Nokia 2014 Annual Report Download - page 171

169
Financial statements
NOKIA IN 2014
27. Fair value and other reserves
EURm
Pension remeasurements Hedging reserve
Available-for-sale
investments Total
Gross Tax Net Gross Tax Net Gross Tax Net Gross Tax Net
At January 1, 2012 (2) 1(1) 78 (21) 57 96 197 172 (19) 153
Pension remeasurements:
Remeasurements of dened benet plans (228) 22 (206) (228) 22 (206)
Cash ow hedges:
Net fair value (losses)/gains (25) 21 (4) (25) 21 (4)
Transfer of losses to income statement as adjustment to
net sales 390 390 390 –390
Transfer of gains to income statement as adjustment to
cost of sales (406) (406) (406) –(406)
Available-for-sale Investments:
Net fair value gains 32 133 32 133
Transfer to income statement on impairment 24 24 24 –24
Transfer to income statement on disposal (21) (21) (21) –(21)
Movements attributable to non-controlling interests 83 (4) 79 (47) (47) 36 (4) 32
At December 31, 2012 (147) 19 (128) (10) –(10) 131 2133 (26) 21 (5)
Pension remeasurements:
Transfer to Discontinued operations(1) 31 (11) 20 31 (11) 20
Remeasurements of dened benet plans 114 (6) 108 114 (6) 108
Cash ow hedges:
Transfer to Discontinued operations(1) 48 48 48 –48
Net fair value gains 124 124 124 –124
Transfer of gains to income statement as adjustment to
net sales (130) (130) (130) –(130)
Transfer of gains to income statement as adjustment to
cost of sales (23) (23) (23) –(23)
Available-for-sale Investments:
Net fair value gains 139 139 139 –139
Transfer to income statement on impairment 5 5 5 – 5
Transfer to income statement on disposal (95) (95) (95) –(95)
Acquisition of non-controlling interests (63) 3(60) 44 44 (1) (1) (20) 3(17)
Movements attributable to non-controlling interests (28) 3(25) (6) (6) (34) 3(31)
At December 31, 2013 (93) 8(85) 47 –47 179 2181 133 10 143
Pension remeasurements:
Remeasurements of dened benet plans (290) 101 (189) (290) 101 (189)
Cash ow hedges:
Net fair value losses (20) (5) (25) (20) (5) (25)
Transfer of (gains)/losses to income statement as
adjustment to net sales (25) 5(20) (25) 5 (20)
Available-for-sale Investments:
Net fair value gains/(losses) 121 (4) 117 121 (4) 117
Transfer to income statement on impairment 15 15 15 –15
Transfer to income statement on disposal (29) (29) (29) –(29)
At December 31, 2014 (383) 109 (274) 2 – 2 286 (2) 284 (95) 107 12
(1) Movements in 2014 and 2013 after transfer to Discontinued operations represent movements for Continuing operations. The balance at December 31, 2013 represents the balance for
Continuing operations.
The Group has dened benet pension plans. Actuarial gains and losses arising from experience adjustments and changes in actuarial
assumptions for these dened benet plans are charged or credited to the pension remeasurements reserve. Refer to Note 1, Accounting
principles, and Note 8, Pensions.
The Group applies hedge accounting on certain forward foreign exchange contracts that are designated as cash ow hedges. The change in fair
value that reects the change in spot exchange rates is deferred to the hedging reserve to the extent that the hedge is eective. Refer to Note
1, Accounting principles.
The Group invests a portion of cash needed to cover the projected cash needs of its ongoing business operations in highly liquid,
interest-bearing investments and certain equity instruments. Changes in the fair value of these available-for-sale investments are recognized
in the fair value and other reserves as part of other comprehensive income, with the exception of interest calculated using the eective interest
method and foreign exchange gains and losses on current available-for-sale investments recognized directly in the consolidated income
statement. Refer to Note 1, Accounting principles.