Volvo 1999 Annual Report Download - page 90

88
Parent Com pany AB Volvo
In 1997 and 1998, unrealized exchange gains on long-
term receivables and liabilities in foreign currencies were
allocated to an exchange reserve. Exchange differences
on borrowings and lendings, including forward contracts
related to loans, amounted to 60 ( -306; -596). 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 having Volvo shares registered on
various stock exchanges as well as costs for confirmed
credit facilities.
Value in Value in Value in
balance sheet balance sheet Sales/ balance
Acquisition cost 1997 1998 Investments scrapping sheet 1999
Rights — 52 — — 52
Total intangible assets – 52 — — 52
Buildings 8 17 – (10) 7
Land and land improvements 4 6 – (2) 4
Machinery and equipment 54 54 2 (3) 53
Total tangible assets 66 77 2 (15) 64
Value in Value in Value in Book value
balance sheet balance sheet Sales/ balance in balance
Accumulated depreciation 1997 21998 2Depreciation1scrapping sheet 1999 2sheet 19993
Rights — 13 13 — 26 26
Total intangible assets — 13 13 — 26 26
Buildings 1 — 1 – 1 6
Land and land improvements — — — — – 4
Machinery and equipment 35 37 5 (3) 39 14
Total tangible assets 36 37 6 (3) 40 24
The assessed value of buildings was 2 (5; 3) and of land
2 (2; 2). Investments in intangible and tangible assets
amounted to – (52; –) and 2 (20; 14) respectively.
Capital expenditures approved but not yet implemented
at year-end 1999 amounted to 1 (1; 1). An aircraft with
a book value of 28 was transferred in 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
1997 1998 1999
Provision to tax allocation reserve – (978) (297)
Reversal of tax equalization reserve 89 89 62
Reversal of exchange reserve 172 199 4
Accelerated depreciation 16 4 4
Total 277 (686) (227)
Taxes, 384 (–816; –) pertain to governmental income
taxes –165 (–816; –) as well as to reversed provisions
of 549 pertaining to governmental income tax for 1998.
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 288
(341; 332), which is included in contingent liabilities.
Other financial incom e and expenses Note 7
Allocations Note 8
Tax es Note 9
Intangible and tangible assets Note 10