null

Use our glossary to learn the meaning of terms and concepts that appear in our financial statements. Terms are organized alphabetically by document:



Consolidated Profit and Loss Account

Amortization of goodwill
The systematic allocation of the goodwill over its useful life.

Associated companies
Nokia's financial statements include a share of the results of associated companies. These are neither subsidiaries nor joint ventures but companies in which Nokia owns 20% to 50% voting rights or over which it has significant influence.

Basic earnings per share
Earnings attributable to ordinary shareholders calculated by dividing net profit by the weighted average number of ordinary shares on the market during the year.

Diluted earnings per share
Basic earnings per share, adjusted for the effects of all dilutive potential shares, such as options or warrants. Diluted earnings per share is calculated using the weighted average number of shares outstanding during the period plus the dilutive effect of outstanding warrants and stock options outstanding during the period.

Dilution is a reduction in earnings per share resulting from the assumption that, for example, options or warrants were exercised, or that other shares were issued after meeting certain conditions.

Earnings per share
Earnings attributable to each share of common stock.

Financial income and expenses
Income, including dividend, interest and other financial income after the deduction of interest expenses and other financial expenses.

Minority interests
Outside ownership interests in the operations and assets of a subsidiary which have been consolidated into Nokia's results for financial reporting purposes.

Net profit
Nokia's 'bottom line' earnings for the year after the deduction of all expenses.

Net sales
Nokia's revenue from the sale of goods and services less indirect sales tax, VAT, sales discounts and foreign exchange differences on sales in foreign currencies.

Operating profit
Nokia's revenue from net sales after the deduction of cost of sales and related operating expenses.

Back to top

Consolidated balance sheet

Assets
Nokia's resources which are expected to generate future economic benefits.

Current assets
Cash and other assets Nokia expects to sell or consume within one year. Such assets include, for example, accounts receivable and inventories of products to sell.

Current liabilities
Obligations that are due to be settled within one year of the balance sheet date.

Fixed assets and other non-current assets
Property, plant and equipment together with intangible assets and other operating and financial assets of a long-term nature (more than one year).

Goodwill
Goodwill is the excess of the cost of an acquired enterprise over fair value of identifiable net assets acquired. In other words, it is the reputation of an acquired company's products, services and people which adds to the Group's net value.

Liabilities
Present obligations arising from past events, the settlement of which is expected to result in an outflow from Nokia of resources embodying economic benefits. Liabilities include, for example, debts to lenders, suppliers and tax authorities.

Other intangible assets
Future benefits in the form of intellectual property, patents, copyrights and trademarks.

Back to top

Consolidated cash flow statement

Cash flow from investing activities
Cash flow involved in the acquisition and disposal of long-term assets and other investments. Such activities include, for example, making and collecting loans, and the acquisition and disposal of investments and other assets.

Cash flow from operating activities
The cash effects on net profit of Nokia's principal revenue-producing activities. Included here are cash receipts from the sale of goods and services and cash payments to suppliers and employees for acquisitions of inventory and expenses.

Back to top

Statement of changes in shareholder's equity

Statement of changes in shareholders equity
Changes in equity between two balance sheet dates reflect an increase or decrease in Nokia's net assets or wealth during the period.

Back to top