group has not identi\ufb01ed any stranded assets at 31 December 2022. The company\u2019s assets are depreci- ated over a lifetime of maximum 8 years, and the groups assess- ment is that the risk of assets being stranded or subject to material impairments within its initial lifetime due to climate risk is low. A sensitivity analysis have been made on the possible impact on impairment charges as a result of a decrease in demand for our services within Oil&Gas: Decline in demand for services related to Oil&Gas Impairment charge (NOK 1000) 10 % - 20 % 642 30 % 3 713 FINANCING AND CAPITAL Reach Subseas future development and investments depend on multiple sources, including operational cash \ufb02ow, capi- tal, and borrowings. Increased concern over climate change could lead to increased cost of capital. To mitigate such risk, the group works closely with \ufb01nancial institutions and inves- tors and continuously evaluates its investment strategy to optimize a strong balance sheet. Risks related to the physical impacts of climate change Reach Subsea is exposed to changing weather conditions caused by climate change as a result of its operation activities offshore. Impact of severe climate change could cause damage to assets, disrupt operational activities and result in signi\ufb01cant costs increased. The company maintain insurance to protect its physical assets and also manage the risk of lost revenue due to weather conditions through its contracts with customers. SUMMARY Impairment testing has been performed in accordance with IAS 36. The impairment testing for 2022 did not result in any impairment. DISCOUNT RATE The discount rate is based on the Weighted Cost of Capital (WACC) pre tax for the Group. The discount rate is 9,0 % REVENUE ASSUMPTIONS The revenue assumption in the cash \ufb02ow forecast is based on a combination of utilisation for assets and selling price. Utilisation is based on \ufb01rm contractual days on a short to medium term and estimated future selling on a medium to longer term. Forecasted utilisation on a longer term is based on historical data, as well as managements expectations of mar- ket development. Forecasted selling rates are based on historical data. No in\ufb02ation adjustments have been made to reve- nue assumptions. Future change in how the world will react in light of the goals set in the Paris-agreement could, depend- ing on the characteristics of the change, have a negative effect on the demand for the companys services. RIGHT-OF USE-ASSETS - VESSELS: The right-of-use assets at 31 December 2022 represents the remaining committed vessel days on charter agreements with ves- sel owners. The impairment testing demonstrated that the recoverable amount is larger than book value, and as such no impair- ment charge is required. The recoverable amount is sensitive to estimated utilisation and selling rate assumptions. Sensitivity analysis show however that a 20% drop in estimated future revenue would not result in an impairment. An increase in WACC of 2 percentage points will not result in any additional impairment due to the short remaining lifetime of the assets. Se note 24 for further information on Right-of-use assets. ROV AND ROV EQUIPMENT Impairment testing has been performed on each ROVs CGU, i.e. both owned and leased ROVs. Other assets, such as acti- vated mobilisation costs and other ROV equipment is not included in the impairment test as these assets do not have impair- ment indicators. The recoverable amount is based on estimated future cash \ufb02ows, which is based on estimated selling price, budgeted maintenance cost and utilisation. The impairment testing demonstrated that the assets recoverable amount is larger than book value, and as such no impairment charge is required. The recoverable amount is sensitive to utilisation and selling rate assumptions. Sensitivity analysis show that a 20% drop in revenue for all ROV CGU\u2019s would result in an impair - ment charge of NOK 1,6 million. An increase in WACC of 2 percentage points will not result in any impairment. Note 14 - Property, plant & equipment, continued SENSITIVITY ON TOTAL FIXED ASSETS Drop in estimated utilisation Impairment charge on \ufb01xed assets (NOK 1000) 10% - 20% 1 622 30% 5 805 \u2018In 2021 the Board of directors of Reach Subsea ASA approved a stock option scheme to further align the interests of the participating employees in Reach Subsea with those of the shareholders. The stock option scheme was \ufb01nalised with a signed agreement between the company and Management and certain key employees 15.12.2021. Management and cer- tain key employees of the Reach Subsea-group is granted the right to acquire up to a certain maximum number of shares in the Company at a \ufb01xed strike price (\u201cthe Option\u201d). The strike price is set equal to the volume weighted average share price of the Company\u00b4s stock traded on the Oslo Stock Exchange 10 days prior to the \ufb01nalization of the option scheme. The options are vested with 1/3 each year, over a period of three years until 31.12.2024. The options are non-tradable and con- ditional upon the participant being employed by the Reach Subsea-group at the vesting date. The stock option plan constitued a maximum of 3,000,000 options equivalent to a similar number of Reach Subsea ASA shares. The fair value at grant date was deter- mined using a Black Scholes Model. The most signi\ufb01cant inputs and assumptions in determining fair value at grant date was: Excercise price: NOK 3.0 Share price at grant date: NOK 3.0 Expected volatility: NOK 56.14% Risk free interest rate: NOK 1.092% Term of options: 3 years Note 18 - Share capital and information about shareholders, continued Note 19 - Sharebased payments 2022 2021 Average exercise price per share option Number of options Average exercise price per share option Number of options At 1 January 3.00 3 000 000 - - Granted - - 3.00 3 000 000 Forfeited - - - - Exercised* 2.82 812 500 - - Expired - 187 500 - - At 31 December 2.82 2 000 000 3.00 3 000 000 * The initial exercise price of 3.0 were in 2022 adjusted for dividends paid in 2022, making the actual exercise price 2.82. The group has recognised NOK 1.6 million (including social security tax) in cost related to the options in 2022 (2021: NOK 0). The group has no legal or constructive obligation to repurchase or settle the options in cash. ", "dimensions": { "concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4827": { "value": "Note 4 - Accounting Estimates and Judgments Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are assumed to be reasonable under current circumstances. 4.1 Critical Accounting Estimates and Assumptions The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by de\ufb01nition, seldom equal the actual results. The estimates and assumptions that have signi\ufb01cant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next \ufb01nancial year are disclosed below. Impairment of property, plant and equipment A review for indicators of impairment is performed at each reporting date. If there are indicators of impairment, a review for impairment is carried out by management. In order to determine an assets recoverable amount a value-in-use method is used, where management uses judgement in estimating future asset utilisation, cash \ufb02ow and discount rate. For the purpose of assessing impairment of property, plant and equip- ment, management also use judgement to group assets at the lowest levels for which there are separately identi\ufb01able cash \ufb02ows (Cash Generating Units, \u201cCGU\u2019s\u201d). Management has determined that each ROV and associated ROV equipment is considered as separate GCU\u2019s. For right-of-use assets under IFRS 16, each vessel is considered as a separate CGU. Assessment of leases under IFRS 16 The application of IFRS 16 requires signi\ufb01cant judgements and certain key estimations. Critical judgements required in application of IFRS 16 may include, among others, the following: \u2022 Identifying whether a contract includes a lease \u2022 Determination of whether variable payments are in substance \ufb01xed \u2022 Determining whether there are multiple leases in an arrangement. Key sources of estimation uncertainty in the application of IFRS 16 may include, among others, the following: \u2022 Estimation of lease term \u2022 Estimation of lease payments when the contract includes options to extent the lease period \u2022 Determination of the appropriate rate to discount the lease payments \u2022 Assessment of whether a right of use asset is impaired. Management uses judgement in evaluating each con- tract. At each balance sheet date management also assess if there are any impairment indicators for the right-of- use assets. For impairment see section above. Income taxes Judgment is required in determining the provision for income taxes, and the recognition of deferred tax assets. During the ordi- nary course of business, transactions and calculations occur for which the ultimate tax effect is uncertain. The Group recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the \ufb01nal outcome of these matters is different from the amounts that were initially rec- ognized, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. The accounting for deferred income tax asset relies upon management\u2019s judgment of the Group\u2019s ability to generate future positive taxable income in each respective jurisdiction. Business combinations The acquisitions require the use of substantial judgement when assessing the fair value of net identi\ufb01able assets and liabilities in a business combination. Allocation of excess value relating to any business combinations is, amongst other, based on expected cash \ufb02ows and results for certain items of the acquired assets. Refer to note 27 for further information. IMPAIRMENT/STRANDED ASSETS \u201cReduced demand for services within the Oil&Gas segment in the long term could prompt the groups assets to become stranded. An assessment has been made as to whether the Group has assets that are exposed to signi\ufb01cant environmental risk or climate risk (\u2018stranded assets\u2019). The Group has not identi\ufb01ed any stranded assets at 31 December 2022. The company\u2019s assets are depreci- ated over a lifetime of maximum 8 years, and the groups assess- ment is that the risk of assets being stranded or subject to material impairments within its initial lifetime due to climate risk is low. A sensitivity analysis have been made on the possible impact on impairment charges as a result of a decrease in demand for our services within Oil&Gas: Decline in demand for services related to Oil&Gas Impairment charge (NOK 1000) 10 % - 20 % 642 30 % 3 713 FINANCING AND CAPITAL Reach Subseas future development and investments depend on multiple sources, including operational cash \ufb02ow, capi- tal, and borrowings. Increased concern over climate change could lead to increased cost of capital. To mitigate such risk, the group works closely with \ufb01nancial institutions and inves- tors and continuously evaluates its investment strategy to optimize a strong balance sheet. Risks related to the physical impacts of climate change Reach Subsea is exposed to changing weather conditions caused by climate change as a result of its operation activities offshore. Impact of severe climate change could cause damage to assets, disrupt operational activities and result in signi\ufb01cant costs increased. The company maintain insurance to protect its physical assets and also manage the risk of lost revenue due to weather conditions through its contracts with customers. ", "dimensions": { "concept": "ifrs-full:DisclosureOfAssetsAndLiabilitiesWithSignificantRiskOfMaterialAdjustmentExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4834": { "value": "4.1 Critical Accounting Estimates and Assumptions The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by de\ufb01nition, seldom equal the actual results. The estimates and assumptions that have signi\ufb01cant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next \ufb01nancial year are disclosed below. Note 13 - Climate risk Climate-related risks to Reach Subsea include market effects from changing demand for oil and gas (implying lower demand for our services in this segment), evolving laws and regulations, stricter climate policies, disruptive technology, as well as physical effects of climate change and reputational effects. Reach Subsea assesses climate transition risks into two major cate- gories: (1) risks related to the transition to a low-carbon economy and (2) risks related to the physical impacts of climate change. Risks related to the transition to a low-carbon economy DEMAND Demand for our services within the Oil&Gas segment in the long- term is uncertain due to the global clean energy transition. The groups assessment is that risk of reduced demand for services within Oil&Gas is partly mitigated by correspondingly increased demand for our services within the renewable segment. The groups primary revenue stream is owning, leasing and operat- ing vessels and ROVs. Based on the 2022-levels of revenue and distribution between different segments, the estimated effect of decrease in demand for services within Oil&Gas are as follows: Decline in demand for services related to Oil&Gas Decrease in total revenue (NOK1000) Decrease in operating result (NOK 1000) 10 % 95 440 8 639 20 % 190 880 17 278 30 % 286 320 25 917 IMPAIRMENT/STRANDED ASSETS \u201cReduced demand for services within the Oil&Gas segment in the long term could prompt the groups assets to become stranded. An assessment has been made as to whether the Group has assets that are exposed to signi\ufb01cant environmental risk or climate risk (\u2018stranded assets\u2019). The Group has not identi\ufb01ed any stranded assets at 31 December 2022. The company\u2019s assets are depreci- ated over a lifetime of maximum 8 years, and the groups assess- ment is that the risk of assets being stranded or subject to material impairments within its initial lifetime due to climate risk is low. A sensitivity analysis have been made on the possible impact on impairment charges as a result of a decrease in demand for our services within Oil&Gas: Decline in demand for services related to Oil&Gas Impairment charge (NOK 1000) 10 % - 20 % 642 30 % 3 713 FINANCING AND CAPITAL Reach Subseas future development and investments depend on multiple sources, including operational cash \ufb02ow, capi- tal, and borrowings. Increased concern over climate change could lead to increased cost of capital. To mitigate such risk, the group works closely with \ufb01nancial institutions and inves- tors and continuously evaluates its investment strategy to optimize a strong balance sheet. Risks related to the physical impacts of climate change Reach Subsea is exposed to changing weather conditions caused by climate change as a result of its operation activities offshore. Impact of severe climate change could cause damage to assets, disrupt operational activities and result in signi\ufb01cant costs increased. The company maintain insurance to protect its physical assets and also manage the risk of lost revenue due to weather conditions through its contracts with customers. ", "dimensions": { "concept": "ifrs-full:ExplanationOfAssumptionAboutFutureWithSignificantRiskOfResultingInMaterialAdjustments", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4843": { "value": "Impairment of property, plant and equipment A review for indicators of impairment is performed at each reporting date. If there are indicators of impairment, a review for impairment is carried out by management. In order to determine an assets recoverable amount a value-in-use method is used, where management uses judgement in estimating future asset utilisation, cash \ufb02ow and discount rate. For the purpose of assessing impairment of property, plant and equip- ment, management also use judgement to group assets at the lowest levels for which there are separately identi\ufb01able cash \ufb02ows (Cash Generating Units, \u201cCGU\u2019s\u201d). Management has determined that each ROV and associated ROV equipment is considered as separate GCU\u2019s. For right-of-use assets under IFRS 16, each vessel is considered as a separate CGU. IMPAIRMENT/STRANDED ASSETS \u201cReduced demand for services within the Oil&Gas segment in the long term could prompt the groups assets to become stranded. An assessment has been made as to whether the Group has assets that are exposed to signi\ufb01cant environmental risk or climate risk (\u2018stranded assets\u2019). The Group has not identi\ufb01ed any stranded assets at 31 December 2022. The company\u2019s assets are depreci- ated over a lifetime of maximum 8 years, and the groups assess- ment is that the risk of assets being stranded or subject to material impairments within its initial lifetime due to climate risk is low. A sensitivity analysis have been made on the possible impact on impairment charges as a result of a decrease in demand for our services within Oil&Gas: Decline in demand for services related to Oil&Gas Impairment charge (NOK 1000) 10 % - 20 % 642 30 % 3 713 Impairment SUMMARY Impairment testing has been performed in accordance with IAS 36. The impairment testing for 2022 did not result in any impairment. DISCOUNT RATE The discount rate is based on the Weighted Cost of Capital (WACC) pre tax for the Group. The discount rate is 9,0 % REVENUE ASSUMPTIONS The revenue assumption in the cash \ufb02ow forecast is based on a combination of utilisation for assets and selling price. Utilisation is based on \ufb01rm contractual days on a short to medium term and estimated future selling on a medium to longer term. Forecasted utilisation on a longer term is based on historical data, as well as managements expectations of mar- ket development. Forecasted selling rates are based on historical data. No in\ufb02ation adjustments have been made to reve- nue assumptions. Future change in how the world will react in light of the goals set in the Paris-agreement could, depend- ing on the characteristics of the change, have a negative effect on the demand for the companys services. RIGHT-OF USE-ASSETS - VESSELS: The right-of-use assets at 31 December 2022 represents the remaining committed vessel days on charter agreements with ves- sel owners. The impairment testing demonstrated that the recoverable amount is larger than book value, and as such no impair- ment charge is required. The recoverable amount is sensitive to estimated utilisation and selling rate assumptions. Sensitivity analysis show however that a 20% drop in estimated future revenue would not result in an impairment. An increase in WACC of 2 percentage points will not result in any additional impairment due to the short remaining lifetime of the assets. Se note 24 for further information on Right-of-use assets. ROV AND ROV EQUIPMENT Impairment testing has been performed on each ROVs CGU, i.e. both owned and leased ROVs. Other assets, such as acti- vated mobilisation costs and other ROV equipment is not included in the impairment test as these assets do not have impair- ment indicators. The recoverable amount is based on estimated future cash \ufb02ows, which is based on estimated selling price, budgeted maintenance cost and utilisation. The impairment testing demonstrated that the assets recoverable amount is larger than book value, and as such no impairment charge is required. The recoverable amount is sensitive to utilisation and selling rate assumptions. Sensitivity analysis show that a 20% drop in revenue for all ROV CGU\u2019s would result in an impair - ment charge of NOK 1,6 million. An increase in WACC of 2 percentage points will not result in any impairment. Note 14 - Property, plant & equipment, continued SENSITIVITY ON TOTAL FIXED ASSETS Drop in estimated utilisation Impairment charge on \ufb01xed assets (NOK 1000) 10% - 20% 1 622 30% 5 805 Note 15 - Intangible assets (NOK 1000) Research & development Customer relationships Goodwill Total Year ended 31 December 2022 Opening net book amount 1 457 - - 1 457 Additions 727 - - 727 Addition from business combination (note 26) - 10 000 86 723 96 723 Depreciation - (1 250) - (1 250) Disposals/adjustments (310) - - (310) Closing net book value 1 873 8 750 86 723 97 347 At 31 december 2022 Cost 1.1.22 1 457 - - 1 457 Additions 727 - - 727 Addition from business combination (note 26) - 10 000 86 723 96 723 Disposals/adjustments (310) - - (310) Cost 31.12.22 1 873 10 000 86 723 98 597 Accumulated depreciation 1.1.22 - - - - Depreciation - (1 250) - (1 250) Accumulated depreciation 31.12.22 - (1 250) - (1 250) Accumulated impairment 1.1.22 - - - - Impairment - - - - Accumulated impairment 31.12.22 - - - - Book value 1 873 8 750 86 723 97 347 Depreciation plan/useful life Ongoing project 6 years Inde\ufb01nite Depreciation method linear * Additions from business combination are related to the acquisition of iSurvey Group, refer to note 26 for further information. Research and Development are related to R&D activities in Monviro AS. As of December 31 2022 Monviro has net book values for R&D totaling NOK 1.87 million that apply to development of software/equipment related to the company\u2019s ASUMO project. Hours spent have been capitalized for Monviro personnel, hired personnel from OCTIO as well as other external consultants related to the development of equipment and software. ", "dimensions": { "concept": "ifrs-full:DisclosureOfImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4844": { "value": "Impairment of property, plant and equipment A review for indicators of impairment is performed at each reporting date. If there are indicators of impairment, a review for impairment is carried out by management. In order to determine an assets recoverable amount a value-in-use method is used, where management uses judgement in estimating future asset utilisation, cash \ufb02ow and discount rate. For the purpose of assessing impairment of property, plant and equip- ment, management also use judgement to group assets at the lowest levels for which there are separately identi\ufb01able cash \ufb02ows (Cash Generating Units, \u201cCGU\u2019s\u201d). Management has determined that each ROV and associated ROV equipment is considered as separate GCU\u2019s. For right-of-use assets under IFRS 16, each vessel is considered as a separate CGU. