Nokia 2011 Annual Report Download - page 235

IFRS 10 Consolidated Financial Statements establishes principles for the presentation and preparation
of consolidated financial statements when an entity controls one or more other entities.
IFRS 11 Joint Arrangements establishes that the legal form of an arrangement should not be the
primary factor in the determination of the appropriate accounting for the arrangement. Party to a joint
arrangement determines the type of joint arrangement in which it is involved by assessing its rights and
obligations and then accounting for those rights and obligations in accordance with that type of joint
arrangement.
IFRS 12 Disclosure of Interests in Other Entities requires disclosure of information that enables users
of financial statements to evaluate nature of, and risks associated with, its interests in other entities
and the effects of those interests on its financial position, financial performance and cash flows.
IFRS 13 Fair Value Measurement replaces fair value measurement guidance contained within
individual IFRSs with a single, unified definition of fair value in a single new IFRS standard. The new
standard provides a framework for measuring fair value, related disclosure requirements about fair
value measurements and further authoritative guidance on the application of fair value measurement in
inactive markets.
Amendments to IAS 1 Presentation of Financial Statements retains the ‘one or two statement’
approach at the option of the entity and only revises the way other comprehensive income is
presented: Requiring separate subtotals for those elements which may be ‘recycled’ and those
elements that will not.
Amendment to IAS 12 Income Taxes 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.
Amended IAS 19 Employee Benefits discontinues the use of the ‘corridor’ approach and
re-measurement impacts will be recognized in other comprehensive income (with the remainder in
profit or loss). Other long-term benefits are required to be measured in the same way even though
changes in the recognized amount are fully reflected in profit or loss. Treatment for termination
benefits, specifically the point in time when an entity would recognize a liability for termination benefits
is also revised.
Amendments to IAS 1 and IAS 12 will be adopted on January 1, 2012. The Group expects to adopt the
new standards IFRS 10, IFRS 11, IFRS 12 and IFRS 13 as well as the amended IAS 19 on their
effective date, January 1, 2013.
On 16 December 2011, the IASB amended the effective date of IFRS 9 to annual periods beginning on
or after 1 January 2015, and modified the relief from restating comparative periods and the associated
disclosures in IFRS 7. The Group will adopt the standard on the revised effective date.
The Group is currently evaluating potential impact of the new standards on its accounts.
2. Segment information
Nokia has three businesses: Devices & Services, Location & Commerce and Nokia Siemens Networks,
and four operating and reportable segments for financial reporting purposes: Smart Devices and
Mobile Phones within our Devices & Services business, Location & Commerce and Nokia Siemens
Networks.
F-25