Nokia 2009 Annual Report Download - page 241

24. Deferred taxes
2009 2008
EURm EURm
Deferred tax assets:
Intercompany profit in inventory. ....................................... 77 144
Tax losses carried forward ............................................. 263 293
Warranty provision................................................... 73 117
Other provisions ..................................................... 315 371
Depreciation differences and untaxed reserves ............................. 796 1 059
Sharebased compensation ............................................ 15 68
Other temporary differences ........................................... 320 282
Reclassification due to netting of deferred taxes ........................... (352) (371)
Total deferred tax assets ................................................ 1 507 1 963
Deferred tax liabilities:
Depreciation differences and untaxed reserves ............................. (469) (654)
Fair value gains/losses ................................................ (67) (62)
Undistributed earnings ............................................... (345) (242)
Other temporary differences
(1)
.......................................... (774) (1 200)
Reclassification due to netting of deferred taxes ........................... 352 371
Total deferred tax liabilities ............................................. (1 303) (1 787)
Net deferred tax asset .................................................. 204 176
Tax charged to equity .................................................. (13) (128)
(1)
In 2009 other temporary differences include a deferred tax liability of EUR 744 million
(EUR 1 140 million in 2008) arising from purchase price allocation related to Nokia Siemens
Networks and NAVTEQ.
At December 31, 2009 the Group had loss carry forwards, primarily attributable to foreign subsidiaries
of EUR 1 150 million (EUR 1 013 million in 2008), most of which will expire within 20 years.
At December 31, 2009 the Group had loss carry forwards and temporary differences of EUR 2 532 million
(EUR 102 million in 2008) for which no deferred tax asset was recognized due to uncertainty of
utilization of these items. Most of these items do not have an expiry date.
At December 31, 2009 the Group had undistributed earnings of EUR 322 million (EUR 274 million in
2008), for which no deferred tax liability was recognized as these earnings are considered to be
permanently invested.
25. Accrued expenses
2009 2008
EURm EURm
Social security, VAT and other taxes ......................................... 1 808 1 700
Wages and salaries ..................................................... 474 665
Advance payments . ..................................................... 546 532
Other ................................................................ 3 676 4 126
Total ................................................................. 6 504 7 023
F67
Notes to the Consolidated Financial Statements (Continued)