45 JOTUN GROUP 22 RELATED PARTIES Parties are related if one party can influence the decisions of the other. If one party either controls, is controlled by or is under common control with the entity the two parties are related. During 2015 we purchased and sold goods and services to various related parties in which we hold a 50 per cent or less equity interest. Investments in associated and joint venture companies are presented in note 2, shareholder information and dividend is presented in note 17 and subsidiaries are presented in note 18. TERMS AND CONDITIONS OF TRANSACTIONS WITH RELATED PARTIES The transactions between related parties are purchases and sales of finished goods, raw materials and technical service. Joint expenses are distributed in accorance with agreed cost contribution arrangements. Internal trading within the Group is carried out in accordance with arms length principles. The transactions between related parties are purchases and sales of finished goods, raw materials and technical service. Joint expenses are distributed in accordance with agreed cost contribution arrangements. Internal trading within the Group is carried out in accordance with arms length principles. For raw materials, the normal process for producing entities is to call off volumes on frame agreements entered into at corporate level. Raw materials are regularly sold within the Group (from large to small entities), but the majority of raw material supplies comes directly from external suppliers. Sales transactions between the Group and joint ventures and associates are mainly related to sales of finished goods from producing units to non-producing units. Other situations can be levelling of stock between entities and coordination of deliveries to customers around the world. Prices are based on fixed intercompany price lists. The Group also has lendings to joint venture companies mainly in China and in Korea. Outstanding balances at the year-end are unsecured and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. For the year ended 31 December 2015, the Group has not recorded any impairment of receivables relating to amounts owed by related parties (2014: NOK Nil). This assessment is undertaken each financial year by examining the financial position of the related party and the market in which the related party operates. The amount of these transactions is shown in the table below. OTHER TRADE AND 2015 PURCHASE INTERESTS ON CURRENT OTHER (NOK THOUSAND) SALES TO FROM LOAN TO LOANS TO LIABILITIES RECEIVABLES Joint ventures 1 319 213 514 521 33 348 1 109 99 556 304 300 Associated companies 87 073 124 792 1 601 104 121 174 64 242 Total 1 406 286 639 313 34 950 1 213 220 730 368 542 OTHER TRADE AND 2014 PURCHASE INTERESTS ON CURRENT OTHER (NOK THOUSAND) SALES TO FROM LOAN TO LOANS TO LIABILITIES RECEIVABLES Joint ventures 1 041 497 271 575 60 893 2 379 72 954 385 364 Associated companies 86 592 88 281 10 324 294 85 940 57 924 Total 1 128 089 359 856 71 217 2 673 158 894 443 288 Aside from the transactions with joint ventures and associates described in the table above, there have been very few transactions between the Jotun Group and other related parties during 2015. COMPENSATION OF KEY MANAGEMENT PERSONNEL OF THE GROUP AND BOARD OF DIRECTORS COMPENSATION Details on remuneration and shares held for the Board of Directors and Group management is described in note 2 and 14. Besides remuneration and shares, Jotun Group has not identified any transactions with the Board of Directors or Group Management during 2015.
Jotun - Annual Report 2015
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