IFRS PRACTICAL IMPLEMENTATION GUIDE AND WORKBOOK

Chapter 3 / Presentation ofFinancial Statements (lAS I )

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7.4.2 Additionally, the income statemen t should disclose the share of profit attributable to minor– ity interests and equity shareho lders of the parent. 7.4.3 Items cannot be presented as extraordinary in either the income statement or the notes. 7.4.4 Material income and expense should be disclosed separately with their nature and amount. Analysis of expenses can be class ified on the basis of their nature or function. 7.4.5 The amount of total and per-share dividends distributable to equity holders should be dis– closed in the income statement, the statement of changes in equity , or the notes. 7.4.6 Extracts from Published Financial Statements NOKIA, A n n u a l Report 2006 Cons olida ted Profit and Loss Accoun ts, IFRS Notes 2006 2005 2004 Fin an cial yea r ended December 31 EURm EURm EURm Net sales 41.121 34. 19 1 29.371 Cost of sales (27.742) (22.209) (18.179) Gross profit 13.379 11,982 11.192 Research and development expenses (3.897) (3.825) (3.776) Selling and marketing expenses 6 (3.314) (2.961) (2,564) Administrative and general expenses (666) (609) (611) Other income 7 522 285 343 Other expenses 7&8 (536) (233) (162) Amortization of goodw ill 10 (96) Operating profit 2-10 5,488 4.639 4,326 Share of results of associated companies 15&33 28 10 (26) Financial income and expenses II 207 322 405 Profit before tax 5.723 4.971 4,705 Tax 12 (1.357) (1.28 1) (1.446) Profit before minority interests 4.366 3.690 3.259 Minority interests -fiQ) ...!M) --1Q11 Profit att ributa ble to equity holders of th e parent DQ6 3.6.l.6 3J..22 Earnings per share (for profit attributab le to the equity holders of the parent) 30 Basic 1.06 0.83 0.69 Diluted 1.05 0.83 0.69 Average number of shares ( 1.000 shares) 30 Basic 4,062.833 4.365 .547 4,593 .196 Diluted 4.086,529 4.371 ,239 4,600.337 See notes to consolidated financial statements. 7.5 Statement of Changes in Equity 7.5.1 The entity is required to present a statement of changes in equity consisting of • Profit or loss for the period • Each item of income and expense for the period that is recognized directly in equity, and the total of those items • Total income and expense for the period, showing separately the total amounts attributable to equity holders of the parent and to minority interest • For each component of equity, the effect s of changes in accounting policies and corrections of errors 7.5.2 These amounts also may be presented either in the preceding statement or in the notes: • Capital transactions with owners • The balance of accumulated profits at the beginning and at the end of the period, and the movements for the period • A reconciliation between the carry ing amount of each class of equity capital and each reserve at the beginning and end of the period, disclosing each movement