Volvo 2008 Annual Report Download - page 134

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Notes and comments
130
PARENT COMPANY AB VOLVO
Financial information 2008
General information
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, 707 (677) pertained to Group
companies while purchases from Group companies amounted to 406
(421).
Fees to external auditors
Fees and other remunerations paid to PricewaterhouseCoopers for
the fi scal year of 2008 totaled 23 (107), of which 16 (18) for auditing
and 7 (89) related to non-audit services.
Note 1 Accounting principles
Note 2 Administrative expenses
Note 3 Other operating income and expenses
The accounting principles applied by Volvo are described in note 1 to
the consolidated fi nancial statements.
The Parent Company also applies RFR 2.1 including the exception
in the application of IAS 39 which concerns accounting and valuation
of fi nancial contracts of guarantee in favour of subsidiaries and asso-
ciated 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 SRS’s Recommendation No. 4 “Accounting of pension liabili-
Administrative expenses include depreciation of 7 (1) of which 0 (1) pertain to machinery and equipment, 1 (0) to buildings and 6 (–) to other
intangible assets.
Other operating income and expenses include profi t-sharing payments to employees in the amount of 0 (1).
ties and pension costs” as in previous years. Consequently there are
differences 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 tax
depreciation is reported as accumulated additional depreciation,
which is included in untaxed reserves. In the consolidated balance
sheet a split is made between deferred tax liability and equity.
Reporting of Group contributions is in accordance with a statement
issued by the Swedish Financial Reporting Board. Group contributions
are reported among Income from investments in Group companies.