Volvo 2003 Annual Report Download - page 71

69
January 1, 2003 December 31, 2003
Carrying value 1Fair value 2Carrying value 1Fair value 2
Available for sale
Marketable securities 422 422 446 446
Shares and convertible debenture loan 27,338 17,575 22,963 20,648
Trading 16,130 16,080 19,083 19,072
1In accordance with Swedish GAAP.
2 For the purpose of these disclosures, fair values have been based upon quoted market prices for listed securities.
The carrying values and fair values for these securities were distributed as follows:
D. 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 US GAAP, costs
were 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, RR 16
Provisions, contingent liabilities and contingent assets, which was
substantially equivalent to US GAAP at that time. As from 2003,
when SFAS 146 “Accounting for Costs Associated with Exit or
Disposal Activities” became effective under US GAAP, there are
again differences compared to Swedish GAAP regarding the timing
of when restructuring costs should be recognized in the income
SFAS 115- SFAS 115-
Summary of debt and equity securities adjustment, Income adjustment,
available for sale and trading Carrying value 1Fair value 2gross taxes net
Trading, December 31, 2003 19,083 19,072 (11) 3 (8)
Trading, January 1, 2003 16,130 16,080 (50) 14 (36)
Change 2003 39 (11) 28
Available for sale
Marketable securities 446 446 – – –
Shares and convertible debenture loan 22,963 20,648 (2,315) (29) (2,344)
Available for sale
December 31, 2003 23,409 21,094 (2,315) (29) (2,344)
January 1, 2003 27,760 17,997 (9,763) 22 (9,741)
Change 2003 37,448 (51) 7,397
statement. However, no differences has been identified in relation to
business transactions during 2003.
E. Provisions for post-employment benefits. Effective in 2003,
provisions for post-employment benefits in Volvo’s consolidated
financial statements are accounted for in accordance with RR 29
Employee benefits, which conforms in all significant respects with
IAS 19 Employee Benefits. See further in Note 1 and 22. In accord-
ance with US GAAP, post-employment benefits should be accounted
for in accordance with SFAS 87, “Employers Accounting for
Pensions” and SFAS 106, “Employers’ Accounting for Post-retire-
ment Benefits Other than Pensions”. The differences between Volvo’s
accounting principles and US GAAP pertain to different transition
dates, recognition of past service costs and minimum liability
adjustments.
Net periodical costs for post-employment benefits 2001 2002 2003
Net periodical costs in accordance with Swedish accounting principles 3,910 5,087 4,424
Net periodical costs in accordance with US GAAP 3,454 4,418 5,075
Adjustment of this year’s income in accordance
with US GAAP, before income taxes 456 669 (651)
Net provisions for post-employment benefits Dec 31, 2001 Dec 31, 2002 Dec 31, 2003
Net provisions for post-employment benefits in accordance
with Swedish accounting principles (13,877) (15,528) (15,094)
Difference in actuarial methods (284) 170 –
Unrecognized actuarial (gains) and losses 1,154 1,350 5,296
Unrecognized transition (assets) and obligations according to SFAS 87, net (52) (33) (29)
Unrecognized past service costs – – 659
Minimum liability adjustments (546) (1,507) (4,268)
Net provisions for post-employment benefits in accordance with US GAAP (13,605) (15,548) (13,436)
The projected benefit obligation, accumulated benefit obligation and
fair value of plan assets for the pension plans with an accumulated
benefit obligation in excess of plan assets were 18,867; 18,340 and
13,475 at December 31, 2003.
1In accordance with Swedish GAAP.
2 For the purpose of these disclosures, fair values have been based upon
quoted market prices for listed securities.
3 Of the net SFAS 115 adjustment during 2003, 3,969 has been reported as
an increase of net income in accordance with US GAAP and 3,428 has
been reported in Other comprehensive income.