Nokia 2013 Annual Report Download - page 59

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57
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Assets Liabilities
Fair Fair
2012, EURm value 1 Notional 2 value 1 Notional 2
Hedges of net
investment in foreign
subsidiaries:
Forward foreign
exchange contracts 24 2 164 – 11 1 182
Cash fl ow hedges:
Forward foreign
exchange contracts 7 2 968 – 6 3 158
Fair value hedges
Interest rate swaps 174 1 626 — —
Cash fl ow and
fair value hedges: 3
Cross currency
interest rate swaps 42 378 — —
Derivatives not
designated in hedge
accounting relationships
carried at fair value
through profi t and loss:
Forward foreign
exchange contracts 185 7 111 – 18 3 337
Currency options
bought 16 1 107 — —
Currency options
sold — — – 6 289
Interest rate swaps — 150 – 48 513
Other derivatives — — – 1 9
448 15504 – 90 8488
In the consolidated statement of financial position the fair value of
derivative financial instruments is included in Other financial assets and
in Other financial liabilities.
Includes the gross amount of all notional values for contracts that have
not yet been settled or cancelled. The amount of notional value out-
standing is not necessarily a measure or indication of market risk, as the
exposure of certain contracts may be offset by that of other contracts.
These cross-currency interest rate swaps have been designated partly as
fair value hedges and partly as cash flow hedges.
Balanceat Transfer to Chargedto Balance
EURm beginning discontinued costs and at end
Allowances on assets to which they apply: of year operations expenses Deductions 1 of year
2013
Allowance for doubtful accounts 248 – 120 40 – 44 124
Excess and obsolete inventory 471 – 192 39 – 140 178
2012
Allowance for doubtful accounts 284 — 53 – 89 248
Excess and obsolete inventory 457 — 403 – 389 471
2011
Allowance for doubtful accounts 363 — 131 – 210 284
Excess and obsolete inventory 301 — 345 – 189 457
Deductions include utilization and releases of the allowances.
19. INVENTORIES
EURm 2013 2012
Raw materials, supplies and other 147 409
Work in progress 136 352
Finished goods 521 777
Total 804 1538
The total amount of inventories included within Assets of
disposal groups classifi ed as held for sale at December ,
, net of write-downs to the net realizable value, is EUR 
million.
During  the Group recognized an expense of EUR 
million (EUR million in ) to write-down the inventories to
net realizable value. The write-down relates to discontinued
operations inventories.
20. PREPAID EXPENSES AND ACCRUED
INCOME
EURm 2013 2012
Social security, VAT and other indirect taxes 286 875
Deposits 43 71
Interest income 33 45
Deferred cost of sales 14 145
Rents 15 34
Other prepaid expenses and accrued income 269 1512
Total 660 2 682
Prepaid expenses and accrued income also include various
other prepaid expenses and accrued income, but no amounts
which are individually signifi cant.
Total amount of prepaid expenses and accrued income
included within Assets of disposal groups classifi ed as held for
sale at December , , is EUR  million, of which EUR
 million relates to the Qualcomm advance payment.
Prepaid expenses and accrued income regarding current tax
are included in Current income tax assets in the consolidated
statement of fi nancial position in , and have also been
reclassifi ed for comparability purposes in .
21. VALUATION AND QUALIFYING ACCOUNTS