Desarrollo en τ: efectos cuánticos grandes

Intangible assets Goodwill

The excess of the consideration transferred over the fair value of the identifiable net assets acquired in a business combination is recorded as goodwill. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill on acquisition of associates and joint ventures is included in investments in associates and joint ventures.

Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those cash-generating units or groups of cash-generating units that are expected to benefit from the synergies of the business combination in which the goodwill arose, irrespective of whether other assets or liabilities of the acquiree are assigned to those cash-generating units.

Goodwill is carried at cost less accumulated impairment losses and tested for impairment annually or whenever KPN has an indication that the goodwill may be impaired. Goodwill is impaired if the recoverable amount of the cash-generating unit or groups of cash-generating units to which it is allocated is lower than the book value of the cash-generating unit or groups of cash-generating units concerned. The recoverable amount is defined as the higher of the fair value less cost to sell and the value in use of the cash-generating units concerned. Following the restrictions of IFRS, impairment losses on goodwill are not reversed.

In case of disposal of a business which was part of a cash-generating unit, goodwill is allocated to that business on a relative fair value basis and included in the carrying amount of the business when determining the result on the sale.

Licenses

Licenses are valued at cost less amortization and impairment. The cost value of a qualifying asset may include capitalized borrowing costs related to qualifying assets incurred during the construction phase of the related asset. Amortization is calculated using the straight-line method and is commenced at the date that services

can be offered (available for use). The amortization period for licenses equals the useful life, but is limited to the expiration date of the licenses. Licenses are reviewed for impairment whenever events or changes in circumstances indicate that the book value of the asset concerned may not be recoverable. An impairment loss is recognized for the amount by which the book value of the licenses exceeds its recoverable amount. The recoverable amount is defined as the higher of an asset’s fair value less cost to sell and its value in use. Impairments are reversed if and to the extent that the impairment no longer exists.

Licenses not yet available for use are tested annually for impairment or whenever KPN has an indication that the licenses may be impaired. Licenses are tested as part of a cash-generating unit as licenses do not generate independent cash flows.

Software

Internally developed and acquired software, not being an integral part of property, plant and equipment, is capitalized on the basis of the costs incurred, which include direct costs and directly

attributable overhead costs incurred. During the development phase, interest expenses incurred are capitalized as part of qualifying assets if material. Software is amortized over the estimated useful life.

Amortization commences when software is available for use.

Software is reviewed for impairment whenever events or changes in circumstances indicate that the book value may no longer be recoverable. An impairment loss is recognized for the amount by which the asset’s book value exceeds its recoverable amount.

Impairments are reversed if and to the extent that the impairment no longer exists. The recoverable amount is defined as the higher of an asset’s fair value less cost to sell and its value in use.

Other intangibles

Other intangible fixed assets such as customer relationships and trade names acquired in business combinations are capitalized at their fair values at acquisition date and are amortized using the straight-line method.

Other intangible fixed assets are reviewed for impairment whenever events or changes in circumstances indicate that the book value may no longer be recoverable. An impairment loss is recognized for the amount by which the asset’s book value exceeds its recoverable amount. Impairments are reversed if and to the extent that the impairment no longer exists. The recoverable amount is defined as the higher of an asset’s fair value less cost to sell and its value in use.

The amortization period of the intangible assets are as follows:

Category Amortization period

Goodwill No amortization

Licenses 5 to 20 years

Software 3 to 5 years

Other intangible assets 4 to 20 years Tangible assets

Property, plant and equipment

Property, plant and equipment are valued at cost less depreciation and impairment. The cost includes direct costs (materials, direct labor and work contracted out), directly attributable overhead costs and may include borrowing costs capitalized as part of qualifying asset, recorded during the construction phase of property, plant and equipment components.

Key Consolidated Financial

Statements General Notes Notes to

Profit or Loss Notes to

Asset retirement obligations are capitalized as part of the cost of tangible fixed assets and expensed as either depreciation over the asset’s estimated useful life or as impairment charges.

The estimated useful lives of the principal property, plant and equipment categories are as follows:

Category Depreciation period

Land No depreciation

Buildings 14 to 33 years

Network equipment 3 to 7 years Network infrastructure 10 to 30 years

Vehicles 10 years

Office equipment 4 to 10 years

Property, plant and equipment is depreciated using the straight-line method, based on estimated useful life, taking into account residual value. Land is not depreciated. Property, plant and equipment is reviewed for impairment whenever events or changes in circumstances indicate that the book value of the assets concerned may not be recoverable. An impairment loss is recognized for the amount by which the asset’s book value exceeds its recoverable amount. Impairments are reversed if and to the extent that the impairment no longer exists. The recoverable amount is defined as the higher of an asset’s fair value less cost to sell and its value in use.

Subsequent costs such as costs for replacement of network components are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that KPN will receive future economic benefits associated with the item and the cost can be measured reliably. The carrying amounts of replaced assets are derecognized. All other repairs and maintenance costs are recognized in profit or loss when incurred.

