Volvo 2002 Annual Report Download - page 63

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January 1, 2002 December 31, 2002
Book value Market value Book value Market value
Available for sale
Marketable securities 1,652 1,654 422 422
Shares and convertible debenture loan 27,806 20,593 27,338 17,575
Trading 11,862 11,745 16,130 16,080
The book values and market values for these listed securities are distributed as follows:
G. Restructuring costs. Up to and including 2000, restructuring
costs were in the Volvo Group’s year-end accounts reported in the
year that implementation of these measures was approved by each
company’s Board of Directors. In accordance with U.S. GAAP, costs
are reported for restructuring measures only under the condition that
a sufficiently detailed plan for implementation of the measures is
prepared at the end of the accounting period. Effective in 2001,
Volvo adopted a new Swedish accounting standard, RR16
Provisions, contingent liabilities and contingent assets, which is sub-
stantially equivalent to U.S. GAAP.
H. Provision for pensions and other post-employment benefits. The
greater part of the Volvo Group’s pension commitments are defined
contribution plans in which regular payments are made to independ-
ent authorities or bodies that administer pension plans. There is no
difference between U.S. and Swedish accounting principles in
accounting for these pension plans.
Other pension commitments are defined-benefit plans; that is, the
employee is entitled to receive a certain level of pension benefits,
usually related to the employee’s final salary. In these cases the
annual pension cost is calculated based on the current value of
future pension payments. In Volvo’s consolidated accounts, provisions
for pensions and pension costs for the year in the individual compan-
ies are calculated based on local rules and directives. In accordance
with U.S. GAAP, provisions for pensions and pension costs for the
year should always be calculated as specified in SFAS 87,
"Employers Accounting for Pensions." The difference compared with
local rules in Sweden (FAR4) lies primarily in the choice of actuarial
method, discount rates and the fact that U.S. calculations of pension
benefit obligations, in contrast to Swedish calculations, are based on
salaries calculated at the time of retirement.
The following tables on pages 62–64 disclose information about
assumptions, periodical costs, obligations and funded positions of the
Volvo Group’s most significant defined benefit plans. The tables
further include reconciliations for reported costs and net provisions
under U.S. GAAP and Swedish accounting principles.
FAS 115- Tax and FAS 115-
Summary of debt and equity securities Market adjustment, minority adjustment,
available for sale and trading Book value value gross interests net
Trading, December 31, 2002 16,130 16,080 (50) 14 (36)
Trading, January 1, 2002 11,862 11,745 (117) 33 (84)
Change 2002 67 (19) 48
Available for sale
Marketable securities 422 422 – – –
Shares and convertible debenture loan 27,338 17,575 (9,763) 22 (9,741)
Available for sale
December 31, 2002 27,760 17,997 (9,763) 22 (9,741)
January 1, 2002 29,458 22,247 (7,211) 2,019 (5,192)
Change 2002 (2,552) (1,997) (4,549)