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4868": { "value": "considered as separate GCU\u2019s. For right-of-use assets under IFRS 16, each vessel is considered as a separate CGU. Assessment of leases under IFRS 16 The application of IFRS 16 requires signi\ufb01cant judgements and certain key estimations. Critical judgements required in application of IFRS 16 may include, among others, the following: \u2022 Identifying whether a contract includes a lease \u2022 Determination of whether variable payments are in substance \ufb01xed \u2022 Determining whether there are multiple leases in an arrangement. Key sources of estimation uncertainty in the application of IFRS 16 may include, among others, the following: \u2022 Estimation of lease term \u2022 Estimation of lease payments when the contract includes options to extent the lease period \u2022 Determination of the appropriate rate to discount the lease payments \u2022 Assessment of whether a right of use asset is impaired. Management uses judgement in evaluating each con- tract. At each balance sheet date management also assess if there are any impairment indicators for the right-of- use assets. For impairment see section above. Income taxes Judgment is required in determining the provision for income taxes, and the recognition of deferred tax assets. During the ordi- nary course of business, transactions and calculations occur for which the ultimate tax effect is uncertain. The Group recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the \ufb01nal outcome of these matters is different from the amounts that were initially rec- ognized, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. The accounting for deferred income tax asset relies upon management\u2019s judgment of the Group\u2019s ability to generate future positive taxable income in each respective jurisdiction. Business combinations The acquisitions require the use of substantial judgement when assessing the fair value of net identi\ufb01able assets and liabilities in a business combination. Allocation of excess value relating to any business combinations is, amongst other, based on expected cash \ufb02ows and results for certain items of the acquired assets. Refer to note 27 for further information. Note 1 General Information Reach Subsea ASA Group offers subsea services as a sub- contractor and/or directly to end clients, based out of our head of\ufb01ce in Haugesund. Reach Subsea ASA\u2019s shares are listed on Oslo Stock Exchange (Oslo B\u00f8rs) under the ticker REACH. Reach Subsea ASA is the parent company in the Group and is domiciled in Norway, with of\ufb01ce address Garpeskj\u00e6rvegen 2, 5527 Haugesund. The Group has a Branch in Trinidad & Tobago. The company\u2019s consolidated \ufb01nancial statements for the 2022 \ufb01nancial year covers Reach Subsea ASA and its subsidiaries Reach Subsea AS, Connect Offshore AS, Reach Remote AS, Reach International AS, Reach Subsea Inc, Gravitude UK Ltd, Octio AS, Monviro AS, iSurvey Group AS, iSurvey AS, iSurvey Assets AS, Reach Subsea UK Ltd, Reach Subsea PTE Ltd and iSurvey Ltd. Note 2 Summary of signi\ufb01cant accounting policies The principal accounting policies applied in the preparation of these consolidated \ufb01nancial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. Basis of preparation The consolidated \ufb01nancial statements of Reach Subsea ASA have been prepared in accordance with International Financial Reporting Standards and IFRIC interpretations, as adopted by the EU, and in accordance with the additional requirements following the Norwegian Accounting Act. The consolidated \ufb01nancial statements are prepared under the assumption of going concern and on a historical cost basis, with some exceptions as detailed under accounting policies set out below. The preparation of \ufb01nancial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the group\u2019s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are signi\ufb01cant to the consolidated \ufb01nancial statements are disclosed in note 4. The consolidated \ufb01nancial statements have been prepared on a going concern basis. New & amended standards adopted by the Group Certain new standards, amendments to standards, and annual improvements to standards and interpretations are effective for annual periods beginning after January 1, 2022 and have been applied in preparing these consolidated \ufb01nancial statements. These applications did not materially impact the Group\u2019s consolidated \ufb01nancial statements. New standards & interpretations not yet adopted Certain new accounting standards, amendments to accounting standards and interpretations have been published that are not mandatory for 31 December 2022 reporting periods and have not been early adopted by the group. These standards, amendments or interpretations are not expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions. Notes Basis of consolidation SUBSIDIARIES The consolidated \ufb01nancial statements incorporate the \ufb01nancial statements of Reach Subsea ASA, and entities controlled by Reach Subsea ASA. Control is achieved where Reach Subsea ASA is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the group. They are deconsolidated from the date that control ceases. The Group uses the acquisition method of accounting to account for business combinations. Companies that are acquired during the year are consolidated from the date control was obtained. Inter-company transactions, balances, and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. ASSOCIATES Associates are all entities over which the Group has signi\ufb01cant in\ufb02uence but not control, generally accompanying a shareholding of between 20 and 50 % of the voting rights. Investments in associates are accounted for using the equity method of accounting and are initially recognized at cost. The Group\u2019s share of its associates\u2019 income or other comprehensive income is recognized on separate lines in the consolidated statement of comprehensive income or the state- ment of other comprehensive income respectively. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. When the group\u2019s share of losses in an associate equal or exceeds its interest in the associate, including any other unsecured receivables, the group does not recognize further losses, unless it has incurred obligations on behalf of the associate. In the statement of \ufb01nancial position associates are presented as non-current assets. Unrealised gains on transactions between the group and its associates are eliminated to the extent of the group\u2019s interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset trans- ferred. When accounting policies of associates are different from those of the group, the \ufb01gures are amended to ensure consistency. JOINT ARRANGEMENTS The group has applied IFRS 11 to all joint arrangements as of 1 January 2012. Under IFRS 11 investments in joint arrange- ments are classi\ufb01ed as either joint operations or joint ventures depending on the contractual rights and obligations each investor. Reach Subsea ASA has assessed the nature of its joint arrangements and determined them to be joint ventures. Joint ventures are accounted for using the equity method. Under the equity method of accounting, interests in joint ventures are initially recognized at cost and adjusted there- after to recognize the group\u2019s share of the post-acquisition pro\ufb01ts or losses and movements in other comprehensive income. When the group\u2019s share of losses in a joint venture equals or exceeds its interests in the joint ventures (which includes any long-term interests that, in substance, form part of the group\u2019s net investment in the joint ventures), the group does not recognize further losses, unless it has incurred obli- gations or made payments on behalf of the joint ventures. Unrealized gains on transactions between the group and its joint ventures are eliminated to the extent of the group\u2019s interest in the joint ventures. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identi\ufb01ed as the steering committee that makes strategic decisions. The group has two segments. Oil & Gas and Renewable/Other, and Data and Solutions. Revenues are categorized as either Data or Solutions based on the nature of the service delivered to a client. Data represents delivery of various types of maps, models and/or reports collected through subsea survey and/or inspection projects. Solutions represents delivery of a speci\ufb01c client solution such as repair, modi\ufb01cation, installation or removal of subsea equipment and infrastructure. Foreign currency translation FUNCTIONAL CURRENCY AND PRESENTATION CURRENCY The Group presents its \ufb01nancial statements in NOK. The functional currency of the consolidated entities in the Group is the currency of the primary economic environment in which the entity operates. All Norwegian companies have NOK as functional currency. Reach Subsea AS\u2019 branch in Trinidad and Reach Subsea Inc have USD as functional currency, Gravitude UK Ltd and Reach Subsea UK Ltd has GBP as func- tional currency, Reach Subsea PTE Ltd has SGD as functional currency and iSurvey Ltd has EUR as functional currency. TRANSACTIONS AND BALANCES Foreign currency transactions are translated into the func- tional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the consolidated statement of comprehen- sive income within \ufb01nancial income and \ufb01nancial costs. Property, plant and equipment Property, plant and other equipment are stated at historical cost less accumulated depreciation and accumulated impairment losses. Historical cost includes costs related to the purchase of the item. Subsequent costs are included in the asset\u2019s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic bene\ufb01ts associated with the item will \ufb02ow to the group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to the consolidated statement of comprehensive income during the \ufb01nancial period in which they are incurred. Upon acquisition, property, plant and equipment are decom- posed for depreciation purposes if this is material for the determination of the depreciation expense. The components are depreciated on a straight-line basis over expected useful life to estimated residual value at the end of their useful life Depreciation of other assets is calculated using the straight-line method to allocate their cost or revalued amounts less their residual values over their estimated useful lives, as follows: \u2022 Furniture, \ufb01ttings and equipment: 3-8 years \u2022 ROVs: 3-8 years The assets\u2019 residual values and useful lives are reviewed, and the depreciation schedule adjusted, if appropriate, at the end of each reporting period. Impairment of non-\ufb01nancial assets GENERAL At each reporting date the Group assesses whether there is an indication that an asset may be impaired. If any such indication exists, or where annual testing for impairment is required, the Group makes an estimate of the asset\u2019s recoverable amount. An asset\u2019s recoverable amount is the higher of an asset\u2019s fair value less costs to sell or value in use. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash \ufb02ows are discounted to their present value using a pre-tax discount rate that re\ufb02ects current market assessments of the time value of money and the risks speci\ufb01c to the asset. If, in a subsequent period, the amount of the impairment loss decreases, and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed. GOODWILL Goodwill is measured as described in \u2018Business combinations\u2019 in the section below. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill is not amortised, but it is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. CUSTOMER CONTRACTS Customer contracts acquired in a business combination are recognised at fair value at the acquisition date. They have a \ufb01nite useful life and are subsequently carried at cost less accumulated amortisation and impairment losses. Onerous contracts Provisions for onerous contracts are recognized when the Group has a contract under which the unavoidable costs of meeting the obligations under the contract exceed the economic bene\ufb01ts expected to be received from the contract. Leases ACCOUNTING AS LESSEE At inception of a contract, the Company assesses whether a contract is, or contains, a lease based on whether the con- tract includes the right to control the use of an identi\ufb01ed asset for a period of time in exchange for consideration. Short term leases (lease term 12 month or less) and assets that are leased for more than 12 months, but where the lease terms do not contain any commitments (\u201cpay-as-you-go\u201d), are also capitalized as right-of-use assets and depreciated. The impact is that all cost in relation to leases of vessels and ROVs are classi\ufb01ed as depreciation and interest expense. Vessels and ROVs with a \u201cpay-as-you-go\u201d lease structure are treated as short term leases, where the lease expenses are classi\ufb01ed as depreciation, and where the lease is capitalized at the balance sheet date only to the extent a commitment is incurred at the reporting date. The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The lease liability is initially measured at the present value of lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise of: \u2022 Fixed lease payments \u2022 Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date \u2022 Payment of penalties for terminating the lease, if the lease term re\ufb02ects the exercise of an option to terminate the lease. The lease liability is subsequently measured by increasing the carrying amount to re\ufb02ect interest on the lease liability (using the effective interest method) and by reducing the carrying value to re\ufb02ect the lease payments made. The Group remeasures the lease liability (and makes a corre- sponding adjustment to the related right of use asset) whenever: \u2022 the lease term has changed. \u2022 the lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value. \u2022 a lease contract is modi\ufb01ed, and the lease modi\ufb01cation is not accounted for as a separate lease, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate. The right of use asset is initially measured based on the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred. They are subsequently measured at cost less accumulated depreciation and impairment losses. The right of use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. The depre- ciation starts at the commencement date of the lease. The Group applies IAS 36 to determine whether a right of use asset is impaired, and accounts for any identi\ufb01ed impairment loss as described in the \u201cImpairment of non-\ufb01nancial asset\u201d section. Business combinations The acquisition method of accounting is used to account for all business combinations, regardless of whether equity instruments or other assets are acquired. The consideration transferred for the acquisition of a subsidiary comprises the: \u2022 fair values of the assets transferred \u2022 liabilities incurred to the former owners of the acquired business \u2022 equity interests issued by the group \u2022 fair value of any asset or liability resulting from a contingent consideration arrangement, and \u2022 fair value of any pre-existing equity interest in the subsidiary. Identi\ufb01able assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acqui- sition date. The group recognises any non-controlling interest in the acquired entity on an acquisition-by-acquisition basis either at fair value or at the non-controlling interest\u2019s propor - tionate share of the acquired entity\u2019s net identi\ufb01able assets. Acquisition-related costs are expensed as incurred. The excess of the: \u2022 consideration transferred, \u2022 amount of any non-controlling interest in the acquired entity, and \u2022 acquisition-date fair value of any previous equity interest in the acquired entity over the fair value of the net identi\ufb01able assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identi\ufb01able assets of the business acquired, the differ - ence is recognised directly in pro\ufb01t or loss as a bargain purchase. Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of exchange. The discount rate used is the entity\u2019s incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an inde- pendent \ufb01nancier under comparable terms and conditions. Contingent consideration is classi\ufb01ed either as equity or a \ufb01nancial liability. Amounts classi\ufb01ed as a \ufb01nancial liability are subsequently remeasured to fair value, with changes in fair value recognised in pro\ufb01t or loss. If the business combination is achieved in stages, the acquisition date carrying value of the acquirer\u2019s previously held equity interest in the acquiree is remeasured to fair value at the acquisition date. Any gains or losses arising from such remeasurement are recognised in pro\ufb01t or loss. Bunkers Bunkers comprise fuel and lube oil inventory and are valued at the lower of cost and net realisable value. Fuel and lube are expensed to the consolidated statement of comprehensive income based on FIFO principle (First in, \ufb01rst out) as they are consumed. Financial assets The Group classi\ufb01es its \ufb01nancial assets in the following catego- ries: fair value through other comprehensive income (FVOCI), fair value through pro\ufb01t and loss (FVTPL), and amortized cost. The classi\ufb01cation of \ufb01nancial assets under IFRS 9 is generally based on the business model in which a \ufb01nancial instrument is managed and its contractual cash \ufb02ow characteristics. Classi\ufb01cation of \ufb01nancial assets is determined at initial recog- nition and is not reclassi\ufb01ed subsequently unless the Group changes its business model for managing \ufb01nancial assets. A \ufb01nancial asset shall be measured at amortized cost if both of the following conditions are met and it is not designated at FVTPL: \u2022 the \ufb01nancial asset is held within a business model whose objective is to hold \ufb01nancial assets, in order to collect contractual cash \ufb02ows and \u2022 the contractual terms of the \ufb01nancial asset give rise on speci\ufb01ed dates to cash \ufb02ows that are solely payments of principal and interest on the principal amount outstanding. A \ufb01nancial asset shall be measured at FVOCI if both of the following conditions are met and it is not designated at FVTPL: \u2022 the \ufb01nancial asset is held within a business model whose objective is achieved by both collecting contractual cash \ufb02ows and selling \ufb01nancial assets and \u2022 the contractual terms of the \ufb01nancial asset give rise on speci\ufb01ed dates to cash \ufb02ows that are solely payments of principal and interest on the principal amount outstanding. All \ufb01nancial assets not classi\ufb01ed as measured at amortized cost or FVOCI as described above are measured at FVTPL. This includes all derivative \ufb01nancial assets. On initial recognition, the Group may irrevocably designate a \ufb01nancial asset that otherwise meets the requirements to be measured at amortized cost or at FVOCI as at FVTPL if doing so eliminates or signi\ufb01cantly reduces an accounting mismatch that would otherwise arise. FINANCIAL ASSETS AT FVTPL The assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in pro\ufb01t or loss. FINANCIAL ASSETS AT AMORTIZED COST These assets are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognized in pro\ufb01t or loss. Any gain or loss on derecognition is recognized in pro\ufb01t or loss. FINANCIAL ASSETS AT FVOCI These assets are subsequently measured at fair value. Dividends are recognized as income in pro\ufb01t or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are rec- ognized in OCI and are not reclassi\ufb01ed to pro\ufb01t or loss. DERECOGNITION Financial assets are derecognized when the rights to receive cash \ufb02ows from the investments have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership. IMPAIRMENT The Group assesses at the end of each reporting period the expected credit losses for a \ufb01nancial asset or a group of \ufb01nancial assets. Trade receivables Trade receivables are amounts due from customers for merchan- dise sold or services performed in the ordinary course of business. If collection is expected in one year or less (or in the normal operating cycle of the business if longer), they are classi\ufb01ed as current assets. If not, they are presented as non-current assets. Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method, less provision for impairment. Government grants Grants from the government are recognized at their fair value where there is a reasonable assurance that the grant will be received and the group will comply with all attached condi- tions. Government grants relating to costs are deferred and recognized in the consolidated statement of comprehensive over the period necessary to match them with the costs that they are intended to compensate. Government grants relating to property, plant and equipment are included in noncurrent liabilities as deferred government grants and are credited to the consolidated statement of comprehensive income on a straight- line basis over the expected lives of the related assets. Cash and cash equivalents Cash equivalents are short-term liquid investments that can be converted instantly into cash of a known amount and have a maximum maturity of three months. Share capital Ordinary shares are classi\ufb01ed as equity. Incremental cost directly attributable to the issue of new shares is shown in equity as a deduction, net of tax, from the proceeds. Trade payables Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of busi- ness from suppliers. Accounts payable are classi\ufb01ed as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current liabilities. Trade payables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method. Taxes The tax expense in the period comprises current tax and changes in deferred taxes. Tax expense is recognized in the consolidated statement of comprehensive income, except to the extent that it relates to items that are recognized in other comprehensive income, or directly in equity. In such cases the relating tax expense is also recognized in other comprehensive income or directly in equity, respectively. