Note 10 New revenue recognition

In Sweden the sale of phones and computers via so called enhanced subscription fees has lately increased more and more. Enhanced fee is an offering for the customer to pay explicitly for the equipment during a period of 12 to 24 months. This change in customer offering has led to a revaluation of how much of the total cash flows that can be allocated to the equipment such as mobile phones etc. In Sweden from January 1, 2010 sales with enhanced subscription fee are regarded as instalment payment and the accounting of the revenue reflects that. Hence both the cost and the revenue from the equipment are accounted for at the time it is supplied to the customer. Before the cost was taken up front and the revenue was recognized when the total services were provided. Previous periods have been recalculated and the effects on the financial statements are presented below.

INCOME STATEMENT

SEK million	2009 Full year	2009 Q4	2009 Q3	2009 Q2	2009 Q1	2008 Full year	2008 Q4	2007 Full year	2006 Full year
Net sales, mobile	209	75	66	37	31	58	43	152	66
Tax	-55	-20	-17	-10	-8	-15	-11	-40	-17
Net profit/loss	154	55	49	27	23	43	32	112	49

BALANCE SHEET

SEK million	2009 Dec 31	2009 Sep 30	2009 Jun 30	2009 Mar 31	2008 Dec 31	2007 Dec 31	2006 Dec 31
Assets
Accrued income	485	410	344	307	276	218	66
Deferred tax assets	-127	-107	-90	-80	-72	-57	-17
Assets	358	303	254	227	204	161	49
Shareholders’ equity	358	303	254	227	204	161	49
Equity and liabilities	358	303	254	227	204	161	49

CASH FLOW STATEMENT

SEK million	2009 Full year	2009 Q4	2009 Q3	2009 Q2	2009 Q1	2008 Full year	2008 Q4	2007 Full year	2006 Full year
Cash flow from operations, less paid taxes	209	75	66	37	31	58	43	152	66
Change in working capital	-209	-75	-66	-37	-31	-58	-43	-152	-66
Cash flow from operating activities	-	-	-	-	-	-	-	-	-