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90 The Volvo Group
Notes to consolidated financial statements
January 1, 2004 December 31, 2004
Carrying value 1Fair value 2Carrying value 1Fair value 2
Available for sale
Marketable securities 446 446 387 387
Shares and convertible debenture loan 22,963 20,648 677 183
Trading 19,083 19,072 25,400 25,400
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
statement. However, no differences was identified in relation to busi-
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, 2004 25,400 25,400 0 0 0
Trading, January 1, 2004 19,083 19,072 (11) 3 (8)
Change 2004 11 (3) 8
Available for sale
Marketable securities 387 387 – – –
Shares and convertible debenture loan 677 183 (494) 0 0
Available for sale
December 31, 2004 1,057 563 (494) 0 (494)
January 1, 2004 23,409 21,094 (2,315) (29) (2,344)
Change 200431,821 29 1,850
ness transactions during 2003. During 2004 the Renault Truck industrial
relocation in Spain will be treated differently under US-GAAP and
the restructuring charge will be accounted for during 2004–2006.
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 21. 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.
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 2004, 5,157 has been reported as
an increase of net income in accordance with US GAAP and (3,299) has
been reported in Other comprehensive income.