| CHANGE IN ACCOUNTING POLICIES | 3. CHANGE IN ACCOUNTING POLICIES First-time adoption of IFRS These financial statements for the year ended December 31, 2022 are the first the Company has prepared in accordance with IFRS as issued by the IASB. Accordingly, the Company has prepared financial statements that comply with IFRS applicable as of December 31, 2022, together with the comparative period ended December 31, 2021, as described in the basis of preparation (Note 2). In preparing the financial statements, the Company’s opening statement of financial position was prepared as of January 1, 2021, the Company’s date of transition to IFRS. This note explains the principal adjustments made by the Company when transitioning to IFRS from its previous reporting framework, accounting principles generally accepted in the United States of America ("U.S. GAAP") as of January 1, 2021, as well as for the year ended December 31, 2021. Exemptions applied IFRS 1, First-Time Adoption of International Financial Reporting Standards , allows first-time adopters certain exemptions from the requirement to apply IFRS effective at December 31, 2022 retrospectively. The Company has availed itself of certain of these exemptions as follows: • The Company has elected not to apply IFRS 3, Business Combinations, retrospectively to business combinations that occurred prior to the adoption of IFRS. • The Company has elected to use the practical expedient in IFRS 15, Revenue from Contracts with Customers, to not restate contracts that are completed at the transition date, January 1, 2021. IFRS 1 defines a completed contract as a contract for which the entity has transferred all of the goods or services as identified in accordance with previous GAAP. Effect of transition to IFRS The main differences identified as a result of the transition to IFRS are as follows: • Our vessels are required by their respective classification societies to go through a dry dock at regular intervals. In general, vessels below the age of 15 years are docked every 5 years and vessels older than 15 years are docked every 2.5 years. Unlike Frontline's previous accounting policy under U.S. GAAP whereby such costs were expensed as incurred, IFRS requires significant components of property, plant and equipment with differing depreciation methods or lives to be depreciated separately. Under IFRS, major inspection or overhaul costs, such as dry docking, should be identified and accounted for as a separate component and depreciated over the period to the next scheduled dry docking (2.5 - 5 years). A portion of the initial cost of a vessel is allocated to the dry docking component upon delivery and depreciated over the period to the next scheduled dry docking. When a dry docking is performed, the carrying amount of any remaining unamortized dry docking costs related to previous dry docks (due to any difference between the estimated and actual time between dry docks) is derecognized. Costs associated with routine repairs and maintenance are expensed as incurred including routine maintenance performed while the vessel is in dry dock • Leases were classified as either operating leases or finance leases under U.S. GAAP, while under IFRS there is only one classification when the Company is a lessee. Under U.S. GAAP, rent expense related to leases classified as operating leases is presented in a single line item depending on the nature of the underlying asset and recorded on a straight-line basis whereas under IFRS, interest expense on lease liabilities and amortization of right-of-use assets are presented separately. • Under U.S. GAAP, short-term obligations should be reclassified as non-current at the balance sheet date if the borrower has both the intent and ability to refinance the short-term obligation on a long-term basis. In lieu of actually issuing a new long-term obligation, a borrower can evidence its ability to refinance on a long-term basis by entering into a financing agreement before the financial statements are issued. This accounting treatment is not permitted under IFRS. The impact of the transition to IFRS on the Consolidated