Review of financial reporting - Borregaard ASA

16 Mar 2026 16:35 CET

Finanstilsynet has reviewed certain matters relating to Borregaard's annual
report for 2024.
Borregaard holds an investment in Alginor ASA, which is accounted for as an
associate. Alginor is developing a value chain for the biorefining of an algae
species. In connection with the preparation of the annual financial statements
for 2024, Borregaard performed an impairment assessment of this investment.
Finanstilsynet's assessment is that Borregaard's calculation of value in use is
not in accordance with IAS 28.42 and IAS 36.44, as it includes cash flows
related to phases of the value chain that have not been formally approved and
that have not commenced. Borregaard did not calculate the fair value of the
investment.
On this basis, Finanstilsynet issued an advance notification of decision, which
required Borregaard to carry out a new measurement of the recoverable amount of
the investment as of 31 December 2024. The revised calculation of value in use
was lower than the carrying amount, and Borregaard therefore also determined
fair value in accordance with IFRS 13. The fair value calculation resulted in a
recoverable amount as of 31 December 2024 that exceeded the carrying amount.
Borregaard also performed an impairment assessment as of 31 December 2025, which
resulted in the recognition of an impairment loss of NOK 225 million in the
interim financial statements for the fourth quarter of 2025.
Finanstilsynet takes note that the revised measurement of the recoverable amount
as of 31 December 2024 showed that no impairment was required. Finanstilsynet
has not obtained or reviewed Borregaard’s revised calculation of recoverable
amount as of 31 December 2024 or the calculation as of 31 December 2025.
Finanstilsynet's letter to the company (attached to this announcement) is
available in Norwegian only.
If you have any questions, please contact:
Lars Jacob Braarud, Head of section, +47 22 93 97 53 / +47 91 34 52 73 (mobile).

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668494_Kontroll av finansiell rapportering Borregaard ASA.pdf