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Unformatted text preview: audit fees and other fees to the auditor are included, see note 36 to the consolidated financial statements. In 2011 Telenor ASA received a claim for Value Added Taxes (VAT) recalculation related to consultants fee for a total of NOK 58 million. The VAT is expensed in the profit and loss. Telenor ASA has filed a complaint on the decision. / 05 / Research and development costs Research and development expenses in Telenor ASA were NOK 195 million in 2011 and NOK 189 million in 2010. Research and development activities relate to new technologies and new usages of the existing network. / 06 / Financial income and expenses NOK in millions 2011 2010 interest income interest income from Group companies increase in fair value of financial instruments held for trading Group contribution from subsidiaries Other financial income Other financial income from Group companies Total financial income 8 3 822 830 11 200 3 347 16 210 11 3 324 190 4 620 5 8 150 interest expenses Group companies interest expenses (external) on financial liabilities measured at amortised cost Gains on guarantees for subsidiaries Provisions for loss on guarantees for subsidiaries decrease in fair value of financial instruments held for trading decrease in fair value of financial instruments – against Group companies Other financial expenses Total financial expenses (1 588) (750) - (6072) (351) (2) (33) (8 796) (705) (702) 40 (528) (54) (1 949) 804 1 129 Net foreign currency gains (losses) Gains (losses) on loans to Group companies impairment losses on loans to Group companies and associated companies impairment losses in shares in subsidiaries Net gains (losses and impairment) on financial assets Net financial income (expenses) (19) (15) (363) (397) 7 821 55 55 7 385 /page 94/ telenor annual report 2011 notes to the financial statements / Telenor ASA Group contribution received from Group companies during the relevant years is recognised as financial income in the year it is approved by the General Meeting in the relevant company and Telenor ASA obtains the right to the Group contribution. In 2011 NOK 5.4 billion in taxable Group contribution and NOK 5.8 billion in tax-free Group contribution for the 2010 financial statement were received and recognised. Group contribution to be received and recognised as financial income in 2012 based on the Group companies’ 2011 financial statements is estimated to be approximately NOK 3.9 billion. Change in value of financial instruments held for trading is related to derivatives used as hedges for interest-bearing liabilities that do not meet the requirements for hedge accounting. Other financial income from Group Companies is mainly commissions for guarantees given, see note 14. Telenor ASA has guaranteed on behalf of the debt in its subsidiary uninor. In relation to this Telenor ASA has recognised an income of NOK 344 million related to the guarantee provision in 2011. Telenor ASA recognised losses on guarantees made on behalf of Cinclus Technology AS with a total of NOK 325 million in 2009. In 2010 Telenor ASA made a net payment of NOK 287 million. The amount NOK 38 million were reversed. Losses on loans of NOK 420 million were accrued in 2009, of which the amount of NOK 55 million was reversed in 2010 as a result of cash and cash equivalents received in the subsidiary. During 2011, additional losses of NOK 19 million were recognised. The activities in Cinclus Technology AS were not continued in 2011. Thus, the losses related to guarantees and loans are realised. A provision for loss on guarantees in Telenor ASA on behalf of uninor was recognised in 2011 with NOK 6,072 million, see note 14. In 2011 a provision of NOK 15 million for losses on loans to Aeromobile Holding AS was recognised. The total provision for losses on loans to Aeromobile Holding AS is NOK 267 million. For impairment of shares see note 16. / 07 / Income taxes NOK in millions 2011 2010 6 559 6 212 Current taxes Current withholding tax Current withholding tax applied to income deduction Adjustment in previous years’ current income tax Change in deferred taxes Total income tax expense (1 466) (9) (1) 2 1 083 (391) (2 346) (10) (790) 607 (2 539) Tax basis: Profit before taxes Non-taxable income Non-deductible expenses Group contribution previous year Group contribution previous year – tax-free Changes in temporary differences Changes in temporary differences derivates calculated as tax expense basis for withholding tax, including temporary differences utilisation of Norwegian tax credits Group contribution current year Tax basis of the year Current taxes according to statutory tax rate (28%) 6 559 (1) 636 (5 400) (5 800) 5 363 (33) 39 (29) 3 900 5 234 1 466 6 212 (18) 55 (4 620) 1 358 29 (38) 5 400 8 378 2 346 Effective tax rate Expected income taxes according to statutory tax rate (28%) Other non-taxable income Non-deductible expenses Received Group contribution, tax-free Withholding tax paid during the year used for income deduction Adjustment in pr...
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