Volvo 2008 Annual Report Download - page 124

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120
THE VOLVO GROUP
Financial information 2008
Notes to consolidated fi nancial statements
Change of valuation allowances for doubtful
customer fi nancing receivables 2008
Balance sheet, December 31, preceding year 1,363
New valuation allowance charged to income 483
Reversal of valuation allowance charged to income (39)
Utilization of valuation allowance related to actual losses (475)
Translation differences 110
Balance sheet, December 31 1,442
For details regarding the long-term customer fi nance receivables and
the short-term customer receivables, refer to Note 16 and 19.
Age analysis of portfolio value - Accounts receivable and Customer fi nancing receivables
2007 2008
Accounts receivable not due 1–30 31–90 >90 Total not due 1–30 31–90 >90 Total
Accounts receivable gross 27,520 1,930 704 1,273 31,427 27,045 2,008 1,266 1,953 32,272
Valuation allowance for doubtful
accounts receivable (214) (39) (71) (599) (923) (400) (63) (79) (1,207) (1,749)
Accounts receivable not
recognized as impairment losses 27,306 1,891 633 674 30,504 26,645 1,945 1,187 746 30,523
2007 2008
Customer fi nancing receivables
payments due not due 1–30 31–90 >90 Total not due 1–30 31–90 >90 Total
Overdue amount – 597 173 126 896 – 955 497 387 1,839
Valuation allowance for doubtful
customer fi nancing receivables (159) (46) (70) (115) (390) (82) (65) (149) (146) (442)
Customer fi nancing receiv ables
not recognized as impairment
losses (159) 551 103 11 506 (82) 890 348 241 1,397
The table above presents overdue payments within the customer
fi nancing operations in relation to specifi c reserves. The total con-
tractual amount that the overdue payments are pertaining to are pre-
sented in the table below. In order to provide for occured but not yet
identifi ed customer fi nancing receivables overdues, there are add-
itional reserves of 1,000 (973). The remaining exposure is secured by
liens on the purchased equipment, and, in certain circumstances,
other credit enhancements such as personal guarantees, credit insur-
ance, liens on other property owned by the borrower etc.
Collaterals taken in possession that meet the recognition criteria
amounted to 748 (130) at December 31, 2008.
Customer fi nancing receiva-
bles total exposure
2007 2008
not due 1–30 31–90 >90 Total not due 1–30 31–90 >90 Total
Customer fi nancing receiv ables 66,812 10,527 2,162 709 80,210 83,618 9,237 4,129 2,947 99,931
Renegotiated fi nancial assets
Financial assets that would otherwise have been overdue whose
terms have been renegotiated amount to 2,826 (937) and are mainly
related to renegotiated customer contracts within the customer
fi nance operations.