Nokia 2007 Annual Report Download - page 197

23. Longterm interestbearing liabilities
Carrying amount Fair value Carrying amount Fair value
2007 2006
EURm EURm EURm EURm
Longterm interestbearing liabilities carried
at amortised cost .................... 203 203 69 69
Fair value is estimated based on the current market values of similar instruments
24. Deferred taxes
2007 2006
EURm EURm
Deferred tax assets:
Intercompany profit in inventory. . ........................................ 87 34
Tax losses carried forward ............................................... 314 41
Warranty provision .................................................... 132 134
Other provisions ....................................................... 292 253
Depreciation differences and untaxed reserves............................... 367 104
Sharebased compensation .............................................. 227 70
Other temporary differences ............................................. 134 173
Total deferred tax assets .................................................. 1553 809
Deferred tax liabilities:
Depreciation differences and untaxed reserves............................... (165) (23)
Fair value gains/losses .................................................. (40) (16)
Undistributed earnings ................................................. (31) (65)
Other temporary differences
(1)
............................................ (727) (101)
Total deferred tax liabilities .............................................. (963) (205)
Net deferred tax asset .................................................... 590 604
The tax charged to shareholders’ equity is as follows:
Fair value and other reserves, fair value gains/losses and excess tax benefit on
sharebased compensation .............................................. 133 (43)
(1)
In 2007, other temporary differences included a deferred tax liability of EUR 563 million arising
from purchase price allocation related to Nokia Siemens Networks.
Deferred taxes include deferred tax assets and liabilities arising from the formation of Nokia Siemens
Networks at April 1, 2007. See note 8.
At December 31, 2007 the Group had loss carry forwards, primarily attributable to foreign subsidiaries
of EUR 1 403 million (EUR 143 million in 2006), most of which do not have an expiry date.
At December 31, 2007 the Group had loss carry forwards of EUR 242 million (EUR 24 million in
2006) for which no deferred tax asset was recognized due to uncertainty of utilization of these loss
carry forwards. Part of these losses do not have an expiry date.
At December 31, 2007 the Group had undistributed earnings of EUR 315 million, for which no deferred
tax liability was recognized as these earnings are considered permanently invested.
F54
Notes to the Consolidated Financial Statements (Continued)