Volvo 2011 Annual Report Download - page 85

NOTES TO FINANCIAL STATEMENTS
Amounts in SEK M unless otherwise specified. The amounts within parentheses refer to the preceding year, 2010.
The consolidated financial statements for AB Volvo and its subsidiaries have
been prepared in accordance with International Financial Reporting Stand-
ards (IFRS) issued by the International Accounting Standards Board (IASB),
as adopted by the EU. The portions of IFRS not adopted by the EU have no
material impact on this report. This Annual Report is prepared in accordance
with IAS 1 Presentation of Financial Statements and with the Swedish Com-
panies Act. In addition, RFR 1 Supplementary Rules for Groups, has been
applied, which is issued by the Swedish Financial Reporting Board. As of
2005, Volvo has applied International Financial Reporting Standards (IFRS)
in its financial statements. In accordance with the IFRS transitions rules in
IFRS 1, Volvo applies retrospective application from the IFRS transition date
at January 1, 2004. The details of the transition from Swedish GAAP to IFRS
are set out in Note 3 in the annual reports of 2005 and 2006. Refer to the
2004 Annual Report for a description of the previous Swedish accounting
policies applied by Volvo.
How should Volvo’s accounting policies be read?
Volvo describes the accounting policies in conjunction with each note in
the aim of providing enhanced understanding of each accounting area.
Volvo focuses on describing the accounting choices that the Group has
made within the framework of the prevailing IFRS policy and avoids
repeating the actual text of the standard, unless Volvo considers it par-
ticularly important to the understanding of the note’s content. Refer to the
table below to see the note in which each accounting policy is listed and
for the relevant and material IFRS standard.
ACCOUNTING PRINCIPLES
1
NOTE
Accounting principle Note IFRS-standard
Non-currentassets held for sale and discontinued
operations 3, Acquisitions and divestments of sharesin subsidiaries IFRS 5
Joint ventures 5, Shares and participations IAS 31
Investments in associates 5, Shares and participations IAS 28
Operating segments 6, Segment reporting IFRS 8
Revenue 7, Income IAS 17, IAS 18
Shares and participations 5, Shares and participations IAS 28, IAS 32, IAS 36,
IAS 39
Financial income and expenses 9, Other financial income and expenses IAS 39
Income taxes 10, Income taxes IAS 12
Minority interests 11, Minority interests IAS 27
Research and development expenditure 12, Intangible assets IAS 38
Intangible assets 12, Intangible assets IAS 36, IAS 38
Tangible assets 13, Tangible assets IAS 16,IAS 40
Leasing 14, Leasing IAS 17
Customer-financing receivables 15, Customer-financing receivables IAS 17, IAS 18, IAS 39, IFRS 7
Inventories 17, Inventories IAS 2
Earnings per share 19, Shareholder's equity IAS 33
Pensions and similar obligations 20, Provisions for post-employment benefits IAS 19
Provisions for residual value risks 21, Other provisions IAS 17, IAS 18, IAS 37
Warranty expenses 21, Other provisions IAS 37
Restructuring costs 21, Other provisions IAS 37
Liabilities 22, Liabilities IAS 37, IAS 39, IFRS 7
Contingent liabilities 24, Contingent liabilities IAS 37
Transactions with related parties 25, Transactions with related parties IAS 24
Government grants 26, Government grants IAS 20
Share-based payments 27, Personnel IFRS 2
Cash-flow statement 29, Cash flow IAS 7
Financial instruments 4, Goals and policies in financial risk management IAS 32, IAS 39, IFRS 7
 16, Receivables 
 18, Marketable securities and liquid funds 
 30, Financial instruments 
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