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the bal- ance sheet date in the countries where the company and its subsidiaries operate and generate taxable income. Deferred income tax is recognized, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated \ufb01nancial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realised, or the deferred income tax liability is settled. Deferred income tax assets are recognized only to the extent that it is probable that future taxable pro\ufb01t will be available against which the temporary differences can be utilised. Borrowings Borrowings are recognized initially at fair value, net of trans- action costs incurred. Borrowings are subsequently carried at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the consolidated statement of comprehensive income over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recog- nized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is cap- italized as a pre-payment for liquidity services and amor- tized over the period of the facility to which it relates. Share-based payments The group has an equity-settled, share-based compensation plan, under which the entity receives services from employ- ees as consideration for equity instruments (options) of the group. The fair value of the employee services received in exchange for the grant of the options is recognized as an expense. The total amount to be expensed is determined by reference to the fair value of the options granted: \u2022 including any market performance conditions (for example, an entity\u2019s share price); \u2022 excluding the impact of any service and non-market performance vesting conditions (for example, pro\ufb01tability, sales growth targets and remaining an employee of the entity over a speci\ufb01ed time period); and \u2022 including the impact of any non-vesting conditions (for example, the requirement for employees to save). Non-market performance and service conditions are included in assumptions about the number of options that are expected to vest. The total expense is recognized over the vesting period, which is the period over which all of the speci\ufb01ed vesting conditions are to be satis\ufb01ed. At the end of each reporting period, the group revises its estimates of the number of options that are expected to vest based on the non-market vesting conditions. It rec- ognizes the impact of the revision to original estimates, if any, in the consolidated statement of comprehensive income, with a corresponding adjustment to equity. When the options are exercised, the company issues new shares. The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium. The grant by the company of options over its equity instru- ments to the employees of subsidiary undertakings in the group is treated as a capital contribution. The fair value of employee services received, measured by reference to the grant date fair value, is recognized over the vesting period as an increase to investment in subsidiary undertakings, with a corresponding credit to equity in the parent entity accounts. The social security contributions payable in connection with the grant of the share options is considered an integral part of the grant itself, and the charge will be treated as a cash-settled transaction. Provisions, contingent liabilities and contingent assets Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, and it is probable that an economic settlement will take place in consequence of this obligation, and a reliable estimate can be made of the amount. Provisions are based on best estimate. Contingent liabilities are not recognized in the \ufb01nan- cial statements. Signi\ufb01cant contingent liabilities are dis- closed, with the exception of contingent liabilities where the probability of the liability occurring is remote. A contingent asset is not recognized in the annual \ufb01nancial statements but is disclosed if it is probable that a bene\ufb01t will accrue to the Group. Recognition of revenue GENERAL Revenue from sale of services is recognized in accordance with IFRS 15. Revenues are shown net of value added tax and discounts. SALES OF SERVICES The Group revenue comprises revenue recognized from contracts with customers for the provision of subsea services. Although scope of work varies from project to project, there are similarities in all projects, such as mobilisation and demobilisation of vessel, vessel hire, ROV crewing etc. These elements are highly related and comprise an integrated service negotiated as a whole with the customer. As such, all elements within a contract is normally considered to be one single performance obligation. Reach Subsea reviews all customer contracts to assess if there are elements that may indicate several performance obligations within one contract. Such elements may be use of several vessel spreads or project phases requiring separate mobilisation of vessels. For sales of services under \ufb01xed rate contracts, revenue is recog- nized in the accounting period in which the services are rendered, by reference to stage of completion of the speci\ufb01c transaction and assessed on the basis of the actual service provided as a propor- tion of the total services to be provided. For other services, reve- nue is recognized based on the agreed rate as the services are ren- dered. The transaction price for day-rate contracts is determined by the expected value approach being the number of scheduled days multiplied with dayrate. Where the contracts include multiple performance obligations, the transaction price is allocated to each performance obligation based on the stand-alone selling prices. For contracts with pricing elements that need to be estimated, rev- enue is recognised at best estimate only when it is highly probable that its inclusion will not result in a signi\ufb01cant revenue reversal in the future when the uncertainty has been subsequently resolved. Revenue is recognized as control is passed, either over time or at a point in time. Control of an asset is de\ufb01ned as the ability to direct the use of and obtain substantially all of the remaining bene\ufb01ts from the asset. This includes the ability to prevent others from directing the use of and obtaining the bene\ufb01ts from the asset. The bene\ufb01ts related to the asset are the potential cash \ufb02ows that may be obtained directly or indirectly. Reach Subsea has concluded that customers receive bene\ufb01ts from the subsea services as they are performed, and therefore recog- nize revenue over the time the subsea service is provided. Incremental costs of obtaining a contract is recognized as an asset if we expect to recover these costs. However, incremental costs are limited to the costs that would not have incurred if the contract had not been successfully obtained. No such cost has been recognized in 2022. REVENUE FROM LEASES Revenue from time-charter leases is recognized using a straight-line basis over the term of the contract Cash \ufb02ow statement The cash \ufb02ow statement is prepared according to the indirect method. Note 3 - Financial Risk Management 3.1 Financial Risk Factors The Group\u2019s activities expose it to a variety of \ufb01nancial risks: market risk (including currency risk, fair value interest rate risk, cash \ufb02ow interest rate risk and price risk), credit risk and liquidity risk. The Group\u2019s overall risk management program focuses on the unpredictability of \ufb01nancial markets and seeks to minimise potential adverse effects on the Group\u2019s \ufb01nancial performance. Risk management for the Group is carried out by Management. Management identi\ufb01es, evaluates, and hedges \ufb01nancial risks in close co-operation with the operating units within the Group. The Board approves the principles for overall risk management, as well as policies covering speci\ufb01c areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative \ufb01nancial instruments and investment of excess liquidity. 3.1.1 Market Risk FOREIGN EXCHANGE RISK The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, pri- marily with respect to the NOK, USD, GBP and EUR. Foreign exchange risk arises from future commercial transactions and recognized assets or liabilities. Potential currency \ufb02uc- tuations are taken into account during the tendering phase. Long term contracts in a foreign currency will be consid- ered hedged to be consistent with the currency of costs. Foreign exchange risk arises when future commercial transactions or recognized assets or liabilities are denominated in a currency that is not an entity\u2019s functional currency. The Group aims at achieving a natural hedge between cash in\ufb02ows and cash out\ufb02ows and manages remaining foreign exchange risk arising from future commercial transactions and recognized assets and liabilities, by forward contracts and similar instruments as appropriate. The Group\u2019s risk management policy is to continuously review its exposure against foreign exchange risk, and consider the need for hedging activities on transactions in each major currency. The following table demonstrates the sensitivity to a reasonably possible change in USD, GBP and EUR, with all other variables held constant. The impact on the Group\u2019s pro\ufb01t before tax is due to changes in the fair value of monetary assets and liabilities. Increase /decrease in USD Effect on pro\ufb01t before tax 2022 5 % 5 703 008 2021 5 % 665 935 Increase /decrease in EUR Effect on pro\ufb01t before tax 2022 5 % 867 596 2021 5 % 1 509 462 Increase /decrease in GBP Effect on pro\ufb01t before tax 2022 5 % 3 754 367 2021 5 % 1 050 224 PRICE RISK The Group is exposed to commodity price risk at two main levels: \u2022 The demand for ROV units is sensitive to changes in the offshore energy industry, for example oil price developments, \ufb02uctuation in production levels, exploration results and general activity levels. Market \ufb02uctuations may affect asset utilization and earnings. \u2022 The cost of construction of future units is sensitive to changes in market prices of the input factors. The risks are managed by having focus on targeting moder- ate risk contracts, signing contracts with suppliers with the necessary \ufb01nancial strength and using our expertise to com- plete projects in accordance with agreements. The Group also monitors commodity prices, evaluate the need for hedging activities, and consider commodity prices in our tender process. 3.1.2 Credit Risk Credit risk arises from cash and cash equivalents and deposits with banks and \ufb01nancial institutions, as well as credit exposures to customers. The Group has no signi\ufb01cant concentration of credit risk towards single \ufb01nancial institutions and has policies that limit the amount of credit exposure to any single \ufb01nancial institution. Credit exposures to customers arise when enter- ing into medium- or short-term contracts and are managed by performing a \ufb01nancial risk evaluation in the tendering process. The level of \ufb01nancial risk analysis performed in each case depends on the nature of the contract (including volume). Where the \ufb01nancial risk is substantial, bank guarantees are requested. 3.1.3 Liquidity Risk Prudent liquidity risk management implies maintaining suf\ufb01- cient cash and marketable securities, the availability of funding through an adequate amount of committed credit facilities, and the ability to close out market positions. The Group aims to maintain \ufb02exibility in its liquidity by keeping committed credit lines available. The need for working capital is continuously being considered based on payment terms and \ufb01nancial status of clients and the Group\u2019s \ufb01rm expenses (including loan instalments and interest). Please refer to note 21 for maturity analyses. The Group entered into a one-year bank overdraft agree- ment in January 2022, securing access to NOK 20 million in excess funds. The agreement was extended for one year from January 2023. Further extensions will be considered based on liquidity position and needs at expiry date. As the Group\u2019s business is capital intensive, the Group may need to raise additional funds in the future to execute the Group\u2019s strategies. The Group\u2019s loan agreement, and bank overdraft agreement include terms, conditions and covenants. The Group monitors its future liquidity positions on an ongoing basis, with monthly reports on cash \ufb02ow forecasts and covenants. 3.1.4 Cash Flow and Fair Value Interest Rate Risk The Group\u2019s interest rate risk arises from bank deposit held at \ufb02oating rates, and the possible impact on the \ufb01nancial statement is estimated to be immaterial. 3.1.5 Capital Management The Group\u2019s objectives when managing capital are to: \u2022 safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and bene\ufb01ts for other stakeholders, and \u2022 maintain an optimal capital structure to reduce the cost of capital. The Group has de\ufb01ned KPI levels for equity, liquidity and earning. The KPIs are consistent with loan covenants, and are being reported on a monthly basis as well as in budgets/forecasts. The development of the KPIs are being monitored closely. Breach of covenants request a waiver from the bank (measured quarterly) to avoid a formal breach of the loan agreement. If a breach of one or more KPI is discovered in the forecast, the Board will consider taking actions such as provision capital from existing and/or new owners. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. Note 4 - Accounting Estimates and Judgments Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are assumed to be reasonable under current circumstances. 4.1 Critical Accounting Estimates and Assumptions The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by de\ufb01nition, seldom equal the actual results. The estimates and assumptions that have signi\ufb01cant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next \ufb01nancial year are disclosed below. Impairment of property, plant and equipment A review for indicators of impairment is performed at each reporting date. If there are indicators of impairment, a review for impairment is carried out by management. In order to determine an assets recoverable amount a value-in-use method is used, where management uses judgement in estimating future asset utilisation, cash \ufb02ow and discount rate. For the purpose of assessing impairment of property, plant and equip- ment, management also use judgement to group assets at the lowest levels for which there are separately identi\ufb01able cash \ufb02ows (Cash Generating Units, \u201cCGU\u2019s\u201d). Management has determined that each ROV and associated ROV equipment is Note 5 - Segment information* (NOK 1000) 2022 2021 Oil&Gas vs Renewables/other Revenue Oil & Gas 954 399 471 917 Renewable / other 208 422 201 336 Total 1 162 821 673 253 Operating expense Oil & Gas (868 009) (425 853) Renewable / other (189 556) (181 683) Total (1 057 566) (607 537) Operating result Oil & Gas 86 389 46 064 Renewable / other 18 866 19 652 Total 105 255 65 716 Data vs Solutions Revenue Data 735 559 350 695 Solutions 427 262 322 558 Total 1 162 821 673 253 Operating expense Data (668 978) (316 464) Solutions (388 587) (291 073) Total (1 057 567) (607 537) Operating result Data 66 581 34 231 Solutions 38 674 31 485 Total 105 255 65 716 *) Note that the gain from bargain purchase in \u201cOther income\u201d is not related to a segment and therefore excluded from the table in 2021. Refer to note 26 for further information regarding business combinations. All assets and liabilities are used jointly in all segments. (NOK 1000) 2022 2021 NOTES Project cost 89 991 66 189 Fuel 72 389 44 870 Victualling 27 543 19 937 Rental offshore equipment 47 217 17 154 Hire offshore personell 31 379 10 303 Other procurements 4 284 181 Procurement expenses, in total 272 803 158 633 (NOK 1000) 2022 2021 NOTES Rental cost 12 021 4 041 23 Consultant cost 72 751 35 965 Operating equipment and maintenance 45 919 25 833 Administration costs 49 509 20 883 Other operating costs, in total 180 200 86 722 Note 6 - Procurement expenses speci\ufb01ed Note 7 - Other operating costs speci\ufb01ed Wages and social costs The company has a de\ufb01ned contribution plan that complies with the requirements of the Mandatory Occupational Pension Act. Total cost during the year is as speci\ufb01ed above. COMPENSATION AND BENEFITS TO MANAGEMENT Guidelines for remuneration The company\u2019s guideline for management compensation and bene\ufb01ts is to offer competitive conditions to secure continuity in the management group. Reach Subseas shall offer bene\ufb01ts as for comparable Norwegian companies. In accordance with Section 6-16 b. (2) of the Norwegian Public Limited Liability Companies Act and the Norwegian regulations on guidelines and report on remuneration for executives, the Group will publish a separate report on remuneration to executives for presentation at the Annual General Meeting on 31 May 2023. In addition to detailed information on paid and pending remuneration to directors for the 2022 accounting year, the report on remuneration for directors will contain an overview of performance targets that form the basis for variable remuneration. Shareholdings and allocated shares will also be included. Compensation to CEO, CFO, CCO and COO is speci\ufb01ed below. (NOK 1000) 2022 2021 Salaries and wages including holiday allowance 201 172 98 363 Social security tax 29 004 14 525 Pensions 12 256 7 017 Other bene\ufb01ts 7 363 2 468 Option cost 1 235 - Wages and social costs, in total 251 031 122 374 Number of man-years 253 109 Notes (NOK 1000) Salary Pension costs Other comp Share options /granted 2022 Jostein Alendal, Managing Director CEO 2 039 94 616 300 Birgitte W. Johansen, CFO 1 919 100 583 300 B\u00e5rd Thuen H\u00f8gheim, CCO 1 919 87 616 300 Inge Grutle, COO 1 919 87 616 300 Total 7 795 367 2 431 1 200 Note 8 - Personnel expenses (NOK 1000) Position 2022 2021 Rachid Bendriss Chairman of the Board 458 361 K\u00e5re Johannes Lie Vice-Chairman of the Board (until June 2022) 118 183 Anders Onarheim Board member 231 183 Martha K. Bakkevig Board member 231 183 Arvid St\u00e5le Pettersen Board member (from June 2022) 113 - Espen Gjerde Board member (from June 2022) 113 - Sverre B. Mikkelsen Board member (until February 2022) 61 235 Kristine Skeie Board member 256 183 Ingunn \u00d8. Iveland Board member 287 219 (NOK 1000) 2022 2021 Auditing 1 794 1 219 Attestation services 22 27 Tax advice* 397 282 Other assistance* 3 025 374 Total 5 239 1 902 Notes Note 8 - Personnel expenses, continued (NOK 1000) Salary Pension costs Other comp Share options /granted 2021 Jostein Alendal, Managing Director CEO 1 780 90 300 450 Birgitte W. Johansen, CFO 1 559 82 300 450 B\u00e5rd Thuen H\u00f8gheim, CCO 1 559 82 300 450 Inge Grutle, COO 1 559 89 300 450 Total 6 457 344 1 200 1 800 Managing director has no agreement regarding early retirement. Managing director will receive NOK 1.5 million in payment if employment is terminated. CFO has no agreement regarding early retirement and no agreement on payment in case of termination of employment. THE BOARD\u2019S REMUNERATION AUDITOR\u2019S REMUNERATION All amounts are exclusive of value add tax. * Included in tax advice and other assistance are services from Advokat\ufb01rmaet PricewaterhouseCoopers AS with the amount of NOK 0.78 million (2021: NOK 0.13 million). Shares owned by members of the Board and by the management at year-end, including shares owned by immediate family members and/or controlled companies are as follows: Notes Note 8 - Personnel expenses, continued 31.12.2022 Number of shares Ownership NORTH ENERGY ASA Partly owned by Rachid Bendriss (COB) and Anders Onarheim (Board member) 46 126 567 20,4 % JT INVEST AS Partly owned by Jostein Alendal (CEO) 5 529 539 2,4 % A-\u00c5 INVEST AS Owned by \u00c5ge Nilsen (management) 1 948 725 0,9 % SMS INVESTERING AS Owned by Svein Magne Storesund (management) 1 662 366 0,7 % INVICTA INVEST AS Partly owned by Inge Grutle (management) 919 179 0,4 % KOLD INVEST AS Owned by Martha Kold Bakkevig (Board member) 867 181 0,4 % BIRGITTE WENDELBO JOHANSEN Management 149 050 0,1 % B\u00c5RD THUEN H\u00d8GHEIM Management 460 625 0,2 % INGUNN \u00d8VERENG IVELAND Board Member 30 000 0,0 % AB INVESTMENT AS Owned by Anders Onarheim (Board member) 500 000 0,2 % VEST-NORSK HANDELSKOMPANI AS Owned by Kristine Skeie (Board member) 35 000 0,0 % KRISTINE SKEIE Board Member 5 0,0 % Total 58 228 237 25,8 % (NOK 1000) 2022 2021 Interest income on short term bank deposits 1 264 237 Total interest income 1 264 237 Interest expense on bank borrowings (2 309) (1 223) IFRS 16 interest expense (13 090) (5 861) Other interest expense (16) (763) Total interest expense (15 415) (7 838) Net foreign exchange expense/income 7 076 1 547 Other \ufb01nance costs (158) (102) Total Other \ufb01nance items 6 918 1 437 Net \ufb01nance items (7 232) (6 164) Notes Note 9 - Financial income and expenses Note 10 - Taxes (NOK 1000) 2022 2021 Taxes payable 9 344 - Changes in deferred taxes 16 490 (20 760) Taxes, in total 25 838 (20 760) DEFERRED TAXES / (DEFERRED TAX ASSETS) Temporary differences: Other \ufb01xed assets (31 709) (17 537) Financial leases 1 509 2 943 Fixed-price contracts - - Inventories (934) (4 790) Accruals (4 025) (3 669) Right-of-use assets (12 657) Intangible assets 25 750 Tax loss carried forward (91 184) (159 469) Temporary differences, in total (113 251) (182 521) Deferred tax assets (24 915) (40 151) Not recognized deferred tax assets - - Deferred tax assets in balance sheet* 24 915 40 151 *In March 2022 Reach Subsea aquired iSurvey Group AS. The transaction