TDC Group Annual Report 2011(6,4MB) - TDC Annual Report 2011

Assets or disposal groups classified as held for sale are
measured at the lower of carrying amount at the time of the
classification as held for sale and the fair value less costs to
sell. No depreciation or amortisation is charged on assets
from the date when they are classified as assets held for
sale. Furthermore, recognition of income under the equity
method ceases when joint ventures and associates are
classified as assets held for sale.
Impairment losses arising on initial classification as assets
held for sale and gains and losses on subsequent
measurement at the lower of carrying amount and fair value
less costs to sell are recognised in the Income Statements.
Disclosure of discontinued operations
Discontinued operations are recognised separately as they
constitute entities comprising separate major lines of
business or geographical areas, whose activities and cash
flows for operating and accounting purposes can be clearly
distinguished from the rest of the entity, and where the
entity has been disposed of or classified as held for sale,
and it seems highly probable that the disposal will be
effected within twelve months in accordance with a single
coordinated plan.
Profit/loss after tax of discontinued operations is presented
in a separate line in the Income Statements with restated
comparative figures. Revenue, costs and taxes relating to
the discontinued operation are disclosed in the notes.
Assets and accompanying liabilities are presented in
separate lines in the Balance Sheets without restated
comparative figures, and the principal items are specified in
a note.
Cash flows from operating, investing and financing activities
of discontinued operations are presented in separate lines in
the Statements of Cash Flow with restated comparative
figures.
Statements of Cash Flow
Cash flow from operating activities is presented under the
indirect method and is based on profit before interest,
taxes, pension income, depreciation, amortisation and
special items adjusted for non-cash operating items, cash
flow related to special items, changes in working capital,
interest received and paid, realised currency translation
adjustments as well as income taxes paid. Interest received
and paid include settlement of interest hedging
instruments.
TDC Group Annual Report 2011
Cash flow from investing activities comprises acquisition
and divestment of enterprises, purchase and sale of
intangible assets, property, plant and equipment as well as
other non-current assets, and purchase and sale of
securities that are not recognised as cash and cash
equivalents. Cash flows from acquired enterprises are
recognised from the time of acquisition, while cash flows
from enterprises divested are recognised up to the time of
divestment.
Cash flow from financing activities comprises changes in
interest-bearing debt, purchase of treasury shares and
dividends to shareholders.
Cash and cash equivalents cover cash and marketable
securities with a remaining life not exceeding three months
at the time of acquisition, and with an insignificant risk of
changes in value.
Segment reporting
Operating segments are reported in a manner consistent
with the internal reporting to the chief operating decisionmaker.
The chief operating decision-maker has been
identified as the Board of Directors. The operating
segments have been determined based on the financial and
operational reports reviewed by the Board of Directors.
The accounting policies of the reportable segments are the
same as the Group’s accounting policies described above.
Profit before depreciation, amortisation and special items
(EBITDA) represents the profit earned by each segment
without allocation of depreciation, amortisation and
impairment losses, special items, profit from joint ventures
and associates, net financials and income taxes. EBITDA is
the measure reported to the Board of Directors for the
purposes of resource allocation and assessment of
segment performance.
Assets and liabilities are not allocated to operating
segments in the financial and operational reports reviewed
by the Board of Directors, as the review focuses on the
development in net working capital for the Group and for
each segment.
In presenting information on the basis of geographical
segments, segment revenue is based on the geographical
location of the enterprise where the sale originates.
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