Nokia 2005 Annual Report Download - page 204

Notes to the Consolidated Financial Statements (Continued)
39. Differences between International Financial Reporting Standards and US Generally
Accepted Accounting Principles
The Group’s consolidated financial statements are prepared in accordance with International
Financial Reporting Standards, which differ in certain respects from accounting principles
generally accepted in the United States of America (US GAAP). The principal differences between
IFRS and US GAAP are presented below together with explanations of certain adjustments that
affect consolidated net income and total shareholders’ equity under US GAAP as of and for the
years ended December 31:
2004 2003
2005 As revised(1) As revised(1)
EURm EURm EURm
Reconciliation of profit attributable to equity holders of the
parent under IFRS to net income under US GAAP:
Profit attributable to equity holders of the parent reported
under IFRS ......................................... 3,616 3,192 3,543
US GAAP adjustments:
Pension expense ..................................... (3) — (12)
Development costs ................................... 10 42 322
Social security cost on share-based payments .............. 12 (6) (21)
Share-based compensation expense ...................... (39) 39 32
Cash flow hedges .................................... (12) 31 19
Sale and leaseback transaction ......................... (4) ——
Amortization of identifiable intangible assets acquired ...... —(11) (22)
Impairment of identifiable intangible assets acquired ....... —(47) —
Amortization of goodwill .............................. —106 162
Impairment of goodwill ............................... —— 151
Loss on disposal ..................................... (9) ——
Deferred tax effect of US GAAP adjustments ............... 11 (3) (77)
Net income under US GAAP .............................. 3,582 3,343 4,097
(1) See note 1 and 2.
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