was completed in end March 2022. Deferred tax assets incorporated at closing was NOK 7.85 million while deferred tax related to exess values was estimated to NOK 6.60 million. Net deferred tax asset related to the acquisition was NOK 1.25 million and were recognized in the balance sheet as per end March 2022. Refer to note 26 for further details. Deferred tax assets are recognized in the balance sheet based on expected utilization of tax losses carried forward and temporary differences. The carrying amount of deferred income tax assets are reviewed at each balance sheet date and reduced to the extent that it is no longer probable that suf\ufb01cient taxable pro\ufb01t will be available to allow all or part of the deferred income tax asset to be utilized. Unrecognized deferred income tax assets are reassessed at each balance sheet dateand are recognized to the extent that it has become probable that future taxable pro\ufb01t will allow the deferred tax asset to be recovered. Note 10 - Taxes, continued Note 11 - Earnings per share Pro\ufb01t (loss) per share is calculated on the consolidated pro\ufb01t (loss) divided by the average number of shares outstanding. (NOK 1000) 31.12.2022 31.12.2021 Reconciliation from nominal to actual tax rate: Pro\ufb01t & loss before taxes 98 023 73 046 Nominal tax rate 22 % 22 % Anticipated income tax due to nominal tax rate 21 565 16 070 Actual tax cost 25 838 (20 760) Deviation 4 272 (36 830) Tax effects of: Permanent differences (1 421) 3 878 Effect of tax rates outside Norway different from 22% (2 852) - Changes in deferred tax assets, previously not recognized - 32 952 Explanation (4 272) 36 830 Effective tax rate 26 % -28 % Payable taxes in the balance sheet Payable tax in the tax charge (9 344) - Advances paid on tax charge 1 491 - Payable tax in the balance sheet (7 853) - 2022 2021 Pro\ufb01t (loss) - attributable to the owners (NOK 1000) 72 185 93 806 Basic pro\ufb01t (loss) per share (NOK) 0,35 0,65 Diluted pro\ufb01t (loss) per share (NOK) 0,34 0,65 Average numbers of shares 206 966 734 143 677 290 Average diluted number of shares for EPS 209 835 227 143 677 290 Number of shares 1/1 144 940 708 143 606 008 Number of shares 31/12 225 725 928 144 940 708 Company Business of\ufb01ce Voting rights and ownership Reach Subsea AS Haugesund 100 % Connect Offshore AS (100% owned by Reach Subsea AS) Haugesund 100 % Reach Remote AS (100% owned by Reach Subsea AS) Haugesund 100 % Octio AS (100% owned by Reach Subsea AS) Bergen 100 % Monviro AS (100% owned by Reach Subsea AS) Bergen 100 % iSurvey AS (100% owned by Reach Subsea AS) Billingstad 100 % iSurvey Assets AS (100% owned by Reach Subsea AS) Billingstad 100 % iSurvey Group AS (100% owned by Reach Subsea AS) Billingstad 100 % Reach Subsea UK Ltd (100% owned by iSurvey Group AS) Scotland, UK 100 % Reach Subsea Pte. Ltd (100% owned by iSurvey Group AS) Singapore 100 % iSurvey Ltd (100% owned by iSurvey Group AS) Limassol, Cyprus 100 % Reach Subsea International AS (100% owned by Reach Subsea AS) Haugesund 100 % Reach Subsea Inc (100% owned by Reach Subsea International AS) Delaware, USA 100 % Gravitude UK Ltd (100% owned by Reach Subsea International AS) Scotland, UK 100 % Company Business of\ufb01ce Voting rights and ownership Reach Subsea AS Haugesund 100 % Connect Offshore AS (100% owned by Reach Subsea AS) Haugesund 100 % Reach Remote AS (100% owned by Reach Subsea AS) Haugesund 100 % Reach Subsea International AS (100% owned by Reach Subsea AS) Haugesund 100 % Reach Subsea UK Ltd (100% owned by Reach Subsea International AS) Scotland, UK 100 % Reach Subsea Pte. Ltd (100% owned by Reach Subsea International AS) Singapore 100 % Reach Subsea Ltd (100% owned by Reach Subsea International AS) Limassol, Cyprus 100 % Reach Subsea Inc (100% owned by Reach Subsea International AS) Delaware, USA 100 % Gravitude UK Ltd (100% owned by Reach Subsea International AS) Scotland, UK 100 % Note 12 - Shares in subsidiaries Notes As of January 1 2023 the following changes have been made in the group structure: \u2022 Octio AS, Monviro AS, iSurvey AS and iSurvey Assets have been merged with Reach Subsea AS. \u2022 iSurvey Group AS have been merged with Reach Subsea International AS. \u2022 iSurvey Ltd have been renamed Reach Subsea Ltd. After completion of the changes, shares in subsidiaries will be as follows: Note 13 - Climate risk Climate-related risks to Reach Subsea include market effects from changing demand for oil and gas (implying lower demand for our services in this segment), evolving laws and regulations, stricter climate policies, disruptive technology, as well as physical effects of climate change and reputational effects. Reach Subsea assesses climate transition risks into two major cate- gories: (1) risks related to the transition to a low-carbon economy and (2) risks related to the physical impacts of climate change. Risks related to the transition to a low-carbon economy DEMAND Demand for our services within the Oil&Gas segment in the long- term is uncertain due to the global clean energy transition. The groups assessment is that risk of reduced demand for services within Oil&Gas is partly mitigated by correspondingly increased demand for our services within the renewable segment. The groups primary revenue stream is owning, leasing and operat- ing vessels and ROVs. Based on the 2022-levels of revenue and distribution between different segments, the estimated effect of decrease in demand for services within Oil&Gas are as follows: Decline in demand for services related to Oil&Gas Decrease in total revenue (NOK1000) Decrease in operating result (NOK 1000) 10 % 95 440 8 639 20 % 190 880 17 278 30 % 286 320 25 917 IMPAIRMENT/STRANDED ASSETS \u201cReduced demand for services within the Oil&Gas segment in the long term could prompt the groups assets to become stranded. An assessment has been made as to whether the Group has assets that are exposed to signi\ufb01cant environmental risk or climate risk (\u2018stranded assets\u2019). The Group has not identi\ufb01ed any stranded assets at 31 December 2022. The company\u2019s assets are depreci- ated over a lifetime of maximum 8 years, and the groups assess- ment is that the risk of assets being stranded or subject to material impairments within its initial lifetime due to climate risk is low. A sensitivity analysis have been made on the possible impact on impairment charges as a result of a decrease in demand for our services within Oil&Gas: Decline in demand for services related to Oil&Gas Impairment charge (NOK 1000) 10 % - 20 % 642 30 % 3 713 FINANCING AND CAPITAL Reach Subseas future development and investments depend on multiple sources, including operational cash \ufb02ow, capi- tal, and borrowings. Increased concern over climate change could lead to increased cost of capital. To mitigate such risk, the group works closely with \ufb01nancial institutions and inves- tors and continuously evaluates its investment strategy to optimize a strong balance sheet. Risks related to the physical impacts of climate change Reach Subsea is exposed to changing weather conditions caused by climate change as a result of its operation activities offshore. Impact of severe climate change could cause damage to assets, disrupt operational activities and result in signi\ufb01cant costs increased. The company maintain insurance to protect its physical assets and also manage the risk of lost revenue due to weather conditions through its contracts with customers. ASSET CATEGORY ASSETS UNDER CONSTRUCTION PROPERTY PLANT AND EQUIPMENT PROPERTY PLANT AND EQUIPMENT PROPERTY PLANT AND EQUIPMENT RIGHT-OF-USE ASSETS ASSETS DESCRIPTION (NOK 1000) Assets under construction ROV and ROV equipment Right-of-use asset ROV, leased from \ufb01nancial institutions Equipment and of\ufb01ce mashinery Vessels and other equipment* Total Year ended 31 December 2022 Opening net book amount - 46 709 13 340 13 720 277 212 350 974 Additions 150 499 3 453 - 13 437 126 717 294 106 Additions from acquisition of iSurvey Group** - - - 39 837 10 327 50 163 Adjustment of commitment - - - - (17 203) (17 203) Depreciation - (21 640) (5 394) (18 459) (306 795) (352 282) Closing net book value 150 499 28 530 7 945 48 535 90 258 325 768 At 31 december 2022 Cost 1.1.22 - 155 068 113 884 25 673 601 143 895 768 Additions 150 499 3 453 - 53 274 119 841 327 066 Adjustment fully depreciated items - - - - (335 183) (335 183) Cost 31.12.22 150 499 158 521 113 884 78 947 385 800 887 651 Accumulated depreciation 1.1.22 - (108 387) (100 544) (11 953) (316 426) (537 310) Depreciation - (21 640) (5 394) (18 459) (306 795) (352 282) Adjustment fully depreciated items - - - - 327 678 327 678 Accumulated depreciation 31.12.22 - (130 027) (105 939) (30 412) (295 542) (561 914) Accumulated impairment 1.1.22 - - - - (7 505) (7 505) Adjustment fully depreciated items - - - - 7 505 7 505 Accumulated impairment 31.12.22 - - - - - - Book value 150 499 28 530 7 945 48 535 90 258 325 768 Depreciation plan/useful life 3 - 8 years 3 - 8 years 3 years 1-3 years Depreciation method linear linear linear linear * See note 24 for further information for Right of use asset Vessels and other equipments and note 22 for Right of use asset ROV, leased from \ufb01nancial institutions. **Refer to note 26 for equipment acquired in the iSurvey transaction, and note 24 for Right-of-use assets. Notes Note 14 - Property, plant & equipment Note 14 - Property, plant & equipment, continued Notes ASSETS UNDER CONSTRUCTION CAN BE DIVIDED INTO THE FOLLOWING CATEGORIES: Reach Remote 116 354 Minor capex-projects and mobilizations 4 936 Prepayments acquisition of Edda Sun (Viking Reach) 29 209 Net book value 31.12.22 150 499 ASSET CATEGORY ASSETS UNDER CONSTRUCTION PROPERTY PLANT AND EQUIPMENT PROPERTY PLANT AND EQUIPMENT PROPERTY PLANT AND EQUIPMENT RIGHT-OF-USE ASSETS ASSETS DESCRIPTION (NOK 1000) Assets under construction ROV and ROV equipment Right-of-use asset ROV, leased from \ufb01nancial institutions Equipment and of\ufb01ce mashinery Vessels and other equipment* Total Year ended 31 December 2021 Opening net book amount 51 547 23 976 1 046 13 533 90 103 Additions** 44 672 - 13 589 467 107 525 369 Closing net book value (22 856) (1 862) - - (24 715) At 31 december 2021 (26 681) (8 774) (915) (203 435) (239 807) Cost 1.1.21 46 709 13 340 13 720 277 212 350 974 Additions Disposals at cost 133 253 115 746 12 084 134 029 395 112 Cost 31.12.21 44 672 - 13 589 467 107 525 369 Accumulated depreciation 1.1.21 (22 856) (1 862) - - (24 718) Depreciation 155 068 113 884 25 673 601 143 895 767 Accumulated depreciation 31.12.21 (81 706) (91 770) (11 038) (112 991) (297 505) Accumulated impairment 1.1.21 (26 681) (8 774) (915) (203 435) (239 807) Impairment (108 387) (100 544) (11 953) (316 426) (537 312) Accumulated depreciation 31.12.21 - - - (7 505) (7 505) Book value - - - - - Accumulated impairment 31.12.22 - - - (7 505) (7 505) Book value 46 701 13 340 13 720 277 212 350 974 Depreciation plan/useful life 3 - 8 years 3 - 8 years 3 years 1-3 years Depreciation method linear linear linear linear Bank borrowings are secured on \ufb01xed assets for the value of NOK 37.1 million (2021: 61.0 million). Bank borrowings from the acquired company iSurvey Group are secured on \ufb01xed assets for the value of NOK 20.9 million. See also note 22 Borrowings. Impairment SUMMARY Impairment testing has been performed in accordance with IAS 36. The impairment testing for 2022 did not result in any impairment. DISCOUNT RATE The discount rate is based on the Weighted Cost of Capital (WACC) pre tax for the Group. The discount rate is 9,0 % REVENUE ASSUMPTIONS The revenue assumption in the cash \ufb02ow forecast is based on a combination of utilisation for assets and selling price. Utilisation is based on \ufb01rm contractual days on a short to medium term and estimated future selling on a medium to longer term. Forecasted utilisation on a longer term is based on historical data, as well as managements expectations of mar- ket development. Forecasted selling rates are based on historical data. No in\ufb02ation adjustments have been made to reve- nue assumptions. Future change in how the world will react in light of the goals set in the Paris-agreement could, depend- ing on the characteristics of the change, have a negative effect on the demand for the companys services. RIGHT-OF USE-ASSETS - VESSELS: The right-of-use assets at 31 December 2022 represents the remaining committed vessel days on charter agreements with ves- sel owners. The impairment testing demonstrated that the recoverable amount is larger than book value, and as such no impair- ment charge is required. The recoverable amount is sensitive to estimated utilisation and selling rate assumptions. Sensitivity analysis show however that a 20% drop in estimated future revenue would not result in an impairment. An increase in WACC of 2 percentage points will not result in any additional impairment due to the short remaining lifetime of the assets. Se note 24 for further information on Right-of-use assets. ROV AND ROV EQUIPMENT Impairment testing has been performed on each ROVs CGU, i.e. both owned and leased ROVs. Other assets, such as acti- vated mobilisation costs and other ROV equipment is not included in the impairment test as these assets do not have impair- ment indicators. The recoverable amount is based on estimated future cash \ufb02ows, which is based on estimated selling price, budgeted maintenance cost and utilisation. The impairment testing demonstrated that the assets recoverable amount is larger than book value, and as such no impairment charge is required. The recoverable amount is sensitive to utilisation and selling rate assumptions. Sensitivity analysis show that a 20% drop in revenue for all ROV CGU\u2019s would result in an impair - ment charge of NOK 1,6 million. An increase in WACC of 2 percentage points will not result in any impairment. Note 14 - Property, plant & equipment, continued SENSITIVITY ON TOTAL FIXED ASSETS Drop in estimated utilisation Impairment charge on \ufb01xed assets (NOK 1000) 10% - 20% 1 622 30% 5 805 Note 15 - Intangible assets (NOK 1000) Research & development Customer relationships Goodwill Total Year ended 31 December 2022 Opening net book amount 1 457 - - 1 457 Additions 727 - - 727 Addition from business combination (note 26) - 10 000 86 723 96 723 Depreciation - (1 250) - (1 250) Disposals/adjustments (310) - - (310) Closing net book value 1 873 8 750 86 723 97 347 At 31 december 2022 Cost 1.1.22 1 457 - - 1 457 Additions 727 - - 727 Addition from business combination (note 26) - 10 000 86 723 96 723 Disposals/adjustments (310) - - (310) Cost 31.12.22 1 873 10 000 86 723 98 597 Accumulated depreciation 1.1.22 - - - - Depreciation - (1 250) - (1 250) Accumulated depreciation 31.12.22 - (1 250) - (1 250) Accumulated impairment 1.1.22 - - - - Impairment - - - - Accumulated impairment 31.12.22 - - - - Book value 1 873 8 750 86 723 97 347 Depreciation plan/useful life Ongoing project 6 years Inde\ufb01nite Depreciation method linear * Additions from business combination are related to the acquisition of iSurvey Group, refer to note 26 for further information. Research and Development are related to R&D activities in Monviro AS. As of December 31 2022 Monviro has net book values for R&D totaling NOK 1.87 million that apply to development of software/equipment related to the company\u2019s ASUMO project. Hours spent have been capitalized for Monviro personnel, hired personnel from OCTIO as well as other external consultants related to the development of equipment and software. Note 16 - Trade and other receivables (NOK 1000) 2022 2021 Trade receivables 216 328 149 633 Less: provision for impairment of trade receivables - - Current portion trade receivables 216 328 149 633 Prepayments 5 782 7 619 Revenue recognised, not billed 67 451 31 747 Other receivable 13 019 7 781 Current portion other receivables 86 252 47 150 Non-current positions - - The fair values of trade and other receivables are as follows: (NOK 1000) 2022 2021 Trade receivable 216 328 149 633 Receivables from related parties - - Loans to related parties - - Total trade receivables 216 328 149 633 Transactions with subsidiaries have been eliminated in the Group\u2019s \ufb01nancial statements and do not represent related party transactions. CHANGES IN ALLOCATION FOR LOSSES OF ACCOUNT RECEIVABLES There has been no losses or provisions for impairment of recievables in 2021 and 2022 As of 31.12., the Group had the following trade receivables which was due, but not been paid: Trade receivables Total Not due < 30 d 30-90 d 90 - 360 d > 361 d 2022 216 328 158 342 48 893 7 958 1 134 - 2021 149 633 89 452 48 472 11 673 36 - Based on previous experience with customers and assessment of intial credit risk and expected credit losses as at 31 December 2022, there is no allowance for bad debt on receivables in 2022. The main portion of overdue receivables has been paid after balance sheet date. TRADE RECEIVABLES - COUNTERPARTY WITHOUT EXTERNAL CREDIT RATING (NOK 1000) 2022 2021 Group 1 95 791 34 101 Group 2 120 537 115 532 Group 3 - - Total trade receivables 216 328 149 633 Group 1 - New customers (less than 6 months customer relationship) Group 2 - Existing customers (more than 6 months customer relationship) with no defaults in the past Group 3 - Existing customers (more than 6 months customer relationship) with some defaults in the past The carrying amounts of the group\u2019s trade and other receivables are denominated in the following currencies: (NOK 1000) 2022 2021 NOK 74 323 73 858 EUR 2 477 19 250 USD 83 556 44 523 GBP 54 714 11 614 SGD 148 - DKK 1 110 - AUD - 388 Sum 216 328 149 633 Note 17 - Cash and cash equivalents (NOK 1000) 2022 2021 Cash and cash equivalents in NOK 99 497 111 211 Cash and cash equivalents in USD 53 615 16 551 Cash and cash equivalents in EUR 15 382 11 141 Cash and cash equivalents in GBP 23 097 10 132 Restricted cash equivalence hereof - - Cash and cash equivalents, in total 191 591 149 035 The company also has restricted cash related to withheld tax of NOK 10.3 million in 2022 (2021: NOK 6.4 million). The Group has a bank overdraft agreement. As at 31.12.22 the Group had NOK 20 million in unused drawing rights. RATING ON BANKS FOR CASH AA+ 56 28 A+ 11 209 - A- 180 310 148 992 BBB- 16 14 Total cash and cash equivalents 191 591 149 035 The 20 largest shareholders as of 31.12. 2021 Number of shares Ownership in per cent 1. NORTH ENERGY ASA 46 126 567 20.4% 2. WILHELMSEN NEW ENERGY AS 46 126 567 20.4% 3. SURVEY HOLDING AS 29 116 897 12.9% 4. SOBER AS 10 963 446 4.9% 5. JOSO INVEST AS 7 267 928 3.2% 6. HOLME HOLDING AS 6 338 000 2.8% 7. JT INVEST AS 5 739 539 2.5% 8. NORMAND DRIFT AS 5 000 000 2.2% 9. Danske Invest Norge Vekst 2 820 462 1.2% 10. LION INVEST AS 2 400 000 1.1% 11. CORUNA AS 2 250 000 1.0% 12. STAVA INVEST AS 2 010 000 0.9% 13. RMS INVEST AS 2 000 000 0.9% 14. TEOMAR AS 2 000 000 0.9% 15. A-\u00c5 INVEST AS 1 988 725 0.9% 16. BARRUS CAPITAL AS 1 510 090 0.7% 17. N\u00c6RINGSLIVETS HOVEDORGANISASJON 1 499 799 0.7% 18. CASTEL AS 1 144 687 0.5% 19. CONSUS AS 960 425 0.4% 20. INVICTA INVEST AS 909 179 0.4% Sum 20 largest 178 172 311 78.9% The rest of shareholders 47 553 617 21.1% Total number of shares 225 725 928 100.0% Notes Note 18 - Share capital and information about shareholders Reach Subsea\u2019s share capital amounts to NOK 225,725,928 divided into 225,725,928 shares, each with a nominal value of NOK 1. This includes 812,500 shares not yet registered. Shares not registered is related to the Companys stock option scheme. Refer to stock exchange notice on 8th of December 2022 and note 19 for further information. On 17 February 2022 the Group announced the acquisition of 100% of the shares in iSurvey Group AS from iSurvey Holding AS for NOK 135 million. The transaction was settled through the issuance of 33,846,153 shares in Reach, valued at NOK 3.25 per share, and NOK 25 million in cash. The transaction was closed in the \ufb01rst quarter of 2022. On 17 February 2022, Wilhelmsen New Energy AS, a wholly owned subsidiary of Wilh. Wilhelmsen Holding ASA, agreed to subscribe for, and be allocated, 46,126,567 new shares in Reach Subsea ASA at a subscription price of NOK 3.25 per share. The agreement also included the issuance of warrants, whereby Wilhelmsen New Energy AS have received the right to subscribe for and be allocated an additional 44,766,864 new shares in Reach Subsea ASA at a subscription price of NOK 4.00 per share, corresponding to 20% of the shares in Reach Subsea ASA after the abovementioned issue of shares to iSurvey Holding AS. The warrants have a duration of three years and can be exercised at any time. The private placement and the issuance of the war- rants was approved on an extraordinary general meeting in Reach Subsea ASA, held on 15 March 2022. After the approval by the extraordinary general meeting, Wilhelmsen New Energy AS have a combined holding of shares and warrants of 90,893,431. On February 15 2023 Reach Subsea announced and successfully executed a private placement. A total of 29,411,000 new shares was allocated by the Board of Directors. In addition the company also announced that the Board has resolved to undertake a subsequent offering of up to 3,000,000 new shares. The subscription period for the subsequent offering ended on 27 March 2023 and resulted in a total subscription of 312,635 new shares. After the completion of the private placement and the subsequent offering, the new share capital of the company is NOK 255,449,563 divided into the equivalent number of shares, each with a nominal value of NOK 1.00 Refer to note 27 for further information about the private placement and changes in owner structure. \u2018In 2021 the Board of directors of Reach Subsea ASA approved a stock option scheme to further align the interests of the participating employees in Reach Subsea with those of the shareholders. The stock option scheme was \ufb01nalised with a signed agreement between the company and Management and certain key employees 15.12.2021. Management and cer- tain key employees of the Reach Subsea-group is granted the right to acquire up to a certain maximum number of shares