IAS 21 paras 35, 54, change of functional currency, and change of presentation currency

Marine Harvest ASA – Annual report – 31 December 2016

Industry: agriculture

NOTE 36 – PRESENTATION CURRENCY

The Group changed its presentation currency from NOK to EUR from January 1, 2016, with retrospective application on comparative figures according to IAS 8 and IAS 21. The change was made to reflect that EUR is the predominant currency in the Group, accounting for more than 50% of net cash flow.

Comparison figures in the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows have been re-presented to reflect the currency rates of transactions in foreign currencies at the date of the transactions. The re-presentation of the statement of cash flow impacts the classification between currency translation adjustments and other components of cash flow.

The different components of assets and liabilities in EUR correspond to the amount published in NOK translated at the EUR/NOK closing rate applicable at the end of each reporting period. The same relates to the equity as a whole. As such, the change in presentation currency has not impacted the measurement of assets, liabilities, equity or any ratios between these components, such as debt to equity ratios. However, ratios that combine elements of profit and loss and the statement of financial position, may change when recalculated in EUR as a result of different currency rates being applied to elements of profit and loss (currency rates at the date of the transactions) and the statement of financial position (closing rates) respectively.

Translation adjustments and cumulative translation adjustments have been presented as if the Group had used EUR as the presentation currency also for the comparative figures. The Group has no material effects relating to reclassification of accumulated currency translation adjustments from equity to profit and loss in the comparative figures.

For Marine Harvest ASA, Euro (EUR) is the functional currency of the company from 1 January 2016. The change was made to reflect that EUR has become the predominant currency in the company, counting for a significant part of the company’s cash flow, cash flow management and financing. The change has been implemented with prospective effect. The change of presentation currency is applied retrospectively for comparative figures for 2014 and 2015. Currency translation effects for the comparative figures from functional currency to presentation currency EUR in 2014 and 2015 are booked as translation differences towards equity.

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Marine Harvest ASA (entity accounts extract)

Financial statements and notes (extract)

NOTE 19 – CHANGE OF FUNCTIONAL AND PRESENTATION CURRENCY

The financial statements are presented in Euro (EUR), which is the functional currency of the company from January 1, 2016. The change was made to reflect that EUR has become the predominant currency in the company, counting for a significant part of the company’s cash flow, cash flow management and financing. The change has been implemented with prospective effect. The change of presentation currency is applied retrospectively for comparative figures for 2014 and 2015. Currency translation effects for the comparative figures from functional currency to presentation currency EUR in 2014 and 2015 are booked as translation differences towards equity.

Comparison figures in the statement of profit and loss, statement of changes in equity and statement of cash flows have been re-presented to reflect the currency rates of transactions in foreign currencies at the date of the transactions. The re-presentation of the statement of cash flow impacts the classification between currency translation adjustments and other components of cash flow.

 

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