Volvo 2014 Annual Report Download - page 174

Amounts in SEK M unless otherwise specifi ed. The amounts within
parentheses refer to the preceding year, 2013.
The Parent Company has prepared its fi nancial statements in accordance
with the Swedish Annual Accounts Act (1995:1554) and RFR 2, Account-
ing for Legal entities. According to RFR 2, 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 changes in RFR 2 applicable to the fi scal year begin-
ning January 1, 2014, have had no material impact on the fi nancial state-
ments of the Parent Company.
The accounting policies applied by the Volvo Group are described in the
respective Notes in the consolidated fi nancial statements. The main devi-
ations between the accounting policies applied by the Volvo Group and
the Parent Company are described below.
Shares and participations in Group companies and investments in joint
ventures and associated companies are recognized at cost in the Parent
Company and test for impairment is performed annually. Dividends are
recognized in the income statement. All shares and participations are
related to business operations and profi t or loss from these are reported
within Operating income.
The Parent Company applies the exception in the application of IAS 39
which concerns accounting and measurement of fi nancial contracts of
guarantee in favour of subsidiaries and associated companies. The Parent
Company recognizes the fi nancial contracts of guarantee as contingent
liabilities.
According to RFR 2, application of the regulations in IAS 19 regarding
defi ned-benefi t plans is not mandatory for legal entities. However, IAS 19
shall be adopted regarding supplementary disclosures when applicable.
RFR 2 refers to the Swedish law on safeguarding of pension commit-
ments (“tryggandelagen”) regarding recording of “Provisions for post-
employment benefi ts” in the balance sheet and of plan assets in pension
foundations.
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.
Other operating income and expenses include restructuring costs, dona-
tions and grants.
OTHER OPERATING INCOME
AND EXPENSES
NOTE 4
NOTES TO FINANCIAL STATEMENTS
NOTE 1 ACCOUNTING POLICIES The Parent Company’s net sales amounted to 696 (659), of which 554
(514) pertained to Group companies. Purchases from Group companies
amounted to 494 (351).
NOTE 2 INTRA-GROUP TRANSACTIONS
Depreciation
Administrative expenses include depreciation of 18 (16) of which 2 (1)
pertains to machinery and equipment, 1 (1) to buildings and 15 (14) to
other intangible assets.
Fees to the auditors 2014 2013
PricewaterhouseCoopers AB
– Audit fees 19 18
– Audit-related fees 1 2
– Tax advisory services 0 1
– Other fees 11 5
Total 31 26
Read more in Note 28 Fees to the Auditors in the consolidated fi nancial
statements for a description of the different categories of fees.
Personnel
Wages, salaries and other remunerations amounted to 354 (289), social
costs to 109 (87) and pension costs to 84 (100). Pension cost of 6 (6)
pertained to Board Members and the President. The Parent Company has
outstanding pension obligations of 1 (1) to these individuals.
The number of employees at year-end was 317 (279).
Read more in Note 27 Personnel in the consolidated fi nancial statements
about the average number of employees, wages, salaries and other remunera-
tions including incentive program as well as Board members and senior
executives by gender.
NOTE 3 ADMINISTRATIVE EXPENSES
FINANCIAL INFORMATION 2014
170