Volvo 2012 Annual Report Download - page 143

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: 2012 2011
Risk provisions and losses related to doubtful
accounts receivable/customer-financing
receivables 764 801
Capital gains/losses on the sale of
subsidiaries and other business units (596) 19
Unrealized exchange rate gains/losses on
accounts receivable and payable 224 (249)
Provision for global profit sharing program 200 550
Fair value commercial derivatives (316) 276
R&D tax credit – (283)
Write-down of assets held for sale – 54
Reversal of write-down of assets held for sale – (60)
Provision for restructuring reserves 914 –
Othernon-cash items 240 154
Total Other items not affecting cash flow 1,430 1,262
Acquired and divested shares
and participations, net 2012 2011
New issue of shares (6) (9)
Capital contribution (6) (15)
Acquisitions (1,212) (165)
Divestments 39 69
Other (1) 1
Total cash flow from acquired and
divested shares and participations, net (1,186) (119)
During 2012 AB Volvo acquired additional shares in Deutz AG, which had
a negativ impact on cash-flow of SEK 1.1 billion.
Acquired and divested subsidiaries
and other business units: 2012 2 011
Acquired subsidiaries and other
business units (1,527) (1,528)
Divested subsidiaries and other
business units 4,917 (62)
Total cash flow from acquired and divested
subsidiaries and other business units 3,390 (1,590)
Important increase/decrease in bond loans and other loans
In 2012, the Volvo Group increased its borrowings as a consequence of a
negative operational cash flow and higher demands of funding from the
Customer Finance Operations.
ACCOUNTING POLICY
NOTE 29
CASH-FLOW
Fees to the auditors 2012 2 011
PricewaterhouseCoopers AB
– Audit fees 102 97
– Audit-related fees 6 4
– Tax advisory services 17 18
– Other fees 31 8
Total 156 127
Audit fees to others 2 1
Volvo Group Total 158 128
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.
NOTE 28
FEES TO THE AUDITORS
139