Volvo 2005 Annual Report Download - page 142

Parent Company AB Volvo
138 Volvo Group 2005
The valuation allowance for doubtful receivables amounted to 5 (5)
at the end of the year.
Of other receivables in 2004, 979 pertained to a receivable from
Renault SA. AB Volvo and Renault SA signed a settlement agree-
ment 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.
Note 13 Other short-term receivables
2004 2005
Accounts receivable 14 14
Prepaid expenses and accrued income 135 72
Other receivables 994 28
Total 1,143 114
Note 14 Short-term investments in Group companies
Short-term investments in Group companies comprise deposits of 7,047 (6,558) in Volvo Treasury.
Note 15 Untaxed reserves
Value in Value in
The composition of, and changes balance sheet Allocations balance sheet
in, untaxed reserves: 2004 2005 2005
Accumulated additional depreciation
Land 3 – 3
Machinery and equipment 1 0 1
Total 4 0 4
Note 16 Provisions for pensions
Pro v is io ns for pensi on s and simil a r b e ne fi t s cor r e sp on d to th e act u-
ar i al ly ca l cu la te d valu e of o bl ig at io ns not insure d wit h thir d p a rt i es or
sec ur ed thr ou gh tra ns f er s of f un ds to p e nsi on foun da ti on s . The
am oun t of p en si ons fa lli ng due wit hi n one y e ar is inclu de d . AB Vol vo
ha s insure d the pens io n obli ga ti on s with thi rd parti e s . Of the amou nt
rep o rt e d , 0 (26) p e r ta in s to c on tr act u al obl ig at io ns wi thi n the fra me -
wor k of t he PRI (Pensi o n Re g is tr at i on Ins ti tu te) s ys t em . The
exc ha ng e in 200 5 of d efi ned- be ne fi t pe ns io n pla ns by defi n ed - co n-
tr ib u ti on pla n s for c e rt ai n seni or exec u ti v e s has resu l te d in a
de cr e a se of p r ov is io ns for pen si on s . For furthe r infor m at i on see
Not e 34 to t he con so li d at ed fi nan ci a l st a te me nts .
Th e Vol vo Pens io n Foun da t io n was for m ed in 1996 . Pl a n asse t s
am ou nt in g to 2 24 we re co nt r ib ut e d to t he fou nd at i on at its for m a-
tio n , cor r e sp o nd in g to t h e valu e of the p e ns io n obl ig at i on s at t ha t
tim e . Sin ce it s for m at io n , net con tr i bu t io ns of 25 ha ve be en mad e to
the fou nd at io n .
AB Volvo’s pen si on cos t s am ou nt ed to 93 (79).
Th e accu mul at ed be ne fi t obl ig at io n of a ll AB Vol vo’s pens io n obli -
gat io ns at year-e nd 20 05 amo un te d to 6 37, whi c h has bee n secu re d
in part t hr ou gh pro vi si on s for p e nsi ons an d i n part t hr ou gh fun ds in
pe nsi on foun da ti on s . Net asse t valu e in t he Pensi on Foun da ti on ,
ma rk ed to mar ket, a c cr ui ng to AB Vol vo was 53 high er tha n cor re -
sponding pension obligations .
Notes to fi nancial statements