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Transactions between AB Volvo and its subsidiaries, which are related par-
ties to AB Volvo, have been eliminated in the group and are not disclosed
in this note.
The Volvo Group engages in transactions with some of its associated
companies. The transactions consist mainly of sales of vehicles to dealers
and purchases of engines.
2013 2012
Sales to associated companies 2,138 1,670
Purchase from associated companies 2,609 702
Receivables from associated companies,
Dec 31 301 242
Liabilities to associated companies,
Dec 31 707 632
The increase in sales to associated companies is mainly explained by Ara-
bian Vehicle & Truck Industry Ltd. The increase in purchases is explained by
Deutz AG, which is an associated company from September 2012. Com-
mercial terms and market prices apply for the supply of goods and services
to/from associated companies.
The Volvo Group engages in transactions with its joint ventures. The trans-
actions consist mainly of sales of vehicles and parts and purchase of engine
long blocks and services. Commercial terms and market prices apply for
the supply of goods and services to/from joint ventures.
2013 2012
Sales to joint ventures 763 741
Purchase from joint ventures 192 80
Receivables from joint ventures, Dec 31 143 91
Liabilities to joint ventures, Dec 31 58 108
The increase in purchases from joint ventures is explained by purchases
of engine long blocks from VE Commercial Vehicles, Ltd.
Until December 2012 Renault s.a.s was a related party to the Volvo Group
due to its holding in AB Volvo. In December 2012 Renault s.a.s sold their
Volvo shares. Sales to and purchases from Renault s.a.s. and its subsidiar-
ies for the comparison year 2012 amounted to 29 and 1,719. Sales were
mainly from Renault Trucks to Renault s.a.s. and consisted of components
and spare parts. Purchases were mainly made by Renault Trucks from
Renault s.a.s. and primarily consisted of light trucks. Renault Trucks has a
license from Renault s.a.s. for the use of the trademark Renault.
During 2012, AB Volvo divested an apartment to a former member of the
Group management for a market value of 10.
Refer to Note 5 regarding the Volvo Group’s share in associated companies.
NOTE 25 TRANSACTIONS WITH RELATED PARTIES
Government grants are fi nancial grants from governmental or suprana-
tional bodies received by the Volvo Group in exchange for fulfi llment of
certain conditions.
Governmental grants related to assets are presented in the balance sheet
by deducting the grants in arriving at the carrying amount of the asset.
Governmental grants related to income are reported as a deferred income
and recognized in the income statement over the periods necessary to
match the related costs. If the costs incur before the grants have been
received, but there is an agreement that grants will be received, grants are
recognized in the income statement to compensate the relevant costs.
In 2013, government grants of 400 (492) were received, and 467 (342) was
recognized in the income statement. The amount includes tax credits of
245 (165) related to product development, which were primarily received in
France and in the United States. Other grants were mainly received from
Swedish, Chinese and US governmental organizations and from the Euro-
pean Commission.
NOTE 26 GOVERNMENT GRANTS
ACCOUNTING POLICY
155