Nokia 2013 Annual Report Download - page 30

NOKIA IN 2013
28
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS
1. ACCOUNTING PRINCIPLES
Basis of presentation
The consolidated fi nancial statements of Nokia Corporation
(“Nokia” or “the Group”), a Finnish public limited liability com-
pany 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 fi nancial state-
ments 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 fi nancial statements also conform to Finn-
ish accounting legislation. Nokia’s Board of Directors author-
ized the fi nancial statements for  for issuance and fi ling on
April , .
In the prior year, the Group’s operational structure featured
three businesses: Devices & Services, HERE and Nokia Siemens
Networks, also referred to as NSN. For fi nancial reporting
purposes, the Group previously reported four operating seg-
ments: Smart Devices and Mobile Phones within the Devices &
Services business, HERE and Nokia Siemens Networks.
On August ,  Nokia completed the acquisition of
Siemens’ stake in Nokia Siemens Networks, which was previ-
ously a consolidated subsidiary and business owned by Nokia
and Siemens. Upon acquisition, the name of the business was
changed to Nokia Solutions and Networks, also referred to as
NSN. As a result of the acquisition, NSN is now a wholly owned
subsidiary of Nokia and Nokia reports two operating segments
within the NSN business: Mobile Broadband and Global Services.
On September ,  Nokia announced that it had signed
an agreement to enter into a transaction whereby Nokia
sold substantially all of its Devices & Services business to
Microsoft (“sale of the D&S business”). Upon receiving share-
holder confi rmation and approval of the transaction at Nokia’s
Extraordinary General Meeting in November , substan-
tially all of the Devices & Services business was determined to
constitute discontinued operations. The fi nancial results for
the discontinued operations are now reported separately in
accordance with IFRS  along with the luxury phone business
Vertu which was disposed of in the last quarter of . The
Sale of D&S Business was completed on April , .
In connection with the transactions noted above, the Group
considered how operating results are reported and reviewed
by management and the Group’s Chief Operating Decision
Maker, and identifi ed four operating and reportable segments:
Mobile Broadband and Global Services within NSN, HERE and
Advanced Technologies.
The HERE brand was introduced for our location and map-
ping service in , and as of January ,  our former
Location & Commerce business and reportable segment was
renamed HERE.
As announced by Nokia on April , , Nokia has made
certain changes to the names of its businesses and reportable
segments. However, when presenting fi nancial information
as at December ,  and related comparative information
for previous periods, we generally refer to the names of the
businesses and reportable segments as they were named at
December , . However, the terms “Networks” and “Nokia
Solutions and Networks, or “NSN”, as well as “Technologies”
and “Advanced Technologies” can be used interchangeably in
this annual report.
The consolidated statements of fi nancial position and
certain notes to the fi nancial statements include changes in
presentation format. To allow meaningful comparison be-
tween years, comparative information has 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 eff ective for accounting periods commencing
on or after January , .
IFRS  Consolidated Financial Statements establishes prin-
ciples for the presentation and preparation of consolidated
fi nancial statements when an entity controls one or more
other entities.
IFRS  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 arrange-
ment. A party to a joint arrangement determines the type of
joint arrangement in which it is involved by assessing its rights
and obligations and accounts for those rights and obligations
in accordance with that type of joint arrangement.
IFRS  Disclosure of Interests in Other Entities requires
disclosure of information that enables users of fi nancial state-
ments to evaluate nature of, and risks associated with, its
interests in other entities and the eff ects of those interests
on its fi nancial position, fi nancial performance and cash fl ows.
IFRS  Fair Value Measurement replaces fair value measure-
ment guidance contained within individual IFRSs with a single,
unifi ed defi nition 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 meas-
urements and further authoritative guidance on the applica-
tion of fair value measurement in inactive markets.
The adoption of each of the above mentioned standards did
not have a material impact to the consolidated fi nancial state-
ments. Additional disclosures required by the new standards
have been provided in the notes.
Revised IAS  Employee Benefi ts discontinues use of
the ‘corridor’ approach and remeasurement impacts are
recognized in other comprehensive income. Net interest as
a product of discount rate and adjusted net pension liability
at the start of the annual reporting period is recognized in
the consolidated income statements while the return on plan
assets, excluding amounts included in net interest is refl ected
in remeasurements within other comprehensive income.