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Notes to the parent company financial statements
Notes to the parent company financial statements
Note 1 General information
Scatec ASA is incorporated and domiciled in Norway. The address of its
registered office is Askekroken 11, NO-0277 OSLO, Norway. Scatec was
established on 2 February 2007.
Scatec ASA (“the Company”), its subsidiaries and investments in
associated companies and joint ventures (“the Group” or “Scatec”) is a
leading renewable power producer, delivering affordable and clean
energy worldwide. As a long-term player, Scatec develops, builds, owns
and operates solar, wind and hydro power plants and storage solutions.
The Company is listed on the Oslo Stock Exchange.
The consolidated financial statements for the full year 2024 were
authorized for issue in accordance with a resolution by the Board of
Directors on 30 March 2025.
Note 2 Accounting principles
Basis for preparation
The financial statements of Scatec ASA are prepared in accordance
with the Norwegian Accounting Act of 1998 and Norwegian Generally
Accepted Accounting Principles (NGAAP). The financial statements have
been prepared on a historical cost basis.
Accounting estimates and judgements
In preparing the financial statements, management has made
assumptions and estimates about future events and applied
judgements that affect the reported values of assets, liabilities,
revenues, expenses, and related disclosures. Therefore, future actual
results may differ from current figures.
Foreign currency translation
The functional currency of the Company is US dollar (USD). USD is the
currency which primarily affects the financials including corporate
financing, income from dividends and revenue from construction
activities. The financial statements are presented in NOK. The assets
and liabilities are translated into NOK at the rate of exchange prevailing
at the end of reporting period and their income statement is translated
at average exchange rates. The exchange differences arising on
translation are recognised in equity.
Revenues and cost of sales
Scatec ASA develops project rights that are the basis for construction
of power plants. Revenues from sale of project rights are recognised
upon the transfer of title. Projects in work in progress are expensed as
cost of sale upon the transfer of title or when a project is abandoned
Revenues from construction services are based on fixed price
contracts and are accounted for using the percentage of completion
method. The stage of completion of a contract is determined by actual
cost incurred over total estimated costs to complete. Incurred costs
include all direct materials, costs for modules, labour, subcontractor
costs, and other direct costs related to contract performance.
Scatec ASA periodically revise contract margin estimates and
immediately recognises any losses on onerous contracts. Some
construction contracts include product warranties. The expected
warranty amounts are expensed at the time of sale and are adjusted
for subsequent changes in assumptions or actual outcomes.
Further, Scatec ASA derives revenues from the allocation of
headquarter costs to its subsidiaries. Revenues from the sale of
intercompany services are recognised when the services are delivered.
Wages, salaries, bonuses, pension and social security contributions,
paid annual leave and sick leave are accrued in the period in which the
associated services are rendered by employees of the Company. The
Company has pension plans for employees that are classified as
defined contribution plans. Contributions to defined contribution
schemes are recognised in the statement of profit or loss in the period
in which the contribution amounts are earned by the employees.
The Board of Directors has established an option program for leading
employees of the company. The cost of equity-settled transactions is
determined by the fair value at the date when the grant is made using
an appropriate valuation model. That cost is recognised in personnel
expenses, together with a corresponding increase in equity over the
For further information on accounting principle and share options refer
to Note 3 – Employee benefits in the consolidated financials.
For further information refer Note 4 – Personnel expenses, number of
employees and auditor’s fee.
Income tax expense comprises current tax and changes in deferred
tax. Current tax is the expected tax payable on the taxable income for
