Volvo 1998 Annual Report Download - page 86

PARENT COMPANY AB VOLVO
84
1996 1997 1998
Provision to tax allocation reserve – – (978)
Reversal of tax equalization reserve 89 89 89
Reversal of/allocation to exchange reserve (108) 172 199
Allocation to extra depreciation 0 16 4
Total (19) 277 (686)
Taxes, a loss of 816 (–; 2) in 1998 pertained to govern-
mental income tax and in 1996 to repaid profit-sharing tax.
Provision has been made for estimated tax expenses
that may arise as a consequence of the tax audit carried
out mainly during 1992. Claims for which provisions are
not deemed necessary amount to an expense of 341
(332; 339), which is included in contingent liabilities.
Unrealized exchange gains on long-term receivables and
liabilities in foreign currencies are allocated to an
exchange reserve. Exchange differences on borrowings
and lendings, including forward contracts related to
loans, amounted to a loss of 306 (loss 593; 368). Since
these loans are largely designed to hedge net assets in
foreign currencies, most of the translation differences do
not affect consolidated income. Operating related
exchange differences are included in Other operating
income and expenses. Other financial income and
expenses also include guarantee commissions from sub-
sidiaries and costs of confirmed credit facilities. Income
in 1996 included expenses of 112 for the stock
exchange listing of Swedish Match AB.
Value in Value in Value in
balance balance Sales/ balance
Acqusition cost sheet 1996 sheet 1997 Investments scrapping sheet 1998
Rights – – 52 – 52
Total intangible assets – – 52 – 52
Buildings 17 8 12 ( 3) 17
Land and land assets 4 4 3 ( 1) 6
Machinery and equipment 175 54 5 ( 5) 54
Construction in progress 3 — – – –
Total tangible assets 199 66 20 (9) 77
Value in Value in Value in Book value in
balance balance Depre- Sales/ balance balance sheet
Accumulated depreciation sheet 1996 sheet 1997 ciation1scrapping sheet 1998219983
Rights – – 13 – 13 39
Total intangible assets – – 13 – 13 39
Buildings 2 1 — (1) — 17
Land and land assets — — — – – 6
Machinery and equipment 100 35 6 (4) 37 17
Construction in progress — — — – – –
Total tangible assets 102 36 6 (5) 37 40
The assessed value of buildings was 5 (3; 4), and of land
2 (2; 10). Investments in intangible and tangible assets
amounted to 52 (–; –) and 20 (14; 35) respectively.
Capital expenditures approved but not yet implemented
at year-end 1998 amounted to 1 (1; 7). An aircraft with
a book value of 28 was transferred 1997 to the newly
formed partnership company, Blue Chip Jet HB.
1. Including write-downs.
2. Including accumulated write-downs.
3. Acquisition value, less depreciation.
Other financial income and expenses Note 7
Allocations Note 8
Taxes Note 9
Intangible and tangible assets Note 10