Nokia 2010 Annual Report Download - page 212

1. Accounting principles (Continued)
New accounting pronouncements under IFRS
The Group will adopt the following new and revised standards, amendments and interpretations to
existing standards issued by the IASB that are expected to be relevant to its operations and financial
position:
IFRS 9 will change the classification, measurement and impairment of financial instruments based on
our objectives for the related contractual cash flows.
Amendment to IAS 32 requires that if rights issues offered are issued pro rata to all of an entity’s
existing shareholders in the same class for a fixed amount of currency, they should be classified as
equity regardless of the currency in which the exercise price is denominated.
Amendment to IAS 12 provides clarification for measurement of deferred taxes in situations where an
asset is measured using the fair value model in IAS 40 Investment Property by introducing a
presumption that the carrying amount of the underlying asset will be recovered through sale.
Amendment to IFRS 7 enhances disclosures about transfer transactions of financial assets for
evaluating related risk exposures and their effect on an entity’s financial position.
IFRIC 19 clarifies the requirements when an entity renegotiates the terms of a financial liability with its
creditor and the creditor agrees to accept the entity’s equity instruments to settle the financial liability
fully or partially. The entity’s equity instruments issued to a creditor are part of the consideration paid
to extinguish the financial liability and the issued instruments should be measured at their fair value.
In addition, there are a number of other amendments that form part of the IASB’s annual
improvement project which will be adopted by the Group on January 1, 2011.
The Group will adopt the amendments to IAS 32 and IFRIC 19 as well as the additional amendments
that form part of the IASB’s annual improvement project on January 1, 2011. Amendments to IAS 12
and IFRS 7 will be adopted on January 1, 2012.
The Group does not expect that the adoption of these new standards, interpretations and
amendments will have a material impact on the financial condition and results of operations of the
Group.
The Group also is required to adopt IFRS 9 by January 1, 2013 with earlier adoption permitted. The
Group is currently evaluating the potential impact of this standard on the Group’s accounts.
2. Segment information
Nokia is organized on a worldwide basis into three operating and reportable segments: Devices &
Services, NAVTEQ, and Nokia Siemens Networks. Nokia’s reportable segments represent the businesses
that offer different products and services for which discrete monthly financial information is provided
to the chief operating decision maker for purposes of evaluating and managing the business.
Devices & Services is responsible for developing and managing the Group’s portfolio of mobile devices
as well as designing and developing services, including applications and content, that enrich the
experience people have with their mobile devices. Devices & Services also manages our supply chains,
sales channels, brand and marketing activities, and explores corporate strategic and future growth
opportunities for Nokia.
NAVTEQ is a leading provider of comprehensive digital map information and related locationbased
content and services for mobile navigation devices, automotive navigation systems, Internetbased
mapping applications, and government and business solutions.
F24
Notes to the Consolidated Financial Statements (Continued)