Business News

Accounting procedures for sold businesses in Korea

Monday 03. November 2008 - Reference is made to the stock exchange release from Norske Skog dated 23 October, stating that all result effects after tax from sold units will be gathered under the item "Loss from discontinued operations". The figure totals around minus NOK 800 million.  

Following further considerations, there has been a change with respect to the presentation in the income statement, meaning that the results up to the time of closing, the result effect from the transaction itself, and the accumulated translation differences are included in the item “Other gains and losses” in the income statement with a total amount of around minus NOK 600 million before tax. There is an estimated tax cost on the transaction in the range of NOK 200 million, meaning that the total effect from sold assets adds up to minus NOK 800 million, as previously announced.
 
The accumulated translation differences have, as announced before, been booked directly against equity in the course of Norske Skog’s ownership, but must be recognized in the income statement when the business is sold, according to accounting standards. This particular accounting treatment has no cash impact, and neither any impact on the group’s equity.