Volvo 2007 Annual Report Download - page 140
Download and view the complete annual report
Please find page 140 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.Parent Company AB Volvo
136 Financial information 2007
Notes and comments
Note 1 Accounting principles
General information
The accounting principles applied by Volvo are described in Note 1 to
the consolidated fi nancial statements.
The Parent Company also applies RR 32:06 including the excep-
tion in the application of IAS 39 which concerns accounting and valu-
ation of fi nancial contracts of guarantee in favour of subsidiaries and
associated companies.
The share-based incentive programs adopted at the Annual Gen-
eral Meeting as from 2004 are covered by IFRS 2 Share-based pay-
ments.
The Volvo Group has adopted IAS 19 Employee Benefi ts in its
fi nancial reporting. The parent company is still applying the principles
of FAR’s Recommendation No. 4 “Accounting of pension liabilities and
Amounts in SEK M unless otherwise specifi ed. The amounts within
parentheses refer to preceding year.
Intra-Group transactions
Of the Parent Company’s net sales, 677 (664) pertained to Group
companies while purchases from Group companies amounted to 421
(380).
Fees to auditors
Fees and other remunerations paid to external auditors for the fi scal
year of 2007 totaled 107 (28), of which 18 (20) for auditing, distrib-
uted between PricewaterhouseCoopers, 18 (20) and others, – (0), and
89 (8) related to non-audit services from PricewaterhouseCoopers.
pension costs” as in previous years. Consequently there are differ-
ences between the Volvo Group and the Parent Company in the
accounting for defi ned-benefi t pension plans as well as in valuation of
plan assets invested in the Volvo Pension Foundation.
The difference between depreciation according to plan and depre-
ciation allowable for tax purposes is reported as accumulated add-
itional depreciation, which is included in untaxed reserves. In the con-
solidated balance sheet a split is made between deferred tax liability
and equity capital.
Reporting of Group contributions is in accordance with a statement
issued by a special committee of the Swedish Financial Accounting
Standards Council. Group contributions are reported among Income
from investments in Group companies.
Note 2 Administrative expenses
Administrative expenses include depreciation of 1 (1) of which 1 (1) pertain to machinery and equipment and 0 (0) to buildings.