in the Company at a \ufb01xed strike price (\u201cthe Option\u201d). The strike price is set equal to the volume weighted average share price of the Company\u00b4s stock traded on the Oslo Stock Exchange 10 days prior to the \ufb01nalization of the option scheme. The options are vested with 1/3 each year, over a period of three years until 31.12.2024. The options are non-tradable and con- ditional upon the participant being employed by the Reach Subsea-group at the vesting date. The stock option plan constitued a maximum of 3,000,000 options equivalent to a similar number of Reach Subsea ASA shares. The fair value at grant date was deter- mined using a Black Scholes Model. The most signi\ufb01cant inputs and assumptions in determining fair value at grant date was: Excercise price: NOK 3.0 Share price at grant date: NOK 3.0 Expected volatility: NOK 56.14% Risk free interest rate: NOK 1.092% Term of options: 3 years Note 18 - Share capital and information about shareholders, continued Note 19 - Sharebased payments Note 20 - Other current liabilities (NOK 1000) 2022 2021 Other current liabilities 1 631 7 168 Accruals 75 308 45 279 Accrued salaries and bene\ufb01ts 31 009 16 807 Witholding taxes 367 586 Other taxes payable 4 082 5 190 Accrued interests 145 174 Other current liabilities, in total 112 541 75 203 Other current liabilities consist mainly of incurred operational expenses and performed planned periodic maintenance not yet invoiced at year end. 2022 2021 Average exercise price per share option Number of options Average exercise price per share option Number of options At 1 January 3.00 3 000 000 - - Granted - - 3.00 3 000 000 Forfeited - - - - Exercised* 2.82 812 500 - - Expired - 187 500 - - At 31 December 2.82 2 000 000 3.00 3 000 000 * The initial exercise price of 3.0 were in 2022 adjusted for dividends paid in 2022, making the actual exercise price 2.82. The group has recognised NOK 1.6 million (including social security tax) in cost related to the options in 2022 (2021: NOK 0). The group has no legal or constructive obligation to repurchase or settle the options in cash. 2022 (NOK 1000) Financial instruments measured at amortised cost Financial instruments at fair value through pro\ufb01t or loss Financial instruments measured at fair value through other comprehensive income Fair value Financial assets Trade receivables 216 328 - - 216 328 Other receivables 86 252 - - 86 252 Cash and cash equivalents 191 591 - - 191 591 Assets, in total 494 171 - - 494 171 2021 (NOK 1000) Financial instruments measured at amortised cost Financial instruments at fair value through pro\ufb01t or loss Financial instruments measured at fair value through other comprehensive income Fair value Financial assets Trade receivables 149 633 - - 149 633 Other receivables 47 150 - - 47 150 Cash and cash equivalents 149 035 - - 149 035 Assets, in total 345 818 - - 345 818 Financial liabilites Borrowings (long & short term interest bearing debt) 130 988 - - 130 988 Trade payables 102 430 - - 102 430 Other current liabilities 112 541 - - 112 541 Liabilites, in total 345 959 - - 345 959 Financial liabilites Borrowings (long & short term interest bearing debt) 312 556 - - 312 556 Trade payables 63 467 - - 63 467 Public duties - - - - Other current liabilities 75 203 - - 75 203 Liabilites, in total 451 225 - - 451 225 Note 21 - Classi\ufb01cation of \ufb01nancial assets and liabilities The following of the Group\u2019s \ufb01nancial instruments are measured at amortised cost: cash and cash equivalents, trade receivables, other current receivables, trade payables, other current liabilities and all interest bearing debt. The carrying amount of cash and cash equivalens is approximately similar to fair value since these instruments have a short term to maturity. Similarly, the carrying amount of trade receivables, trade payables and other receivables/liabilities is approximately equal to fair value since they are entered into at standard terms and conditions. The fair value of the interest-bearing debt is the disclosed face value of the loans. Note 21 - Classi\ufb01cation of \ufb01nancial assets and liabilities, continued Financial liabilities 2022 Remaining contractual maturities (NOK 1000) 0-180 days 180 d-1 year 1-3 years > 3 years Total Trade payables 102 430 - - - 102 430 Other current liabilities 112 541 - - - 112 541 Interest-bearing debt to credit institutions 19 506 3 580 4 932 - 28 018 Interest-bearing debt, leases 52 871 45 800 4 179 120 102 970 Interest on interest-bearing debt to credit institutions 753 317 183 - 1 252 Interest on interest-bearing debt, leases 2 213 943 166 0 3 322 Financial liabilities, in total 290 313 50 639 9 460 121 350 533 Financial liabilities 2021 Remaining contractual maturities (NOK 1000) 0-180 days 180 d-1 year 1-3 years > 3 years Total Trade payables 63 467 - - - 63 467 Other current liabilities 75 203 - - - 75 203 Interest-bearing debt to credit institutions 8 290 7 471 14 997 - 30 757 Interest-bearing debt, leases 85 800 90 827 103 732 1 439 281 798 Interest on interest-bearing debt to credit institutions 620 444 596 - 1 660 Interest on interest-bearing debt, leases 6 407 4 301 3 047 43 13 798 Financial liabilities, in total 239 786 103 043 122 372 1 482 466 683 Note 21 - Classi\ufb01cation of \ufb01nancial assets and liabilities, continued Changes in interest-bearing debt 2022 2021 (NOK 1000) Interest bearing debt, leases Interest bearing debt to credit institutions Interest bearing debt, leases Interest bearing debt to credit institutions Opening balance 281 798 30 757 15 766 25 590 Drawdowns - - - - Repayment incl interest -311 814 -13 448 -207 185 -17 793 Interest-bearing debt from acquisition of iSurvey Group AS* - 10 709 - 22 961 Non-cash changes: Interest-bearing debt from acquisition of iSurvey Group AS* 10 327 - - - Addition IFRS 16 lease liability throughout the year 126 717 - 467 226 - Adjustment IFRS 16 lease liability -17 203 - - - Currency adjustment 55 - 131 - Accrued interest 13 090 - 5 861 - Closing balance 102 970 28 018 281 798 30 757 * Refer to note 26 for debt acquired in the iSurvey Group transaction. DISTRIBUTION NON-CURRENT AND CURRENT DEBT (NOK 1000) 2022 2021 Non-current interest-bearing debt to credit institutions 4 932 14 497 Non-current interest-bearing debt, leases 4 310 105 171 Current interest-bearing debt to credit institutions 23 086 16 260 Current interest-bearing debt, leases 98 660 176 627 Closing balance 130 988 312 556 Note 22 - Borrowings (NOK 1000) 2022 2021 Non current Bank borrowings 4 854 13 938 Lease liabilities to credit institutions (IFRS 16) 78 559 Other lease liabilities ( IFRS 16) 4 310 105 171 Total 9 242 119 668 Current Bank borrowings 20 746 11 584 Lease liabilities to credit institutions(IFRS 16) 2 339 4 676 Other lease liabilities ( IFRS 16) 98 661 176 627 121 746 192 887 Total borrowings 130 988 312 556 Bank borrowings \u2018Bank borrowings mature until 2024 and bear average coupons of 5.0 % annually. The bank borrowings are subject to industry- relevant covenants. Due to changes in equity and the \ufb01nancing of ongoing capex-projects the existing covenants have been updated in 2022. The \ufb01nancial covenants are as follows: \u2022 Minimum liquidity: Cash and cash equivalents, including any undrawn and available part of the over- draft facility with SR-Bank, shall at all times to be minimum NOK 40 million. \u2022 Debt service Coverage Ratio: The ratio of last 12 months\u2019 (LTM) EBITDA1) to the next 12 months\u2019 total estimated interest and instalments on Interest Bearing Debt 1) (excl IFRS16 install- ments/incl. lease liabilities to credit institutions) shall at all times be minimum 2.00. \u2022 Booked Equity shall be minimum NOK 350 million and Booked Equity Ratio shall be minimum 25%. As of 31 December 2022 the liquidity position (including overdraft facility) is 211.5 million, the Debt service Coverage Ratio is 6.9, and Booked equity NOK 579.4 million/60.9%. All \ufb01nancial covenants are well within the thresholds mentioned above. Please note that the \ufb01nancial covenants in the groups debt facilities exclude the effects from IFRS 16, and therefore can not be directly derived from the groups \ufb01nancial statements. Total borrowings to bank and \ufb01nancial institutions includes secured liabilities (bank and collateralised borrowings) of NOK 28.0 million (2021: NOK 30.8 million). Bank borrowings are secured by equipment and receivables of the group (note 14). The carrying amounts and fair value of the interest-bearing debts are as follows: Carrying amount Fair value (NOK 1000) 2022 2021 2022 2021 Bank borrowings 25 600 25 522 25 600 25 522 Lease liabilities to credit institutions(IFRS 16) 2 418 5 235 2 418 5 235 Other lease liabilities (IFRS 16) 102 970 281 798 102 970 281 798 Sum 130 988 312 556 130 988 312 556 The fair value of Bank borrowings equals their carrying amount, as the impact of discounting is not signi\ufb01cant. The fair values are based on cash \ufb02ows discounted using a rate based on the borrowing rate of 5.0 % and are within level 3 of the fair value hierarchy. The carrying amounts of the group\u2019s borrowings are all denominated in Norwegian kroner. Lease liabilities to credit institutions Lease liabilities are effectively secured as the rights to the leased asset revert to the lessor in the event of default. (NOK 1000) 2022 2021 Gross lease liabilities - minimum lease payments No later than 1 year 2 339 4 676 Later than 1 year and no later than 5 years 78 559 Later than 5 years - - Total instalments on lease liabilities 2 418 5 235 Future \ufb01nance charges on \ufb01nance lease liabilities 103 82 Total instalments and \ufb01nance charges on lease liabilities 2 520 5 317 Refer to note 14 Property, plant and equiptment for secured assets. For other lease liabilities under IFRS 16 please see note 24. SHORT TERM LEASES Costs relating to operational leases recognized in the income statement for 2022 is NOK 6.4 million, whereof NOK 3.4 million in real estate rental. The real estate rental is short term with 3 months termination notice. CAPEX AND VESSEL CAPACITY The Reach Remote project is expected to amount to approximately NOK 400 million. As of December 31 the company has capitalized NOK 116.4 million as Asset under construction. In addition, the company has \ufb01nanced two eROVs through leasing. As of December 31 the ROVs are under construction, and costs not recognised related to the ROVs amounts to NOK 20.8 million. The ROVs will be recognised in the balance sheet at commencement date. Besides the Reach Remote project, Reach has taken multiple steps to secure vessel capacity at competitive terms. Investments in 2023 associated with these vessels is expected to amount to approximately NOK 260 million (including the acquisition of Edda Sun), and encompass equipment, upgrades and mobilization activities for three vessels (Edda Sun, Deep Cygnus, and Go Electra). Reach has secured bank and lease \ufb01nancing of NOK 160 million to partly fund these investments. On February 23 the company announced a strategic partnership with Eidesvik Offshore for ownership and operation of the ROV sup- port vessel Edda Sun. The new joint venture (JV) is owned 50.1 percent by Eidesvik and 49.9 percent by Reach Subsea. Under its new name, Viking Reach, the vessel will commence on a 6-year contract between the JV and Reach Subsea start- ing in Q2. The contract will increase interest-bearing debt (leases) with an estimated amount of NOK 322 million. In addition to Viking Reach, charter commitments for vessels mobilized in 1Q23 (Deep Cygnus, Go Electra, Olympic Triton, Olympic Zeus) will increase interest bearing debt (leases) with an estimated amount of NOK 750 million. The company has also entered into a new rental agreements for of\ufb01ces in Haugesund in 1Q23 which will inrease interest-bearing debt with an estimated amount of NOK 10 million. Long and short term leases (committed lease term 12 months or less) of vessels and ROV\u2019s are capitalized as right- of use assets and depreciated under IFRS 16. The impact is that all cost in relation to leases of vessels/ROV\u2019s are presented as depreciation and interest expenses. No other short term leases, except for vessels and ROV\u2019s, are capitalized as right- of use assets and depreciated. As of March 31 2022, the group has recognized a right-of-use asset related to a long-term rental agreement for of\ufb01ces in the acquired company iSurvey Group AS. Capitalized addition related to the rental agreement was NOK 10.3 million, with an ending balance December 31 2022 of NOK 6.4 million (right-of-use) and NOK 6.6 million (lease liability), and is included in the numbers presented in this note. As of December 31 2022, Right of use assets in the balance sheet consist of contractual commitments for vessels and of\ufb01ces. Short term leases with no contractual commitment (pay as you go contracts), are not capitalized. At inception of a contract the lease liability and the corresponding Right-of-use assets is measured at the present value of the estimated lease payments. Short term hired in vessels and ROV\u2019s are treated as short term leases under IFRS 16 and are also recognized as depreciations. The calculated lease liability is calculated with a discount rate of 5%. For leases towards credit institutions please see note 22. The following tables are related to leases, except for leases towards credit institutions. Note 23 - Commitments Note 24 - Leases (Group as lessee) Note 24 - Leases (Group as a lessee), continued Movement schedule for right of use assets and lease liabilities (NOK 1000) Right of use asset Interest-bearing debt non-current Interest-bearing debt, current Opening balance 01.01.2022 277 212 105 171 176 627 Additions 126 717 - 126 717 Additions from acquisition of iSurvey Group (note 26) 10 327 5 337 4 990 Adjusted commitment -17 203 -17 203 - Depreciation -306 795 - - Interests - - 13 090 Reclassed from short to long term - -88 995 88 995 Currency adjustments - - 55 Payments - - -311 814 Ending balance 31.12.2022 90 258 4 310 98 660 Movement schedule for right of use assets and lease liabilities (NOK 1000) Right of use asset Interest-bearing debt non-current Interest-bearing debt, current Opening balance 01.01.2021 13 534 - 15 766 Additions 409 648 - 409 648 Adjusted commitment - - (368) Depreciation (145 975) - - Interests - - 5 861 Reclassed from short to long term - 105 171 (105 171) Currency adjustments - - 131 Payments - - (149 239) Ending balance 31.12.2021 277 212 105 171 176 627 Lease liabilities (NOK 1000) 2022 2021 Amounts due for settlement within 12 months (shown under current liabilities) 98 660 176 627 Amounts due for settlement after 12 months (present value) 4 310 105 171 Total 102 970 281 798 Maturity analysis (NOK 1000) 2022 2021 Not later than 1 year 98 660 176 627 Later than 1 year and not later than 5 years 4 310 105 171 Later than 5 years - - Total instalments 102 970 281 798 Future \ufb01nance charges 3 322 13 798 Total instalments and \ufb01nance charges 106 292 295 596 OTHER INFORMATION RELATED TO LEASES: For information related to leases to credit institutions, see note 22. For information related to cost of short-term leases (except for Vessels and ROV\u2019s), see note 7. For information related to right-of-use assets, see note 14. Reconciliation of depreciation (NOK 1000) 2022 2021 Depreciations of long term right- of use assets 254 580 145 975 Depreciations of short term right- of use assets (Pay as you go contracts) 52 215 57 459 Depreciations of other assets (Note 14) 46 737 36 370 Total depreciations 353 532 239 807 2022 (NOK 1000) Oil and gas Renewable/Other Total Revenue from contracts with customers 831 413 186 715 1 018 127 Revenue from other contracts* 122 986 21 707 144 693 Segment revenue 954 399 208 422 1 162 821 2021 (NOK 1000) Oil and gas Renewable/Other Total Revenue from contracts with customers 296 823 135 963 432 786 Revenue from other contracts* 175 094 65 373 240 467 Segment revenue 471 917 201 336 673 253 Timing of revenue recognition Oil and gas Renewable/Other Total At a point in time - - - Over time 954 399 208 422 1 162 821 Sum 471 917 201 336 673 253 Timing of revenue recognition Oil and gas Renewable/Other Total At a point in time - - - Over time 471 917 201 336 673 253 Sum 471 917 201 336 673 253 Note 25 - Contract with customers The Groups revenue comprises of revenue recognized from contract with customers for the provision of subsea services. Reach Subsea has assessed its contracts with customers and concluded that these fall under the de\ufb01nition of customer contracts in IFRS 15, with one exception. Revenue derived from services provided to projects that fall under the cooperation agreement with Ocean In\ufb01nity Sweden AB (OI) does not constitute as revenue from a customer contract. As such, this revenue is recognised on a monthly basis in line with rendering of services to OI. Note 25 - Contract with customers REVENUE BY REGION (NOK 1000) 2022 2021 Norway 387 938 232 074 UK 262 720 133 942 US 156 730 92 740 Egypt 114 337 - Sweden 77 753 34 800 Germany 51 553 63 464 Trinidad og Tobago 39 856 57 307 Singapore 29 499 - France 21 491 7 098 Greece 8 463 - Ivory Coast 5 293 - Malta 2 437 - Morocco 1 963 - Denmark 1 200 8 575 Spain 932 34 847 Israel 631 - Philippines 23 - Brazil - 8 406 Total 1 162 821 673 253 FIXED-PRICE CONTRACTS No \ufb01xed-price contracts were entered into in 2022. (NOK 1000) 31.12.2022 31.12.2021 Revenue recognised from \ufb01xed-price contract - - Cost recognised for \ufb01xed-price contract - - Net - - ASSETS AND LIABILITIES RELATED TO CONTRACTS WITH CUSTOMERS The group has recognized the following assets and liabilities related to contracts with customers: (NOK 1000) 31.12.2022 31.12.2021 Current contract assets 67 451 31 747 Loss allowance - - Total contract assets 67 451 31 747 Contract liabilities - - Total current contract liabilities - - Revenue recognised that was included in contract liability balance at beginning of period - - Revenue recognised from performance obligations satis\ufb01ed in previous periods - 75 The group has not recognised any assets from costs incurred to ful\ufb01l a contract at 31 December 2022 (2021: 0). Note 25 - Contract with customers, continued Note 26 - Business combinations ACQUISITION OF ISURVEY GROUP AS In March 2022 Reach Subsea acquired iSurvey Group AS including its subsidiaries iSurvey AS, iSurvey Assets AS, iSurvey Ltd, iSurvey Pte Ltd and iSurvey Offshore Ltd, \u201ciSurvey Group\u201d. The agreement was \ufb01nalized 22.03.2022 with the effect that the balance sheet for iSurvey Group is consolidated into our Group accounts as per end March 2022. The transaction was closed in March 2022. A preliminary purchase price allocation (PPA) has been performed and all identi\ufb01ed assets and liabilities have been measured at their acquisition date fair values in accordance with the requirements of IFRS 3. The agreed purchase price is NOK 135 million. Adjusted for interim period adjustments and working capital, the total cash consideration is estimated to NOK 138.4 million. At this stage, the purchase price allocation is preliminary. As a result, the \ufb01nal PPA and the impact on the \ufb01nancial statements from the transaction may differ. The \ufb01nal PPA will be completed within 12 months of the acquisition at the latest. The PPA presented below is based on the PPA on the acquisition date. No updates to the initial PPA have been made. The fair values of the identi\ufb01able assets and liabilities in the transaction as at the date of the acquisition have been estimated as follows: Purchase price allocation (NOK 1000) Deferred tax assets 1 254 Property, plant and equipment 19 837 Fair value adjustments property, plant and equipment 20 000 Right-of-use assets 10 327 Trade receivables 27 944 Fair value adjustments customer relationships 10 000 Other receivables 12 639 Cash and cash equivalents 6 132 Total assets 108 133 Interest-bearing debt to credit institutions (non-current) 2 924 Interest-bearing debt, leases (non-current) 5 337 Other long-term debt - Interest-bearing debt to credit institutions (current) 7 784 Interest-bearing debt, leases (current) 4 990 Public duties a.o 5 060 Tax payable 4 Trade payables 8 636 Other current liabilities 18 912 Provisions 2 780 Total liabilities 56 429 Note 26 - Business combinations, continued Total identi\ufb01able net assets at fair value 51 704 Total consideration 138 427 Goodwill 86 723 SUMMARY A goodwill of 86.7 million were recognized as a result of the transaction. ACQUIRED RECEIVABLES The fair value of the aquired trade recievebles equals the book value of recievables in the acquired company. REVENUE AND PROFIT CONTRIBUTION The acquired business contributed with revenues of NOK 178.3 million and net pro\ufb01t of NOK 11.8 million to the group for the period from 1 April to 31 December 2022. If the acquisition had occurred on 1 January 2022, consolidated pro-forma revenue and pro\ufb01t for the year ended 31 December 2022 would have been NOK 1,199 million and NOK 85.7 million respectively. These amounts have been calculated using the subsidiary\u2019s results and adjusting them for: \u2022 differences in the accounting policies between the group and the subsidiary, and \u2022 the additional depreciation and amortisation that would have been charged assuming the fair value adjustments to property, plant and equipment and intangible assets had applied from 1 January 2022, together with the consequential tax effects. 