Volvo 2009 Annual Report Download - page 122

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Notes and comments
General information
Amounts in SEK M unless otherwise specified. The amounts within
parentheses refer to preceding year.
Intra-Group transactions
Of the Parent Company’s net sales, 578 (707) pertained to Group
companies while purchases from Group companies amounted to
357 (406).
Fees to external auditors
Fees and other remunerations paid to PricewaterhouseCoopers for
the fiscal year 2009 totaled 19 (23), of which 18 (16) for auditing and
1 (7) relating 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 financial statements.
The Parent Company also applies RFR 2.2 including the exception
in the application of IAS 39 which concerns accounting and valuation
of financial contracts of guarantee in favour of subsidiaries and asso-
ciated companies. The Parent Company decided to early adopt the
amended RFR 2.2 regarding presentation of comprehensive income
applied as of 2010, from January 1, 2009.
The share-based incentive programs adopted at the Annual Gen-
eral Meeting as from 2004 are covered by IFRS 2 Share-based
p a y m e n t s .
The Volvo Group has adopted IAS 19 Employee Benefits in its
financial reporting. The parent company is still applying the principles
Administrative expenses include depreciation of 14 (7) of which 0 (0) pertain to machinery and equipment, 0 (1) to buildings and 14 (6) to other
intangible assets.
Other operating income and expenses include profit-sharing payments to employees in the amount of 1 (0).
of FAR SRS’s Recommendation No. 4 “Accounting of pension liabil-
ities and pension costs” as in previous years. Consequently there are
differences between the Volvo Group and the Parent Company in the
accounting for defined-benefit 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 UFR 2,
a statement issued by the Swedish Financial Reporting Board. Group
contributions are reported among Income from investments in Group
companies.
FINANCIAL INFORMATION 2009
118