Nokia 2014 Annual Report Download - page 141

139
Financial statements
NOKIA IN 2014
Amendments to IAS 19, Dened Benet Plans: Employee
Contributions, require an entity to consider contributions from
employees or third parties when accounting for dened benet
plans. Where the contributions are linked to service, they should
be attributed to periods of service as a negative benet. These
amendments clarify that if the amount of the contributions is
independent of the number of years of service, an entity is permitted
to recognize such contributions as a reduction in the service cost in
the period in which the service is rendered, instead of allocating the
contributions to the periods of service.
Improvement to IFRS 2, Share-based Payment, claries various issues
relating to the denitions of performance and service conditions
which are vesting conditions, including: a performance condition must
contain a service condition, a performance target must be met while
the counterparty is rendering service, a performance target may relate
to the operations or activities of an entity, or to those of another
entity in the same group, a performance condition may be a market
or non-market condition, and if the counterparty, regardless of the
reason, ceases to provide service during the vesting period, the
service condition is not satised.
Amendment to IFRS 3, Business Combinations, claries that all
contingent consideration arrangements classied as liabilities (or
assets) arising from a business combination should be subsequently
measured at fair value through prot or loss whether or not they fall
within the scope of IFRS 9 (or IAS 39, as applicable).
Amendment to IFRS 8, Operating Segments, claries that an entity
must disclose the judgments made by management in applying the
aggregation criteria in paragraph 12 of IFRS 8 used to assess whether
the segments are ‘similar’, and that the reconciliation of segment
assets to total assets is only required to be disclosed if the
reconciliation is reported to the chief operating decision maker,
similar to the required disclosure for segment liabilities.
Amendment to IAS 24, Related Party Disclosures, claries that a
management entity (an entity that provides key management
personnel services) is a related party subject to the related party
disclosures. In addition, an entity that uses a management entity is
required to disclose the expenses incurred for management services.
Amendment to IFRS 13, Fair Value Measurement, claries that the
portfolio exception in IFRS 13 can be applied not only to nancial
assets and nancial liabilities, but also to other contracts within the
scope of IFRS 9 (or IAS 39, as applicable).
Amendments to IAS 16 and IAS 38: Clarication of Acceptable Methods
of Depreciation and Amortization, clarify the principle in IAS 16 and
IAS 38 that revenue reects a pattern of economic benets that are
generated from operating a business (of which the asset is part)
rather than the economic benets that are consumed through use
of the asset. As a result, a revenue-based method cannot be used
to depreciate property, plant and equipment and may only be used
in very limited circumstances to amortize intangible assets. The
amendments are eective prospectively for annual periods beginning
on or after January 1, 2016.