Volvo 2014 Annual Report Download - page 125
Download and view the complete annual report
Please find page 125 of the 2014 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.-
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
-
191
-
192
-
193
-
194
 |
 |
The Volvo Group’s most signifi cant accounting policies are primarily
described together with the applicable note. Read more in Note 1,
Accounting Policies for a specifi cation. The preparation of AB Volvo’s
Consolidated Financial Statements requires the use of estimates and
assumptions that may affect the recognized amounts of assets and liabil-
ities at the date of the fi nancial statements. In addition, the recognized
amounts of net sales and expenses during the periods presented are
affected. In preparing these fi nancial statements, management has made
its best judgments of certain amounts included in the fi nancial state-
ments, materiality taken into account. Actual results may differ from pre-
viously made estimates. In accordance with IAS 1, the company is required
to disclose the assumptions and other major sources of estimation uncer-
tainties that, if actual results differ, may have a material impact on the
fi nancial statements.
!The sources of uncertainty which has been identifi ed by the Volvo
Group and which are considered to fulfi ll these criteria are pre-
sented in connection to the items considered to be affected. The table
below discloses where to fi nd these descriptions.
Source of estimation uncertainty Note
Buy-back agreements and residual value
guarantees 7, Revenue
Deferred taxes 10, Income taxes
Impairment of goodwill and other intangible
assets 12, Intangible assets
Impairment of tangible assets 13, Tangible assets
Credit loss reserves 15,
16,
Customer-fi nancing
receivables
Receivables
Inventory obsolescence 17, Inventories
Assumptions when calculating pensions and
other post-employment benefi ts
20, Provisions for post-
employment benefi ts
Product warranty costs 21, Other provisions
Legal proceedings 21, Other provisions
Residual value risks 21, Other provisions
NOTE 2 KEY SOURCES OF ESTIMATION UNCERTAINTY
121
FINANCIAL INFORMATION 2014