Nokia 2007 Annual Report Download - page 213
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35. Risk Management (Continued)
while the top three credit exposures by country amounted to 8.7%, 6.9% and 6.5% (2006: 8.7%,
7.6%, 7.1%) respectively.
As at December 31, 2007, the carrying amount before deducting any impairment allowance of
accounts receivables related to customers for which impairment was provided amounted to
EUR 3 011 million (2006: EUR 1 368 million). The amount of provision taken against that portion of
these receivables considered to be impaired was EUR 332 million (2006: EUR 212 million) (see also
Note 19 Valuation and qualifying accounts).
An amount of EUR 478 million (2006: EUR 518 million) relates to past due receivables for which no
impairment loss was recognised. The aging of these receivables is as follows:
2007 2006
EURm EURm
Past due 130 days ....................................................... 411 394
Past due 31180 days ..................................................... 66 101
More than 180 days....................................................... 1 23
478 518
As at December 31, 2007, the carrying amount before deducting any impairment allowance of loans
due from customers and third parties for which impairment was provided amounted to
EUR 161 million (2006: none). The amount of provision taken for these loans was EUR 19 million
(2006: none).
There were no past due loans due from customers and third parties.
Financial Credit Risk
Financial instruments contain an element of risk of loss resulting from counterparties being unable to
meet their obligations. This risk is measured and monitored centrally. Nokia minimizes financial credit
risk by limiting its counterparties to a sufficient number of major banks and financial institutions, as
well as through entering into netting arrangements, which gives Nokia the right to offset in the case
that the counterparty would not be able to fulfill the obligations.
Nokia’s investment decisions are based on strict creditworthiness criteria as defined in the Treasury
Policy and Operating Procedure. As a result of the constant monitoring of its outstanding investments,
Nokia does not have exposure of any significance to subprime loans via its investment portfolio.
The table below presents the breakdown of the outstanding availableforsale fixed income and
money market investment by sector and credit rating grades ranked as per Moody’s rating categories.
F70
Notes to the Consolidated Financial Statements (Continued)