Nokia 2012 Annual Report Download - page 210

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 2012 for issuance and
filing on March 7, 2013.
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 result of this structure,
Nokia currently has four operating and reportable segments: Smart Devices and Mobile Phones within
Devices & Services, Location & Commerce and Nokia Siemens Networks.
As of January 1, 2013, Location & Commerce business and reportable segment has been renamed as
the HERE business and reportable segment.
The presentation of Nokia Siemens Networks’ restructuring and other associated expenses has been
aligned with other Nokia businesses and included within other expenses instead of impacting
functions. Accordingly, included in other expenses in 2011 is EUR 126 million restructuring charges,
previously reflected within cost of sales (EUR 40 million), R&D (EUR 28 million), selling and
marketing (EUR 22 million) and administrative expenses (EUR 36 million). Included in other
expenses in 2010 is EUR 289 million restructuring charges previously reflected within cost of sales
(EUR 173 million), R&D (EUR 19 million), selling and marketing (EUR 21 million) and administrative
expenses (EUR 76 million).
Certain notes to the financial statements include changes in presentation format. To allow meaningful
comparison between years, comparative information have been aligned with current presentation format.
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, 2012.
• 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.
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