Volvo 1999 Annual Report Download - page 89

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Amounts in SEK M unless otherwise specified. The
amounts within parentheses refer to the two preceding
years; the first figure is for 1998 and the second for 1997.
The accounting principles applied by Volvo are de-
scribed on pages 57-60. 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.
Intra-Group transactions
Of the Parent Company’s sales, 258 (623; 505) were to
NOTES TO FINANCIAL STATEM ENTS
Group companies and purchases from Group companies
amounted to 266 (235; 183).
Employees
The number of employees at year-end was 124 (169;
181). Wages, salaries and social costs amounted to 183
(179; 284). Information on the average number of
employees as well as wages, salaries and other remun-
eration is shown on pages 73-75.
Fees to auditors
Fees and other remuneration paid to external auditors
for the fiscal year 1999 totaled 15 (5), of which 5 (2)
related to auditing 5 (1) to PricewaterhouseCoopers, 0
(1) to others, and 10 (3) related to non-audit services
carried out by PricewaterhouseCoopers.
Administrative expenses include depreciation of 19 (19; 11) of which 5 (6; 11) pertained to machinery and equipment,
1 (0; 0) to buildings and 13 (13; -) to rights in the Volvo Ocean Race.
Other operating costs include profit sharing to employees in the amount of 1 (1; 1). In 1998 expenses of 118 for a lia-
bility suit pertaining to the former Group company Centro-Morgårdshammar’s products in the U.S were included.
Of the income reported, 996 (22,615; 23,563) pertained
to dividends from Group companies. Dividends for 1998
included anticipated dividends from Volvo Personvagnar
Holding AB of 17,670. Group contributions received
totaled a net of 1,416 (4,887; 4,077). Write-downs of
shareholdings amounted to 910 (908; 8,244). Income
in 1999 included gain on sales of shares of 17,784 in
Volvo Personvagnar Holding AB to Ford Motor Company.
Group-internal transfers resulted in a net loss of 558,
which primarily is attributable to capital loss on sale of
shares in Försäkringsaktiebolaget Volvia 596, and gain
Dividends from associated companies that are reported in the Group accounts in accordance with the equity method
amounted to 42 (41; 37). The participation in Blue Chip Jet HB amounted to a loss of 53 (45; 7).
Of the income reported, 194 (2; 16) pertained to dividends from other companies. Income in 1998 included a gain on
sales of shares in Stockholm Fondbörs AB of 33. Income in 1997 included a loss of 146 on the sale of Renault SA
shares.
Adm inistrative expenses Note 1
Other operating incom e and expenses Note 2
Income from investments in Group com panies Note 3
Income from investments in associated com panies Note 4
Income from other shares and participations Note 5
Interest income and similar credits amounting to 564 (341; 218) included interest in the amount of 469 (325; 210)
from subsidiaries and interest expenses and similar charges totaling 570 (760; 788), included interest totaling 543
(742; 776) paid to subsidiaries.
Interest incom e (expenses) Note 6
on the sale of Volvo Penta Italia SpA, 35. Income in
1998 included gain on sales of shares within the Group
in Danafjord AB, of 44 and a gain of 67 pertaining to
shareholder contribution to Volvo Holding Danmark A/ S
consisting of a noncash issue of shares in Volvo Person-
vogne 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
pertaining to 1987 taxes.