Volvo 1998 Annual Report Download - page 85

83
Amounts in SEK M unless other specified. The amounts
within parantheses refer to the two preceding years; the
first figure is for 1997 and the second for 1996.
The accounting principles applied by Volvo are de-
scribed on page 55-57. Reporting of Group contributions
is in accordance with the pronouncement of the Swedish
Financial Accounting Standards Council issued in
September 1998. Group contributions are reported
among Income from investments in Group companies. In
accordance with the Swedish Financial Accounting
Standards Council’s recommendations RR4 and RR5, the
figures in the comparable years are adjusted to facilitate
comparability.
NOTES TO FINANCIAL STATEMENTS
Income from investments in Group companies Note 3
Intra-Group transactions
Of the Parent Company’s sales, 623 (505; 545) were to
Group companies, and purchases from Group companies
amounted to 235 (183; 136).
Employees
The number of employees at year-end was 169
(181; 468). Wages, salaries and social costs amounted
to 179 (284; 324). Information on the average number
of employees as well as wages, salaries and other renu-
merations is shown on page 71.
Administrative expenses include depreciation of 19 (11; 17), of which 6 (11; 16) pertained to machinery and equip-
ment, 0 (0; 1) to buildings and 13 (-;-) to rights in the Volvo Ocean Race.
Other operating costs include provision for bonus to employees in the amount of 1 (1; 1) and expenses of 118 for
a liability suit pertaining to the former Group company Centro-Morgårdshammar’s products in the U.S.
Of the income reported, 22,615 (23,563; 738) pertained
to dividends from Group companies. Of the dividend,
17,670 pertained to anticipated dividends from Volvo
Personvagnar Holding AB, which was decided at the
company’s Annual General Meeting on February 10,
1999. Group contributions received totaled a net of
4,887 (4077; 997). Write-downs of shareholdings
amounted to 908 (8,244; 53). Income in 1998 included
Dividends from associated companies that are reported
in the Group accounts in accordance with the equity
method amounted to 41 (37; 28). The participation in
Blue Chip Jet HB amounts to a loss of 45 (loss 7; –).
Shareholdings were written down by 0 (0; 5), and were
divested with a capital gain of 0 (2; 0).
Of the income reported, 2 (16; 158) pertained to divi-
dends from other companies. Dividends were reduced
through write-downs of shareholdings amounting to
Interest income and similar credits amounting to 341
(218; 233) included interest in the amount of 325 (210;
192) from subsidiaries, and interest expenses and simi-
0 (0; 2). Income in 1998 included a gain on sales of shares
in Stockholm Fondbörs AB of 33. Income in 1997 in-
cluded a loss of 146 on the sale of Renault SA shares.
lar charges totaling 760 (788; 1,048) included interest
totaling 742 (776; 1,007) paid to subsidiaries.
gain on sales of shares within the Group in Danafjord
AB, of 44. Shareholder contributions of 67 were also
made to Volvo Holding Danmark A/S through a noncash
issue of shares in Volvo Personvogne Danmark A/S.
Income in 1997 included a supplementary payment of
41 for shares of Örekron International AB, which was
sold in 1988 due to Örekron having won a tax case per-
taining to 1987 taxes.
Administrative expenses Note 1
Other operating expenses Note 2
Income from investments in associated companies Note 4
Income from other shares and participations Note 5
Interest income (expenses) Note 6