2021 AQUSITION OF SURVEYOR AS In March 2021 our joint venture partner MMT Sweden AB (\u201cMMT\u201d) was acquired by Ocean In\ufb01nity. This transaction triggered an option for Reach Subsea to purchase MMT\u2019s shares (50%) in our jointly owned entity Surveyor AS at book value. This option was exercised 31.03.2021 with the effect that the balance sheet for Surveyor AS is consolidated into our Group accounts as per end March 2021. The transaction was closed in June 2021. After the transaction Reach Subsea holds 100% of the shares in Surveyor AS. A purchase price allocation (PPA) has been performed and all identi\ufb01ed assets and liabilities have been measured at their acquisition date fair values in accordance with the requirements of IFRS 3. The agreed purchase price for MMT\u2019s share was NOK 22.8 million. The fair values of the identi\ufb01able assets and liabilities in the transaction as at the date of the acquisition have been estimated as follows: Note 26 - Business combinations, continued Purchase price allocation (NOK 1000) Property, plant and equipment 44 855 Trade receivables 8 778 Other receivables 8 250 Cash and cash equivalents 12 482 Total assets 74 365 Interest-bearing debt to credit institutions 22 961 Trade payables 5 601 Other current liabilities 246 Total liabilities 28 807 Total identi\ufb01able net assets at fair value 45 558 Whereof 50 % acquired 22 779 Total consideration 22 779 Goodwill - SUMMARY No goodwill or gain from a bargain purchase were recognized as a result of the transaction. ACQUIRED RECEIVABLES The fair value of the acquired trade receivables equals the book value of receivables in the acquired company. REVENUE AND PROFIT CONTRIBUTION The acquired business contributed revenues of NOK 11.6 million and net pro\ufb01t of NOK -6.1 million to the group for the period from 1 April to 31 December 2021. If the acquisition had occurred on 1 January 2021, consolidated pro-forma revenue and pro\ufb01t for the year ended 31 December 2021 would have been NOK 691,269 million and NOK 93.9 million respectively. These amounts have been calculated using the subsidiary\u2019s results and adjusting them for: \u2022 differences in the accounting policies between the group and the subsidiary, and \u2022 the additional depreciation and amortisation that would have been charged assuming the fair value adjustments to property, plant and equipment and intangible assets had applied from 1 January 2021, together with the consequential tax effects. No changes have been made on the preliminary purchase price allocation in 2022, and the allocation is considered \ufb01nal. Note 26 - Business combinations, continued AQUSITION OF OCTIO AS, GRAVITUDE AS, MONVIRO AS AND MONVIRO CCS AS (\u201cOCTIO GROUP\u201d) In December 2021 Reach Subsea acquired Octio AS, Gravitude AS, Monviro AS and Monviro Ccs AS, \u201cOctio Group\u201d. The agree- ment was \ufb01nalized 30.11.2021 with the effect that the balance sheet for Octio Group is consolidated into our Group accounts as per end November 2021. The transaction was closed on 08.12.2021. After the transaction Reach Subsea holds 100% of the shares. A purchase price allocation (PPA) has been performed and all identi\ufb01ed assets and liabilities have been measured at their acquisition date fair values in accordance with the requirements of IFRS 3. The total agreed purchase price for the shares is NOK 32.6 million. The fair values of the identi\ufb01able assets and liabilities in the transaction as at the date of the acquisition have been estimated as follows: Purchase price allocation (NOK 1000) Deferred tax assets 11 231 Research and development 2 825 Property, plant and equipment 13 385 Trade receivables 6 016 Other receivables 2 352 Cash and cash equivalents 19 196 Total assets 55 004 Other long term liabilities 2 840 Trade payables 2 017 Other current liabilities 4 316 Total liabilities 9 172 Total identi\ufb01able net assets at fair value 45 832 Total consideration* 32 567 Goodwill (13 265) * Of the total consideration of NOK 32.6 million, NOK 25.0 million was transferred to the seller in December 2021, and NOK 7.6 million of the consideration was transferred to the seller in January 2022. SUMMARY The Group\u2019s share of the fair value of the identi\ufb01able net assets of the acquired associates exceeds the cost of acquisition paid by the group. The main reason why the transaction resulted in a gain is related to the recognition of deferred tax asset in the purchase price allocation. The gain from the bargain purchase is recognized in other income. ACQUIRED RECEIVABLES The fair value of the acquired trade receivables equals the book value of receivables in the acquired company. Note 27 - Subsequent events REVENUE AND PROFIT CONTRIBUTION The acquired business contributed revenues of NOK 0.87 million and net pro\ufb01t of NOK -3.45 million to the group for the period from 1 December to 31 December 2021. If the acquisition had occurred on 1 January 2021, consolidated pro-forma revenue and pro\ufb01t for the year ended 31 December 2021 would have been NOK 712,536 million and NOK 75.8 million respectively These amounts have been calculated using the subsidiary\u2019s results and adjusting them for: \u2022 differences in the accounting policies between the group and the subsidiary, and \u2022 the additional depreciation and amortisation that would have been charged assuming the fair value adjustments to property, plant and equipment and intangible assets had applied from 1 January 2021, together with the consequential tax effects. No changes have been made on the preliminary purchase price allocation in 2022, and the allocation is considered \ufb01nal. NEW COMMITMENTS During the \ufb01rst quarter of 2023 Reach will mobilize three subsea vessels for use in own project portfolio. Deep Cygnus, Edda Sun and Go Electra will be mobilized with owned WROVs and SROV and survey equipment and ready for operation before the main season. Deep Cygnus and Go Electra are on contracts between owners and Reach lasting 4 years + options. Edda Sun will be partly owned by Reach. The vessel will commence on a 6-year contract between the JV and Reach Subsea start- ing in 2Q23. The contract will increase interest-bearing debt (leases) with an estimated amount of NOK 322 million. In addition, Reach has chartered in two vessels for speci\ufb01c projects; Olympic Zeus will work on a project in Western Africa for 4 months starting late 1Q23 and Olympic Triton will work on a contract with a client in the Walk to work segment lasting 6 months from March 23. Charter commitments for vessels mobilized in 1Q23 (Deep Cygnus, Go Electra, Olympic Triton, Olympic Zeus) will increase interest bearing debt (leases) with an estimated amount of NOK 750 million. Refer to press releases sent via Newsweb for further information. The company has also entered into a new rental agreements for of\ufb01ces in Haugesund in 1Q23 which will increase interest-bearing debt with an estimated amount of NOK 10 million. PROPOSED DIVIDENDS The Board proposed a dividend of NOK 0.18 per share, in accordance with the company\u2019s dividend policy, to be resolved on the AGM on 31 May 2023. (NOK 1000) 2022 2021 Dividend per share (NOK) 0.18 0.18 Total number of shares* 255 449 563 224 913 428 Dividends in total (NOK million) 45 981 40 484 * The proposed dividends for 2022 are based on total number of shares after the private placement and subsequent offering completed in March 2023 (further described below). Note 27 - Subsequent events STRATEGIC PARTNER On February 23 Reach Subsea announced a strategic partnership with Eidesvik Offshore for ownership and operation of the ROV support vessel Edda Sun. The new joint venture (JV) is owned 50.1 percent by Eidesvik and 49.9 percent by Reach Subsea. Under its new name, Viking Reach, the vessel will commence on a 6-year contract between the JV and Reach Subsea starting in Q2 2023. In addition to being co-owner, Eidesvik will provide full technical management, crewing and operation of the vessel. Edda Sun is a very well suited vessel for survey and light construction projects, and will be mobilized with one Supporter WROV and one Surveyor ROV. Reach Subsea has over the recent months taken signi\ufb01cant steps to put in place a renewed strong long-term core \ufb02eet and announced the acquisition of Edda Sun for USD 29 million on 24 November 2023. With the JV with Eidesvik Offshore, the acquisition of the vessel is fully \ufb01nanced. Reach Subsea\u2019s share of the investment is \ufb01nanced through equity and bank \ufb01nancing. Settlement of the acquisition and delivery of the vessel took place in March 2023. PRIVATE PLACEMENT On February 15 2023 Reach Subsea announced and successfully executed a private placement. The company\u2019s Board of directors have allocated a total of 29,411,000 new shares in the company, each at a subscription price of NOK 4.25 per offer share, raising gross proceeds of approx. NOK 125 million. The private placement consisted of one tranche of 22,500,000 new shares (\u201cTranche 1\u201d) and a second tranche of 6,911,000 new shares to applicants who have accepted deferred settlement in a separate tranche 2 (\u201cTranche 2\u201d). The new shares in Tranche 2 was resolved issued in an extraordinary general meeting on 10 March 2023. Completion of Tranche 1 was not conditional upon or otherwise affected by the completion of Tranche 2. To mitigate the dilution of existing shareholders not participating in the Private Placement, the Board resolved to undertake a subsequent offering of up to 3,000,000 new shares towards the Company\u2019s shareholders as of 15 February 2023. The subscription price in the subsequent offering was equal to the subscription price in the private placement. The subsequent offering was resolved issued in an extraordinary general meeting on 10 March 2023. The subscription period for the subsequent offering ended on 27 March 2023 and resulted in a total subscription of 312,635 new shares. After the completion of the private placement and the subsequent offering, the new share capital of the company is NOK 255,449,563 divided into the equivalent number of shares, each with a nominal value of NOK 1.00 In relation to the private placement the company has received the following noti\ufb01cations of transactions from persons dis- charging managerial responsibilities and their close associates following completion of the Private Placement: \u2022 North Industries 1 AS, a close associate of primary insider Rachid Bendriss (Chair of the Company\u2019s Board of Directors) and Anders Onarheim (Director), was allocated 4,705,882 Offer Shares; \u2022 Wilhelmsen New Energy AS, a close associate of primary insider Espen Gjerde (Director), was allocated 6,010,069 Offer Shares; \u2022 AB Investments, a close associate of primary insider Anders Onarheim (Director), was allocated 250,000 Offer Shares; \u2022 Kold Invest AS, a close associate of primary insider Martha K. Bakkevig (Director) was allocated 82,353 Offer Shares \u2022 Vest-Norsk Handelskompani AS, a close associate of primary insider Kristine Skeie (Director) was allocated 470,588 Offer Shares; and \u2022 I \u00d8vereng AS, a close associate of primary insider Ingunn \u00d8. Iveland (Director) was allocated 30,588 Offer Shares. ", "dimensions": { "concept": "ifrs-full:DisclosureOfNotesAndOtherExplanatoryInformationExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4926": { "value": "Business combinations The acquisitions require the use of substantial judgement when assessing the fair value of net identi\ufb01able assets and liabilities in a business combination. Allocation of excess value relating to any business combinations is, amongst other, based on expected cash \ufb02ows and results for certain items of the acquired assets. Refer to note 27 for further information. Note 26 - Business combinations ACQUISITION OF ISURVEY GROUP AS In March 2022 Reach Subsea acquired iSurvey Group AS including its subsidiaries iSurvey AS, iSurvey Assets AS, iSurvey Ltd, iSurvey Pte Ltd and iSurvey Offshore Ltd, \u201ciSurvey Group\u201d. The agreement was \ufb01nalized 22.03.2022 with the effect that the balance sheet for iSurvey Group is consolidated into our Group accounts as per end March 2022. The transaction was closed in March 2022. A preliminary purchase price allocation (PPA) has been performed and all identi\ufb01ed assets and liabilities have been measured at their acquisition date fair values in accordance with the requirements of IFRS 3. The agreed purchase price is NOK 135 million. Adjusted for interim period adjustments and working capital, the total cash consideration is estimated to NOK 138.4 million. At this stage, the purchase price allocation is preliminary. As a result, the \ufb01nal PPA and the impact on the \ufb01nancial statements from the transaction may differ. The \ufb01nal PPA will be completed within 12 months of the acquisition at the latest. The PPA presented below is based on the PPA on the acquisition date. No updates to the initial PPA have been made. The fair values of the identi\ufb01able assets and liabilities in the transaction as at the date of the acquisition have been estimated as follows: Purchase price allocation (NOK 1000) Deferred tax assets 1 254 Property, plant and equipment 19 837 Fair value adjustments property, plant and equipment 20 000 Right-of-use assets 10 327 Trade receivables 27 944 Fair value adjustments customer relationships 10 000 Other receivables 12 639 Cash and cash equivalents 6 132 Total assets 108 133 Interest-bearing debt to credit institutions (non-current) 2 924 Interest-bearing debt, leases (non-current) 5 337 Other long-term debt - Interest-bearing debt to credit institutions (current) 7 784 Interest-bearing debt, leases (current) 4 990 Public duties a.o 5 060 Tax payable 4 Trade payables 8 636 Other current liabilities 18 912 Provisions 2 780 Total liabilities 56 429 Note 26 - Business combinations, continued Total identi\ufb01able net assets at fair value 51 704 Total consideration 138 427 Goodwill 86 723 SUMMARY A goodwill of 86.7 million were recognized as a result of the transaction. ACQUIRED RECEIVABLES The fair value of the aquired trade recievebles equals the book value of recievables in the acquired company. REVENUE AND PROFIT CONTRIBUTION The acquired business contributed with revenues of NOK 178.3 million and net pro\ufb01t of NOK 11.8 million to the group for the period from 1 April to 31 December 2022. If the acquisition had occurred on 1 January 2022, consolidated pro-forma revenue and pro\ufb01t for the year ended 31 December 2022 would have been NOK 1,199 million and NOK 85.7 million respectively. These amounts have been calculated using the subsidiary\u2019s results and adjusting them for: \u2022 differences in the accounting policies between the group and the subsidiary, and \u2022 the additional depreciation and amortisation that would have been charged assuming the fair value adjustments to property, plant and equipment and intangible assets had applied from 1 January 2022, together with the consequential tax effects. 2021 AQUSITION OF SURVEYOR AS In March 2021 our joint venture partner MMT Sweden AB (\u201cMMT\u201d) was acquired by Ocean In\ufb01nity. This transaction triggered an option for Reach Subsea to purchase MMT\u2019s shares (50%) in our jointly owned entity Surveyor AS at book value. This option was exercised 31.03.2021 with the effect that the balance sheet for Surveyor AS is consolidated into our Group accounts as per end March 2021. The transaction was closed in June 2021. After the transaction Reach Subsea holds 100% of the shares in Surveyor AS. A purchase price allocation (PPA) has been performed and all identi\ufb01ed assets and liabilities have been measured at their acquisition date fair values in accordance with the requirements of IFRS 3. The agreed purchase price for MMT\u2019s share was NOK 22.8 million. The fair values of the identi\ufb01able assets and liabilities in the transaction as at the date of the acquisition have been estimated as follows: Note 26 - Business combinations, continued Purchase price allocation (NOK 1000) Property, plant and equipment 44 855 Trade receivables 8 778 Other receivables 8 250 Cash and cash equivalents 12 482 Total assets 74 365 Interest-bearing debt to credit institutions 22 961 Trade payables 5 601 Other current liabilities 246 Total liabilities 28 807 Total identi\ufb01able net assets at fair value 45 558 Whereof 50 % acquired 22 779 Total consideration 22 779 Goodwill - SUMMARY No goodwill or gain from a bargain purchase were recognized as a result of the transaction. ACQUIRED RECEIVABLES The fair value of the acquired trade receivables equals the book value of receivables in the acquired company. REVENUE AND PROFIT CONTRIBUTION The acquired business contributed revenues of NOK 11.6 million and net pro\ufb01t of NOK -6.1 million to the group for the period from 1 April to 31 December 2021. If the acquisition had occurred on 1 January 2021, consolidated pro-forma revenue and pro\ufb01t for the year ended 31 December 2021 would have been NOK 691,269 million and NOK 93.9 million respectively. These amounts have been calculated using the subsidiary\u2019s results and adjusting them for: \u2022 differences in the accounting policies between the group and the subsidiary, and \u2022 the additional depreciation and amortisation that would have been charged assuming the fair value adjustments to property, plant and equipment and intangible assets had applied from 1 January 2021, together with the consequential tax effects. No changes have been made on the preliminary purchase price allocation in 2022, and the allocation is considered \ufb01nal. Note 26 - Business combinations, continued AQUSITION OF OCTIO AS, GRAVITUDE AS, MONVIRO AS AND MONVIRO CCS AS (\u201cOCTIO GROUP\u201d) In December 2021 Reach Subsea acquired Octio AS, Gravitude AS, Monviro AS and Monviro Ccs AS, \u201cOctio Group\u201d. The agree- ment was \ufb01nalized 30.11.2021 with the effect that the balance sheet for Octio Group is consolidated into our Group accounts as per end November 2021. The transaction was closed on 08.12.2021. After the transaction Reach Subsea holds 100% of the shares. A purchase price allocation (PPA) has been performed and all identi\ufb01ed assets and liabilities have been measured at their acquisition date fair values in accordance with the requirements of IFRS 3. The total agreed purchase price for the shares is NOK 32.6 million. The fair values of the identi\ufb01able assets and liabilities in the transaction as at the date of the acquisition have been estimated as follows: Purchase price allocation (NOK 1000) Deferred tax assets 11 231 Research and development 2 825 Property, plant and equipment 13 385 Trade receivables 6 016 Other receivables 2 352 Cash and cash equivalents 19 196 Total assets 55 004 Other long term liabilities 2 840 Trade payables 2 017 Other current liabilities 4 316 Total liabilities 9 172 Total identi\ufb01able net assets at fair value 45 832 Total consideration* 32 567 Goodwill (13 265) * Of the total consideration of NOK 32.6 million, NOK 25.0 million was transferred to the seller in December 2021, and NOK 7.6 million of the consideration was transferred to the seller in January 2022. SUMMARY The Group\u2019s share of the fair value of the identi\ufb01able net assets of the acquired associates exceeds the cost of acquisition paid by the group. The main reason why the transaction resulted in a gain is related to the recognition of deferred tax asset in the purchase price allocation. The gain from the bargain purchase is recognized in other income. ACQUIRED RECEIVABLES The fair value of the acquired trade receivables equals the book value of receivables in the acquired company. REVENUE AND PROFIT CONTRIBUTION The acquired business contributed revenues of NOK 0.87 million and net pro\ufb01t of NOK -3.45 million to the group for the period from 1 December to 31 December 2021. If the acquisition had occurred on 1 January 2021, consolidated pro-forma revenue and pro\ufb01t for the year ended 31 December 2021 would have been NOK 712,536 million and NOK 75.8 million respectively These amounts have been calculated using the subsidiary\u2019s results and adjusting them for: \u2022 differences in the accounting policies between the group and the subsidiary, and \u2022 the additional depreciation and amortisation that would have been charged assuming the fair value adjustments to property, plant and equipment and intangible assets had applied from 1 January 2021, together with the consequential tax effects. No changes have been made on the preliminary purchase price allocation in 2022, and the allocation is considered \ufb01nal. ", "dimensions": { "concept": "ifrs-full:DisclosureOfBusinessCombinationsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4927": { "value": "Business combinations The acquisitions require the use of substantial judgement when assessing the fair value of net identi\ufb01able assets and liabilities in a business combination. Allocation of excess value relating to any business combinations is, amongst other, based on expected cash \ufb02ows and results for certain items of the acquired assets. Refer to note 27 for further information. