IFRS PRACTICAL IMPLEMENTATION GUIDE AND WORKBOOK

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Wiley IFRS: Practical Implementation Guide and Workbook

8.4 Attribution of profit or loss to noncontrolling interests. lAS 27 (revised 2008) requires an entity to attribute their share of "comprehensive income" (a con– cept introduced by the lASS through a recent amendment to lAS 1 in 2007), to the "noncontrolling

interest" (NCI) even if this results in the NCI having a deficit. 8.5 Loss of "significant influence" or "joint control."

Amendments to lAS 28 and lAS 31 extend the treatment required for "loss of control." Therefore, when an investor loses "significant influence" over an associate, it derecognizes that associate and recognizes in the profit or loss the difference between the sum of the proceeds received and any retained interest, any carrying amount of the investment in associate at the date "significant influence" is lost. 8.6 A similar treatment is required when an investor loses "joint control" over a jointly controlled entity. 9. EXTRACTS FROM PUBLISHED FINANCIAL STATEMENTS 9.1 NOKIA, Annual Report 2006 Notes to the Financial Statements Principles of Consolidation The consolidated financial statements include the accounts of Nokia's parent company ("Parent Company"), and each of those companies over which the Group exercises control. Control over an entity is presumed to exist when the Group owns, directly or indirectly through subsidiaries, over 50% of the voting rights of the entity , the Group has the power to govern the operating and financial policies of the entity through agreement or the Group has the power to appoint or remove the majority of the members of the board of the entity. the Group's share of profit s and losses of associated companies is included in the consolidated profit and loss account in accordance with the equity method of accounting. An associated company is an entity over which the Group exerc ises significant influence. Significant influence is generally presumed to exist when the Group owns, directly or indirectly through subsidiaries, over 20% of the voting rights of the company. All intercompany transactions are eliminated as part of the consolidation process . Minority interests are presented separately in arriving at the net profit and they are shown as a component of shareholders' equity in the consolidated balance sheet. Profits realized in connection with the sale of fixed assets between the Group and associated companies are eliminated in proportion to share ownership. Such profits are deducted from the Group's equity and fixed assets and released in the Group accounts over the same period as depreciation is charged. The companies acquired during the financial periods presented have been consolidated from the date on which control of the net assets and operations was transferred to the Group . Similarly the result of a Group company divested during an accounting period is included in the Group accounts only to the date of disposal. 9.2 ADIDAS GROUP, Annual Report, 2006 Notes to the Financial Statements 12. Goodwill Goodwill primarily relates to the Group's acquisitions of the Reebok business as well as of subsidiaries in the United States, AustralialNew Zealand, Netherlands/Belgium and Italy. Goodwill € in millions

Dec. 31 2006 1,516

Dec. 31 2005 436

Goodwill,gross Less: impairment Goodwill, net

1,516 436 The increase in goodwill relates to the acquisition of the Reebok business . The main part of this goodwill is denominated in US dollars . The currency translation effect was negative €88 million. From January I, 2005, goodwill is tested annually for impairment. There was no impairment expen se for the years ending December 31, 2006 and 2005 . The Group determines whether goodwill