Statements of Financial Position when transitioning from U.S. GAAP as of January 1, 2021, and December 31, 2021 are described in detail below. Additionally, the impact of the transition to IFRS on the Consolidated Statements of Profit or Loss, Consolidated Statement of Comprehensive Income, and the Consolidated Statement of Cash Flows for the year ended December 31, 2021 are described in detail further below. U.S. GAAP figures presented below are based on the Company's Annual Report on Form 20-F for the year ended December 31, 2021, which was filed with the Securities and Exchange Commission on March 17, 2022. Reconciliation of Consolidated Statement of Financial Position as at January 1, 2021 (in thousands of $) Note U.S. GAAP Effect of transition to IFRS IFRS ASSETS Current Assets Cash and cash equivalents 174,721 — 174,721 Restricted cash 14,928 — 14,928 Marketable securities 1 2,639 5,835 8,474 Marketable securities pledged to creditors 1 5,835 (5,835) — Trade and other receivables 2 — 63,924 63,924 Trade accounts receivable, net 2 40,974 (40,974) — Related party receivables 13,255 — 13,255 Other receivables 2 22,950 (22,950) — Inventories 57,858 — 57,858 Voyages in progress 34,705 — 34,705 Prepaid expenses and accrued income 7,725 — 7,725 Other current assets 2,729 — 2,729 Total current assets 378,319 — 378,319 Non-current assets Newbuildings 48,498 — 48,498 Vessels and equipment 3 3,307,144 (6,688) 3,300,456 Vessels and equipment under finance leases, net 4a 53,518 (53,518) — Right-of-use assets under operating leases 4a 8,426 (8,426) — Right-of-use assets 4a — 61,944 61,944 Goodwill 112,452 — 112,452 Investment in associated companies 1,279 — 1,279 Loan notes receivable 1,388 — 1,388 Other non-current assets 7,197 — 7,197 Total assets 3,918,221 (6,688) 3,911,533 LIABILITIES AND EQUITY Current liabilities Short-term debt and current portion of long-term debt 6, 8 167,082 67,805 234,887 Current portion of obligations under finance leases 4b 7,810 (7,810) — Current portion of obligations under operating leases 4b 4,548 (4,548) — Current portion of obligations under leases 4b — 12,358 12,358 Related party payables 19,853 — 19,853 Trade and other payables 5 — 55,002 55,002 Trade accounts payable 5 7,860 (7,860) — Accrued expenses 5, 8 42,529 (42,529) — Derivative instruments payable 9 19,261 (19,261) — Other current liabilities 5 12,418 (12,418) — Total current liabilities 281,361 40,739 322,100 Non-current liabilities Long-term debt 6 1,968,924 (60,000) 1,908,924 Obligations under finance leases 4c 48,467 (48,467) — Obligations under operating leases 4c 4,177 (4,177) — Obligations under leases 4c — 52,644 52,644 Derivative instruments payable 9 — 19,261 19,261 Other non-current payables 7 3,739 — 3,739 Total liabilities 2,306,668 — 2,306,668 Equity Share capital 197,692 — 197,692 Additional paid in capital 402,021 — 402,021 Contributed surplus 1,004,094 — 1,004,094 Accumulated other reserves 10 200 — 200 Retained earnings 3 8,018 (6,688) 1,330 Total equity attributable to the shareholders of the Company 1,612,025 (6,688) 1,605,337 Non-controlling interest (472) — (472) Total equity 1,611,553 (6,688) 1,604,865 Total liabilities and equity 3,918,221 (6,688) 3,911,533 IFRS adjustments of Consolidated Statement of Financial Position as at January 1, 2021 1. "Marketable securities pledged to creditors" of $5.8 million, which were presented separately under U.S. GAAP, were reclassified into "Marketable securities" under IFRS. 2. "Trade accounts receivable, net" of $41.0 million and "Other receivables" of $23.0 million", which were presented separately under U.S. GAAP, were reclassified into "Trade and other receivables" under IFRS. 3. Dry docking costs incurred prior to January 1, 2021 were expensed as incurred within Ship operating expense under Frontline’s historical accounting policy in accordance with U.S. GAAP. Under IFRS, significant components of property, plant and equipment with differing depreciation methods or lives are required to be depreciated separately. A portion of the initial cost of a vessel is allocated to the dry docking component upon delivery and depreciated over