The Financial Supervisory Authority of Norway has published the results of a review of selected accounting matters in Grieg Seafood ASA’s 2023 financial reporting, concluding that the reporting contained material errors and deficiencies. The findings focus on missing recognition and disclosures for closure and rehabilitation obligations under IAS 37 and insufficient fair value disclosures for biological assets under IFRS 13. On IAS 37, the authority concluded that Grieg Seafood’s sea-farming operations give rise to closure and rehabilitation obligations that meet the criteria for recognising a provision and providing related note disclosures, including clarity on what types of clean-up and rehabilitation the provision covers. On IFRS 13, it found that expected quality distribution (share of superior-quality salmon) had, from 1 January 2023, a significant impact on the estimated fair value of biological assets and represented a significant unobservable input requiring quantitative note disclosures and sensitivity information; the disclosures were missing from both annual and interim reporting. The company has already amended its approach by adding note disclosures on expected quality distribution and price deviations in its third quarter 2024 interim reporting (with comparative figures), confirmed it will continue providing such information going forward, and will incorporate IAS 37 provisions and disclosures and add sensitivity analyses for quality-related assumptions from the 2024 annual financial statements. Finanstilsynet asked Grieg Seafood to consider whether the matters trigger disclosure obligations under the EU Market Abuse Regulation and required the company to provide a concrete written explanation of where and how the issues have been corrected in the 2024 annual report within two weeks after that report is published. A copy of the letter was sent to the company’s auditor and to Oslo Stock Exchange.
Norwegian Finanstilsynet 2025-01-28
Financial Supervisory Authority of Norway identifies material IAS 37 and IFRS 13 deficiencies in Grieg Seafood’s financial reporting
Norway's Financial Supervisory Authority found errors in Grieg Seafood ASA's 2023 financial reporting related to IAS 37 and IFRS 13. The company amended its disclosures and will include necessary provisions and sensitivity analyses in future reports. Finanstilsynet also asked Grieg Seafood to assess potential disclosure obligations under the EU Market Abuse Regulation and provide a detailed correction explanation in the 2024 annual report.