The assets’ residual values and useful lives are reviewed at least annually and adjusted if appropriate.

Financial assets

KPN’s financial assets include investments in companies other than subsidiaries and associates, financial receivables held for investment purposes and other securities. At initial recognition, KPN classifies its financial assets in one of the following categories:

ý Financial assets at fair value through profit or loss;

ý Loans and receivables;

ý Held-to-maturity investments; and ý Available-for-sale financial assets.

The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of the financial assets at initial recognition and assesses the designation at every reporting date. All financial assets are initially recognized at fair value plus transaction costs attributable to the acquisition of the asset if a financial asset is not recorded at fair value through profit or loss. Subsequent measurement depends on the classification of the financial asset.

Financial assets at fair value through profit or loss This category has two subcategories: financial assets held for trading and those designated at fair value through profit or loss at inception. Financial assets held for trading are classified in this category when acquired principally for the purpose of selling in the short term or if so designated by management. Derivatives, including separated embedded derivatives, are classified as held for trading except when they are designated as effective hedge

instruments under IAS 39 ‘Financial Instruments: Recognition and Measurement’. Financial assets at fair value through profit or loss are recognized in the Consolidated Statement of Financial Position at their fair value with net changes in the fair value presented as finance costs (in case of negative net changes to the fair value) or finance income (in case of positive net changes to the fair value) in the Consolidated Statement of Profit or Loss.

Loans and receivables

Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market and created by KPN by providing money, goods or services directly to a debtor, other than:

ý those KPN intends to sell immediately or in the short term, which are classified as held for trading; and

ý those for which KPN may not recover substantially all of its initial investment, other than because of credit deterioration, which are classified as available-for-sale.

After initial measurement, loans and receivables are carried at amortized cost using the effective interest rate, which may equal cost if there is no maturity, less an allowance for uncollectibility.

The amortized cost is calculated by taking into account any discounts or premiums on acquisition and transactions costs.

The effective interest rate amortization is recognized in the Consolidated Statement of Profit or Loss under finance income or finance costs.

Loans and receivables are included in current assets, except for maturities greater than 12 months after the Statement of Financial Position date. Loans and receivables are included in Loans to associates and joint ventures and in Trade and other receivables in the Consolidated Statement of Financial Position. See also Notes 12, 14, 16 and 30.

Held-to-maturity investments

Non-derivative financial assets with fixed or determinable payments and fixed maturities are classified as held-to-maturity when KPN has the intention and ability to hold them to maturity.

After initial measurement, held to maturity investments are measured at amortized cost using the effective interest rate, less impairment. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the effective interest rate. The effective interest rate amortization is included as finance income in the Consolidated Statement of Profit or Loss. Losses arising from impairment are recognized in the Consolidated Statement of Profit or Loss as finance costs.

Available-for-sale financial assets

KPN’s available-for-sale financial assets include equity investments.

KPN intends to hold these assets for an indefinite (undefined) period of time and has therefore not classified the assets as held for trading nor has it designated the assets at fair value through profit or loss. Available-for-sale financial assets are carried at fair value with unrealized gains and losses (except for impairment losses) recognized in the Consolidated Statement of Other Comprehensive Income until the financial asset is derecognized, at which time the cumulative gain or loss previously recognized in the Consolidated Statement of Other Comprehensive Income is taken to the Consolidated Statement of Profit or Loss for the period. Impairment losses incurred are recognized directly in the Consolidated Statement of Profit or Loss for the period.

FINANCIAL STATEMENTS — CONSOLIDATED FINANCIAL STATEMENTS

Key Consolidated Financial

Statements General Notes Notes to

Profit or Loss Notes to

General Notes to the Consolidated Financial Statements

For information on fair values of quoted and unquoted investments, refer to Note 30.

Derivative financial instruments and hedging activities Derivative financial instruments are initially recognized at fair value. Subsequently, KPN measures all derivative financial instruments based on fair values derived from market prices of the instruments or valuation techniques such as discounted cash flows. Gains and losses arising from changes in the fair value of the instruments are recognized in the Consolidated Statement of Profit or Loss as finance cost (in case of negative net changes to the fair value) or finance income (in case of positive net changes to the fair value) during the period in which they arise to the extent that the derivatives have no hedging designation or they are ineffective.

In general, KPN designates derivatives related to loans as either cash flow hedges or fair value hedges. KPN applies hedge accounting as this recognizes the offsetting effects on profit or loss of changes in the fair values of the hedging instrument and the hedged item (borrowings) and/or forecasted transactions.

At the inception of transactions, KPN documents the relationship between the derivative and hedged item (such as the underlying loan), as well as the objective of the risk management and the strategy for undertaking transactions. In the documentation, it is also stated whether the hedge relationship is expected to be effective – at inception and on an ongoing basis – and how the effectiveness is tested.

