IFRS PRACTICAL IMPLEMENTATION GUIDE AND WORKBOOK

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Wiley l FRS: Practical lmplementation Guide and Workbook

amount cannot exceed the carrying amount that would have been determined had no impairment loss been recognized for that asset or cash-generating unit in prior periods. A reversal of an impairment loss is recognized immediately in the income statement. 17.2 NOKIA, December 31, 2006 Notes t o the Consolidated Financial Statemen ts 8. Imp a ir men t Common Mobile Enterpri se Group phones Multimedia solutions Networks functions ~ 2006, EURm Impairment of available-far-sale investments 18 18 Impairment of other intangible assets 33 -TI Total, net 13. lJi -.5.l 2005, EURm Impairment of available-far-sale investments 30 30 Total, net - :ill 3Q 2004, EURm Impairment of available-far-sale investments II II Impairment of capitalized development costs - ill ill Total, net - ill II ill During 2006, the Group' s investment in certain equity securities held as noncurrent available-for– sale suffered a permanent decline in fair value resulting in an impairment charge of EUR 18 million (EUR 30 million in 2005, EUR 11 million in 2004) relating to noncurrent available-for-sale invest– ments. In connection with the restructuring of its CDMA business, the Group recorded an impairment charge of EUR 33 million during 2006 related to an acquired CDMA license. The impaired CDMA license was included in Mobile Phones business group. During 2004, The Group recorded an impairment charge of EUR 65 million of capitalized devel– opment costs due to the abandonment of FlexiGateway and Horizontal Technology modules. In addi– tion, an impairment charge of EUR 50 million was recorded on WCDMA radio access network pro– gram due to changes in market outlook. The impairment loss was determined as the difference be– tween the carrying amount of the asset and its recoverable amount. The recoverable amount for WCDMA radio access network was derived from the discounted cash flow projections, which cover the estimated life of the WCDMA radio access network current technology, using a pretax discount rate of 15%. The impaired technologies were part of the Networks business group.