the period to the next scheduled dry docking. This resulted in a net measurement and recognition adjustment which decreased Vessels and equipment and Retained earnings by $6.7 million as follows: a. the carrying amount of unamortized dry docking costs at January 1, 2021 were capitalized as a separate component of Vessels and equipment which increased Vessels and equipment and Retained earnings by $26.2 million. b. a portion of the initial cost of vessels delivered prior to January 1, 2021 was allocated to the dry docking component upon delivery and depreciated over the period to the next scheduled dry docking which decreased Vessels and equipment and Retained earnings by $32.9 million. 4. Leases were classified as either operating leases or finance leases under U.S. GAAP, while under IFRS there is only one classification when the Company is a lessee which resulted in the following reclassification adjustments: a. "Vessels and equipment under finance leases, net" of $53.5 million and "Right-of-use assets under operating leases" of $8.4 million, which were presented separately under U.S. GAAP, were reclassified into "Right-of-use assets" under IFRS. b. "Current portion of obligations under finance leases" of $7.8 million and "Current portion of obligations under operating leases" of $4.5 million, which were presented separately under U.S. GAAP, were reclassified into “Current portion of obligations under leases” under IFRS. c. "Obligations under finance leases" of $48.5 million and "Obligations under operating leases" of $4.2 million, which were presented separately under U.S. GAAP, were reclassified into “Obligations under leases” under IFRS. 5. "Trade accounts payable" of $7.9 million, "Accrued expenses" of $42.5 million and "Other current liabilities" of $12.4 million, which were presented separately under U.S. GAAP, were reclassified into "Trade and other payables" under IFRS. 6. Under U.S. GAAP, short-term obligations should be reclassified as non-current at the balance sheet date if the borrower has both the intent and ability to refinance the short-term obligation on a long-term basis. In lieu of actually issuing a new long-term obligation, a borrower can evidence its ability to refinance on a long-term basis by entering into a financing agreement before the financial statements are issued. In accordance with U.S. GAAP, the Company presented the non-current portion of a loan facility refinanced in February 2021 as long-term debt as of January 1, 2021. This accounting treatment is not permitted under IFRS which resulted in a reclassification adjustment which increased Short-term debt and current portion of long-term debt and decreased Long-term debt by $60.0 million as of January 1, 2021. 7. "Other long-term liabilities" of $3.7 million under U.S. GAAP was renamed "Other non-current payables" under IFRS. 8. Accrued interest expense of $7.8 million , which was presented within "Accrued expenses" under U.S. GAAP was rec lassified into "Short-term debt and current portion of long-term debt" under IFRS. 9. "Derivative instruments payable", which was classified as a current liability in accordance with the Company's accounting policies under U.S. GAAP, was reclassified to a non-current liability under IFRS based on the contractual maturity dates. 10. "Accumulated other comprehensive income" of $0.2 million under U.S. GAAP was renamed "Accumulated other reserves" under IFRS. Reconciliation of Consolidated Statement of Financial Position as at December 31, 2021 (in thousands of $) Note U.S. GAAP Effect of transition to IFRS IFRS ASSETS Current Assets Cash and cash equivalents 113,073 — 113,073 Marketable securities 2,435 — 2,435 Trade and other receivables 1 — 73,532 73,532 Trade accounts receivable, net 1 63,423 (63,423) — Related party receivables 11,676 — 11,676 Other receivables 1 10,109 (10,109) — Inventories 80,787 — 80,787 Voyages in progress 38,492 — 38,492 Prepaid expenses and accrued income 8,899 — 8,899 Other current assets 3,851 — 3,851 Total current assets 332,745 — 332,745 Non-current assets Newbuildings 130,633 — 130,633 Vessels and equipment 2 3,477,801 (10,501) 