Finanstilsynet has reviewed whether Austevoll Seafood ASA ("AUSS") in accordance with IFRS 10 "Consolidated financial statements" has de facto control over Br. Birkeland AS ("Br. Birkeland"), and whether Br. Birkeland shall be consolidated as a subsidiary in the AUSS Group accounts.
Br. Birkeland has activities related to both salmon farming as well as pelagic wild catch, and had equity of NOK 217 million per 31. December 2013. The annual result of Br. Birkeland in 2013 was NOK 100 million of sales of approx. NOK 430 million.
AUSS became part-owner in Br. Birkeland in the year 2000, and has since classified it as a significant associated company, and recognized it in its consolidated accounts according to the equity method. In the autumn of 2011 AUSS increased its ownership share in Br. Birkeland from 40,2% to its current interest of 49,99%, in a transaction that valued Br. Birkeland on 100% basis at approx. NOK 1 billion. AUSS is represented in the board of Br. Birkeland with 3 out of the 5 members, including having Helge Arvid Møgster serving as chairman. The latter is also the general manager of Br. Birkeland as well as all its subsidiaries, and in addition the third largest investor in Br. Birkeland through a private, wholly owned investment company.
Finanstilsynet has concluded that AUSS has de facto control of Br. Birkeland. AUSS has taken this conclusion into account and will in its next periodic financial reporting correct the error and adjust its comparatives in accordance with IFRS. These requirements call for AUSS to recognize Br. Birkeland at acquisition values at the time AUSS in accordance with IFRS 10 gained de facto control, and consolidate it as a subsidiary.