Nokia 2011 Annual Report Download - page 219

1. Accounting principles
Basis of presentation
The consolidated financial statements of Nokia Corporation (“Nokia” or “the Group”), a Finnish public
limited liability company with domicile in Helsinki, in the Republic of Finland, are prepared in
accordance with International Financial Reporting Standards as issued by the International Accounting
Standards Board (“IASB”) and in conformity with IFRS as adopted by the European Union (“IFRS”).
The consolidated financial statements are presented in millions of euros (“EURm”), except as noted,
and are prepared under the historical cost convention, except as disclosed in the accounting policies
below. The notes to the consolidated financial statements also conform to Finnish accounting
legislation. Nokia’s Board of Directors authorized the financial statements for 2011 for issuance and
filing on March 8, 2012.
As of April 1, 2011, the Group’s operational structure featured two new operating and reportable
segments: Smart Devices and Mobile Phones, which combined with Devices & Services Other and
unallocated items form Devices & Services business.
As of October 1, 2011, the Group formed a Location & Commerce business which combines NAVTEQ
and Nokia’s social location services operations from Devices & Services. Location & Commerce
business is an operating and reportable segment. From the third quarter 2008 until the end of the third
quarter 2011, NAVTEQ was a separate reportable segment of Nokia. As a consequence, Nokia
currently has four operating and reportable segments: Smart Devices and Mobile Phones within
Devices & Services, Location & Commerce and Nokia Siemens Networks.
Prior year segment specific results for 2009 and 2010 have been regrouped and recasted for
comparability purposes according to the new operational structure. See Note 2.
Adoption of pronouncements under IFRS
In the current year, the Group has adopted all of the new and revised standards, amendments and
interpretations to existing standards issued by the IASB that are relevant to its operations and effective
for accounting periods commencing on or after January 1, 2011.
• Amendment to IAS 32 Financial Instruments: Presentation requires that if an entity’s rights
issues offered are issued pro-rata to all 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 IFRS 7 Financial Instruments: Disclosures enhances disclosures about
transfer transactions of financial assets in order to help users of financial statements evaluate
related risk exposures and their effect on an entity’s financial position.
• IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments clarifies accounting
requirements for an entity that renegotiates 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 the 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, a number of other amendments that form part of the IASB’s annual improvement project
were adopted by the Group.
The adoption of each of the above mentioned standards did not have a material impact to the
consolidated financial statements.
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