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f4948": { "value": "Note 5 - Segment information* (NOK 1000) 2022 2021 Oil&Gas vs Renewables/other Revenue Oil & Gas 954 399 471 917 Renewable / other 208 422 201 336 Total 1 162 821 673 253 Operating expense Oil & Gas (868 009) (425 853) Renewable / other (189 556) (181 683) Total (1 057 566) (607 537) Operating result Oil & Gas 86 389 46 064 Renewable / other 18 866 19 652 Total 105 255 65 716 Data vs Solutions Revenue Data 735 559 350 695 Solutions 427 262 322 558 Total 1 162 821 673 253 Operating expense Data (668 978) (316 464) Solutions (388 587) (291 073) Total (1 057 567) (607 537) Operating result Data 66 581 34 231 Solutions 38 674 31 485 Total 105 255 65 716 *) Note that the gain from bargain purchase in \u201cOther income\u201d is not related to a segment and therefore excluded from the table in 2021. Refer to note 26 for further information regarding business combinations. ", "dimensions": { "concept": "ifrs-full:DisclosureOfProfitLossFromOperatingActivitiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f5030": { "value": "(NOK 1000) 2022 2021 NOTES Project cost 89 991 66 189 Fuel 72 389 44 870 Victualling 27 543 19 937 Rental offshore equipment 47 217 17 154 Hire offshore personell 31 379 10 303 Other procurements 4 284 181 Procurement expenses, in total 272 803 158 633 (NOK 1000) 2022 2021 NOTES Rental cost 12 021 4 041 23 Consultant cost 72 751 35 965 Operating equipment and maintenance 45 919 25 833 Administration costs 49 509 20 883 Other operating costs, in total 180 200 86 722 Note 6 - Procurement expenses speci\ufb01ed Note 7 - Other operating costs speci\ufb01ed Wages and social costs (NOK 1000) 2022 2021 Salaries and wages including holiday allowance 201 172 98 363 Social security tax 29 004 14 525 Pensions 12 256 7 017 Other bene\ufb01ts 7 363 2 468 Option cost 1 235 - Wages and social costs, in total 251 031 122 374 Number of man-years 253 109 ", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesByNatureExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f5031": { "value": "(NOK 1000) 2022 2021 NOTES Project cost 89 991 66 189 Fuel 72 389 44 870 Victualling 27 543 19 937 Rental offshore equipment 47 217 17 154 Hire offshore personell 31 379 10 303 Other procurements 4 284 181 Procurement expenses, in total 272 803 158 633 (NOK 1000) 2022 2021 NOTES Rental cost 12 021 4 041 23 Consultant cost 72 751 35 965 Operating equipment and maintenance 45 919 25 833 Administration costs 49 509 20 883 Other operating costs, in total 180 200 86 722 Note 6 - Procurement expenses speci\ufb01ed Note 7 - Other operating costs speci\ufb01ed Wages and social costs (NOK 1000) 2022 2021 Salaries and wages including holiday allowance 201 172 98 363 Social security tax 29 004 14 525 Pensions 12 256 7 017 Other bene\ufb01ts 7 363 2 468 Option cost 1 235 - Wages and social costs, in total 251 031 122 374 Number of man-years 253 109 ", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f5057": { "value": "(NOK 1000) 2022 2021 NOTES Rental cost 12 021 4 041 23 Consultant cost 72 751 35 965 Operating equipment and maintenance 45 919 25 833 Administration costs 49 509 20 883 Other operating costs, in total 180 200 86 722 Note 6 - Procurement expenses speci\ufb01ed Note 7 - Other operating costs speci\ufb01ed ", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExpenseExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f5058": { "value": "(NOK 1000) 2022 2021 NOTES Rental cost 12 021 4 041 23 Consultant cost 72 751 35 965 Operating equipment and maintenance 45 919 25 833 Administration costs 49 509 20 883 Other operating costs, in total 180 200 86 722 Note 6 - Procurement expenses speci\ufb01ed Note 7 - Other operating costs speci\ufb01ed ", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingExpenseExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f5082": { "value": "Note 7 - Other operating costs speci\ufb01ed (NOK 1000) 2022 2021 NOTES Rental cost 12 021 4 041 23 Consultant cost 72 751 35 965 Operating equipment and maintenance 45 919 25 833 Administration costs 49 509 20 883 Other operating costs, in total 180 200 86 722 ", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralAndAdministrativeExpenseExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f5106": { "value": "COMPENSATION AND BENEFITS TO MANAGEMENT Guidelines for remuneration The company\u2019s guideline for management compensation and bene\ufb01ts is to offer competitive conditions to secure continuity in the management group. Reach Subseas shall offer bene\ufb01ts as for comparable Norwegian companies. In accordance with Section 6-16 b. (2) of the Norwegian Public Limited Liability Companies Act and the Norwegian regulations on guidelines and report on remuneration for executives, the Group will publish a separate report on remuneration to executives for presentation at the Annual General Meeting on 31 May 2023. In addition to detailed information on paid and pending remuneration to directors for the 2022 accounting year, the report on remuneration for directors will contain an overview of performance targets that form the basis for variable remuneration. Shareholdings and allocated shares will also be included. Compensation to CEO, CFO, CCO and COO is speci\ufb01ed below. (NOK 1000) 2022 2021 Salaries and wages including holiday allowance 201 172 98 363 Social security tax 29 004 14 525 Pensions 12 256 7 017 Other bene\ufb01ts 7 363 2 468 Option cost 1 235 - Wages and social costs, in total 251 031 122 374 Number of man-years 253 109 Notes (NOK 1000) Salary Pension costs Other comp Share options /granted 2022 Jostein Alendal, Managing Director CEO 2 039 94 616 300 Birgitte W. Johansen, CFO 1 919 100 583 300 B\u00e5rd Thuen H\u00f8gheim, CCO 1 919 87 616 300 Inge Grutle, COO 1 919 87 616 300 Total 7 795 367 2 431 1 200 (NOK 1000) Position 2022 2021 Rachid Bendriss Chairman of the Board 458 361 K\u00e5re Johannes Lie Vice-Chairman of the Board (until June 2022) 118 183 Anders Onarheim Board member 231 183 Martha K. Bakkevig Board member 231 183 Arvid St\u00e5le Pettersen Board member (from June 2022) 113 - Espen Gjerde Board member (from June 2022) 113 - Sverre B. Mikkelsen Board member (until February 2022) 61 235 Kristine Skeie Board member 256 183 Ingunn \u00d8. Iveland Board member 287 219 (NOK 1000) Salary Pension costs Other comp Share options /granted 2021 Jostein Alendal, Managing Director CEO 1 780 90 300 450 Birgitte W. Johansen, CFO 1 559 82 300 450 B\u00e5rd Thuen H\u00f8gheim, CCO 1 559 82 300 450 Inge Grutle, COO 1 559 89 300 450 Total 6 457 344 1 200 1 800 Managing director has no agreement regarding early retirement. Managing director will receive NOK 1.5 million in payment if employment is terminated. CFO has no agreement regarding early retirement and no agreement on payment in case of termination of employment. Shares owned by members of the Board and by the management at year-end, including shares owned by immediate family members and/or controlled companies are as follows: Notes Note 8 - Personnel expenses, continued 31.12.2022 Number of shares Ownership NORTH ENERGY ASA Partly owned by Rachid Bendriss (COB) and Anders Onarheim (Board member) 46 126 567 20,4 % JT INVEST AS Partly owned by Jostein Alendal (CEO) 5 529 539 2,4 % A-\u00c5 INVEST AS Owned by \u00c5ge Nilsen (management) 1 948 725 0,9 % SMS INVESTERING AS Owned by Svein Magne Storesund (management) 1 662 366 0,7 % INVICTA INVEST AS Partly owned by Inge Grutle (management) 919 179 0,4 % KOLD INVEST AS Owned by Martha Kold Bakkevig (Board member) 867 181 0,4 % BIRGITTE WENDELBO JOHANSEN Management 149 050 0,1 % B\u00c5RD THUEN H\u00d8GHEIM Management 460 625 0,2 % INGUNN \u00d8VERENG IVELAND Board Member 30 000 0,0 % AB INVESTMENT AS Owned by Anders Onarheim (Board member) 500 000 0,2 % VEST-NORSK HANDELSKOMPANI AS Owned by Kristine Skeie (Board member) 35 000 0,0 % KRISTINE SKEIE Board Member 5 0,0 % Total 58 228 237 25,8 % ", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutKeyManagementPersonnelExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f5233": { "value": "(NOK 1000) 2022 2021 Auditing 1 794 1 219 Attestation services 22 27 Tax advice* 397 282 Other assistance* 3 025 374 Total 5 239 1 902 Notes Note 8 - Personnel expenses, continued (NOK 1000) Salary Pension costs Other comp Share options /granted 2021 Jostein Alendal, Managing Director CEO 1 780 90 300 450 Birgitte W. Johansen, CFO 1 559 82 300 450 B\u00e5rd Thuen H\u00f8gheim, CCO 1 559 82 300 450 Inge Grutle, COO 1 559 89 300 450 Total 6 457 344 1 200 1 800 Managing director has no agreement regarding early retirement. Managing director will receive NOK 1.5 million in payment if employment is terminated. CFO has no agreement regarding early retirement and no agreement on payment in case of termination of employment. THE BOARD\u2019S REMUNERATION AUDITOR\u2019S REMUNERATION All amounts are exclusive of value add tax. * Included in tax advice and other assistance are services from Advokat\ufb01rmaet PricewaterhouseCoopers AS with the amount of NOK 0.78 million (2021: NOK 0.13 million)", "dimensions": { "concept": "ifrs-full:DisclosureOfAuditorsRemunerationExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f5384": { "value": "(NOK 1000) 2022 2021 Interest income on short term bank deposits 1 264 237 Total interest income 1 264 237 Interest expense on bank borrowings (2 309) (1 223) IFRS 16 interest expense (13 090) (5 861) Other interest expense (16) (763) Total interest expense (15 415) (7 838) Net foreign exchange expense/income 7 076 1 547 Other \ufb01nance costs (158) (102) Total Other \ufb01nance items 6 918 1 437 Net \ufb01nance items (7 232) (6 164) Notes Note 9 - Financial income and expenses ", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExpenseExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f5385": { "value": "(NOK 1000) 2022 2021 Interest income on short term bank deposits 1 264 237 Total interest income 1 264 237 Interest expense on bank borrowings (2 309) (1 223) IFRS 16 interest expense (13 090) (5 861) Other interest expense (16) (763) Total interest expense (15 415) (7 838) Net foreign exchange expense/income 7 076 1 547 Other \ufb01nance costs (158) (102) Total Other \ufb01nance items 6 918 1 437 Net \ufb01nance items (7 232) (6 164) Notes Note 9 - Financial income and expenses ", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f5386": { "value": "(NOK 1000) 2022 2021 Interest income on short term bank deposits 1 264 237 Total interest income 1 264 237 Interest expense on bank borrowings (2 309) (1 223) IFRS 16 interest expense (13 090) (5 861) Other interest expense (16) (763) Total interest expense (15 415) (7 838) Net foreign exchange expense/income 7 076 1 547 Other \ufb01nance costs (158) (102) Total Other \ufb01nance items 6 918 1 437 Net \ufb01nance items (7 232) (6 164) Notes Note 9 - Financial income and expenses ", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceCostExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f5387": { "value": "(NOK 1000) 2022 2021 Interest income on short term bank deposits 1 264 237 Total interest income 1 264 237 Interest expense on bank borrowings (2 309) (1 223) IFRS 16 interest expense (13 090) (5 861) Other interest expense (16) (763) Total interest expense (15 415) (7 838) Net foreign exchange expense/income 7 076 1 547 Other \ufb01nance costs (158) (102) Total Other \ufb01nance items 6 918 1 437 Net \ufb01nance items (7 232) (6 164) Notes Note 9 - Financial income and expenses ", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExpenseExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f5388": { "value": "(NOK 1000) 2022 2021 Interest income on short term bank deposits 1 264 237 Total interest income 1 264 237 Interest expense on bank borrowings (2 309) (1 223) IFRS 16 interest expense (13 090) (5 861) Other interest expense (16) (763) Total interest expense (15 415) (7 838) Net foreign exchange expense/income 7 076 1 547 Other \ufb01nance costs (158) (102) Total Other \ufb01nance items 6 918 1 437 Net \ufb01nance items (7 232) (6 164) Notes Note 9 - Financial income and expenses ", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f5389": { "value": "(NOK 1000) 2022 2021 Interest income on short term bank deposits 1 264 237 Total interest income 1 264 237 Interest expense on bank borrowings (2 309) (1 223) IFRS 16 interest expense (13 090) (5 861) Other interest expense (16) (763) Total interest expense (15 415) (7 838) Net foreign exchange expense/income 7 076 1 547 Other \ufb01nance costs (158) (102) Total Other \ufb01nance items 6 918 1 437 Net \ufb01nance items (7 232) (6 164) Notes Note 9 - Financial income and expenses ", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestExpenseExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f5439": { "value": "Note 10 - Taxes (NOK 1000) 2022 2021 Taxes payable 9 344 - Changes in deferred taxes 16 490 (20 760) Taxes, in total 25 838 (20 760) DEFERRED TAXES / (DEFERRED TAX ASSETS) Temporary differences: Other \ufb01xed assets (31 709) (17 537) Financial leases 1 509 2 943 Fixed-price contracts - - Inventories (934) (4 790) Accruals (4 025) (3 669) Right-of-use assets (12 657) Intangible assets 25 750 Tax loss carried forward (91 184) (159 469) Temporary differences, in total (113 251) (182 521) Deferred tax assets (24 915) (40 151) Not recognized deferred tax assets - - Deferred tax assets in balance sheet* 24 915 40 151 *In March 2022 Reach Subsea aquired iSurvey Group AS. The transaction was completed in end March 2022. Deferred tax assets incorporated at closing was NOK 7.85 million while deferred tax related to exess values was estimated to NOK 6.60 million. Net deferred tax asset related to the acquisition was NOK 1.25 million and were recognized in the balance sheet as per end March 2022. Refer to note 26 for further details. Deferred tax assets are recognized in the balance sheet based on expected utilization of tax losses carried forward and temporary differences. The carrying amount of deferred income tax assets are reviewed at each balance sheet date and reduced to the extent that it is no longer probable that suf\ufb01cient taxable pro\ufb01t will be available to allow all or part of the deferred income tax asset to be utilized. Unrecognized deferred income tax assets are reassessed at each balance sheet dateand are recognized to the extent that it has become probable that future taxable pro\ufb01t will allow the deferred tax asset to be recovered. (NOK 1000) 31.12.2022 31.12.2021 Reconciliation from nominal to actual tax rate: Pro\ufb01t & loss before taxes 98 023 73 046 Nominal tax rate 22 % 22 % Anticipated income tax due to nominal tax rate 21 565 16 070 Actual tax cost 25 838 (20 760) Deviation 4 272 (36 830) Tax effects of: Permanent differences (1 421) 3 878 Effect of tax rates outside Norway different from 22% (2 852) - Changes in deferred tax assets, previously not recognized - 32 952 Explanation (4 272) 36 830 Effective tax rate 26 % -28 % Payable taxes in the balance sheet Payable tax in the tax charge (9 344) - Advances paid on tax charge 1 491 - Payable tax in the balance sheet (7 853) - ", "dimensions": { "concept": "ifrs-full:DisclosureOfTaxReceivablesAndPayablesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f5514": { "value": "Note 11 - Earnings per share Pro\ufb01t (loss) per share is calculated on the consolidated pro\ufb01t (loss) divided by the average number of shares outstanding. (NOK 1000) 31.12.2022 31.12.2021 Reconciliation from nominal to actual tax rate: Pro\ufb01t & loss before taxes 98 023 73 046 Nominal tax rate 22 % 22 % Anticipated income tax due to nominal tax rate 21 565 16 070 Actual tax cost 25 838 (20 760) Deviation 4 272 (36 830) Tax effects of: Permanent differences (1 421) 3 878 Effect of tax rates outside Norway different from 22% (2 852) - Changes in deferred tax assets, previously not recognized - 32 952 Explanation (4 272) 36 830 Effective tax rate 26 % -28 % Payable taxes in the balance sheet Payable tax in the tax charge (9 344) - Advances paid on tax charge 1 491 - Payable tax in the balance sheet (7 853) - 2022 2021 Pro\ufb01t (loss) - attributable to the owners (NOK 1000) 72 185 93 806 Basic pro\ufb01t (loss) per share (NOK) 0,35 0,65 Diluted pro\ufb01t (loss) per share (NOK) 0,34 0,65 Average numbers of shares 206 966 734 143 677 290 Average diluted number of shares for EPS 209 835 227 143 677 290 Number of shares 1/1 144 940 708 143 606 008 Number of shares 31/12 225 725 928 144 940 708 ", "dimensions": { "concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f6210": { "value": "Note 15 - Intangible assets (NOK 1000) Research & development Customer relationships Goodwill Total Year ended 31 December 2022 Opening net book amount 1 457 - - 1 457 Additions 727 - - 727 Addition from business combination (note 26) - 10 000 86 723 96 723 Depreciation - (1 250) - (1 250) Disposals/adjustments (310) - - (310) Closing net book value 1 873 8 750 86 723 97 347 At 31 december 2022 Cost 1.1.22 1 457 - - 1 457 Additions 727 - - 727 Addition from business combination (note 26) - 10 000 86 723 96 723 Disposals/adjustments (310) - - (310) Cost 31.12.22 1 873 10 000 86 723 98 597 Accumulated depreciation 1.1.22 - - - - Depreciation - (1 250) - (1 250) Accumulated depreciation 31.12.22 - (1 250) - (1 250) Accumulated impairment 1.1.22 - - - - Impairment - - - - Accumulated impairment 31.12.22 - - - - Book value 1 873 8 750 86 723 97 347 Depreciation plan/useful life Ongoing project 6 years Inde\ufb01nite Depreciation method linear * Additions from business combination are related to the acquisition of iSurvey Group, refer to note 26 for further information. Research and Development are related to R&D activities in Monviro AS. As of December 31 2022 Monviro has net book values for R&D totaling NOK 1.87 million that apply to development of software/equipment related to the company\u2019s ASUMO project. Hours spent have been capitalized for Monviro personnel, hired personnel from OCTIO as well as other external consultants related to the development of equipment and software. ", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f6335": { "value": "Note 16 - Trade and other receivables (NOK 1000) 2022 2021 Trade receivables 216 328 149 633 Less: provision for impairment of trade receivables - - Current portion trade receivables 216 328 149 633 Prepayments 5 782 7 619 Revenue recognised, not billed 67 451 31 747 Other receivable 13 019 7 781 Current portion other receivables 86 252 47 150 Non-current positions - - The fair values of trade and other receivables are as follows: (NOK 1000) 2022 2021 Trade receivable 216 328 149 633 Receivables from related parties - - Loans to related parties - - Total trade receivables 216 328 149 633 Transactions with subsidiaries have been eliminated in the Group\u2019s \ufb01nancial statements and do not represent related party transactions. CHANGES IN ALLOCATION FOR LOSSES OF ACCOUNT RECEIVABLES There has been no losses or provisions for impairment of recievables in 2021 and 2022 As of 31.12., the Group had the following trade receivables which was due, but not been paid: Trade receivables Total Not due < 30 d 30-90 d 90 - 360 d > 361 d 2022 216 328 158 342 48 893 7 958 1 134 - 2021 149 633 89 452 48 472 11 673 36 - Based on previous experience with customers and assessment of intial credit risk and expected credit losses as at 31 December 2022, there is no allowance for bad debt on receivables in 2022. The main portion of overdue receivables has been paid after balance sheet date. ", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherAssetsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f6336": { "value": "Note 16 - Trade and other receivables (NOK 1000) 2022 2021 Trade receivables 216 328 149 633 Less: provision for impairment of trade receivables - - Current portion trade receivables 216 328 149 633 Prepayments 5 782 7 619 Revenue recognised, not billed 67 451 31 747 Other receivable 13 019 7 781 Current portion other receivables 86 252 47 150 Non-current positions - - The fair values of trade and other receivables are as follows: (NOK 1000) 2022 2021 Trade receivable 216 328 149 633 Receivables from related parties - - Loans to related parties - - Total trade receivables 216 328 149 633 Transactions with subsidiaries have been eliminated in the Group\u2019s \ufb01nancial statements and do not represent related party transactions. CHANGES IN ALLOCATION FOR LOSSES OF ACCOUNT RECEIVABLES There has been no losses or provisions for impairment of recievables in 2021 and 2022 As of 31.12., the Group had the following trade receivables which was due, but not been paid: Trade receivables Total Not due < 30 d 30-90 d 90 - 360 d > 361 d 2022 216 328 158 342 48 893 7 958 1 134 - 2021 149 633 89 452 48 472 11 673 36 - Based on previous experience with customers and assessment of intial credit risk and expected credit losses as at 31 December 2022, there is no allowance for bad debt on receivables in 2022. The main portion of overdue receivables has been paid after balance sheet date. ", "dimensions": { "concept": "ifrs-full:DisclosureOfPrepaymentsAndOtherAssetsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f6485": { "value": "Note 17 - Cash and cash equivalents (NOK 1000) 2022 2021 Cash and cash equivalents in NOK 99 497 111 211 Cash and cash equivalents in USD 53 615 16 551 Cash and cash equivalents in EUR 15 382 11 141 Cash and cash equivalents in GBP 23 097 10 132 Restricted cash equivalence hereof - - Cash and cash equivalents, in total 191 591 149 035 The company also has restricted cash related to withheld tax of NOK 10.3 million in 2022 (2021: NOK 6.4 million). The Group has a bank overdraft agreement. As at 31.12.22 the Group had NOK 20 million in unused drawing rights. ", "dimensions": { "concept": "ifrs-full:DisclosureOfRestrictedCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f6717": { "value": "Note 20 - Other current liabilities (NOK 1000) 2022 2021 Other current liabilities 1 631 7 168 Accruals 75 308 45 279 Accrued salaries and bene\ufb01ts 31 009 16 807 Witholding taxes 367 586 Other taxes payable 4 082 5 190 Accrued interests 145 174 Other current liabilities, in total 112 541 75 203 Other current liabilities consist mainly of incurred operational expenses and performed planned periodic maintenance not yet invoiced at year end. ", "dimensions": { "concept": "ifrs-full:DisclosureOfAccruedExpensesAndOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f6718": { "value": "Note 20 - Other current liabilities (NOK 1000) 2022 2021 Other current liabilities 1 631 7 168 Accruals 75 308 45 279 Accrued salaries and bene\ufb01ts 31 009 16 807 Witholding taxes 367 586 Other taxes payable 4 082 5 190 Accrued interests 145 174 Other current liabilities, in total 112 541 75 203 Other current liabilities consist mainly of incurred operational expenses and performed planned periodic maintenance not yet invoiced at year end. ", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f6719": { "value": "Note 20 - Other current liabilities (NOK 1000) 2022 2021 Other current liabilities 1 631 7 168 Accruals 75 308 45 279 Accrued salaries and bene\ufb01ts 31 009 16 807 Witholding taxes 367 586 Other taxes payable 4 082 5 190 Accrued interests 145 174 Other current liabilities, in total 112 541 75 203 Other current liabilities consist mainly of incurred operational expenses and performed planned periodic maintenance not yet invoiced at year end. ", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherCurrentLiabilitiesExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f6805": { "value": "2022 (NOK 1000) Financial instruments measured at amortised cost Financial instruments at fair value