Volvo 2013 Annual Report Download - page 163

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Cash-fl ow analysis
The cash-fl ow statement is prepared in accordance with IAS 7, Cash fl ow
statement, indirect method. The cash-fl ow 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 fl ow 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 defi nition of cash and cash equivalents in the
cash-fl ow 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: 2013 2012
Risk provisions and losses related to doubtful
accounts receivable/customer-fi nancing receivables 1,230 764
Capital gains/losses on the sale of subsidiaries
and other business units (141) (596)
Unrealized exchange rate gains/losses on
accounts receivable and payable 229 224
Provision for global profi t sharing program – 200
Fair value commercial derivatives – (316)
Provision for restructuring reserves 125 914
Provision for warranty reserve 745 –
Other changes 228 240
Total Other items not affecting cash fl ow 2,416 1,430
Acquired and divested shares
and participations, net 2013 2012
New issue of shares (1) (6)
Capital contribution (36) (6)
Acquisitions (112) (1,212)
Divestments 135 39
Other – (1)
Total cash fl ow from acquired and divested
shares and participations, net (14) (1,186)
During 2012 AB Volvo acquired additional shares in Deutz AG, which had
a negative impact on cash-fl ow of SEK 1.1 billion.
Acquired and divested subsidiaries
and other business units: 2013 2012
Acquired subsidiaries and other
business units (71) (1,527)
Divested subsidiaries and other
business units 1,003 4,917
Total cash fl ow from acquired and divested
subsidiaries and other business units 932 3,390
Important increase/decrease in bond loans and other loans
In 2013, the Volvo Group increased its borrowings as a consequence of
higher demands of funding from the Customer Finance Operations.
ACCOUNTING POLICY
Fees to the auditors 2013 2012
PricewaterhouseCoopers AB
– Audit fees 120 102
– Audit-related fees 5 6
– Tax advisory services 12 17
– Other fees 19 31
Total 156 156
Audit fees to others 3 2
Volvo Group Total 159 158
The audit assignment involves review of the Annual report and fi nancial
accounting and the administration by the Board and the President.
Audit-related assignments mean quality assurance services required by
enactment, articles of association, regulations or agreement. The amount
includes the fee for reviewing the half-year report. Tax services include
both tax consultancy and tax compliance services. All other tasks are
defi ned as other.
NOTE 28 FEES TO THE AUDITORS
NOTE 29 CASH-FLOW
159