Volvo 2006 Annual Report Download - page 150
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146 Financial information 2006
Parent Company AB Volvo
The valuation allowance for doubtful receivables amounted to 5 (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 2006
Accounts receivable 14 14 17
Prepaid expenses and accrued income 135 72 35
Other receivables 994 28 37
Total 1,143 114 89
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 Value in
The composition of, and changes balance sheet Allocations balance sheet Allocations balance sheet
in, untaxed reserves 2004 2005 2005 2006 2006
Tax allocation reserve – – – 2,000 2,000
Accumulated additional depreciation
Land 3 – 3 – 3
Machinery and equipment 1 0 1 0 1
Total 4 0 4 2,000 2,004
Note 16 Provisions for pensions
Provisions for pensions and similar benefi ts correspond to the actu-
arially calculated value of obligations not insured with third parties or
secured through transfers of funds to pension foundations. The
amount of pensions falling due within one year is included. AB Volvo
has insured the pension obligations with third parties. Of the amount
reported, 0 (0; 26) pertains to contractual obligations within the
framework of the PRI (Pension Registration Institute) system. The
exchange in 2005 of defi ned-benefi t pension plans by defi ned-con-
tribution plans for certain senior executives has resulted in a
decrease of provisions for pensions. For further information see
Note 34 to the consolidated fi n ancial statements.
The Volvo Pension Foundation was formed in 1996. Plan assets
amounting to 224 were contributed to the foundation at its forma-
tion, corresponding to the value of the pension obligations at that
time. Since its formation, net contributions of 25 have been made to
the foundation.
AB Volvo’s pension costs amounted to 90 (93; 79).
The accumulated benefi t obligation of all AB Volvo’s pension obli-
gations at year-end 2006 amounted to 576, which has been secured
in part through provisions for pensions and in part through funds in
pension foundations. Net asset value in the Pension Foundation,
marked to market, accruing to AB Volvo was 71 higher than corre-
sponding pension obligations.
Notes to financial statements