JOTUN A/S
60
Accounting policies
The financial statements for Jotun A/S have been prepared
in accordance with simplified IFRS pursuant to section 3-9 of
the Norwegian Accounting Act. This mainly implies that the
financial statements are presented in accordance with IFRS and
the notes are presented in accordance with the requirements
of the Norwegian Accounting Act. The accounting policies for
the Group therefore also apply to Jotun A/S, see summary of
significant accounting policies in Group statement.
In the process of applying Jotun A/S’ accounting policies,
Management has made judgements, estimates and assumptions
which may have significant effect on the amounts recognised in
the financial statements.
1 Operating revenue
Shares in subsidiaries, joint ventures and associated companies
are incorporated using the cost method of accounting, and
are consequently within the scope of impairment testing.
Impairment tests are made when objective evidence indicates
that a loss event has occurred after initial recognition. The value
in use of the investment is calculated based on future net cash
flows. Key assumptions related to the cash flow analysis are
sales and profit development, discount rate and terminal value.
For more information about accounting policies, see Jotun
Group.
(NOK THOUSAND) 2018 2017
Revenue from contracts with customers 1 580 241 1 448 507
Revenue from contracts with customers – subsidiaries and joint ventures 1 000 126 990 161
Other revenue 73 866 20 013
Other revenue from subsidiaries and joint ventures 728 695 727 4845
Total 3 382 926 3 186 166
Other revenue includes rental income, licence revenue and profit on sale of fixed assets.
Revenue from contracts with customers by segments
(NOK THOUSAND) 2018 2017
Decorative Paints 2 192 653 2 079 394
Marine Coatings 267 244 250 265
Protective Coatings 93 034 75 907
Powder Coatings 27 435 33 103
Total 2 580 366 2 438 669
The company does not have any material revenue related balance sheet items other that trade receivables specified in specified in note 11.
Payment terms are based on agreements and local business practices, and are in general in the range of 30 to 60 days.