Volvo 2012 Annual Report Download - page 162
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NOTE 32
CHANGES IN VOLVO GROUP FINANCIAL REPORTING 2012
New organisation
As of January 1, 2012, the Volvo Group introduced a new functional organization.
Read more about the Volvo Group’s new organization as from January 1, 2012
in Note 6.
Impact on segment reporting
Under the prior organization, the Trucks operations were organized in four
business areas, which were aggregated to one reportable segment for
Trucks. Under the new organization, the consolidation of the four truck
areas into one Trucks business area is further emphasizing the utilization
of resources between the different brands to optimize the overall global
potential for the Trucks business. Therefore, the overall Truck business is
considered one single operating segment under the new organization.
The Volvo Group will thus continue to be reported in the six segments
Trucks, Construction Equipment, Buses, Volvo Penta, Customer Finance
and Group functions and other. The reported segment information is
based on the information used internally by the chief operating decision
maker, i.e. the Volvo Group CEO.
The heading Group functions and other contains the cost of corporate
functions, external business related to the business support functions and
the operations within business areas Volvo Rents and Governmental Sales.
Impact on goodwill impairment testing
The Trucks segment is considered one single cash generating unit (CGU)
under the new organization. Goodwill related to the area Trucks are therefore
from 2012 evaluated based on the cash generation capacity of the overall
Trucks segment.
Restatement of financial reporting for 2011
The implementation of the functional organization has resulted in a realloca-
tion of responsibilities within the Group. As a consequence, certain cost
items have been redefined from a functional perspective, causing a shift
between the lines in the income statement of the Volvo Group as well as the
income statement of the Industrial Operations. In addition, as a result of the
reorganization as well as the financial framework, certain sales and cost
items are reported differently from a segment reporting perspective from
2012. To facilitate comparability between the years, 2011 income statement
and segment reporting data has been restated.
The impact of the restatement of the income statement for 2011 and
the segment reporting for 2011 due to the new organization are disclosed
on page 159.
NOTES TO FINANCIAL STATEMENTS
FINANCIAL INFORMATION 2012
158