Volvo 2011 Annual Report Download - page 134

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Amounts in SEK M unless otherwise specified. The amounts within parentheses refer to the preceding year, 2010.
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 finan-
cial contracts of guarantee in favour of subsidiaries and associated com-
panies.
The long term share-based incentive program adopted at the Annual
General Meeting of 2011 is 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 Far’s
Recommendation RedR4 ”Accounting of pension liabilities and pension costs”
Of the Parent Company’s net sales, 620 (499) pertained to Group companies while purchases from Group companies amounted to 602 (449).
Depreciation
Administrative expenses include depreciation of 16 (16) of which 0 (1)
pertains to machinery and equipment, 1 (0) to buildings and 15 (15) to
other intangible assets.
Fees to the auditors 2011 2010
PricewaterhouseCoopers
– Audit fees 17 17
– Audit-related fees 1 1
– Tax advisory services 0 0
Total 18 18
See Note 28 for the Group for a description of the different categories of
fees to the auditors.
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 depre-
ciation 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 the alternative
rule in RFR 2. Group contributions are reported among Income from
investments in Group companies.
Personnel
Wages, salaries and other remunerations amounted to 231 (211), social
costs to 68 (61) and pension costs to 69 (81). Of the pension costs, 7 (6)
pertained to Board members and Presidents. The Parent Company has
outstanding pension obligations of 0 (–) to these individuals.
Part of social costs relate to pensions. In previous years, AB Volvo has
reclassified such portion of social costs to pension costs. In the 2011
Annual Report, this part has not been reclassified to pension costs as an
adaption to praxis. Pension costs for 2010 has been adjusted downwards
with 23.
The number of employees at year-end was 181 (198). Information on
the average number of employees, wages, salaries and other remunera-
tions including incentive program as well as Board members and senior
executives by gender is shown in note 27 to the consolidated financial
statements.
ACCOUNTING PRINCIPLES
1
NOTE
INTRA-GROUP TRANSACTIONS
2
NOTE
ADMINISTRATIVE EXPENSES
3
NOTE
FINANCIAL INFORMATION 2011
130
NOTES TO FINANCIAL STATEMENTS