Volvo 2001 Annual Report Download - page 94

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PARENT COMPANY AB VOLVO · NOTES TO FINANCIAL STATEMENTS
90
Exchange differences on borrowings and lendings,
including forward contracts related to loans, amounted to
–2 (3; 60). Exchange differences related to operations
are included in Other operating income and expenses.
Other financial income and expenses also include
guarantee commissions from subsidiaries, unrealized
gains (losses) pertaining to a hedge for a program of
personnel options, costs for confirmed credit facilities
and costs of having Volvo shares registered on various
stock exchanges as well as additional financial expenses
attributable to a tax audit previously carried out.
1999 2000 2001
Provision to tax allocation reserve (297) (250) –
Reversal of tax equalization reserve 62 114 –
Reversal of exchange reserve 4 – –
Allocation to extra depreciation 4 3 (1)
Utilization of replacement reserve – – 3
Total (227) (133) 2
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 0 (297; 288), which is
included in contingent liabilities.
Deferred taxes relate to estimated tax on the change
in tax loss carryforwards and temporary differences.
Deferred tax assets are reported to the extent that it is
probable that the amount can be utilized against future
taxable income.
Deferred taxes related to change in tax-loss carryfor-
wards amount to 1,110 (0; 0) and to changes in other
temporary differences to 2 (2; 10). No taxes have been
debited or credited directly to equity.
Note 7Other financial income and expenses
Note 8 Allocations
Note 9 Taxes
Interest income and similar credits amounting to 455
(266; 564) included interest in the amount of 420 (141;
469) from subsidiaries and interest expenses and similar
Note 6 Interest income and expenses
1999 2000 2001
Current taxes 384 (117) (280)
Deferred taxes 10 2 1,112
Total taxes 394 (115) 832
Current taxes were distributed as follows:
Current taxes 1999 2000 2001
Current taxes for the period (165) (217) 0
Adjustment of current taxes prior periods 549 100 (280)
Total taxes 384 (117) (280)
Specification of tax expense for the period 1999 2000 2001
Income before taxes 18,163 1,491 10,282
Tax according to applicable tax rate (28%) (5,086) (417) (2,879)
Capital gains 4,892 43 81
Non-taxable dividends 345 296 7,353
Non-deductible write-downs of shareholdings (255) (104) (3,421)
Other non-deductible expenses (58) (41) (39)
Other non-taxable income 7 8 17
Adjustment of current taxes prior periods 549 100 (280)
Tax expense for the period 394 (115) 832
charges totaling 467 (353; 570), included interest total-
ing 451 (340; 543), paid to subsidiaries.