Volvo 2003 Annual Report Download - page 77

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75
Deferred taxes relate to estimated tax on the change in tax-loss car-
ryforwards and temporary differences. Deferred tax assets are
reported to the extent that it is probable that the amount can be uti-
lized against future taxable income.
Deferred taxes related to change in tax-loss carryforwards amount
to 148 (1,111; 1,110) and to changes in other temporary differences
to 10 (10; 2). No income taxes have been debited or credited direct-
ly to equity.
The table below shows the principal reasons for the difference
between the corporate income tax (28%) and the tax for the period.
Note 8Income taxes
2001 2002 2003
Current taxes (280) (51) —
Deferred taxes 1,112 1,121 158
Total income taxes 832 1,070 158
Current taxes were distributed as follows:
Current taxes 2001 2002 2003
Current taxes for the period – – —
Adjustment of current taxes for prior periods (280) (51) —
Total income taxes (280) (51) —
2001 2002 2003
Income after financial items 10,282 (3,555) (2,347)
Income tax according to applicable tax rate (28%) (2,879) 995 657
Capital gains 81 1 87
Non-taxable dividends 7,353 350 1,362
Recognition of deferred tax assets – (70) –
Non-deductible write-downs of shareholdings (3,421) (150) (1,831)
Other non-deductible expenses (39) (11) (120)
Other non-taxable income 17 6 3
Adjustment of current taxes for prior periods (280) (51) –
Total income taxes 832 1,070 158
Specification of deferred tax assets 2001 2002 2003
Tax-loss carryforwards 1,110 2,221 2,369
Valuation allowance for doubtful receivables 1 1 2
Provision for post-employment benefits 117 125 137
Other deductible temporary differences 2 4 1
Deferred tax assets 1,230 2,351 2,509
Note 7Allocations
2001 2002 2003
Allocation to additional depreciation (1) – 0
Utilization of replacement reserve 3 – —
Total 2—0
Note 6Other financial income and expenses
Other financial income and expenses include exchange rate differ-
ences on loans, guarantee commissions from subsidiaries, unrealized
gains (losses) pertaining to a hedge for a program of employee stock
options, costs for confirmed credit facilities as well as costs of having
Volvo shares registered on various stock exchanges. In 2001 addi-
tional financial expenses attributable to a tax audit previously carried
out are included.