In 2010 there were material acquisitions of non

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Unformatted text preview: unt of loss. unanticipated events or changes in these factors may require the Group to increase or decrease the amount to be accrued for any matter or accrue for a matter that has not been previously accrued because it was not considered probable or a reasonable estimate could not be made. Through the operations in many emerging markets, the Group is involved in legal proceedings, including regulatory discussions. The legal systems in these countries are, to varying degrees, less predictable than the Norwegian legal system. Accordingly, management’s estimates relating to legal proceedings and regulatory issues in these countries involve a relatively higher level of uncertainty. /page 35/ telenor annual report 2011 notes to the financial statements / telenor group / 04 / Business combinations, acquisitions of non-controlling interests and disposals No material business combinations, acquisition of non-controlling interests or disposals were completed in 2011. In 2010 there were material acquisitions of non-controlling interests in unitech Wireless (uninor). The deemed disposal of EDB Business Partner ASA was completed in 2010. All business combinations are accounted for by applying the acquisition method of accounting. Acquisitions 2011 individually immaterial business combinations during 2011 During 2011, the Group has acquired some small businesses with a consideration of less than NOK 50 million per acquisition. The impacts on the consolidated financial statements from these business combinations were immaterial. The identifiable assets and liabilities acquired in the business combination are measured at fair value at the acquisition date. Acquisitions of non-controlling interests In 2011 the Group acquired some minor non-controlling interests with a total consideration of NOK 243 million. Disposals 2011 The Group also disposed of some minor businesses during 2011, which resulted in a net gain of NOK 83 million. Acquisitions in 2010 Acquisition of non–controlling interests unitech Wireless (uninor), india On 7 January 2010, the Group acquired an 11.1% ownership interest in addition to the previously acquired ownership of 49.0%. On 10 February 2010, the Group acquired an additional 7.2% ownership interest, increasing the ownership to 67.3%. The transactions were completed by capital contributions of NOK 1.8 billion and NOK 2.6 billion, respectively. The acquisitions of noncontrolling interests have been accounted for as equity transactions and NOK 768 million have been charged to the equity attributable to the equity holders of Telenor ASA. individually immaterial business combinations during 2010 During 2010, the Group acquired some small businesses where the consideration was less than NOK 50 million per acquisition. The business combinations were executed through acquisition of assets and liabilities assumed and have limited impact on the Group financial statements. The identifiable assets and liabilities acquired in the business combination are measured at fair value at the acquisition date. Disposals 2010 The Group disposed through a deemed disposal one material business during 2010, EDB Business Partner ASA. EDB Business Partner ASA merged with ErgoGroup AS and this was carried out with accounting effect from 30 September 2010. As a consequence of the merger, the Group’s ownership interest was reduced and a loss of NOK 25 million was recognised. After the merger EDB ErgoGroup ASA is accounted for as an associated company and EDB Business Partner ASA was presented as discontinued operation. See note 15 for further information. The Group also disposed of some minor businesses during 2010, which resulted in a net gain of NOK 7 million. / 05 / Segments The segment information for the period 2010 to 2011 is reported in accordance with the reporting to Group Executive Management (chief operating decision-makers). The segment reporting is consistent with financial information used by the chief operating decision-makers for assessing performance and allocating resources. Segment result is defined as EBITDA before other income and expenses. The Group’s primary reportable segments are based on the business operations. The primary products and services are mobile communication, fixed line communication and TV-based activities (“Broadcast”). In addition the Group reports Other operations as a separate segment. The Group’s mobile communication business mainly includes voice, data, internet, content services, customer equipment and messaging. In Norway, Denmark and Sweden, fixed line businesses are reported together with mobile operations. Fixed services comprise telephony, internet and TV, leased lines as well as data services and managed services. Broadcast comprises the Group’s TV-based activities within the Nordic region including pay-TV services via satellite dish, cable TVnetworks, satellite master antenna TV-networks systems, broadband access services to cable TV-subscribers and broadcasting rights. Other operations consist of New Business, Comoyo (providing internet entertainment solutions), Corporate functions and Group activities. New Business c...
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