Nokia 2010 Annual Report Download - page 268

35. Risk Management (Continued)
An amount of EUR 472 million (2009: EUR 679 million) relates to past due receivables from customers
for which no allowances for doubtful accounts were recognized. The aging of these receivables is as
follows:
2010 2009
EURm EURm
Past due 130 days ....................................................... 239 393
Past due 31180 days ..................................................... 131 170
More than 180 days....................................................... 102 116
472 679
The carrying amount of accounts receivable that would otherwise be past due or impaired, but whose
terms have been renegotiated was EUR 40 million (EUR 36 million in 2009).
At December 31, 2010, there were no loans due from customers and other third parties, for which an
allowance for doubtful accounts was provided (2009: EUR 4 million).
There were no past due loans from customers and other third parties at December 31, 2010.
Financial Credit Risk
Financial instruments contain an element of risk of loss resulting from counterparties being unable to
meet their obligations. This risk is measured and monitored centrally by Treasury. Nokia manages
financial credit risk actively by limiting its counterparties to a sufficient number of major banks and
financial institutions and monitoring the credit worthiness and exposure sizes continuously as well as
through entering into netting arrangements (which gives Nokia the right to offset in the event that
the counterparty would not be able to fulfill the obligations) with all major counterparties and
collateral agreements (which require counterparties to post collateral against derivative receivables)
with certain counterparties.
Nokia’s investment decisions are based on strict creditworthiness and maturity criteria as defined in
the Treasury Policy and Operating Procedure. As result of this investment policy approach and active
management of outstanding investment exposures, Nokia has not been subject to any material credit
losses in its financial investments.
The table below presents the breakdown of the outstanding fixed income and money market
investments by sector and credit rating grades ranked as per Moody’s rating categories.
F80
Notes to the Consolidated Financial Statements (Continued)