Volvo 2004 Annual Report Download - page 102

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100 Parent Company AB Volvo
Notes to financial statements
Note 12 Other short-term receivables
2002 2003 2004
Accounts receivable 45 16 14
Prepaid expenses and accrued income 48 48 135
Other receivables 157 21 994
Total 250 85 1,143
Note 16 Other provisions
Other provisions comprise provisions for taxes in the amount of – (21; 21).
Note 13 Short-term investments in Group companies
Short-term investments in Group companies comprise deposits of 6,558 (924; 9,045) in Volvo Treasury.
Note 14 Untaxed reserves
Value in Value in Value in
The composition of, and changes in, balance sheet Allocations balance sheet Allocations balance sheet
untaxed reserves: 2002 2003 2003 2004 2004
Tax allocation reserve 1,525 – 1,525 (1,525) –
Accumulated additional depreciation
Land 3 – 3 – 3
Machinery and equipment 00011
Total 1,528 0 1,528 (1,524) 4
Note 15 Provisions for pensions
Provisions for pensions and similar benefits correspond to the actu-
arially calculated value of obligations not insured with third parties
or secured through transfers of funds to pension foundations. The
amount of pensions falling due within one year is included. AB Volvo
has insured the pension obligations with third parties. Of the amount
reported, 26 (42; 60) pertains to contractual obligations within the
framework of the PRI (Pension Registration Institute) system.
In 1996, two Groupwide pension foundations for employees were
formed to secure commitments in accordance with the ITP plan. The
Volvo 1995 Pension Foundation pertained to pension funds earned
through 1995 and the Volvo 1996 Pension Foundation pertained to
funds earned beginning in 1996. During 2000 these two foun-
dations merged into one foundation. No pension funds have been
transferred from AB Volvo to the Volvo Pension Foundation and no
withdrawals have been made.
AB Volvo’s pension costs in 2004 amounted to 79 (85; 168).
The accumulated benefit obligation of all AB Volvo’s pension obli-
gations at year-end 2004 amounted to 823, which has been
secured in part through provisions for pensions and in part through
funds in pension foundations. Net asset value in the Pension
Foundation, marked to market, accruing to AB Volvo was 26 lower
than corresponding pension obligations. A provision was recorded to
cover this deficit.
Note 11 Other long-term receivables
2002 2003 2004
Deferred tax assets 2,351 2,509 1,097
Other receivables 11 11 12
Total 2,362 2,520 1,109
The valuation allowance for doubtful receivables amounted to 5
(7; 5) at the end of the year.
Of other receivables 979 pertained to a receivable from Renault
SA. AB Volvo and Renault SA signed a settlement agreement
regarding the disagreement the companies have had since 2001
pertaining to Volvo's acqusition of Renault V.I. According to this
settlement Renault SA transferred EUR 108 M to AB Volvo on
January 26, 2005.