Volvo 2010 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 the preceding year, 2009.
NOTE 1 ACCOUNTING PRINCIPLES
NOTE 2 INTRA-GROUP TRANSACTIONS
The accounting principles applied by Volvo are described in note 1 to
the consolidated financial statements.
The Parent Company also applies RFR 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 associ-
ated companies. The Parent Company decided to early adopt the pres-
entation of comprehensive income applied as of 2010, from January 1,
2009.
The share-based incentive programs adopted at the Annual Gen-
eral Meeting from 2004–2009 are covered by IFRS 2 Share-based
payments.
The Volvo Group has adopted IAS 19 Employee Benefits in its
financial reporting. The Parent Company is still applying the principles
Of the Parent Company’s net sales, 499 (578) pertained to Group companies while purchases from Group companies amounted to 449 (357).
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.
NOTE 3 ADMINISTRATIVE EXPENSES
Depreciation
Administrative expenses include depreciation of 16 (14) of which 1 (0)
pertains to machinery and equipment, 0 (0) to buildings and 15 (14) to
other intangible assets.
Fees to the auditors 2009 2010
PricewaterhouseCoopers
– Audit fees 17 17
– Audit-related fees 1 1
– Tax advisory services 1 0
Total 19 18
See note 35 for the Group for a description of the different categories
of fees to the auditiors.
Personnel
Wages, salaries and other remunerations amounted to 211 (160).
Social costs amounted to 142 (87) of which pension costs, 104 (55).
Of the pension costs, 9 (8) pertained to Board members and Presi-
dents. The Parent Company does not have any outstanding pension
obligations to these individuals.
The number of employees at year-end was 198 (190). Information on
the average number of employees, wages, salaries and other remu-
nerations including option programs as well as Board members and
senior executives by gender is shown in note 34 to the consolidated
financial statements.
Absence due to illness 2009 2010
Total absence due to illness in percentage
of regular working hours 1.2 1.1
of which, continuous sick leave for 60 days
or more, % 21.4 41.4
Absence due to illness in percentage of
regular working hours
Men, % 0.7 1.1
Women, % 1.8 1.1
29 years or younger, % 0.2 3.0
30–49 years, % 1.2 1.1
50 years or older, % 1.3 0.9
FINANCIAL INFORMATION 2010
118