Changes in the fair value of an effective derivative, which is designated as a fair value hedge and qualifies as such, along with the gain or loss on the hedged item that is attributable to the hedged risk, are recorded in the Consolidated Statement of Profit or Loss as finance cost (in case of negative changes to the fair value) or finance income (in case of positive net changes to the fair value).

Changes in the fair value of an effective derivative, which is designated as a cash flow hedge and qualifies as such, are recorded in the Consolidated Statement of Other Comprehensive Income for the effective part, until the profit or loss are affected by the variability in cash flows of the designated hedged item.

The ineffective part of the cash flow hedge is recognized in the Consolidated Statement of Profit or Loss as finance cost (in case of negative changes to the fair value) or finance income (in case of positive net changes to the fair value).

If an underlying transaction has ceased to be an effective hedge or in case of early redemption of the hedged item, KPN discontinues hedge accounting prospectively which means that subsequent changes in the fair value are recognized in the Consolidated Statement of Profit or Loss, under ‘finance income’ or ‘finance costs’. The cumulative amount recorded in the Consolidated Statement of Other Comprehensive Income is released in profit or loss.

The full fair value of the derivatives is classified as a non-current asset or liability if the remaining maturity of the hedged item is more than 12 months and as a current asset or liability if the remaining maturity is less than 12 months.

Refer to Note 27 on KPN’s derivative financial instruments and Note 30 on KPN’s financial risks.

Inventories

Inventories of resources, parts, tools and measuring instruments, and finished goods are valued at the lower of cost or net realizable value. The cost of inventories is determined using the weighted average cost. Net realizable value is the estimated selling price in the ordinary course of business less applicable variable selling expenses.

Losses on the sale of handsets which are sold for less than cost is only recorded when the sale occurs if the normal resale value is higher than the cost of the handset. If the normal resale value is lower than costs, the difference is recognized as impairment immediately.

Transition costs relating to fixed-price contracts involving managed ICT services are capitalized and subsequently recognized in the Consolidated Statement of Profit or Loss on a straight-line basis during the period the services are provided, taking into account the number of office seats included in the service contract during the term of the contract. Transition costs consist primarily of the labor and other cost of personnel directly engaged in performing the transition, third party services, products and other cost which will be charged to the customer. Transition costs are capitalized if it is probable that they will be recovered and are classified under inventories.

Trade and other receivables

Receivables are initially recognized at fair value, and subsequently measured at amortized cost using the effective interest rate method less provision for impairment. A provision for impairment of trade receivables is established when there is objective evidence that KPN will not be able to collect all amounts due according to the original terms of the receivables. The amount of the provision is the difference between the carrying amount and the present value of the estimated future cash flows, discounted at the original effective interest rate. The provision is set up through the Consolidated Statement of Profit or Loss (as other operating expenses). When a trade receivable is uncollectible, it is written off against the allowance account for trade receivables. Subsequent recoveries of amounts previously written off are credited against other operating expenses in the Consolidated Statement of Profit or Loss. See Notes 14 and 16 for further information on KPN’s trade and other receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash in hand, deposits held at call with banks, and other short-term highly liquid investments with original maturities of three months or less. Bank overdrafts are included within borrowings in current liabilities on the Consolidated Statement of Financial Position and are not deducted from cash and cash equivalents.

Non-current assets and disposal groups held for sale Non-current assets and disposal groups classified as held for sale as well as liabilities directly associated herewith are stated at the lower of carrying amount and fair value less costs to sell if their carrying amount is recovered principally through a sale transaction rather than through continuing use. If fixed assets are transferred to held for sale, depreciation and amortization ceases.

A disposal group classifies as a ‘discontinued operation’ based on its significance to the KPN Group.

See Note 19 for further information on KPN’s non-current assets and disposal groups held for sale.

Key Consolidated Financial

Statements General Notes Notes to

Profit or Loss Notes to

Equity

KPN’s authorized share capital consists of ordinary shares which are classified as equity and preference shares B which are classified as short-term liabilities (Note 20). The surplus paid by shareholders above the nominal value of shares is recognized as share premium. Incremental costs directly attributable to the issue of new shares or options are shown in the Consolidated Statement of Other Comprehensive Income as a deduction, net of tax, from the proceeds.

Equity instruments and other financial instruments with a long-term nature are classified based on their specific nature, terms and characteristics. Refer to Note 22 for disclosures on KPN’s accounting of the perpetual hybrid bonds issued. The consideration paid by KPN for the acquisition of its own equity instruments (treasury shares) is deducted from other reserves at trade date until those shares are canceled, reissued or disposed of.

Upon subsequent sale or reissue of such shares, any consideration received is included in other reserves.

KPN’s Group equity is divided into two categories: equity attributable to equity holders and to non-controlling interests.

KPN’s Group equity is divided into two categories: equity attributable to equity holders and to non-controlling interests.