Nokia 2015 Annual Report Download - page 148

Download and view the complete annual report

Please find page 148 of the 2015 Nokia annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 216

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208
  • 209
  • 210
  • 211
  • 212
  • 213
  • 214
  • 215
  • 216

146 NOKIA IN 2015
Movements in pension remeasurements recognized in other comprehensive income for the years ended December 31:
EURm 2015 2014 2013
Return on plan assets (excluding interest income), gain 244 15
Changes in demographic assumptions, (loss)/gain –(1) 4
Changes in nancial assumptions, gain/(loss) 114 (321) 93
Experience adjustments, (loss)/gain –(16) 6
Current year change in asset ceiling (6) 4(4)
Total 110 (290) 114
Actuarial assumptions
The principal actuarial weighted average assumptions used for determining the dened benet obligation:
%2015 2014
Discount rate for determining present values 3.0 2.6
Annual rate of increase in future compensation levels 2.6 1.9
Pension growth rate 1.3 1.4
Ination rate 1.4 1.6
Assumptions regarding future mortality are set based on actuarial advice in accordance with published statistics and experience in each country.
The discount rates and mortality tables used for the signicant plans:
2015 2014 2015
Discount rate % Mortality table
Germany 2.5 2.0 Richttafeln 2005 G
United Kingdom 3.6 3.5 S2PA table adjusted(1)
India 7.8 7.9 IALM (2006-08)
Switzerland 0.7 0.9 BVG2010G
Total weighted average for all countries 3.0 2.6
(1) Tables are adjusted down by one year for males and down by three years for females.
The sensitivity of the dened benet obligation to changes in the principal assumptions:
Change in assumption
Increase in assumption(1)
EURm
Decrease in assumption(1)
EURm
Discount rate for determining present values 1.0% 235 (299)
Annual rate of increase in future compensation levels 1.0% (43) 36
Pension growth rate 1.0% (169) 165
Ination rate 1.0% (192) 186
Life expectancy 1 year (54) 54
(1) Positive movement indicates a reduction in the dened benet obligation; a negative movement indicates an increase in the dened benet obligation.
The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant and may not be representative
of the actual impact of changes. If more than one assumption is changed simultaneously, the combined impact of changes would not necessarily
be the same as the sum of the individual changes. If the assumptions change to a dierent level compared with that presented above, the eect
on the dened benet obligation may not be linear. The methods and types of assumptions used in preparing the sensitivity analyses are the
same as in the previous period.
When calculating the sensitivity of the dened benet obligation to signicant actuarial assumptions, the same method has been applied
aswhen calculating the post-employment benet obligation recognized in the consolidated statement of nancial position; specically, the
present value of the dened benet obligation is calculated with the projected unit credit method. Increases and decreases in the discount rate,
rate of increase in future compensation levels, pension growth rate and ination, which are used in determining the dened benet obligation,
do not have a symmetrical eect on the dened benet obligation primarily due to the compound interest eect created when determining the
net present value of the future benet.
Notes to consolidated nancial statements continued