Volvo 2005 Annual Report Download - page 140

Parent Company AB Volvo
136 Volvo Group 2005
Note 11Intangible and tangible assets
Value in Value in
balance sheet Capital Sales/ balance sheet
Acquisition cost 2004 expenditures scrapping 2005
Rights 52 – – 52
Total intangible assets 52 – – 52
Buildings 9 – (3) 6
Land and land improvements 4 – (1) 3
Machinery and equipment 49 0 (1) 48
Total tangible assets 62 0 (5) 57
Value in Value in Net carryng
balance sheet Sales/ balance sheet value in balance
Accumulated depreciation 2004 2 Depreciation 1 scrapping 2005 2 sheet 2005 3
Rights 52 – – 52 0
Total intangible assets 52 – – 52 0
Buildings 1 0 0 1 5
Land and land improvements – 0 – 0 3
Machinery and equipment 40 1 (1) 40 8
Total tangible assets 41 1 (1) 41 16
1 Including write-downs.
2 Including accumulated write-downs.
3 Acquisition value, less accumulated depreciation, amortization and write-
downs.
The assessed value of buildings was 3 (5) and of land 1 (2). Capital
expenditures in tangible assets amounted to 0 (2). Capital expendi-
tures approved but not yet implemented at year-end 2005 amounted
to 0 (0).
The table below shows the principal reasons for the difference
between the corporate income tax (28%) and the tax for the period.
2004 2005
Income before taxes 6,484 5,590
Income tax according to applicable tax rate (28%) (1,815) (1,565)
Capital gains 184 149
Non-taxable dividends 46 2,565
Non-taxable revaluations of shareholdings (153) (2,358)
Other non-deductible expenses 26 (24)
Other non-taxable income 282 3
Adjustment of current taxes for prior periods 92 –
Total income taxes (1,338) (1,230)
Specifi cation of deferred tax assets 2004 2005
Tax-loss carryforwards 942 –
Valuation allowance for doubtful receivables 1 1
Provision for post-employment benefi ts 154 177
Other deductible temporary differences 0 20
Other taxable temporary differences (110) –
Deferred tax assets 987 198
Note 10 Income taxes
2004 2005
Current taxes 92 (331)
Deferred taxes (1,430) (899)
Total income taxes (1,338) (1,230)
Current taxes were distributed as follows:
Current taxes 2004 2005
Current taxes for the period – (331)
Adjustment of current taxes for prior periods 92 –
Total income taxes 92 (331)
Claims as a consequence of tax audit carried out previously for
which provisions are not deemed necessary amount to – (135). The
amount is included in contingent liabilities.
Deferred taxes relate to estimated tax on the change in tax-loss
carryforwards and temporary differences. Deferred tax assets are
reported to the extent that it is probable that the amount can be
utilized against future taxable income.
Deferred taxes related to change in tax-loss carryforwards
amount to –942 (–1,427) and to changes in other temporary differ-
ences to 43 (–3). Income taxes of 110 regarding prior periods have
been debited directly to equity in connection with change of
accounting principle.
Notes to fi nancial statements