Notes to the consolidated financial statements - Swisscom

More documents

Recommendations

Info

Notes to the consolidated financial statements 26 Non-current financial assets CHF in millions At January 1, 2000 Impact of SIC 27. See Note 27. At January 1, 2000, restated Additions Disposals Translation adjustment Revaluation surplus At December 31, 2000 Adoption of IAS 39. See Note 35. At January 1, 2001 Additions Disposals Translation adjustment Write off of loans receivable Reversal of revaluation surplus in equity Revaluation deficit included in income statement At December 31, 2001 Available-forsaleinvestments 619 – 619 43 (25) – 7 644 119 763 84 (35) – – (119) (231) 462 Effective November 2, 2001 Swisscom subscribed for CHF 100 million of new shares in Crossair for CHF 56 per share. The shares were issued to Swisscom on December 21, on which date the market value of these shares amounted to CHF 79 million. Swisscom paid CHF 30 million in December, with the balance of CHF 70 million due by March 31, 2002 at the latest. The difference between the commitment price and the market price of CHF 21 million was recorded under financial expense. See Note 13. At December 31, 2001 Swisscom recorded a fair value adjustment of CHF 2.7 million, net of taxes of CHF 0.9 million, being the difference between the year end price of CHF 46 and the price of CHF 44 upon issuance of the shares through equity. Swisscom has an investment in Infonet and holds both Class A shares and Class B shares. The difference between Class A and Class B shares is that Class A shares have 10 votes versus 1 vote for Class B shares. Class A shares can be converted on a one to one basis into Class B shares which are listed on the New York Stock Exchange. In previous periods, the shares were recorded at historical cost. Under IAS 39, the carrying value of available-forsale investments is the fair value. Swisscom has used the quoted market price of Class B shares to determine the fair value of Class A shares. On January 1, 2001 Swisscom made an adjustment to record the investment at fair value by increasing both investments and equity before taxes by CHF 119 million. In 2001 the shares of Infonet, like many other companies in the telecommunications sector, declined sharply. At year-end the quoted market price had declined significantly and there was a cumulative loss of CHF 219 million recorded in equity. Swisscom believed the substantial decline in the value of the shares and the length of time that they were below cost provided objective evidence that this investment was impaired. Accordingly, Swisscom removed the CHF 219 million from equity and recorded it under financial expense. See Note 13. In 1999 and 2000 Swisscom entered into cross-border tax lease arrangements. Financial assets from cross-border tax lease arrangements represent those assets that were not defeased. See Note 27. 44 Swisscom Consolidated financial statements Loans and receivables originated 341 – 341 232 (222) (10) – 341 – 341 135 (146) (7) (212) – – 111 Financial asset crossborder tax lease 128 (105) 23 1 162 (1) 10 – 1 194 – 1 194 77 (2) 26 – – – 1 295 Other financial assets Total 24 – 24 33 (11) – – 46 – 46 8 (27) – – – – 27 1 112 (105) 1 007 1 470 (259) – 7 2 225 119 2 344 304 (210) 19 (212) (119) (231) 1 895
27 Debt Short-term debt CHF in millions Short-term loans Current portion of long-term debt Employee savings deposits Short-term loans payable to affiliated companies Current portion of finance lease obligation. See Note 31. Derivative financial instruments. See Note 35. Total short-term debt Long-term debt Long-term debt consists primarily of unsecured fixed interest rate loans, denominated in Swiss francs, granted by the Swiss Post and financial liabilities from cross-border tax lease arrangements, denominated in USD. At December 31, 2001, maturities for Swiss Post debt range from 2002 to 2003 as follows: CHF in millions Within one year Within 1–2 years Within 2–3 years Total Swiss Post debt Current portion of Swiss Post debt Total long-term Swiss Post debt Financial liability from cross-border tax lease arrangements Other Total long-term debt In September 2000, Swisscom entered into a cross-border tax lease arrangement with a foreign investor and received a fee of CHF 214 million net of expenses. Under the terms of the agreement, Swisscom received USD 1,967 million (CHF 3,264 million), excluding its fee, and placed USD 1,783 million (CHF 2,959 million) on deposit. Swisscom defeased USD 1,024 million (CHF 1,699 million) of the debt by irrevocably placing the equivalent amount of financial assets with institutions backed by governments into a trust. Accordingly, both the assets and liabilities have been removed from the financial statements. USD 759 million (CHF 1,260 million) in assets and USD 943 million (CHF 1,565 million) liabilities were not defeased and are included in the balance sheet. Swisscom is not responsible for any performance under these arrangements, other than that which would be done in the normal course of business, and accordingly, recognized the fee as income in the third quarter of 2000. Both the asset and liability are denominated in USD. During 1999, Swisscom entered into three cross-border tax lease arrangements with certain foreign investors. As a result of these arrangements, Swisscom received a fee of CHF 108 million, net of expenses. Under the terms of the various agreements, Swisscom incurred USD 1,233 million (CHF 2,045 million) of debt and received USD 1,233 million (CHF 2,045 million), excluding its fee. Swisscom defeased USD 1,138 million (CHF 1,887 million) of the debt by irrevocably placing the equivalent amount of securities that were backed by a government guarantee into a trust. Accordingly, both the assets and liabilities have been removed from the financial statements. Effective December 31, 2001, the IASC’s Standing Interpretation Committee introduced its Interpretation 27 (SIC 27) “Evaluating the Substance of Transactions Involving the Legal Form of a Lease”. In accordance with SIC 27, Swisscom defeased an additional USD 74 million (CHF 123 million) of the cross-border tax lease arrangements entered into in 1999. The 45 Swisscom Consolidated financial statements 2000 160 1 250 607 638 30 – 2 685 2000 1 250 1 000 750 3 000 (1 250) 1 750 1 480 72 3 302 2001 73 1 000 577 47 40 20 1 757 2001 1 000 750 – 1 750 (1 000) 750 1 600 63 2 413
Page 1 and 2: Financial Review 2001
Page 3 and 4: Review of the Group’s results
Page 5 and 6: Fixnet Retail and Network CHF in mi
Page 7 and 8: Enterprise Solutions CHF in million
Page 9 and 10: debitel Impairment of goodwill CHF
Page 11: Income tax expense Equity in net in
Page 14 and 15: Report of Group Auditors To the Sha
Page 16 and 17: Consolidated balance sheet CHF in m
Page 18 and 19: Consolidated cash flow statement Si
Page 20 and 21: Notes to the consolidated financial
Page 61 and 62: Financial statements of Swisscom AG
Page 63 and 64: Swisscom AG Income statement CHF in
Page 65 and 66: Notes to the financial statements 1
Page 67 and 68: Proposed appropriation of retained

Notes to the consolidated financial statements - Swisscom

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?