Volvo 2012 Annual Report Download - page 168

Download and view the complete annual report

Please find page 168 of the 2012 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 190

  • 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
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190

Amounts in SEK M unless otherwise specified. The amounts within parentheses refer to the preceding year, 2011.
The Parent Company has prepared its financial statements in accordance
with the Swedish Annual Accounts Act (1995:1554) and RFR2, Account-
ing for Legal entities. According to RFR2, the Parent Company shall apply
all the International Financial Reporting Standards endorsed by the EU
as far as this is possible within the framework of the Swedish Annual
Accounts Act.
The accounting principles applied by the Volvo Group are described in
note 1 Accounting principles to the consolidated financial statements.
The main deviations between the accounting principles applied by the
Volvo Group and the Parent Company are described below.
Shares and participations in Group companies are recognized at cost in
the Parent Company and test for impairment is performed annually. Divi-
dends is recognized in the income statement.
Investments in associated companies are recognized at cost in the Par-
ent Company and test for impairment is performed annually. Dividends is
recognized in the income statement.
The Parent Company applies the exception in the application of IAS 39
which concerns accounting and measurement of financial contracts of
guarantee in favour of subsidiaries and associated companies. The Parent
Company recognizes the financial contracts of guarantee as contingent
liabilities.
The Volvo Group applies IAS 19 Employee Benefits in the consolidated
financial statements. The Parent Company is applying the principles of
FAR's Recommendation RedR4 “Accounting of pension liabilities and
pension costs”. Consequently there are differences between the Volvo
Group and the Parent Company in the accounting of defined benefit pen-
sion plans as well as in the measurement of plan assets invested in the
Volvo Pension Foundation.
The Parent Company recognizes the difference between depreciation
according to plan and tax depreciation as accumulated additional depre-
ciation, included in untaxed reserves.
Reporting of Group contributions is recognized in accordance with the
alternative rule in RFR 2. Group contributions are reported as Allocations.
Previous year, Group contributions were recognized as Income from
investments in Group companies. Comparative figures for 2011 have
been adjusted.
ACCOUNTING PRINCIPLES
NOTE 1
The Parent Company's net sales amounted to 670 (721), of which 559 (620) pertained to Group companies. Purchases from Group companies
amounted to 353 (602).
INTRA-GROUP TRANSACTIONS
NOTE 2
Depreciation
Administrative expenses include depreciation of 16 (16) of which 1 (0)
pertains to machinery and equipment, 1 (1) to buildings and 14 (15) to
other intangible assets.
Fees to the auditors 2012 2011
PricewaterhouseCoopers AB
– Audit fees 23 17
– Audit-related fees 2 1
– Tax advisory services 3 0
– Other fees 23 –
Total 51 18
See Note 28 for the Group for a description of the different categories of fees
to the auditors.
Personnel
Wages, salaries and other remunerations amounted to 295 (231), social
costs to 90 (68) and pension costs to 90 (69). Pension cost of 6 (7) per-
tained to Board members and the President. The Parent Company has
outstanding pension obligations of 0 (0) to these individuals.
The number of employees at year-end was 258 (181). Information on the
average number of employees, wages, salaries and other remunerations
including incentive program as well as Board members and senior execu-
tives by gender is shown in note 27 to the consolidated financial statements.
ADMINISTRATIVE EXPENSES
NOTE 3
FINANCIAL INFORMATION 2012
164
NOTES TO FINANCIAL STATEMENTS