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Unformatted text preview: of equity and dispositions over the last 2 years is shown in a separate table, see statement of changes in shareholders equity.
Nominal value per share is NOK 6. As of 31 December 2011, Telenor ASA had 23 954 781 treasury shares. The fund for unrealised profit is
NOK 441 million of other equity as of 31 December 2011.
dividends 2011 2010 dividends per share in NOK – paid dividends per share in NOK – proposed by the board of directors 3.80 5.00 2.50
3.80 Total dividends for 2010 of NOK 6,206 million were paid in May 2011. The Board of Directors proposes payment of dividends of NOK 7,921
million to shareholders for 2011. Equity available for distribution as dividends from Telenor ASA was NOK 16,262 million as of 31 December
Telenor ASA has an agreement with the Kingdom of Norway through the Ministry of Trade and Industry to carry through share buy backs with
the purpose to cancel these shares through reduction of the share capital to maintain its ownership interest. The proposed cancellation is
subject to approval by shareholder in the annual General Meeting on 16 May 2012 and if approved, the estimated effect on equity available
for distribution is NOK 2.2 billion.
Other comprehensive income in other reserves
This reserve includes change in fair value on cash flow hedges and amount reclassified from equity to profit and loss related to realisation of
cash flow hedges.
NOK in millions Changes in Other reserves/Other comprehensive income Change in fair value cash flow hedges income taxes Amount reclassified from equity to profit and loss related to cash flow hedges income taxes Total other comprehensive income for the period 2010
Change in fair value cash flow hedges income taxes Total other comprehensive income for the period 2011 (20)
(26) / 12 / Financial instruments and risk management
Telenor ASA’s treasury function is responsible for financial risk management including liquidity management, interest rate risk, managing
foreign exchange risk, credit risk and capital management. The activities in the treasury function are performed according to policies and
procedures approved by the Board of Directors of Telenor ASA. The management and the board in Telenor ASA receive on regular basis
information regarding the financial area of the company. Short-term and long-term financial flexibility is in focus, and Telenor ASA issues debts in Norwegian and foreign capital market mainly
through certificates and bonds. In addition, Telenor ASA has established committed syndicated revolving credit facilities of EuR 1.0 billion with
maturity in 2013 and of EuR 2.0 billion with maturity in 2016.
Financing of the Group’s investing activities and the Group’s cash flows implies that Telenor ASA is exposed to interest rate risk related to
interest income and interest costs taken to income statement, as a result of changes in interest rates in the market. Changes in the market
rates also influences fair value of assets and liabilities.
Telenor ASA is exposed to currency risk related to changes in value of NOK compared to other currencies, as a result of debt held in other
currencies than NOK. Currency risk also influences the value of Telenor ASA’s net investment hedges in foreign countries which will fluctuate
accordingly the changes in the NOK rate.
The Company has credit risk related to receivables and financial instruments with positive value against external parties and other companies
in the Group.
Telenor ASA uses derivatives as forward currency contracts, future interest rate swaps and to some extent interest rate options to manage
the risk exposure related to changes in currency and interest rates. All derivative contracts are measured at fair value with changes through
profit and loss. This also applies to derivative contracts for Group companies. If hedge accounting is applicable, the changes in fair value of
derivatives are recognised as other comprehensive income.
See also note 2 ‘Summary of significant accounting policies’ and note 30 Managing capital and financial risk management’ in the
consolidated financial statements where financial risks and accounting for financial instruments are explained in detail. /page 98/
telenor annual report 2011
notes to the financial statements / Telenor ASA Fair value of financial instruments
Principles for estimating fair values
Based on the characteristics of the financial instruments that are recognised in the financial statement, these are grouped into the classes and
categories described in the table below. The estimated fair values of the financial instruments are based on market prices and the valuation
methodologies per class are described below.
Fair value hierarchy
Telenor ASA measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in measuring the fair value of
financial instruments in the Fair value through profit and loss (“FVTPL”) and Available for sale (“AFS”) categories: Level 1: Quoted prices (unadjusted) in active markets for identical financial instruments
Level 2: Inputs other than quoted prices includ...
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