Annual report 2008, 1.19 MB - Telenor

17
NOTES TO THE FINANCIAL STATEMENTS
Telenor Group
From continuing operations
The calculation of the basic and diluted earnings per share from continuing operations attributable to the ordinary equity holders of Telenor
ASA is based on the following data.
Earnings
NOK IN MILLIONS, EXCEPT PER SHARE AMOUNT 2008 2007
2006
(Unaudited)
Profi t for the year attributable to the equity holders of Telenor ASA 13 065 18 016 15 920
Less:
Profi t for the year from discontinued operations - 1 400 155
Net income for the purposes of basic earnings per share from continuing operations 13 065 16 616 15 765
Effect of dilutive potential shares - - -
Net income for the purposes of diluted earnings per share from continuing operations 13 065 16 616 15 765
Basic earnings per share from continuing operations 7.83 9.89 9.35
Diluted earnings per share from continuing operations 7.82 9.88 9.35
The denominators used are the same as those detailed above for both basic and diluted earnings per share.
GOODWILL
Other Other/
Telenor Telenor Pannon Digi.com DTAC Telenor mobile elimi-
NOK IN MILLIONS Denmark Sweden Hungary Malaysia Thailand Serbia operations Broadcast nations Total
At 1 January 2007 7 231 5 373 5 106 574 2 390 7 759 103 2 059 3 128 33 723
Exchange differences 2007 (160) (382) (206) (44) 63 (248) (4) (10) (55) (1 046)
Arising on acquisition of a subsidiaries 197 1 - - - - 120 - 366 684
Derecognised on disposal of a subsidiaries - - - (54) (189) - - - (66) (309)
At 31 December 2007 7 268 4 992 4 900 476 2 264 7 511 219 2 049 3 373 33 052
Exchange differences 2008 1 744 346 874 111 263 645 28 10 71 4 092
Arising on acquisition of a subsidiaries (5) 8 - - 8 - 74 - 1 236 1 321
Reallocation of goodwill - - - - - - (11) - - (11)
Derecognised on disposal of a subsidiaries - - - (11) - - - - - (11)
At 31 December 2008 9 007 5 346 5 774 576 2 535 8 156 310 2 059 4 680 38 443
Impairment
At 1 January 2007 (3 027) - - - - - - (110) (3) (3 140)
Exchange differences 2007 25 - - - - - - - - 25
Impairment loss 2007 (36) (206) - - - - - (23) - (265)
Impairment at 31 December 2007 (3 038) (206) - - - - - (133) (3) (3 380)
Exchange differences 2008 (729) (14) - - - - - - - (743)
Impairment loss 2008 - - - - - - - - (93) (93)
Impairment at 31 December 2008 (3 767) (220) - - - - - (133) (96) (4 216)
Carrying amount of goodwill 2007 4 230 4 786 4 900 476 2 264 7 511 219 1 916 3 370 29 672
Carrying amount of goodwill 2008 5 240 5 126 5 774 576 2 535 8 156 310 1 926 4 584 34 227
Goodwill impairment loss in 2008 was related to Telenor Cinclus and was mainly due to lower growth in the market than initial expected.
Goodwill impairment losses in 2007 were mainly due to recognition of deferred tax assets after the initial accounting for business combination
was complete. According to IFRS, the acquirer shall reduce the carrying amount of goodwill with the same amount as not previously
recognised deferred tax assets are recognise as a tax benefi t. See note 18 for impairment testing of goodwill.
ANNUAL REPORT 2008 PAGE 47