3,467,300 Vessels and equipment under finance leases, net 3a 44,880 (44,880) — Right-of-use assets under operating leases 3a 3,914 (3,914) — Right-of-use assets 3a — 48,794 48,794 Goodwill 112,452 — 112,452 Derivative instrument receivable 9,675 — 9,675 Investment in associated companies 555 — 555 Loan notes receivable 1,388 — 1,388 Other non-current assets 3,055 — 3,055 Total assets 4,117,098 (10,501) 4,106,597 LIABILITIES AND EQUITY Current liabilities Short-term debt and current portion of long-term debt 7 189,286 9,379 198,665 Current portion of obligations under finance leases 3b 7,601 (7,601) — Current portion of obligations under operating leases 3b 1,122 (1,122) — Current portion of obligations under leases 3b — 8,723 8,723 Related party payables 36,250 — 36,250 Trade and other payables 4 — 43,364 43,364 Trade accounts payable 4 2,327 (2,327) — Accrued expenses 4, 7 42,836 (42,836) — Derivative instruments payable 8 5,673 (5,673) — Other current liabilities 4 7,580 (7,580) — Total current liabilities 292,675 (5,673) 287,002 Non-current liabilities Long-term debt 2,126,910 — 2,126,910 Obligations under finance leases 3c 40,865 (40,865) — Obligations under operating leases 3c 3,114 (3,114) — Obligations under leases 3c — 43,979 43,979 Derivative instruments payable 8 — 5,673 5,673 Other non-current payables 5 992 — 992 Total liabilities 2,464,556 — 2,464,556 Equity Share capital 203,531 — 203,531 Additional paid in capital 448,291 — 448,291 Contributed surplus 1,004,094 — 1,004,094 Accumulated other reserves 6 228 — 228 Retained (deficit) earnings 2 (3,130) (10,501) (13,631) Total equity attributable to the shareholders of the Company 1,653,014 (10,501) 1,642,513 Non-controlling interest (472) — (472) Total equity 1,652,542 (10,501) 1,642,041 Total liabilities and equity 4,117,098 (10,501) 4,106,597 IFRS adjustments of the Consolidated Statement of Financial Position as at December 31, 2021 1. "Trade accounts receivable, net" of $63.4 million and "Other receivables" of $10.1 million", which were presented separately under U.S. GAAP, were reclassified into "Trade and other receivables" under IFRS. 2. Dry docking costs incurred prior to January 1, 2021 and in the year ended December 31, 2021 were expensed as incurred within Ship operating expense under Frontline’s historical accounting policy in accordance with U.S. GAAP. Under IFRS, significant components of property, plant and equipment with differing depreciation methods or lives are required to be depreciated separately. A portion of the initial cost of a vessel is allocated to the dry docking component upon delivery and depreciated over the period to the next scheduled dry docking. This resulted in a net measurement and recognition adjustment which decreased Vessels and equipment and Retained earnings by $10.5 million as follows: a. the carrying amount of unamortized dry docking costs at January 1, 2021 were capitalized as a separate component of Vessels and equipment which increased Vessels and equipment and Retained earnings by $26.2 million. b. a portion of the initial cost of vessels delivered prior to January 1, 2021 was allocated to the dry docking component upon delivery and depreciated over the period to the next scheduled dry docking which decreased Vessels and equipment and Retained earnings by $32.9 million. c. the dry docking costs in the year ended December 31, 2021 which were expensed as incurred under U.S GAAP were capitalized as a separate component of Vessels and equipment which increased Vessels and equipment and Retained earnings by $11.4 million. d. depreciation expense on capitalized dry docking costs and the write off of the carrying amount of unamortized dry docking costs on vessels sold in the year ended December 31, 2021 resulted in a decrease in Vessels and equipment and Retained earnings of $13.3 million and $1.8 million, respectively. 