Volvo 2011 Annual Report Download - page 125

Download and view the complete annual report

Please find page 125 of the 2011 Volvo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 166

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166

FEES TO THE AUDITORS
28
NOTE
Fees to the auditors 2011 2010
PricewaterhouseCoopers  
– Audit fees 97 102
– Audit-related fees 4 6
– Tax advisory services 18 16
– Other fees 8 3
Total 127 127
Audit fees to others 1 1
Volvo Group Total 128 128
Audit involves examination of the Annual report, financial accounting and
the administration by the Board and the President. Audit-related assign-
ments mean quality assurance services required by enactment, articles of
association, regulations or agreement. The amount includes the fee for
the half-year review. Tax services include both tax consultancy and tax
compliance services. All other tasks are defined as other.
Cash-flow analysis
The cash-flow statement is prepared in accordance with IAS 7, Cash flow
statement, indirect method. The cash-flow statements of foreign Group
companies are translated at the average rate. Changes in Group struc-
ture, acquisitions and divestments, are recognized net, excluding cash
and cash equivalents, in the item Acquisition and divestment of subsidiar-
ies and other business units and are included in cash flow from Investing
activities.
Cash and cash equivalents include cash, bank balances and parts of
marketable securities, with date of maturity within three months at the
time for investment. Marketable securities comprise interest-bearing
securities, the majority of which with terms exceeding three months. How-
ever, these securities have high liquidity and can easily be converted to
cash. In accordance with IAS 7, certain investment in marketable securi-
ties are excluded from the definition of cash and cash equivalents in the
cash-flow statement if the date of maturity of such instruments is later
than three months after the investment was made.
Other items not affecting cash
amounted to: 2011 2010
Risk provisions and losses related to doubtful
accounts receivable/customer-financing
receivables 801 1,401
Capital gains/losses on the sale of
subsidiaries and other business units 19 34
Unrealized exchange rate gains/losses
onaccounts receivable and payable (249) (44)
Provision for global profit sharing program 550 350
Fair value commercial derivatives 276 (220)
R&D tax credit (283) –
Write-down of assets held for sale 54 65
Reversal of write-down of assets held for sale (60) –
Othernon-cash items 154 (25)
1,262 1,561
Investments in shares and
participations: 2011 2010
New issue of shares (9) (13)
Capitalcontribution (15) (31)
Acquisitions (165) (154)
Divestments 69 91
Other 1 1
(119) (106)
Acquired and divested subsidiaries and
other business units: 2011 2010
Acquired subsidiaries and other
business units (1,528) (214)
Divested subsidiaries and other
business units (62) 831
(1,590) 617
Important increase/decrease in bond loans and other loans
In 2011, the Volvo Group reduced its borrowings as a consequence of a
strong cash flow. In 2010, the Volvo Group reduced its borrowings as a
consequence of a strong cash flow and lower demands of funding from
the Customer Finance Operations.
CASH-FLOW
29
NOTE
ACCOUNTING POLICY
The cost for non-monetary benefits in the Group amounted to 1,876.8
(1,554.3) of which 68.8 (59.3) to Board members and Presidents.
The cost for non-monetary benefits in the Parent Company amounted
to 9.6 (9.0) of which 1.9 (1.7) to Board members and Presidents.
121