Volvo 2008 Annual Report Download - page 127
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123
Financial information 2008
Derecognition of fi nancial assets
Financial assets that have been transferred in such a way that part or
all of the fi nancial assets do not qualify for derecognition, are included
in reported assets of the Volvo Group. In accordance with IAS 39
Financial Instruments, Recognition and Measurement, an evaluation
is made whether substantially all the risks and rewards have been
transferred to an external part. When Volvo has concluded that it is
not the case, the part of the fi nancial assets that refl ect Volvo’s con-
tinuous involvement are being recognized. On December 31, 2008,
Volvo recognizes SEK 3.9 (3.4) billion corresponding to Volvo’s con-
tinuous involvement, mostly within the customer fi nancing operations.
Of this balance, SEK 3.8 (3.0) billion derives from credit guarantees
for customer fi nance receivables that Nissan Diesel has entered into.
A corresponding amount is reported as a fi nancial liability.
Gains, losses, interest income and expenses related to fi nancial instruments
The table below shows how gains and losses as well as interest income and expense have affected income after fi nancial items in the Volvo
Group divided on the different categories of fi nancial instruments.
2007 2008
Gains/
Losses
Interest
income
Interest
expenses
Gains/
Losses
Interest
income
Interest
expenses
Financial assets and liabilities
at fair value through profi t and loss
Marketable securities 898 00864 00
Derivatives for fi nancial exposure (403) 00(924) 00
Loans receivable and other receivables 0 37 0011 0
Financial assets available for sale
Shares and participations for which a market value
can be calculated 8––42 ––
Shares and participations for which a market value
cannot be calculated 98 ––60 ––
Cash and cash equivalents – 249 00362 0
Financial liabilities valued at amortized cost 30(4,048) (1) 0 (5,083)
Effect on income 604 286 (4,048) 41 373 (5,083)
Net effect of foreign exchange gains and losses
Foreign exchange gains and losses pertaining to fi nancial instruments have affected income after fi nancial items in
the Volvo Group according to the below below.
2007 2008
Derivative instruments 1,364 (812)
Cash and cash equivalents (191) (421)
Loans originated by the company and Financial liabilities value at amortized cost – Volvo internal (133) 12,373
Loans originated by the company and Financial liabilities value at amortized cost – External (965) (11,041)
Effect on income 75 99
Various categories of fi nancial instruments are treated separately in
specifi c notes. See note 15 for Shares and participations, notes 16
and 19 for Customer-fi nancing receivables, note 20 for Other short-
term receivables, note 21 for Marketable securities, note 22 for Cash
and cash equivalents, note 26 for Non-current liabilities and note 27
for Current liabilities.