through pro\ufb01t or loss Financial instruments measured at fair value through other comprehensive income Fair value Financial assets Trade receivables 216 328 - - 216 328 Other receivables 86 252 - - 86 252 Cash and cash equivalents 191 591 - - 191 591 Assets, in total 494 171 - - 494 171 2021 (NOK 1000) Financial instruments measured at amortised cost Financial instruments at fair value through pro\ufb01t or loss Financial instruments measured at fair value through other comprehensive income Fair value Financial assets Trade receivables 149 633 - - 149 633 Other receivables 47 150 - - 47 150 Cash and cash equivalents 149 035 - - 149 035 Assets, in total 345 818 - - 345 818 Financial liabilites Borrowings (long & short term interest bearing debt) 130 988 - - 130 988 Trade payables 102 430 - - 102 430 Other current liabilities 112 541 - - 112 541 Liabilites, in total 345 959 - - 345 959 Financial liabilites Borrowings (long & short term interest bearing debt) 312 556 - - 312 556 Trade payables 63 467 - - 63 467 Public duties - - - - Other current liabilities 75 203 - - 75 203 Liabilites, in total 451 225 - - 451 225 Note 21 - Classi\ufb01cation of \ufb01nancial assets and liabilities The following of the Group\u2019s \ufb01nancial instruments are measured at amortised cost: cash and cash equivalents, trade receivables, other current receivables, trade payables, other current liabilities and all interest bearing debt. The carrying amount of cash and cash equivalens is approximately similar to fair value since these instruments have a short term to maturity. Similarly, the carrying amount of trade receivables, trade payables and other receivables/liabilities is approximately equal to fair value since they are entered into at standard terms and conditions. The fair value of the interest-bearing debt is the disclosed face value of the loans. Note 21 - Classi\ufb01cation of \ufb01nancial assets and liabilities, continued Financial liabilities 2022 Remaining contractual maturities (NOK 1000) 0-180 days 180 d-1 year 1-3 years > 3 years Total Trade payables 102 430 - - - 102 430 Other current liabilities 112 541 - - - 112 541 Interest-bearing debt to credit institutions 19 506 3 580 4 932 - 28 018 Interest-bearing debt, leases 52 871 45 800 4 179 120 102 970 Interest on interest-bearing debt to credit institutions 753 317 183 - 1 252 Interest on interest-bearing debt, leases 2 213 943 166 0 3 322 Financial liabilities, in total 290 313 50 639 9 460 121 350 533 Financial liabilities 2021 Remaining contractual maturities (NOK 1000) 0-180 days 180 d-1 year 1-3 years > 3 years Total Trade payables 63 467 - - - 63 467 Other current liabilities 75 203 - - - 75 203 Interest-bearing debt to credit institutions 8 290 7 471 14 997 - 30 757 Interest-bearing debt, leases 85 800 90 827 103 732 1 439 281 798 Interest on interest-bearing debt to credit institutions 620 444 596 - 1 660 Interest on interest-bearing debt, leases 6 407 4 301 3 047 43 13 798 Financial liabilities, in total 239 786 103 043 122 372 1 482 466 683 Note 21 - Classi\ufb01cation of \ufb01nancial assets and liabilities, continued Changes in interest-bearing debt 2022 2021 (NOK 1000) Interest bearing debt, leases Interest bearing debt to credit institutions Interest bearing debt, leases Interest bearing debt to credit institutions Opening balance 281 798 30 757 15 766 25 590 Drawdowns - - - - Repayment incl interest -311 814 -13 448 -207 185 -17 793 Interest-bearing debt from acquisition of iSurvey Group AS* - 10 709 - 22 961 Non-cash changes: Interest-bearing debt from acquisition of iSurvey Group AS* 10 327 - - - Addition IFRS 16 lease liability throughout the year 126 717 - 467 226 - Adjustment IFRS 16 lease liability -17 203 - - - Currency adjustment 55 - 131 - Accrued interest 13 090 - 5 861 - Closing balance 102 970 28 018 281 798 30 757 * Refer to note 26 for debt acquired in the iSurvey Group transaction. DISTRIBUTION NON-CURRENT AND CURRENT DEBT (NOK 1000) 2022 2021 Non-current interest-bearing debt to credit institutions 4 932 14 497 Non-current interest-bearing debt, leases 4 310 105 171 Current interest-bearing debt to credit institutions 23 086 16 260 Current interest-bearing debt, leases 98 660 176 627 Closing balance 130 988 312 556 ", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f6806": { "value": "2022 (NOK 1000) Financial instruments measured at amortised cost Financial instruments at fair value through pro\ufb01t or loss Financial instruments measured at fair value through other comprehensive income Fair value Financial assets Trade receivables 216 328 - - 216 328 Other receivables 86 252 - - 86 252 Cash and cash equivalents 191 591 - - 191 591 Assets, in total 494 171 - - 494 171 2021 (NOK 1000) Financial instruments measured at amortised cost Financial instruments at fair value through pro\ufb01t or loss Financial instruments measured at fair value through other comprehensive income Fair value Financial assets Trade receivables 149 633 - - 149 633 Other receivables 47 150 - - 47 150 Cash and cash equivalents 149 035 - - 149 035 Assets, in total 345 818 - - 345 818 Financial liabilites Borrowings (long & short term interest bearing debt) 130 988 - - 130 988 Trade payables 102 430 - - 102 430 Other current liabilities 112 541 - - 112 541 Liabilites, in total 345 959 - - 345 959 Financial liabilites Borrowings (long & short term interest bearing debt) 312 556 - - 312 556 Trade payables 63 467 - - 63 467 Public duties - - - - Other current liabilities 75 203 - - 75 203 Liabilites, in total 451 225 - - 451 225 Note 21 - Classi\ufb01cation of \ufb01nancial assets and liabilities The following of the Group\u2019s \ufb01nancial instruments are measured at amortised cost: cash and cash equivalents, trade receivables, other current receivables, trade payables, other current liabilities and all interest bearing debt. The carrying amount of cash and cash equivalens is approximately similar to fair value since these instruments have a short term to maturity. Similarly, the carrying amount of trade receivables, trade payables and other receivables/liabilities is approximately equal to fair value since they are entered into at standard terms and conditions. The fair value of the interest-bearing debt is the disclosed face value of the loans. Note 21 - Classi\ufb01cation of \ufb01nancial assets and liabilities, continued Financial liabilities 2022 Remaining contractual maturities (NOK 1000) 0-180 days 180 d-1 year 1-3 years > 3 years Total Trade payables 102 430 - - - 102 430 Other current liabilities 112 541 - - - 112 541 Interest-bearing debt to credit institutions 19 506 3 580 4 932 - 28 018 Interest-bearing debt, leases 52 871 45 800 4 179 120 102 970 Interest on interest-bearing debt to credit institutions 753 317 183 - 1 252 Interest on interest-bearing debt, leases 2 213 943 166 0 3 322 Financial liabilities, in total 290 313 50 639 9 460 121 350 533 Financial liabilities 2021 Remaining contractual maturities (NOK 1000) 0-180 days 180 d-1 year 1-3 years > 3 years Total Trade payables 63 467 - - - 63 467 Other current liabilities 75 203 - - - 75 203 Interest-bearing debt to credit institutions 8 290 7 471 14 997 - 30 757 Interest-bearing debt, leases 85 800 90 827 103 732 1 439 281 798 Interest on interest-bearing debt to credit institutions 620 444 596 - 1 660 Interest on interest-bearing debt, leases 6 407 4 301 3 047 43 13 798 Financial liabilities, in total 239 786 103 043 122 372 1 482 466 683 Note 21 - Classi\ufb01cation of \ufb01nancial assets and liabilities, continued Changes in interest-bearing debt 2022 2021 (NOK 1000) Interest bearing debt, leases Interest bearing debt to credit institutions Interest bearing debt, leases Interest bearing debt to credit institutions Opening balance 281 798 30 757 15 766 25 590 Drawdowns - - - - Repayment incl interest -311 814 -13 448 -207 185 -17 793 Interest-bearing debt from acquisition of iSurvey Group AS* - 10 709 - 22 961 Non-cash changes: Interest-bearing debt from acquisition of iSurvey Group AS* 10 327 - - - Addition IFRS 16 lease liability throughout the year 126 717 - 467 226 - Adjustment IFRS 16 lease liability -17 203 - - - Currency adjustment 55 - 131 - Accrued interest 13 090 - 5 861 - Closing balance 102 970 28 018 281 798 30 757 * Refer to note 26 for debt acquired in the iSurvey Group transaction. DISTRIBUTION NON-CURRENT AND CURRENT DEBT (NOK 1000) 2022 2021 Non-current interest-bearing debt to credit institutions 4 932 14 497 Non-current interest-bearing debt, leases 4 310 105 171 Current interest-bearing debt to credit institutions 23 086 16 260 Current interest-bearing debt, leases 98 660 176 627 Closing balance 130 988 312 556 ", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f7218": { "value": "Total borrowings to bank and \ufb01nancial institutions includes secured liabilities (bank and collateralised borrowings) of NOK 28.0 million (2021: NOK 30.8 million). Bank borrowings are secured by equipment and receivables of the group (note 14). The carrying amounts and fair value of the interest-bearing debts are as follows: Carrying amount Fair value (NOK 1000) 2022 2021 2022 2021 Bank borrowings 25 600 25 522 25 600 25 522 Lease liabilities to credit institutions(IFRS 16) 2 418 5 235 2 418 5 235 Other lease liabilities (IFRS 16) 102 970 281 798 102 970 281 798 Sum 130 988 312 556 130 988 312 556 The fair value of Bank borrowings equals their carrying amount, as the impact of discounting is not signi\ufb01cant. The fair values are based on cash \ufb02ows discounted using a rate based on the borrowing rate of 5.0 % and are within level 3 of the fair value hierarchy. The carrying amounts of the group\u2019s borrowings are all denominated in Norwegian kroner. ", "dimensions": { "concept": "ifrs-full:DisclosureOfCollateralExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f7309": { "value": "SHORT TERM LEASES Costs relating to operational leases recognized in the income statement for 2022 is NOK 6.4 million, whereof NOK 3.4 million in real estate rental. The real estate rental is short term with 3 months termination notice. CAPEX AND VESSEL CAPACITY The Reach Remote project is expected to amount to approximately NOK 400 million. As of December 31 the company has capitalized NOK 116.4 million as Asset under construction. In addition, the company has \ufb01nanced two eROVs through leasing. As of December 31 the ROVs are under construction, and costs not recognised related to the ROVs amounts to NOK 20.8 million. The ROVs will be recognised in the balance sheet at commencement date. Besides the Reach Remote project, Reach has taken multiple steps to secure vessel capacity at competitive terms. Investments in 2023 associated with these vessels is expected to amount to approximately NOK 260 million (including the acquisition of Edda Sun), and encompass equipment, upgrades and mobilization activities for three vessels (Edda Sun, Deep Cygnus, and Go Electra). Reach has secured bank and lease \ufb01nancing of NOK 160 million to partly fund these investments. On February 23 the company announced a strategic partnership with Eidesvik Offshore for ownership and operation of the ROV sup- port vessel Edda Sun. The new joint venture (JV) is owned 50.1 percent by Eidesvik and 49.9 percent by Reach Subsea. Under its new name, Viking Reach, the vessel will commence on a 6-year contract between the JV and Reach Subsea start- ing in Q2. The contract will increase interest-bearing debt (leases) with an estimated amount of NOK 322 million. In addition to Viking Reach, charter commitments for vessels mobilized in 1Q23 (Deep Cygnus, Go Electra, Olympic Triton, Olympic Zeus) will increase interest bearing debt (leases) with an estimated amount of NOK 750 million. The company has also entered into a new rental agreements for of\ufb01ces in Haugesund in 1Q23 which will inrease interest-bearing debt with an estimated amount of NOK 10 million. Note 23 - Commitments ", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f7542": { "value": "2022 (NOK 1000) Oil and gas Renewable/Other Total Revenue from contracts with customers 831 413 186 715 1 018 127 Revenue from other contracts* 122 986 21 707 144 693 Segment revenue 954 399 208 422 1 162 821 2021 (NOK 1000) Oil and gas Renewable/Other Total Revenue from contracts with customers 296 823 135 963 432 786 Revenue from other contracts* 175 094 65 373 240 467 Segment revenue 471 917 201 336 673 253 Timing of revenue recognition Oil and gas Renewable/Other Total At a point in time - - - Over time 954 399 208 422 1 162 821 Sum 471 917 201 336 673 253 Timing of revenue recognition Oil and gas Renewable/Other Total At a point in time - - - Over time 471 917 201 336 673 253 Sum 471 917 201 336 673 253 Note 25 - Contract with customers The Groups revenue comprises of revenue recognized from contract with customers for the provision of subsea services. Reach Subsea has assessed its contracts with customers and concluded that these fall under the de\ufb01nition of customer contracts in IFRS 15, with one exception. Revenue derived from services provided to projects that fall under the cooperation agreement with Ocean In\ufb01nity Sweden AB (OI) does not constitute as revenue from a customer contract. As such, this revenue is recognised on a monthly basis in line with rendering of services to OI. Note 25 - Contract with customers REVENUE BY REGION (NOK 1000) 2022 2021 Norway 387 938 232 074 UK 262 720 133 942 US 156 730 92 740 Egypt 114 337 - Sweden 77 753 34 800 Germany 51 553 63 464 Trinidad og Tobago 39 856 57 307 Singapore 29 499 - France 21 491 7 098 Greece 8 463 - Ivory Coast 5 293 - Malta 2 437 - Morocco 1 963 - Denmark 1 200 8 575 Spain 932 34 847 Israel 631 - Philippines 23 - Brazil - 8 406 Total 1 162 821 673 253 FIXED-PRICE CONTRACTS No \ufb01xed-price contracts were entered into in 2022. (NOK 1000) 31.12.2022 31.12.2021 Revenue recognised from \ufb01xed-price contract - - Cost recognised for \ufb01xed-price contract - - Net - - ASSETS AND LIABILITIES RELATED TO CONTRACTS WITH CUSTOMERS The group has recognized the following assets and liabilities related to contracts with customers: (NOK 1000) 31.12.2022 31.12.2021 Current contract assets 67 451 31 747 Loss allowance - - Total contract assets 67 451 31 747 Contract liabilities - - Total current contract liabilities - - Revenue recognised that was included in contract liability balance at beginning of period - - Revenue recognised from performance obligations satis\ufb01ed in previous periods - 75 The group has not recognised any assets from costs incurred to ful\ufb01l a contract at 31 December 2022 (2021: 0). Note 25 - Contract with customers, continued ", "dimensions": { "concept": "ifrs-full:DisclosureOfRevenueFromContractsWithCustomersExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f7997": { "value": "Note 27 - Subsequent events REVENUE AND PROFIT CONTRIBUTION The acquired business contributed revenues of NOK 0.87 million and net pro\ufb01t of NOK -3.45 million to the group for the period from 1 December to 31 December 2021. If the acquisition had occurred on 1 January 2021, consolidated pro-forma revenue and pro\ufb01t for the year ended 31 December 2021 would have been NOK 712,536 million and NOK 75.8 million respectively These amounts have been calculated using the subsidiary\u2019s results and adjusting them for: \u2022 differences in the accounting policies between the group and the subsidiary, and \u2022 the additional depreciation and amortisation that would have been charged assuming the fair value adjustments to property, plant and equipment and intangible assets had applied from 1 January 2021, together with the consequential tax effects. No changes have been made on the preliminary purchase price allocation in 2022, and the allocation is considered \ufb01nal. NEW COMMITMENTS During the \ufb01rst quarter of 2023 Reach will mobilize three subsea vessels for use in own project portfolio. Deep Cygnus, Edda Sun and Go Electra will be mobilized with owned WROVs and SROV and survey equipment and ready for operation before the main season. Deep Cygnus and Go Electra are on contracts between owners and Reach lasting 4 years + options. Edda Sun will be partly owned by Reach. The vessel will commence on a 6-year contract between the JV and Reach Subsea start- ing in 2Q23. The contract will increase interest-bearing debt (leases) with an estimated amount of NOK 322 million. In addition, Reach has chartered in two vessels for speci\ufb01c projects; Olympic Zeus will work on a project in Western Africa for 4 months starting late 1Q23 and Olympic Triton will work on a contract with a client in the Walk to work segment lasting 6 months from March 23. Charter commitments for vessels mobilized in 1Q23 (Deep Cygnus, Go Electra, Olympic Triton, Olympic Zeus) will increase interest bearing debt (leases) with an estimated amount of NOK 750 million. Refer to press releases sent via Newsweb for further information. The company has also entered into a new rental agreements for of\ufb01ces in Haugesund in 1Q23 which will increase interest-bearing debt with an estimated amount of NOK 10 million. PROPOSED DIVIDENDS The Board proposed a dividend of NOK 0.18 per share, in accordance with the company\u2019s dividend policy, to be resolved on the AGM on 31 May 2023. (NOK 1000) 2022 2021 Dividend per share (NOK) 0.18 0.18 Total number of shares* 255 449 563 224 913 428 Dividends in total (NOK million) 45 981 40 484 * The proposed dividends for 2022 are based on total number of shares after the private placement and subsequent offering completed in March 2023 (further described below). Note 27 - Subsequent events STRATEGIC PARTNER On February 23 Reach Subsea announced a strategic partnership with Eidesvik Offshore for ownership and operation of the ROV support vessel Edda Sun. The new joint venture (JV) is owned 50.1 percent by Eidesvik and 49.9 percent by Reach Subsea. Under its new name, Viking Reach, the vessel will commence on a 6-year contract between the JV and Reach Subsea starting in Q2 2023. In addition to being co-owner, Eidesvik will provide full technical management, crewing and operation of the vessel. Edda Sun is a very well suited vessel for survey and light construction projects, and will be mobilized with one Supporter WROV and one Surveyor ROV. Reach Subsea has over the recent months taken signi\ufb01cant steps to put in place a renewed strong long-term core \ufb02eet and announced the acquisition of Edda Sun for USD 29 million on 24 November 2023. With the JV with Eidesvik Offshore, the acquisition of the vessel is fully \ufb01nanced. Reach Subsea\u2019s share of the investment is \ufb01nanced through equity and bank \ufb01nancing. Settlement of the acquisition and delivery of the vessel took place in March 2023. PRIVATE PLACEMENT On February 15 2023 Reach Subsea announced and successfully executed a private placement. The company\u2019s Board of directors have allocated a total of 29,411,000 new shares in the company, each at a subscription price of NOK 4.25 per offer share, raising gross proceeds of approx. NOK 125 million. The private placement consisted of one tranche of 22,500,000 new shares (\u201cTranche 1\u201d) and a second tranche of 6,911,000 new shares to applicants who have accepted deferred settlement in a separate tranche 2 (\u201cTranche 2\u201d). The new shares in Tranche 2 was resolved issued in an extraordinary general meeting on 10 March 2023. Completion of Tranche 1 was not conditional upon or otherwise affected by the completion of Tranche 2. To mitigate the dilution of existing shareholders not participating in the Private Placement, the Board resolved to undertake a subsequent offering of up to 3,000,000 new shares towards the Company\u2019s shareholders as of 15 February 2023. The subscription price in the subsequent offering was equal to the subscription price in the private placement. The subsequent offering was resolved issued in an extraordinary general meeting on 10 March 2023. The subscription period for the subsequent offering ended on 27 March 2023 and resulted in a total subscription of 312,635 new shares. After the completion of the private placement and the subsequent offering, the new share capital of the company is NOK 255,449,563 divided into the equivalent number of shares, each with a nominal value of NOK 1.00 In relation to the private placement the company has received the following noti\ufb01cations of transactions from persons dis- charging managerial responsibilities and their close associates following completion of the Private Placement: \u2022 North Industries 1 AS, a close associate of primary insider Rachid Bendriss (Chair of the Company\u2019s Board of Directors) and Anders Onarheim (Director), was allocated 4,705,882 Offer Shares; \u2022 Wilhelmsen New Energy AS, a close associate of primary insider Espen Gjerde (Director), was allocated 6,010,069 Offer Shares; \u2022 AB Investments, a close associate of primary insider Anders Onarheim (Director), was allocated 250,000 Offer Shares; \u2022 Kold Invest AS, a close associate of primary insider Martha K. Bakkevig (Director) was allocated 82,353 Offer Shares \u2022 Vest-Norsk Handelskompani AS, a close associate of primary insider Kristine Skeie (Director) was allocated 470,588 Offer Shares; and \u2022 I \u00d8vereng AS, a close associate of primary insider Ingunn \u00d8. Iveland (Director) was allocated 30,588 Offer Shares. ", "dimensions": { "concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f8026": { "value": "PROPOSED DIVIDENDS The Board proposed a dividend of NOK 0.18 per share, in accordance with the company\u2019s dividend policy, to be resolved on the AGM on 31 May 2023. (NOK 1000) 2022 2021 Dividend per share (NOK) 0.18 0.18 Total number of shares* 255 449 563 224 913 428 Dividends in total (NOK million) 45 981 40 484 * The proposed dividends for 2022 are based on total number of shares after the private placement and subsequent offering completed in March 2023 (further described below). ", "dimensions": { "concept": "ifrs-full:DisclosureOfDividendsExplanatory", "language": "en", "entity": "scheme:5967007LIEEXZXK7FS45", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } } } }