Nokia 2008 Annual Report Download - page 205

24. Deferred taxes
2008 2007
EURm EURm
Deferred tax assets:
Intercompany profit in inventory ........................................ 144 87
Tax losses carried forward ............................................. 293 314
Warranty provision ................................................... 117 132
Other provisions ..................................................... 371 292
Depreciation differences and untaxed reserves ............................. 691 367
Sharebased compensation ............................................. 68 227
Other temporary differences ............................................ 279 134
Total deferred tax assets................................................. 1 963 1 553
Deferred tax liabilities:
Depreciation differences and untaxed reserves ............................. (286) (165)
Fair value gains/losses ................................................ (62) (40)
Undistributed earnings ................................................ (242) (31)
Other temporary differences
(1)
.......................................... (1 197) (727)
Total deferred tax liabilities ............................................ (1 787) (963)
Net deferred tax asset .................................................. 176 590
The tax charged to shareholders’ equity is as follows:
Fair value and other reserves, fair value gains/losses and excess tax benefit on
sharebased compensation ............................................. (106) 133
(1)
In 2008, other temporary differences included a deferred tax liability of EUR 1 140 million arising
from purchase price allocation related to Nokia Siemens Networks and NAVTEQ. In 2007, other
temporary differences included a deferred tax liability of EUR 563 million arising from purchase
price allocation related to Nokia Siemens Networks.
At December 31, 2008 the Group had loss carry forwards, primarily attributable to foreign subsidiaries
of EUR 1 013 million (EUR 1 403 million in 2007), most of which will expire within 20 years.
At December 31, 2008 the Group had loss carry forwards of EUR 102 million (EUR 242 million in
2007) for which no deferred tax asset was recognized due to uncertainty of utilization of these loss
carry forwards. These loss carry forwards will expire in years ranging from 2009 through 2013.
At December 31, 2008 the Group had undistributed earnings of EUR 274 million (EUR 315 million in
2007), for which no deferred tax liability was recognized as these earnings are considered
permanently invested.
25. Accrued expenses
2008 2007
EURm EURm
Social security, VAT and other taxes ......................................... 1 700 2 024
Wages and salaries ..................................................... 665 865
Advance payments . ..................................................... 532 503
Other ................................................................ 4 126 3 722
Total ................................................................. 7 023 7 114
F61
Notes to the Consolidated Financial Statements (Continued)