Accounting data for foundations

Operating income and operating expenses

Operating income and operating expenses are ordinary incomes and expenses except financial ones. Operating income is divided into sales revenues and other operating income. Regarding non-profit foundations, membership fees, contributions, donations and raised funds are also components of operating income. Operating expenses consist of used raw materials and consumables, changes in inventories, costs of asset acquisition, costs arising from the organisation’s objectives, wages and administrative expenses, depreciation and write-downs of fixed assets, and other operating expense. Ordinary depreciation concerns systematic depreciation of tangible fixed assets and intangible assets which deteriorate because of age and the like.

Financial income and financial expenses

Financial income and financial expenses are ordinary revenues and expenses relating to investments, securities, debtors and debts.

Taxes

Taxes represent taxes related to the accounting result, and consist of taxes payable, expected reimbursement claims from owners and changes in deferred taxes. Taxes are divided into taxes connected with ordinary result and tax expense connected with extraordinary items.

Fixed assets

Fixed assets mainly cover assets which are included in the foundations’ long-term value creation and which are intended for permanent use or ownership, and debtors and securities which are scheduled for repayment later than one year after the time of settlement. They include tangible fixed assets such as property, intangible assets such as research and development, and long-term investments.

Current assets

Current assets are assets which are connected with the foundations’ sale of goods and services, or which are expected to have a functional period of less than one year in operation. They are made up of cash and shot-term investments, debtors and inventories. Debtors are current assets if it has been agreed or scheduled that they will be repaid within one year after the end of the financial year.

Equity

Equity (net assets) is defined as the share of total assets belonging to the foundation, and is total assets minus liabilities.

Liabilities

Liabilities consist of all obligations which may restrict the foundation’s use of its resources in the future. Liabilities are composed of provisions for liabilities and charges, other long-term liabilities, and short-term liabilities. Long-term liabilities are legal or financial obligations not meant to be redeemed in the next accounting period, and are unrelated to the foundation’s short-term sales of goods and services. Short term liabilities are liabilities falling due for payment within one year from the time of settlement, or liabilities directly related to the foundation’s short-term sales of goods and services.

Key figures

The key figures provide information about the foundations’ capital strength and liquidity. Equity ratio expresses the capital strength of the foundation, i.e. its ability to withstand setbacks and losses. Current ratio is an indicator of the foundation’s ability to pay debt. Since current ratio is only measured at balance-sheet date, it has limited information about the current ability to pay debt.

Industrial classification is in accordance with the revised Norwegian Standard Industrial Classification (SIC 2007) based on the EU industrial classification NACE Rev. 2. Foundations operating in several fields are mainly grouped by the activity which contributes the most to the foundation’s overall added value.

Sector classification follows the standard Institutional Sector 2012.

Non-profit foundations may also be classified according to sphere of activity by the use of International Classification for Non-Profit Organizations (ICNPO codes.). The table below shows the ICNPO-categories: