Nokia 2005 Annual Report Download - page 215

Notes to the Consolidated Financial Statements (Continued)
39. Differences between International Financial Reporting Standards and US Generally
Accepted Accounting Principles (Continued)
disclosure, the value of the options is estimated using a Black-Scholes option-pricing formula and
amortized to expense over the options’ vesting periods:
2004 2003
Net income under US GAAP (EURm)
As reported ........................................................ 3,343 4,097
Add: Share-based employee compensation expense included in reported net income
under US GAAP, net of tax ............................................. 1 3
Deduct: Total share-based employee compensation expense
determined under fair value method for all awards, net of tax ................. (116) (325)
Net income under US GAAP (EURm)
Pro forma .......................................................... 3,228 3,775
Basic and diluted earnings per share (EUR)
As reported ........................................................ 0.73 0.86
Pro forma .......................................................... 0.70 0.79
Deferred taxes
Under IFRS, the presentation of deferred taxes differs from the methodology set forth in US GAAP.
For purposes of US GAAP, deferred tax assets and liabilities must either be classified as current or
non-current based on the classification of the related non-tax asset or liability for financial
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