3. Leases were classified as either operating leases or finance leases under U.S. GAAP, while under IFRS there is only one classification when the Company is a lessee which resulted in the following reclassification adjustments: a. "Vessels and equipment under finance leases, net" of $44.9 million and "Right-of-use assets under operating leases" of $3.9 million, which were presented separately under U.S. GAAP, were reclassified into "Right-of-use assets" under IFRS. b. "Current portion of obligations under finance leases" of $7.6 million and "Current portion of obligations under operating leases" of $1.1 million, which were presented separately under U.S. GAAP, were reclassified into "Current portion of obligations under leases" under IFRS. c. "Obligations under finance leases" of $40.9 million and "Obligations under operating leases" of $3.1 million, which were presented separately under U.S. GAAP, were reclassified into “Obligations under leases” under IFRS. 4. "Trade accounts payable" of $2.3 million, "Accrued expenses" of $42.8 million and "Other current liabilities" of $7.6 million, which were presented separately under U.S. GAAP, were reclassified into "Trade and other payables" under IFRS. 5. "Other long-term liabilities" of $1.0 million under U.S. GAAP was renamed "Other non-current payables" under IFRS. 6. "Accumulated other comprehensive income" of $0.2 million under U.S. GAAP was renamed "Accumulated other reserves" under IFRS. 7. Accrued interest expense of $9.4 million, which was presented within "Accrued expenses" under U.S. GAAP was reclassified into "Short-term debt and current portion of long-term debt" under IFRS. 8. "Derivative instruments payable", which was classified as a current liability in accordance with the Company's accounting policies under U.S. GAAP, was reclassified to a non-current liability under IFRS based on the contractual maturity dates. Reconciliation of Consolidated Statement of Profit or Loss for the year ended December 31, 2021 (in thousands of $) Note U.S. GAAP Effect of transition to IFRS IFRS Operating revenues and other income Voyage charter revenues 1a 663,995 (663,995) — Time charter revenues 1a 71,236 (71,236) — Revenues 1a, 1b — 749,381 749,381 Other income 1b, 1c, 2c 14,150 (10,090) 4,060 Total operating revenues and other income 749,381 4,060 753,441 Other operating gains 1c 5,893 (5,893) — Operating expenses Voyage expenses and commission 392,697 — 392,697 Contingent rental income (3,606) — (3,606) Ship operating expenses 2a 175,607 (11,361) 164,246 Charter hire expenses 3a 2,695 (2,695) — Administrative expenses 3b 27,891 (1,467) 26,424 Depreciation 2b, 3 147,774 17,431 165,205 Total operating expenses 743,058 1,908 744,966 Net operating income 12,216 (3,741) 8,475 Other income (expenses) Finance income 4 — 121 121 Interest income 4 119 (119) — Finance expense 5 — (44,244) (44,244) Interest expense 5 (61,435) 61,435 — Gain on marketable securities 7,677 — 7,677 Share of results of associated company (724) — (724) Foreign currency exchange loss 5 (116) 116 — Gain on derivatives 5 17,509 (17,509) — Dividends received 6 — 18,367 18,367 Other non-operating items, net 6 18,239 (18,239) — Net other expenses (18,731) (72) (18,803) Loss before income taxes (6,515) (3,813) (10,328) Income tax expense (4,633) — (4,633) Loss for the period (11,148) (3,813) (14,961) Loss attributable to the shareholders of the Company (11,148) (3,813) (14,961) Basic loss per share attributable to shareholders of the Company $(0.06) $(0.02) $(0.08) Diluted loss per share attributable to shareholders of the Company $(0.06) $(0.02) $(0.08) IFRS adjustments to the Consolidated Statement of Profit or Loss for the year ended December 31, 2021 1. The presentation of operating revenues and other income was adjusted as follows: a. "Voyage charter revenues" and "Time charter revenues" under U.S. GAAP were reclassified to "Revenue" under IFRS. b. "Administrative income" of $14.2 million presented as "Other income" under U.S. GAAP was reclassified to "Revenue" under IFRS. c. "Other operating gains" of $5.9 million under U.S. GAAP was reclassified to "Other income" under IFRS. 2. Dry docking costs incurred prior to January 1, 2021 and in the year ended December 31, 2021 were expensed as incurred within Ship operating expense under Frontline’s historical accounting policy in accordance with U.S. GAAP. Under IFRS, significant components