Nokia 2015 Annual Report Download - page 169

167
Financial statements
NOKIA IN 2015
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, 2013 (147) 19 (128) (10) –(10) 131 2133 (26) 21 (5)
Pension remeasurements:
Transfer to assets of disposal groups classied
as held for sale(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 assets of disposal groups classied
as held for sale(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 interest (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 2 181 133 10 143
Pension remeasurements:
Remeasurements of dened benet plans (290) 111 (179) (290) 111 (179)
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) 119 (264) 2 – 2 286 (2) 284 (95) 117 22
Pension remeasurements:
Disposal of businesses(1) 11 (3) 8 11 (3) 8
Remeasurements of dened benet plans 109 (25) 84 109 (25) 84
Cash ow hedges:
Net fair value (losses)/gains (66) 13 (53) (66) 13 (53)
Transfer of losses/(gains) to income statement
asadjustment to net sales 61 (12) 49 61 (12) 49
Available-for-sale investments:
Net fair value gains/(losses) 246 (21) 225 246 (21) 225
Transfer to income statement on impairment 11 11 11 – 11
Transfer to income statement on disposal (144) 2 (142) (144) 2 (142)
At December 31, 2015 (263) 91 (172) (3) 1 (2) 399 (21) 378 133 71 204
(1) Movements 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 movement in pension remeasurements, tax, includes EUR 6 million (EUR 10 million in 2014) tax credit
forwithholding taxes on plan assets.
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.