Volvo 2007 Annual Report Download - page 122
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Please find page 122 of the 2007 Volvo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.The Volvo Group
118 Financial information 2007
Notes to consolidated fi nancial statements
Note 32 Transactions with related parties
The Volvo Group has transactions with some of its associated com-
panies. The transactions consist mainly of sales of vehicles to dealers.
Commercial terms and market prices apply for the supply of goods
and services to/from associated companies.
2006 2007
Sales to associated companies 156 1,096
Purchase from associated companies 288 98
Receivables from associated companies, Dec 31 40 397
Liabilities to associated companies, Dec 31 39 19
Group holdings of shares in associated companies are presented in
Note 15, Shares and participations.
The Volvo Group also has transactions with Renault SA and its sub-
sidiaries. Sales to and purchases from Renault SA amounted to 151
(336) and 2,950 (4,031). Amounts due from and due to Renault SA
amounted to 40 (97) and 1,089 (1,176) respectively, at December 31,
2007. The sales were mainly from Renault Trucks to Renault SA and
consisted of components and spare parts. The purchases were mainly
made by Renault Trucks from Renault SA and consisted mainly of light
trucks. Renault Trucks has a license from Renault SA for the use of
the trademark Renault.
Rental expenses amounted to:
2006 2007
Finance leases:
Contingent rents 0 0
Operating leases:
Contingent rents (38) (10)
Rental payments (1,468) (1,053)
Sublease payments 15 13
Total (1,491) (1,050)
Book value of assets subject to fi nance lease:
2006 2007
Acquisition costs:
Buildings 151 139
Land and land improvements 72 69
Machinery and equipment 114 675
Assets under operating lease 888 403
Total 1,225 1,286
Accumulated depreciation:
Buildings (49) (45)
Land and land improvements – –
Machinery and equipment (35) (207)
Assets under operating lease (609) (200)
Total (693) (452)
Book value:
Buildings 102 94
Land and land improvements 72 69
Machinery and equipment 79 468
Assets under operating lease 279 203
Total 532 834