Nokia 2006 Annual Report Download - page 169

Notes to the Consolidated Financial Statements (Continued)
12. Income taxes (Continued)
Income taxes include a tax benefit from received and accrued tax refunds from previous years of
EUR 84 million in 2006 (EUR 48 million in 2005).
Certain of the Group companies’ income tax returns for periods ranging from 2001 through 2005 are
under examination by tax authorities. The Group does not believe that any significant additional
taxes in excess of those already provided for will arise as a result of the examinations.
During 2004, the Group analyzed its future foreign investment plans with respect to certain foreign
investments. As a result of this analysis, the Group concluded that it could no longer represent that
all foreign earnings may be permanently reinvested. Accordingly, the Group recognized a
EUR 60 million deferred tax liability in 2004. In 2006, the deferred tax liability was EUR 65 million
(EUR 68 million in 2005) in respect of undistributed foreign earnings.
13. Intangible assets
2006 2005
EURm EURm
Capitalized development costs
Acquisition cost January 1 *************************************************** 1 445 1 322
Additions during the period ************************************************* 127 153
Disposals during the period************************************************** (39) (30)
Accumulated acquisition cost December 31 ************************************ 1 533 1 445
Accumulated amortization January 1****************************************** (1 185) (1 044)
Disposals during the period************************************************** 39 30
Amortization for the period************************************************** (136) (171)
Accumulated amortization December 31*************************************** (1 282) (1 185)
Net book value January 1**************************************************** 260 278
Net book value December 31 ************************************************ 251 260
Goodwill
Acquisition cost January 1 *************************************************** 90 1 298
Transfer of accumulated amortization on adoption of IFRS 3********************* —(1 208)
Translation differences ****************************************************** (26) —
Additions during the period (Note 9) ***************************************** 488 —
Other changes ************************************************************* (20) —
Accumulated acquisition cost December 31 ************************************ 532 90
Net book value January 1**************************************************** 90 90
Net book value December 31 ************************************************ 532 90
Other intangible assets
Acquisition cost January 1 *************************************************** 676 631
Translation differences ****************************************************** (21) 3
Additions during the period ************************************************* 99 59
Acquisition of subsidiary (Note 9) ******************************************** 122 —
Impairment losses ********************************************************** (33) —
Disposals during the period************************************************** (71) (17)
Accumulated acquisition cost December 31 ************************************ 772 676
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