ACCOUNTING PRINCIPLES
The annual accounts have been prepared in conformity with the Accounting Act and Norwegian GAAP. The Group accounts have been prepared under IFRS and are presented separately above.
VPS ASA and Manamind AS are wholly-owned subsidiaries of VPS Holding ASA. The shares of both companies are valued using the cost price method.
VPS Holding ASA follow the provisional Norwegian Accounting Standard for tax on earnings. Taxes are expensed as they accrue, i.e. the tax charge is related to the pre-tax accounting profit. Taxes comprise payable tax and changes in deferred tax/deferred tax assets. Payable tax is the amount to be paid on the current period’s taxable profit. Deferred tax assets are income tax that will be returned in future periods.
VPS Holding ASA complies with the provisional Norwegian Accounting Standard for funds flow statements, indirect model.
Historical cost is the main principle employed when preparing the accounts. Cost price is employed to value NOS ASA shares in the company accounts, whereas fair value/market value is employed to NOS ASA shares in the consolidated accounts.
Provision for dividends and group contributions from subsidiaries are taken to income in the accounts. The proposal for distribution of dividends is presented under Norwegian GAAP in the parent company’s accounts and is provisioned under short-term liabilities.
Unless otherwise stated, all figures in the Notes are given in whole thousands of NOK.
NOTE 1 – SALARIES AND ADMINISTRATION EXPENSES
VPS Holding ASA is a pure holding company and has no employees. All personnel are employed at the operating companies VPS ASA and Manamind AS. The company’s tasks are performed by employees of VPS ASA, and for this work an administration contribution is calculated which is charged to the accounts. The administration contribution includes a portion of salary expenses and other administrative expenses.
NOTE 2 – REMUNERATION TO THE BOARD OF DIRECTORS, CEO AND AUDITOR
VPS Holding ASA and VPS ASA have the same Board of Directors, president/CEO and auditor. Their remuneration is paid by VPS ASA, and VPS Holding’s share of these expenses is included in the imputed administration contribution. See Note 1 in the Group accounts.
NOTE 3 – ASSETS AND LIABILITIES BETWEEN INTRA-GROUP COMPANIES
|
Assets
|
2005
|
2004
|
| VPS ASA |
188
|
|
| Group contribution received |
2 006
|
|
| Dividends from subsidiary |
130 000
|
72 800
|
| Total assets |
132 194
|
72 800
|
|
|
|
| Liabilities |
|
|
| VPS ASA (long-term) |
32 576
|
|
| VPS ASA (short-term) |
844
|
2 263
|
| Total liabilities |
33 420
|
2 263
|
NOTE 4 – SHARES IN SUBSIDIARIES
|
Company
|
Acquisition date
|
Acquisition cost
|
Book value
|
| VPS ASA |
07.02.2003
|
110 113
|
110 113
|
| Manamind AS |
11.10.2004
|
15 000
|
15 000
|
Shares in subsidiaries are incorporated in the company accounts using the cost price method. VPS Holding’s ownership interest and voting entitlement in the subsidiaries is 100% and the voting entitlement corresponds to the ownership interest. The registered address of both companies is Biskop Gunnerus’ gate 14A, 0185 Oslo.
NOTE 5 – EQUITY INVESTMENT
|
Company
|
Acquisition
date
|
Average
acquisition cost
|
Acquisition
cost
|
Book value
per share
|
| NOS ASA |
18 Jan. 2005
|
9,03
|
41 271
|
41 271
|
Investments were made in the shares of NOS ASA in 2005. At year-end the holding amounted to 19.06%, equal to the voting entitlement. The shares were incorporated using the cost price method.
NOTE 6 – TAXES
31.12.2005
|
|
31.12.2005
|
| The tax charge for the year was arrived at as follows: |
|
| Ordinary result before tax charge |
130 541
|
| Dividends received |
(130 000)
|
| Group contribution received |
(2 006)
|
| Taxable income for the year |
(1 466)
|
| Deficit to be carried forward |
(541)
|
| Taxable income/(Deficit to be carried forward) |
(2 006)
|
| Group contribution taken to income |
2 006
|
| Tax 28% |
0
|
| Total payable tax |
0
|
|
Specification of basis for deferred tax
|
01.01.2005
|
31.12.2005
|
change
|
| Timing differences |
0
|
0
|
0
|
| Deficit to be carried forward |
(0)
|
(541)
|
(541)
|
|
|
|
|
| Basis for calculation of deferred tax benefit |
(0)
|
(541)
|
(541)
|
| Deferred tax / (Deferred tax assets) |
(0)
|
(151)
|
(151)
|
NOTE 7 – EQUITY CAPITAL
|
|
Share capital
|
Share premium account
|
Other equity
|
Total
|
| Equity capital at 01.01.2005 |
50 000
|
61 113
|
29 934
|
141 047
|
| Result |
|
|
130 541
|
130 541
|
| Provisioned dividends |
|
|
(80 000)
|
(80 000)
|
| Equity capital at 31.12.2005 |
50 000
|
61 113
|
80 474
|
191 587
|
NOTE 8 – SHARE CAPITAL
See Note 18 in the consolidated accounts.
NOTE 9 – PROFIT PER SHARE
|
Profit per share is arrived at as follows:
|
|
2005
|
2004
|
2003
|
| Post-tax profit, VPS ASA Holding |
130 546
|
70 419
|
16 008
|
| Number of shares |
5 000
|
5 000
|
5 000
|
| Profit per share |
26,10
|
14,08
|
3,20
|
|
|
|
|
| Dividends |
|
|
|
| Based on the result for 2005, the Board of Directors recommends that a dividend of NOK 16 per share be paid in 2006, altogether totalling NOK 80 million. Dividends are classified as short-term liabilities in the balance sheet. |
Aksjer i datterselskap er i selskapsregnskapet innarbeidet etter kostprismetoden. VPS Holding sin eier- og stemmeandel i datterselskapene er 100% og stemmeandel tilsvarer eierandel. Begge selskapene har forretningsadresse Biskop Gunnerus’ gate 14A, 0185 Oslo.
|
|
|
