LIQUIDITY
Liquid assets include restricted deposits of NOK 236,828 in the parent company and NOK 6,422,331 for the group. Comparable figures for 2002 were NOK 54,037 and NOK 5,639,400 respectively.

OTHER SHORT-TERM LIABILITIES
Other short-term liabilities consist of provisions related to operations, accruals and other liabilities. The items share the characteristic that they represent interest-free financing.

TAX
The tax charge is calculated on the basis of the accounting result and is divided between taxes payable and deferred taxes. Deferred taxes arise as a result of timing differences between accounting and taxation balance sheet values. This is particularly evident in the depreciation of operating assets where accounting depreciation is on a straight line basis, whereas tax depreciation generally follows the declining balance principle. The difference between accounting and tax deductions gives rise to the deferred tax asset, as tax depreciation has been less than the corresponding accounting depreciation, something which will be reversed once both have been fully depreciated. Tax charges are divided between Norwegian and foreign tax.

SUMMARY OF TIMING DIFFERENCES

In 1998 and 1999 the company claimed a tax deduction of NOK 150 million in connection with the conversion of receivables from TANDBERG Canada Inc. to share capital in the company. The tax authorities gave notice in 2000 that this deduction would be further reviewed, and they are still working to finalize this issue.

RECONCILIATION OF TAX CHARGE