Review of financial reporting - Cermaq ASA

In connection with its disposal of EWOS, Cermaq presented financial results for its continuing aquaculture business without feed costs. This is despite the fact that the aquaculture business will continue to incur feed costs as previously, and that feed costs are the largest and most important cost component. Cermaq disclosed the information they consider to be required under IFRS, and inter alia reported feed costs in notes to the financial statements and in the board of directors' management report.

In Finanstilsynet's assessment, Cermaq's presentation is not compliant with IFRS 5 Non-current assets held for sale and discontinued operations, paragraph 30. This provision requires entities to present information that enables users of financial statements to evaluate the financial effects of discontinued operations. In light of Cermaq's situation, Finanstilsynet's assessment is that the company failed to exercise reasonable judgement in its application of this provision. Feed costs should have been included in the costs of raw materials in the profit and loss statement.

Finanstilsynet's oversight covers issuers of transferable securities that are quoted, or for which admission to quotation has been requested, on a Norwegian regulated market. Cermaq's shares were deleted from Oslo Børs on 14 November 2014. The company is no longer subject to Finanstilsynet's supervision and no further action will be taken in the matter.