of property, plant and equipment with differing depreciation methods or lives are required to be depreciated separately. A portion of the initial cost of a vessel is allocated to the dry docking component upon delivery and depreciated over the period to the next scheduled dry docking. This resulted in the following measurement and recognition adjustments: a. the dry docking costs in the year ended December 31, 2021 which were expensed as incurred under U.S GAAP were capitalized as a separate component of Vessels and equipment which decreased Ship operating expense by $11.4 million . b. depreciation expense on capitalized dry docking costs resulted in an increase in Depreciation of $13.3 million. c. the write off of the carrying amount of unamortized dry docking costs on vessels sold in the year ended December 31, 2021 resulted in a $1.8 million decrease in the gains on sales recognized within Other income. 3. Under U.S. GAAP, rent expense related to leases classified as operating leases is presented in a single line item depending on the nature of the underlying asset and recorded on a straight-line basis whereas under IFRS, interest expense on lease liabilities and amortization of right-of-use assets are presented separately. This resulted in the following reclassification adjustments: a. Charterhire expense of $2.7 million under U.S. GAAP in relation to two vessels leased in from a third party on time charters that were classified as leases , was reclassified to Depreciation under IFRS. b. Administrative expenses of $1.5 million under U.S. GAAP in relation to office leases was reclassified to Depreciation under IFRS. 4. "Interest income" of $0.1 million which was presented separately under U.S. GAAP, was reclassified to "Finance income" under IFRS. 5. "Interest expense" of $61.4 million, "Gain on derivatives" of $17.5 million and "Foreign currency exchange loss" of $0.1 million, which were presented separately under U.S. GAAP, were re classified to "Finance expense" under IFRS. 6. "Other non-operating items, net" of $18.4 million under U.S. GAAP was reclassified to "Dividends received" under IFRS. Reconciliation of Consolidated Comprehensive Income for the year ended December 31, 2021 (in thousands of $) Note U.S. GAAP Effect of transition to IFRS IFRS Profit (loss) 1 (11,148) (3,813) (14,961) Items that may be reclassified to profit or loss: Foreign currency translation gain (loss) 28 — 28 Other comprehensive income (loss) 28 — 28 Comprehensive income (loss) (11,120) (3,813) (14,933) Comprehensive income (loss) attributable to the shareholders of the Company (11,120) (3,813) (14,933) IFRS adjustments to the Consolidated Comprehensive Income for the year ended December 31, 2021 1. Refer to the IFRS adjustments to the Consolidated Statement of Profit or Loss for the year ended December 31, 2021 section above. Reconciliation of Consolidated Statement of Cash Flows for the year ended December 31, 2021 (in thousands of $) Note U.S. GAAP Effect of transition to IFRS IFRS Net loss for the period 1 (11,148) (3,813) (14,961) Adjustments to reconcile loss for the period with net cash provided by operations: Net finance expense 6 — 44,123 44,123 Depreciation 2b, 3 147,774 17,431 165,205 Amortization of deferred charges 6a 5,208 (5,208) — Other operating gains 2c (5,058) 1,833 (3,225) Amortization of acquired time charters (5,045) — (5,045) Contingent rental income (3,606) — (3,606) Gain on marketable securities (7,677) — (7,677) Share of results from associated company 724 — 724 Gain on derivatives 6a (23,262) 23,262 — Stock option expense 4 — 185 185 Other, net 4 430 (430) — Changes in operating assets and liabilities: Trade accounts receivable (22,449) — (22,449) Other receivables 7,216 — 7,216 Inventories (22,929) — (22,929) Voyages in progress (3,787) — (3,787) Prepaid expenses and accrued income (1,174) — (1,174) Other current assets (1,128) — (1,128) Trade accounts payable (5,533) — (5,533) Accrued expenses 6b (1,911) (1,574) (3,485) Related party balances 18,968 — 18,968 Other current liabilities 135 — 135 Change in restricted cash 5 — 14,928 14,928 Other (2,816) — (2,816) Interest