Volvo 2010 Annual Report Download - page 111

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Change of valuation allowances for doubtful
customer financing receivables 2010
Balance sheet, December 31, preceding year 1,513
New valuation allowance charged to income 1,586
Reversal of valuation allowance charged to income (207)
Utilization of valuation allowance related to actual losses (1,451)
Translation differences (116)
Balance sheet, December 31 1,325
For details regarding the long-term customer-financing receivables
and the short-term customer receivables, refer to note 16 and 19.
Age analysis of portfolio value – Accounts receivable and Customer financing receivables (days/SEK M)
2009 2010
Accounts receivable not due 1–30 31–90 >90 Total not due 1–30 31–90 >90 Total
Accounts receivable gross 19,705 1,032 616 1,285 22,638 23,324 799 391 640 25,154
Valuation allowance for doubtful
accounts receivable (493) (37) (46) (725) (1,301) (205) (26) (26) (464) (721)
Accounts receivable not
recognized as impairment losses 19,212 995 570 560 21,337 23,119 773 365 176 24,433
2009 2010
Customer financing receivables
payments due not due 1–30 31–90 >90 Total not due 1–30 31–90 >90 Total
Overdue amount – 655 560 740 1,955 – 490 405 805 1,700
Valuation allowance for doubtful
customer financing receivables (99) (111) (159) (313) (682) (91) (56) (74) (308) (530)
Customer financing receiv ables
not recognized as impairment
losses (99) 544 401 427 1,273 (91) 434 331 497 1,170
The table above presents overdue payments within the customer
financing operations in relation to specific reserves. The total contrac-
tual amount that the overdue payments are pertaining to are pre-
sented in the table below. In order to provide for occured but not yet
identified customer financing receivables overdue, there are addi-
tional reserves of 795 (831). The remaining exposure is secured by
liens on the purchased equipment, and, in certain circumstances,
other credit enhancements such as personal guarantees, credit insur-
ance, liens on other property owned by the borrower etc.
Collaterals taken in possession that meet the recognition criteria
amounted to 594 (1,391) at December 31, 2010.
Customer financing
receivables total contractual
amount
2009 2010
not due 1–30 31–90 >90 Total not due 1–30 31–90 >90 Total
Customer financing receiv ables 67,692 7,886 4,511 3,401 83,490 63,153 6,425 2,369 2,066 74,013
Renegotiated financial assets
Financial assets that would otherwise have been overdue whose
terms have been renegotiated amount to 6,578 (8,948) and are
mainly related to renegotiated customer contracts within the cus-
tomer finance operations.
107