IFRS PRACTICAL IMPLEMENTATION GUIDE AND WORKBOOK

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Wiley IFRS: Practical Implementation Guide and Workbook

15.2 A DIDAS G ROUP, A n n u a l Report 2006 Notes to th e Financial Sta teme nts 13. T rademarks and Other Intangibl e Asse ts

Trademarks and other intangible assets consist of the following: Trademarks and other intangible assets € in millions

Dec. 31 2006 1,454 o 1,454

Dec. 31 2005 15 o 15

Trad emarks, gross Less: accumulated amortization Trademarks, net Software, patents and concessions. gross Less: accumulated amortization Other intangible assets, net Trademarks and other intangible assets, net 242 166 76 9 1 Intangible asset amortization expenses (continuing operations) were €69 million and €4 milli on for the years endi ng December 3 1, 2006 and 2005 , respectively (see also Note 25). Tr ademarks with indefinite useful lives amount to €1.436 billion. They were estimated to be indefi nite due to the high degree of brand recog nition as well as their foundation a long time ago . The trademarks are allocated to the cash-generati ng unit Reebok. The Grou p determines whe ther trademarks with indefinite useful lives are impaired at least on an annual basis. This requires an estimatio n of the fair value less costs to sell of the cash-generating units to which the trademark is allocated. Est imating the fair value less costs to sell requires the Group to make an estimate of the expected future brand-specific sales and appropriate arm ' s-length roya lty rate s from the cash-generating unit and also to choose a suitable discount rate in order to calc ulate the pre sent value of those cash flow s. There was no impai rment expense for the year ending De cember 31, 2006 . Future cha nges in expected cash flows and discount rates may lead to impairment of the accounted trademarks in the future . For details see Statement of Movements of Tangible Assets and Finan cia l Assets [Attachment I to these Note s]. 15.3 NOKIA, Decembe r 31 , 2006 Notes to th e Consolidated Financi al Statements 13. Intangible Assets EURm Capitalized development costs 447 224 223 1,677

Acquisition cost January I Additions during the period Disposals during the period Accumulated acquisition cost December 31 Accumulated amortization January I

1,445 127 -----D2) .L.lli (1,1 85) 39 ----illfi) ~

1,322 153 --i.3.Q) lM5. (1044) 30 .uzn ~ 278 260

Disposals during the period Amortization for the period Accumulated amor tization December 31 Net book value January I Net book value December 31 Goodwill Acquisition cost January I Transfer of accumulated amortization on adoption of IFRS 3 Translation differences Additions during the period (Note 9) Other changes Accumulated acquisition cost December 31

260 25 1

90

1,298 (1,208)

(26)

488 flQ.) ill