515 436 14 221 4 872 41 1437 20 6 248 carrying amount

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Unformatted text preview: share from continuing operations diluted earnings per share from continuing operations - 7 165 - 7 165 4.45 4.44 (415) 14 749 14 749 8.94 8.93 The denominators used are the same as those detailed above for both basic and diluted earnings per share. / 17 / Goodwill Edb Telenor Telenor Telenor dTAC Telenor uninor business denmark sweden Hungary Thailand serbia india broadcast Partner Other 1) NOK in millions Accumulated cost As of 1 January 2010 Translation differences Arising on acquisition of subsidiaries derecognised on disposal of subsidiaries As of 31 December 2010 Translation differences Reallocation of goodwill derecognised on disposal of subsidiaries As of 31 December 2011 7 676 (476) - - 7 200 (34) - - 7 166 4 773 358 - - 5 131 (4) - - 5 127 Accumulated impairment losses As of 1 January 2010 (3 179) Translation differences 197 impairment losses - derecognised on disposal of subsidiaries - As of 31 December 2010 (2 982) Translation differences 14 impairment losses - derecognised on disposal of subsidiaries - As of 31 December 2011 (2 968) (182) (14) - - (196) 1 - - (195) 4 759 (390) - - 4 369 (530) - - 3 839 - - - - - - - 2 181 275 - - 2 456 (77) - (5) 2 374 6 466 (924) - - 5 542 (97) - - 5 445 1 399 77 - - 1 476 (201) - - 1 275 1 868 11 - - 1 879 (1) - (4) 1 874 4 034 38 14 (4 086) - - - - 1 232 57 5 (3) 1 291 (5) 21 (14) 1 293 34 388 (974) 19 (4 089) 29 344 (949) 21 (23) 28 393 (5) (1) - - (6) - - 6 - (1 791) 256 - - (1 535) 27 - - (1 508) - - - - (1 275) - (1 275) (129) (2) - - (131) (1) (36) - (168) (218) - - 218 - - - - (11) - (14) 3 (22) - (125) 14 (133) (5 515) 436 (14) 221 (4 872) 41 (1 437) 20 (6 248) Carrying amount As of 31 December 2011 4 198 4 932 3 839 2 374 3 937 1 706 As of 31 December 2010 4 218 4 935 4 369 2 450 4 007 1 476 1 748 1) Other includes primarily diGi (Malaysia), Telenor Montenegro and Telenor Norway (datametrix and Canal digital Cable). See note 18 for impairment testing. Total - 1 160 1 269 22 145 24 472 /page 45/ telenor annual report 2011 notes to the financial statements / telenor group / 18 / Impairment testing Goodwill acquired through business combinations has been allocated to individual cash-generating units or operating segments as presented in note 17 except for goodwill related to Canal Digital Cable business in Sweden amounting to NOK 76 million (included in Broadcast) which is tested together with Telenor Sweden as a cash generating unit based upon the management’s plans for integrating them with effect from 1 January 2012. Fair value less cost–to-sell is applied to determine the recoverable amounts of the cash-generating units that are listed companies. Fair value less cost-to-sell has been derived from quoted market prices as of 31 December 2011 and 2010. DTAC is listed both on the Stock Exchanges in Singapore and in Thailand. DiGi is listed on the Stock Exchange in Malaysia. Discounted cash flow models are applied to determine the value in use for the remaining cash-generating units. Management has projected cash flows based on financial forecasts and strategy plans over the first three-year period except for uninor where the financial forecast and strategy plan cover a period of five years. Operations that are in a growth phase and have not reached steady state by the end of the explicit forecast period have two extrapolation periods. Cash flows for the period up to steady state are extrapolated using growth rates that reflect management’s best estimate for market and economic development of the relevant country in which the entity operates. Beyond steady state, the cash flows are extrapolated using constant nominal growth rates. By the end of 2011, it is assumed that uninor has not reached steady state by the end of its explicit forecast period. It is assumed that the operations in India will continue by acquiring new licenses. See additional disclosures regarding the situation in India in note 35 and 38. The value in use estimates have been compared with market valuation and multiples for peers in the telecommunication business for reasonableness. Key assumptions Key assumptions used in the calculation of value in use are growth rates, EBITDA margins, capital expenditure and discount rates. Growth rates – The expected growth rates for a cash-generating unit converges from its current level experienced over the last few years to the long-term growth level in the market the entity operates. The growth rates used to extrapolate cash flow projections beyond the explicit forecast period are based on management’s past experience, assumptions in terms of market share and expectations for the market development in which the entity operates. The growth rates used to extrapolate cash flows in the terminal value are not higher than the expected long-term growth in the economy in which the entity operates. Average EbiTdA margin – The EBITDA margin represents the operating margin before depreciation and amortisation and is estimated based on the current margin level and expected future market development, which also takes into consideration committed operational efficiency programmes. Changes in the outcome of these initiatives may affect future estima...
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This document was uploaded on 03/21/2014.

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