Finanstilsynet
Finanstilsynet will promote financial stability and well-functioning markets
  • Norwegian
    • Show this page in Norwegian
    • Norwegian home page
  • Contact
  • About us

    • Licensing
    • Supervision
    • Reporting
    • Laws and regulations
    • Decision on Pillar 2 requirements for individual banks
    • Investor alerts
    • Circulars
    • Letters
    • News
    • Press releases
    • Inspection report
    • Presentations
    • Publications
    • Finanstilsynet's registry
    • Approved prospectuses
    • Short Sale Register
    • Third country auditors and audit entities
  • Topics
  • Consumer protection
  • Search Search
Search Search

    • Licensing
    • Supervision
    • Reporting
    • Laws and regulations
    • Decision on Pillar 2 requirements for individual banks
    • Investor alerts
    • Circulars
    • Letters
    • News
    • Press releases
    • Inspection report
    • Presentations
    • Publications
    • Finanstilsynet's registry
    • Approved prospectuses
    • Short Sale Register
    • Third country auditors and audit entities
  • Topics
  • Consumer protection

About us
Contact
Norwegian
  • Show this page in Norwegian
  • Norwegian home page
Home
News archive
Review of financial reporting – Fred. Olsen Energy ASA

News

Review of financial reporting – Fred. Olsen Energy ASA

Published: 8 February 2016 Last updated: 22 March 2019

Finanstilsynet has reviewed certain aspects of the 2014 financial statements of Fred. Olsen Energy ASA (FOE).

The review covers the company's impairment testing of rigs as of year-end 2014. In 2014 one rig was impaired by MUSD 42.7, while in 2015 FOE recognised impairment losses for the fleet of MUSD 418.9 in the second quarter and MUSD 31.0 in the third quarter.

FOE reviews the rigs each quarter for any indication of value impairment. If any such indication exists, the company estimates the recoverable amount for each cash-generating unit, defined as the individual rig. The recoverable amount is calculated by discounting future cash flows. The model is fixed, whereas the assumptions are updated every quarter.

Finanstilsynet has commented on some of the assumptions employed in the value in use calculation. In Finanstilsynet's view estimated cash flows must reflect the weighted average of all possible outcomes, including the more negative scenarios that may occur. Finanstilsynet has further commented on the determination of the discount rate, and how income taxes are taken into account in the impairment testing. The comments have not resulted in additional impairment loss as of 31 December 2014.

FOE states that Finanstilsynet's suggestions and comments will be taken into account in future reporting.

 

Please direct any queries to:
Head of section Christian Falkenberg Kjøde, +47 22 93 99 46, mobile: +47 90 94 79 14.

Share this page:

  • Media enquiries
  • Contact
  • Notifications to Finanstilsynet
  • Information about eCommunication
  • Privacy policy and cookies
  • RSS

Visitor address:
Revierstredet 3, 0151 Oslo

 

Postal address:
P.O. Box 1187 Sentrum
NO-0107 Oslo
Norway

 

Phone: +47 22 93 98 00 
E-mail: post@finanstilsynet.no

 

Organisation number:
840 747 972