Operationandmaintenance travelandtravelallowances

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Unformatted text preview: d by the Ministry of Finance on 21 January 2008. Telenor ASA’s accounting principles are consistent to the accounting principles for the Group, as described in note 2 of the consolidated financial statements. Where the notes for the parent company are substantially different from the notes for the Group, these are shown below. Otherwise, refer to the notes to the consolidated financial statements. Telenor ASA uses the indirect method for the statement of cash flows. Net change in Group internal drawing rights are loans to, and placements from Group companies. These loans and placements have high turnover and are presented net. The repurchase of shares bought for the purpose of distributing them to the employees as bonus shares etc. is classified under operating activities. Revenues are mainly sale of Group services to other Group companies, sale of research and development services and sale of other consultancy services. Purchases from other Group companies consist mainly of consultancy fees in strategic Group projects, property lease, IT-operations and maintenance. Telenor ASA conducts the main part of the external debt financing in the Group, and provides loan and guarantees to, and receives deposits from Group companies. See note 29 to the consolidated financial statements. Shares in subsidiaries and receivables from and loans provided to subsidiaries are evaluated at the lower of cost or fair value. Any adjustments in values are classified as financial income and expenses in the income statement. Derivative financial instruments held with subsidiaries are carried at fair value. / 02 / Salaries and personnel costs The Group’s Chief Executive Officer and the Board of Directors have the same positions in Telenor ASA. See note 36 of the consolidated financial statements for further information about compensation to the Board of Directors, management and auditor. NOK in millions salaries and holiday pay social security tax 1) Pension cost including social security tax (Note 3) share-based payments Other personnel costs Total salaries and personnel costs Number of employees, average 1) 2011 2010 (518) (82) (85) (29) (32) (746) 532 (512) (75) (113) (19) (38) (757) 534 includes accrued social security taxes on outstanding options to management and social security taxes of benefit taxation for exercised stock options. /page 92/ telenor annual report 2011 notes to the financial statements / Telenor ASA / 03 / Pension obligations Telenor ASA is obliged to follow and complies with the Act on Mandatory Company Pensions. The company has a pension scheme according to the requirement set in the Act. NOK in millions Change in projected benefit obligation Projected benefit obligation as of 1 January service cost interest cost Past service cost Actuarial (gains) and losses Acquisition/sale/transfer of business benefits paid/paid-up policies Benefit obligations as of 31 December Change in plan assets Fair value of plan assets as of 1 January Actual return on plan assets Acquisition/sale/transfer of business Pension contribution 1) benefits paid/paid-up policies Fair value of plan assets as of 31 December Funded status as of 31 December unrecognised net actuarial gains (losses) 2) Total provision for pensions as of 31 December Total provision for pensions as of 1 January Transfer of business Net periodic benefit costs Pension contribution 1) benefits paid/paid-up policies social security tax on pension contribution and benefits paid Total provision for pensions as of 31 December 1) 2) 2011 2010 983 53 40 1 99 2 (40) 1 138 848 55 41 33 51 (6) (39) 983 582 (19) - 43 (18) 588 550 (209) 341 552 7 (3) 41 (15) 582 401 (66) 335 335 2 70 (43) (18) (5) 341 305 (3) 98 (41) (18) (6) 335 Telenor AsA expects to contribute approximately NOK 42 million to the Telenor Pension Fund in 2012. benefit obligation and unrecognised net actuarial gains (losses) includes social security tax 286 employees were covered by the defined benefit plan of the Telenor Pension Fund, which paid out pensions to 386 persons. For information of assumptions used and description of pension plans, please see note 27 to the consolidated financial statements. NOK in millions 2011 2010 Components of net periodic benefit cost service cost interest cost Expected return on plan assets Amortisation of actuarial gains and losses Past service cost Net periodic benefit costs (53) (40) 33 (9) (1) (70) (55) (41) 35 (4) (33) (98) Contribution plan costs Total pension costs recognised in the income statement (15) (85) (15) (113) Past service cost relates to changed pension agreements for some executive employees in 2010, see note 36 in the consolidated financial statements for further information. /PAGE 93/ TELENOR ANNuAL REPORT 2011 notes to the financial statements / Telenor ASA / 04 / Other operating expenses NOK in millions Cost of premises, vehicles, office equipment etc. Operation and maintenance Travel and travel allowances Postage, freight, distribution and telecommunications Marketing, representation and sales commission Consultancy fees and costs for external personnel Workforce reductions bad debt Other operating expenses Total other operating expenses 2011 2010 (108) (34) (74) (21) (60) (522) (15) - (78) (912) (110) (46) (60) (25) (96) (466) (44) 1 (70) (916) Consultancy fees are primarily related to the hiring of temporary personnel, the safeguarding of interests and to the assessment of new market opportunities. In addition,...
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This document was uploaded on 03/21/2014.

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