
B2 Impact — Annual report 2023
2 Governance1 About B2 Impact 3 Directors' report 4 Financials
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Contents
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Independent auditor's report - B2 Impact ASA 2023
A member firm of Ernst & Young Global Limited
required by applicable legal requirements is not included in the board of directors’ report, the statement
on corporate governance or the statement on corporate social responsibility, we are required to report
that fact.
We have nothing to report in this regard, and in our opinion, the board of directors’ report, the statement
on corporate governance and the statement on corporate social responsibility are consistent with the
financial statements and contain the information required by applicable legal requirements.
Responsibilities of management for the financial statements
Management is responsible for the preparation and fair presentation of the financial statements of the
Company in accordance with the Norwegian Accounting Act and accounting standards and practices
generally accepted in Norway and of the consolidated financial statements of the Group in accordance
with IFRS Accounting Standards as adopted by the EU, and for such internal control as management
determines is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s and the
Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless management either intends to liquidate the
Company or the Group, or to cease operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional
scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Company’s ability to continue as a
going concern. If we conclude that a material uncertainty exists, we are required to draw attention
in our auditor’s report to the related disclosures in the financial statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained
up to the date of our auditor’s report. However, future events or conditions may cause the
Company to cease to continue as a going concern.
Penneo document key: NL33G-1056A-QTETG-BCOHV-T8UBY-OL271
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Independent auditor's report - B2 Impact ASA 2023
A member firm of Ernst & Young Global Limited
opinion on these matters. For each matter below, our description of how our audit addressed the matter is
provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial
statements section of our report, including in relation to these matters. Accordingly, our audit included the
performance of procedures designed to respond to our assessment of the risks of material misstatement
of the financial statements. The results of our audit procedures, including the procedures performed to
address the matters below, provide the basis for our audit opinion on the financial statements.
Estimated future cash collections from purchased loan portfolios
Basis for the key audit matter
Purchased loan portfolios account for 67% of
total assets of the Group. Estimated future cash
collections from purchased loan portfolios is the
basis for the book value of purchased loan
portfolios and is also input into the disclosure of
fair value of purchased loan portfolios in the
notes to the consolidated financial statement.
Estimation of future cash collections from
purchased loan portfolios is complex and require
significant judgement from management about
the value, probability, and timing of expected
future cash flows. Furthermore, the estimates of
future cash flows depend on management’s
approach to managing the portfolios (e.g.,
changes in collection policies and strategies) and
local regulations. The estimation of future cash
collections from purchased loan portfolios was
considered a key audit matter based on the
significant judgments involved.
Our audit response
We tested the consideration price upon
acquisition of loan portfolios to the purchase
agreement. We tested the approval by Group
management of the initial cash collection forecast
of the purchased portfolio prepared by local
management and compared the initial cash
collection forecast to historical cash collection on
similar loan portfolios. We also compared the
calculated effective interest rate on the
purchased loan portfolio to the effective interest
rate on loan portfolios purchased in previous
years. Furthermore, we tested changes in future
cash collection estimates by comparing actual
cash collection to forecasted cash collection and
by testing the historical accuracy of prior year
forecasts. As part of our procedures, we
discussed the assumptions used including
amounts, probability, and timing of expected
future cash flows, changes in policies and
strategies, seasonality and local regulations with
management and controllers. We also assessed
the Company’s disclosure in note 3 Critical
accounting judgments and key sources of
estimation uncertainty, note 2.4 and note 4.3
Purchased Loan Portfolios.
Other information
Other information consists of the information included in the annual report other than the financial
statements and our auditor’s report thereon. Management (the board of directors and the Chief Executive
Officer) is responsible for the other information. Our opinion on the financial statements does not cover
the other information, and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information,
and, in doing so, consider whether the board of directors’ report, the statement on corporate governance
and the statement on corporate social responsibility contain the information required by applicable legal
requirements and whether the other information is materially inconsistent with the financial statements or
our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the
work we have performed, we conclude that the other information is materially inconsistent with the
financial statements, there is a material misstatement in this other information or that the information
Penneo document key: NL33G-1056A-QTETG-BCOHV-T8UBY-OL271