Nokia 2006 Annual Report Download - page 208

Notes to the Consolidated Financial Statements (Continued)
38. Differences between International Financial Reporting Standards and US Generally
Accepted Accounting Principles (Continued)
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 reporting. This
table presents the IFRS deferred tax assets and liabilities according to the presentation prescribed by
FAS 109, Accounting for Income Taxes under US GAAP.
2006 2005
EURm EURm
Current assets:
Intercompany profit in inventory*********************************************** 34 49
Warranty provision *********************************************************** 68 74
Other provisions ************************************************************* 96 28
Tax losses carried forward***************************************************** —6
Other temporary differences *************************************************** 115 191
313 348
Noncurrent assets:
Tax losses carried forward***************************************************** 48 26
Warranty provision *********************************************************** 66 77
Other provisions ************************************************************* 157 252
Depreciation differences and untaxed reserves*********************************** 104 85
Fair value gains/losses ******************************************************** —43
Other temporary differences *************************************************** 128 40
503 523
Deferred tax assets ************************************************************* 816 871
Less: valuation allowance ******************************************************* (7) (25)
Total deferred tax assets ******************************************************** 809 846
Current deferred tax liabilities************************************************* (27) (26)
Noncurrent deferred tax liabilities:
Depreciation differences and untaxed reserves*********************************** (14) (13)
Fair value gains/losses ******************************************************** (16) —
Undistributed earnings******************************************************** (65) (68)
Other temporary differences *************************************************** (83) (44)
(178) (125)
Total deferred tax liabilities ***************************************************** (205) (151)
Net deferred tax asset ********************************************************** 604 695
F73