Volvo 2008 Annual Report Download - page 136

Notes and comments
132
PARENT COMPANY AB VOLVO
Financial information 2008
Note 10 Income taxes
2007 2008
Current taxes (1,024) 191
Deferred taxes 2 35
Total income taxes (1,022) 226
Current taxes were distributed as follows:
2007 2008
Current taxes for the period (1,036) –
Adjustment of current taxes for prior
periods 12 191
Total current taxes (1,024) 191
Claims as a consequence of tax audit carried out previously for which
provisions are not deemed necessary amount to 184 (–). The amount
is included in contingent liabilities.
Deferred taxes relate to estimated tax on the change in tax-loss
carryforwards and temporary differences. Deferred tax assets are
reported to the extent that it is probable that the amount can be utilized
against future taxable income.
Deferred taxes related to change in tax-loss carryforwards amount
to 78 (–) and to changes in other temporary differences to neg 43 (2).
The table below shows the principal reasons for the difference
between the corporate income tax (28%) and the tax for the period.
2007 2008
Income before taxes 4,214 16,599
Income tax according to applicable tax
rate (28%) (1,180) (4,648)
Capital gains/losses (35) 746
Non-taxable dividends 235 4,308
Non-taxable revaluations of shareholdings (42) (281)
Other non-deductible expenses (15) (83)
Other non-taxable income 38
Adjustment of current taxes for prior periods 12 191
Recognition and derecognition of deferred
tax assets due to change in tax rate – (15)
Income taxes for the period (1,022) 226
Specifi cation of deferred tax assets 2007 2008
Tax-loss carryforwards – 78
Valuation allowance for doubtful receivables 11
Provision for post-employment benefi ts 198 155
Deferred tax assets 199 234
Note 11 Intangible and tangible assets
Acquisition cost Value in balance
sheet 2007
Capital
expenditures
Sales/
scrapping
Value in balance
sheet 2008
Rights 52 ––52
Other intangible assets – 116 – 116
Total intangible assets 52 116 – 168
Buildings 6––6
Land and land improvements 3––3
Machinery and equipment 46 0 (1) 45
Total tangible assets 55 0 (1) 54
Accumulated depreciation Value in balance
sheet 20071Depreciation2
Sales/
scrapping
Value in balance
sheet 2008
Net carrying
value in balance
sheet 20083
Rights 52 ––52 0
Other intangible assets –6–6110
Total intangible assets 52 6–58 110
Buildings 11–24
Land and land improvements 00–03
Machinery and equipment 37 0 (1) 36 9
Total tangible assets 38 1 (1) 38 16
The assessed value of buildings was 3 (3) and of land 2 (2). Capital
expenditures in intangible and tangible assets amounted to 116 (–)
and 0 (1) respectively. Capital expenditure in intangible assets relate
to a competition clause included in the agreement with Eicher Motors
Limitied. Capital expenditures approved but not yet implemented at
year-end 2008 amounted to 2 (2).
1 Including accumulated write-downs.
2 Including write-downs.
3 Acquisition value, less accumulated depreciation, amortization and write-
downs.