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Chapter
6/
Accounting Policies, Changes
ill
Accounting Estimates and Errors (lAS
8)
59
12. EXTRACTS FROM PUBLISHED FINANCIAL STATEMENTS
NOKIA, December 31, 2006
Notes to the Consolidated Financial Statements
Change in method of quantifying misstatements
During the year, the Group changed its method of quantifying misstatements. The Group
previously quantified misstatements based on the amount of the error originating in the current year
profit and loss account statement. The Group has now decided to consider the effect of any
misstatements based on both
( I)
the amount of the misstatement originating in the current year profit
and loss account statement and (2) the effects of correcting the misstatement existing in the balance
sheet at the end of the current year irrespective of the year in which the misstatement originated.
As a result of this change, management has adjusted its financial statements and previously
reported deferred tax assets and retained earnings have been increased by EUR
154
million for each
period presented. Under the previous method of quantifying misstatements these adjustments were
considered to be immaterial. These deferred tax assets relate to certain of the Group' s warranty and
other provisions recorded in periods prior to 2002, for which no corresponding tax amounts were
deferred.