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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.