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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.
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.
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
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
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
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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- Spring '14