The financial statements are presented in Norwegian kroner (NOK), and all figures have been rounded off to the nearest million unless otherwise specified.

The consolidated financial statements are presented in accordance the EU-approved International Financial Reporting Standards (IFRS) and the appurtenant interpretations, as applied at 31 December 2007.

The consolidated financial statements have been prepared on an historical cost basis except for the following assets and liabilities:

• Financial derivatives measured at fair value
• Financial instruments which do not qualify for hedging and which are measured at fair value, and the change in fair value is recognised through profit or loss related to the sale and lease back of properties described in more detail in Note 24 "Financial instruments – Interest risk related to loans"
• Financial available-for-sale assets, measured at fair value
• The liability related to the cash-based option scheme for employees, measured at fair value. The principles for determining the fair value are described in more detail in Note 4 "Fair value"

Uncertainty associated with estimates and the evaluation of the accounting policy

During the preparation of the financial statements, the company's management has applied its best estimates and assumptions considered to be realistic based on historical experience. The estimates are reviewed on an ongoing basis. Situations can arise that alter the estimates and assumptions, and which will in turn affect the company's assets, liabilities, revenues and expenses. Modified estimates are recognised in the period in which the estimates are changed and in future periods where relevant.

For more detailed information about uncertainty associated with estimates which could have a significant impact on amounts recognised in the next financial year, please see the following notes:

• Business combinations, allocation of acquisition costs, cf. Note 6 "Changes in Group structure"
• Revenue recognition, estimates of progress and contract profit in connection with construction contracts, cf. Note 3 c) "Summary of significant accounting policies – Revenue recognition" and Note 23 "Projects in progress"
• Estimate of the financial advantages ensuing from equity-financed research and development, cf. Note 3 f) "Summary of significant accounting policies – Intangible assets" and Note 14 "Intangible assets"
• Impairment test of goodwill, calculation of recoverable amounts from cash flow-generating units, cf. Note 15 "Impairment test of goodwill"
• Estimates related to pension liabilities, cf. Note 11 "Pensions and other non-current employee benefits"
• Estimates related to future guarantee commitments, cf. Note 28 "Provisions"

For more details about significant areas requiring discretionary judgement relating to the application of accounting policy that have the most significant effect on the amounts recognised in the consolidated financial statements, reference is made to the following notes:

• Revenue recognition of construction contracts, cf. Note 3 c) "Summary of significant accounting policies – Revenue recognition"
• The application of the principles for capitalising expenses related to research and development, cf. Note 3 f) "Summary of significant accounting policies – Intangible assets"
• Financial instruments, including hedge accounting (fair value or cash flow hedges), cf. Note 3 j) "Summary of significant accounting policies – Financial instruments" and Note 24 "Financial instruments"
• Sale and leaseback attached to property, assessment of operational versus financial leases, cf. Note 3 h) "Summary of significant accounting policies – Leases, Sale and leaseback" and Note 31 "Sale and leaseback"