paid 6b — (60,477) (60,477) Debt issuance costs paid 7 — (8,050) (8,050) Interest received 6b — 119 119 Net cash provided by operating activities 62,932 22,329 85,261 Investing activities Additions to newbuildings, vessels and equipment 2a (462,400) (11,361) (473,761) Purchase of shares (357) — (357) Net proceeds from sale of vessel 80,000 — 80,000 Net cash inflow on sale of subsidiary 5,625 — 5,625 Proceeds from sale of marketable securities 14,074 — 14,074 Net cash used in investing activities (363,058) (11,361) (374,419) Financing activities Net proceeds from issuance of shares 52,447 — 52,447 Proceeds from issuance of debt 403,868 — 403,868 Repayment of debt (219,521) — (219,521) Repayment of obligations under leases 3 (5,194) (4,090) (9,284) Debt fees paid 7 (8,050) 8,050 — Net cash provided by financing activities 223,550 3,960 227,510 Net change in cash and cash equivalents 5 (76,576) 14,928 (61,648) Cash and cash equivalents at beginning of year 5 189,649 (14,928) 174,721 Cash and cash equivalents at end of year 113,073 — 113,073 IFRS adjustments to the Consolidated Statement of Cash Flows for the year ended December 31, 2021 1. Refer to the IFRS adjustments to the Consolidated Statement of Profit or Loss for the year ended December 31, 2021 section above. 2. Dry docking costs incurred prior to January 1, 2021 and in the year ended December 31, 2021 were expensed as incurred within Ship operating expense under Frontline’s historical accounting policy in accordance with U.S. GAAP. Under IFRS, significant components of property, plant and equipment with differing depreciation methods or lives are required to be depreciated separately. Accordingly, the carrying amount of unamortized dry docking costs at December 31, 2021 were capitalized as a separa te component of Vessels and equipment and depreciated over the period to the next scheduled dry docking (2.5 - 5). This resulted in the following measurement and recognition adjustments: a. the dry docking costs paid in the year ended December 31, 2021 were capitalized as a separate component of Vessels and equipment which increased Additions to newbuildings, vessels and equipment by $11.4 million . b. depreciation expense on capitalized dry docking costs resulted in an increase in Depreciation of $13.3 million. c. the write off of the carrying amount of unamortized dry docking costs on vessels sold in the year ended December 31, 2021 resulted in a $1.8 million decrease in the gains on sales recognized within Other operating gains. 3. Under U.S. GAAP, rent expense related to leases classified as operating leases is presented in a single line item depending on the nature of the underlying asset and recorded on a straight-line basis whereas under IFRS, interest expense on lease liabilities and amortization of right-of-use assets are presented separately. This resulted in the following reclassification adjustments: a. Charterhire expense of $2.7 million under U.S. GAAP in relation to the leased-in vessels, FPMC Noble and FPMC Melody, was reclassified to Depreciation under IFRS which resulted in a corresponding increase in Repayment of obligations under leases. b. Administrative expenses of $1.5 million under U.S. GAAP in relation to office leases was reclassified to Depreciation under IFRS which resulted in a corresponding increase in Repayment of obligations under leases. 4. "Other, net" of $0.2 million under U.S. GAAP was reclassified to "Stock option expense" under IFRS. 5. The "Change in restricted cash" of $14.9 million was presented within operating activities under IFRS. 6. The presentation of net finance expenses was adjusted as follows: a. "Amortization of deferred charges" of $5.2 million and "Gain on derivatives" of $23.3 million were reclassified to "Net finance expense". b. "Interest paid" of $60.5 million and "Interest received" of $0.1 million were presented separately, which resulted in an adjustment to accrued expenses of $1.6 million. 7. "Debt fees paid" of $8.1 million presented within financing activities under U.S. GAAP was presented as "Debt issuance costs paid" within operating activities under IFRS. |
