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JOTUN A/S
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 2017 we purchased and sold goods and services to
various related parties in which we hold a 100 per cent or less
equity interest. Investments in subsidiaries are presented in note
16 and investments in joint ventures and associated companies
are presented in note 17.
TERMS AND CONDITIONS OF TRANSACTIONS WITH RELATED
PARTIES
The transactions between related parties are purchases and sales
of finished goods, raw materials and services. Jotun A/S has also
considerable royalty income from subsidiaries, joint ventures
and associated companies. Joint expenses are distributed in
accordance with agreed cost contribution arrangements. Internal
trading within the Group is carried out in accordance with arm’s
length principles.
Purchase of services from Group companies are mainly related
to global segment positions and regional management included
in the cost contribution arrangement. In addition, Jotun A/S
purchase R&D services from regional laboratories. Parts of the
R&D costs are capitalized, see note 6.
See also Group`s note 22 for more information about
transactions within the Group.
COST
PURCHASE OF CONTRIBUTION PURCHASE OF INTEREST ON
(NOK THOUSAND) SALES TO GOODS FROM INCOME SERVICES LOAN TO LOANS TO
2017
Group companies 1 428 392 225 677 455 538 390 032 2 584 569 145 875
Joint ventures and associated companies 289 253 4 954 152 712 275 323 1 286 –
Total 1 717 645 230 631 608 251 665 355 2 585 855 145 875
2016
Group companies 1 349 549 215 684 387 508 292 374 2 511 095 96 623
Joint ventures and associated companies 295 565 3 548 134 003 253 386 1 349 195
Total 1 645 115 219 231 521 510 545 760 2 512 444 96 818
For information on intercompany balances and guarantees as of 31.12.2017, see note 12 and 20.
23 EVENTS AFTER THE BALANCE SHEET DATE
Significant events after the balance sheet date that occur before
the Board of Directors has approved the financial statements may
make it necessary to change the annual financial statements or
to disclose the matter in the notes to the financial statements. If
new information emerges regarding a matter that exists on the
balance sheet date, and the matter is significant, the financial
statements must be changed. If events concern matters that
arose after the balance sheet date, the matters may have to be
disclosed in a note.
No events have taken place after the balance sheet date that
would have affected the financial statements or any assessments
carried out.