Nokia 2006 Annual Report Download - page 172

Notes to the Consolidated Financial Statements (Continued)
15. Investments in associated companies
2006 2005
EURm EURm
Net carrying amount January 1************************************************** 193 200
Translation differences ********************************************************* (2) 8
Additions ********************************************************************* 19 12
Disposals ********************************************************************* (1) (17)
Share of results *************************************************************** 28 10
Other movements ************************************************************* (13) (20)
Net carrying amount December 31 ********************************************** 224 193
In 2005, the Group disposed of part of its 36.2% minority holding in Aircom Ltd resulting in a
holding of 10%. The gain on the sale recorded in other operating income was EUR 18 million. The
Group’s remaining 10% holding in Aircom shares is recorded as a noncurrent availableforsale
investment.
Shareholdings in associated companies are comprised of investments in unlisted companies in all
periods presented.
16. Availableforsale investments
2006 2005
EURm EURm
Fair value at January 1****************************************************** 8 591 10 876
Translation differences ****************************************************** (44) 49
Deductions, net ************************************************************ (1 184) (2 276)
Fair value gains (losses)***************************************************** 1(28)
Impairment charges (Note 8) ************************************************ (18) (30)
Fair value at December 31 ************************************************** 7 346 8 591
Noncurrent *************************************************************** 288 246
Current, liquid assets ******************************************************* 5 012 6 852
Current, cash equivalents *************************************************** 2 046 1 493
Availableforsale investments, comprising marketable debt and equity securities and investments in
unlisted equity shares, are fair valued, except in the case of certain unlisted equities, where the fair
value cannot be measured reliably. Such unlisted equities are carried at cost, less impairment
(EUR 103 million in 2006 and EUR 82 million in 2005). Fair value for equity investments traded in
active markets and for unlisted equities, where the fair value can be measured reliably, was
EUR 185 million in 2006 and EUR 165 million in 2005. Fair value for equity investments traded in
active markets is determined by using exchange quoted bid prices. For other investments, fair value
is estimated by using the current market value of similar instruments or by reference to the
discounted cash flows of the underlying net assets. Gains and losses arising from the change in the
fair value of availableforsale investments are recognized directly in Fair value and other reserves.
Availableforsale investments comprise: (1) highly liquid, interestbearing investments with
maturities at acquisition of longer than 3 months, which are regarded as current availableforsale
investments, liquid assets, (2) similar types of investments as in category (1), but with maturities at
acquisition of less than 3 months, which are regarded as current availableforsale investments, cash
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