Investments ASA Partners Holding Ltd Trident Chambers, PO BOX 146

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued

d. Revenue and Expenses Recognition

Revenue is recognized to the extent when it is probable that the economic benefits will flow to the Company and its Subsidiaries and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized: • Sale of goods Revenue is recognized when the significant risk and rewards of ownership of the goods have been passed to the buyer. • Rendering of services Revenue is recognized by reference to the stage of completion of the transaction at balance sheet dates and there is no significant uncertainties remain considering any associated cost. • Interest Income is recognized as the interest accrues taking into account the effective yield on the related asset, unless collectability is in doubt. • Expenses are recognized when incurred accrual basis.

e. Cash and Cash Equivalents

Cash on hand and in banks and short-term deposits held to maturity are carried at cost. Cash and cash equivalents are defined as cash on hand and in banks, demand deposits and short-term and highly liquid investments readily convertible to known amounts of cash and subject to insignificant risk of changes in value. For the purposes of the consolidated statements of cash flows, cash and cash equivalents consist of cash on hand and in banks, and short-term deposits with maturities of less than three months.

f. Investments

Short-term deposits with maturities of less than three months but held for collateral or have a restriction and short-term deposits with maturities of more than three months are presented as short-term investments and carried at nominal value. Investments in securities are classified as follows: i Held for trading Investments, which are classified as “held for trading” are measured at fair value, with unrealized gain or losses as a result of an increase or decrease of the fair value are reported in the current period profit and loss statement. The difference between sales proceed and the carrying amount are recognized as realized gains or losses. ii Available for sale Investments which are classified as “available for sale” are measured at fair value. The unrealized gains or losses as a result of an increase or decrease of the fair value are reported as a separate component of equity. The differences between sales proceed and the carrying amount are recognized as gains or losses when the investment is sold, collected or otherwise disposed of. Unrealized gains and losses from this investment at which time the cumulative gain or loss previously reported in equity are recognized as income or expenses when realized. iii Held to maturity Investments which are intended to be held to maturity, such as bonds, are measured at the acquisition cost after un- amortized premium purchase or discount. Discount and premium is amortized using the straight-line method. When there is a permanent decline of fair value below the carrying value, the impairment in value is reported in the current period profit and loss statement. Investment in shares in other companies with the percentage of ownership as follows: • Less than 20 is stated at the lower of cost or net realizable value. • From 20 to 50 is stated at cost and will be increased or decreased by the portion of income loss resulting from associated companies and the dividend received is deducted from the investment amount equity method. • More than 50 is consolidated.

g. Financial Instrument