Volvo 2008 Annual Report Download - page 138

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Notes and comments
134
PARENT COMPANY AB VOLVO
Financial information 2008
Note 15 Provisions for pensions
Note 13 Other short-term receivables
Note 14 Untaxed reserves
Provisions for pensions and similar benefi ts correspond to the actu-
arially calculated value of obligations not insured with third parties or
secured through transfers of funds to pension foundations. The
amount of pensions falling due within one year is included. AB Volvo
has insured the pension obligations with third parties. Of the amount
reported, 41 (0) pertains to contractual obligations within the frame-
work of the PRI (Pension Registration Institute) system.
The Volvo Pension Foundation was formed in 1996. Plan assets
amounting to 224 were contributed to the foundation at its formation,
corresponding to the value of the pension obligations at that time.
2007 2008
Accounts receivable 26 35
Prepaid expenses and accrued income 180 162
Other receivables 4 25
Total 210 222
The composition of, and changes in, untaxed reserves Value in balance
sheet 2007 Allocations 2008
Value in balance
sheet 2008
Tax allocation reserve 3,230 (2,530) 700
Accumulated additional depreciation
Land 3–3
Machinery and equipment 101
Total 3,234 (2,530) 704
Since its formation, net contributions of 25 have been made to the
foundation.
AB Volvo’s pension costs amounted to 95 (96).
The accumulated benefi t obligation of all AB Volvo’s pension obli-
gations at year-end 2008 amounted to 570, which has been secured
in part through provisions for pensions and in part through funds in
pension foundations. Net asset value in the Pension Foundation,
marked to market, accruing to AB Volvo was 42 lower than the cor-
responding pension obligations. A provision was recorded to cover
this defi cit.
The valuation allowance for doubtful receivables amounted to 5 (5) at
the end of the year.