Volvo 2004 Annual Report Download - page 98

Note 5Interest income and expenses
Interest income and similar credits amounting to 294 (139; 503)
included interest in the amount of 289 (139; 503) from subsidiaries and interest expenses and similar charges totaling 238 (196; 261),
included interest of 213 (155; 221) to subsidiaries.
96 Parent Company AB Volvo
Notes to financial statements
General information
Amounts in SEK M unless otherwise specified. The amounts within
parentheses refer to the two preceding years; the first figure is for
2003 and the second for 2002.
The accounting principles applied by Volvo are described in Note 1
to the consolidated financial statements. Reporting of Group contri-
butions is in accordance with a statement issued by a special com-
mittee of the Swedish Financial Accounting Standards Council. Group
contributions are reported among Income from investments in Group
companies.
As of 2003, the Volvo Group has adopted “RR 29 Employee
Benefits” in its financial reporting. The parent company is still apply-
ing the principles of FAR’s Recommendation No. 4 “Accounting of
pensions liabilities and pension costs” as in previous years. Conse-
quently there are differences between the Volvo Group and the
Parent Company in the accounting for defined-benefit pension plans
as well as in valuation of plan assets invested in the Volvo Pension
Foundation.
Effective in 2002, all Income from investments are included as a
part of the operating income rather than as earlier among financial
items.
Intra-Group transactions
Of the Parent Company’s sales, 426 (372; 320) were to Group com-
panies and purchases from Group companies amounted to 126
(173; 191).
Fees to auditors
Fees and other remunerations paid to external auditors for the fiscal
year 2004 totaled 26 (25; 23), of which 13 (5; 2) for auditing, dis-
tributed between PricewaterhouseCoopers, 13 (5; 2) and others, 0
(0; 0), and 13 (20; 21) related to non-audit services from
PricewaterhouseCoopers.
Note 1Administrative expenses
Administrative expenses include depreciation of 1 (1; 2) of which 1 (1; 2) pertain to machinery and equipment and 0 (0; 0) to buildings.
Note 2Income from investments in Group companies
Of the income reported, 101 (4,368; 770) pertained to dividends
from Group companies. Transfer pricing adjustments and Group con-
tributions total a net of 5,673 (–406; –3,835). Divestments of shares
resulted in capital loss of 1 (gains 60, loss 3). Write-downs of share-
holdings amounted to 1,364 (1,579; 531).
In 2003 a long-term receivable was written-down by 631.
Note 3Income from investments in associated companies
Dividends from associated companies that are reported in the Group
accounts in accordance with the equity method amounted to – (47;
44). The participation in Blue Chip Jet HB amounted to a loss of 1
(14; 25).
Of the income reported in 2003, 250 pertained to a capital gain
from the exchange of shares in Bilia AB for shares in Kommersiella
Fordon Europa AB.
Income in 2002 included a capital gain of 35 pertaining to sale of
shares in Eddo Restauranger AB.
Note 4Income from other investments
Of the income reported, 3 (508; 326) pertained to dividends from
other companies. The dividend from Bilia AB was 3 (–; –), from
Scania AB – (501; 319) and from Henlys Group Plc – (7; 7).
Revaluation of shareholdings amounted to 820 (–4,330; –), whereof
reversal of previous year’s write-down of Scania AB, 915 (–3,901; –)
and write-down of Henlys Group Plc, 95 (429; –). Divestment of
total shares in Bilia AB resulted in a capital gain of 28.