Volvo 2005 Annual Report Download - page 97

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Volvo Group 2005 93
In the transition to IFRS the following reclassifi cation is done in
the cash fl ow statement. Customer fi nance receivables, net, are
reported within Cash fl ow from operating activities, instead of as
previously being reported as Cash fl ow from investing activities.
Cash fl ow related to customer fi nancing operations arises mainly
within Volvo Financial Services (VFS). Changes in customer fi nanc-
ing are currently reported in Volvo’s cash-fl ow statement with VFS
consolidated in accordance with the equity method as changes in
working capital, since Volvo’s operations excluding VFS do not have
any signifi cant customer fi nancing operations. Changes in customer
fi nancing operations are reported on a separate line in Volvo’s cash-
fl ow statement including VFS. Volvo’s reported Operating Cash fl ow
is not affected by the reclassifi cation.
Classifi cation of leasing contracts in segment reporting of
Volvo Financial Services
In accordance with IFRS, operating lease contracts with end-cus-
tomers are in segment reporting for Volvo Financial Services
reported as fi nancial leasing contracts if the residual value in these
contracts is guaranteed to Volvo Financial Services by another Volvo
business area. In the Volvo Group’s consolidated balance sheet,
these leasing agreements are still reported as assets under operat-
ing lease. In comparison with the 2004 closing approximately SEK
12 billion is reclassifi ed to fi nancial leases from operating leases in
the Volvo Financial Services segment reporting.
Cash-fl ow statement According to previous presentation Presentation according to IFRS
SEK billion 2004 2005 2004 2005
Operating activities
Operating income 14,7 18,2 14,7 18,2
Depreciation and amortization 10,0 9,9 10,0 9,9
Other non-cash items (0,1) 0,4 (0,1) 0,4
Change in working capital (1,4) (4,7) (1,4) (4,7)
Customer Finance receivables, net (7,4) (7,8)
Financial items and income taxes (0,5) (2,0) (0,5) (2,0)
Cash fl ow from operating activities 22,7 21,8 15,3 14,0
Investing activities
Investments in fi xed assets (7,4) (10,3) (7,4) (10,3)
Investment in leasing vehicles (4,4) (4,5) (4,4) (4,5)
Disposal of fi xed assets and leasing vehicles 2,4 2,6 2,4 2,6
Customer Finance receivables, net (7,4) (7,8)
Operating cash fl ow 5,9 1,8 5,9 1,8