Volvo 2015 Annual Report Download - page 131

As of December 31, 2015, net of the total valuation allowance, deferred
tax assets of SEK 21,067 M (23,804) were recognized in the Volvo
Group’s balance sheet.
The Volvo Group’s gross unused tax-loss carryforwards amounted to
SEK 11,979 M (21,310) pertaining to a deferred tax asset of SEK 3,724 M
(5,911) recognized in the balance sheet. After deduction for valuation
allowance deferred tax assets attributable to unused tax-loss carry-
forwards amounted to SEK 2,673 M (5,638) of which SEK 5 M (2,081)
pertains to Sweden, SEK 1,346 M (1,568) to France and SEK 405 M
(1,115) to Japan.
As of December 31, 2015 the total valuation allowance amounted to
SEK 1,181 M (336). Most of the reserve, SEK 1,051 M (273), consists of
unused tax-loss carryforwards mainly related to Japan.
The gross unused tax-loss carryforwards expire according to the table
below:
Due date, unused tax-loss
carryforwards gross Dec 31, 2015 Dec 31, 2014
after 1 year 68 45
after 2 years 584 173
after 3 years 857 479
after 4 years 335 1,013
after 5 years 2,206 305
after 6 years or more
17,929 19,295
Total 11,979 21,310
1 Tax-loss carryforwards with long or indefinite periods of utilization were mainly
related to Japan and France. Tax-loss carryforwards with indefinite periods of
utilization amounted to SEK 4,994 M (16,364) which corresponds to 42% (77)
of the total tax-losses carryforward.
Changes in deferred tax
assets/liabilities, net 2015 2014
Opening balance 13,035 10,760
Deferred taxes recognised in the year’s income –2,310 331
Recognised in Other comprehensive income,
changes attributable to:
Remeasurements of defined-benefitplans –725 853
Cash flow hedge reserve 9 6
Available-for-sale reserve –17 4
Translation differences and other changes –37 1,081
Deferred tax assets/liabilities, net,
as of December 31 9,955 13,035
The cumulative amount of undistributed earnings in foreign subsidiaries,
which the Volvo Group currently intends to indefinitely reinvest outside of
Sweden and which no deferred income tax have been accounted for,
amounted to SEK 23 billion (24) at year end. As of 2015 undistributed
earnings pertaining to countries where the dividends are not taxable are
excluded.
Read more in Note 4 for Goals and policies in financial risk management
about how the Volvo Group handles equity currency risk.
Minority interests are interest attributable to non-controlling shareholders.
Minority interests are presented in the equity, separately from the equity
of the owners of the parent company. At business combinations minority
interests are valued either at fair value or at the minority’s proportionate
share of the acquiree’s net assets. Minority interests are assigned the
minority shareholder’s portion of the equity of the subsidiary. Changes in a
parent’s ownership interest in a subsidiary that do not result in a loss of
control are accounted for as equity transactions.
The Volvo Group has a few non-wholly owned subsidiaries of which one of
the subsidiaries is considered to have a significant minority interest.
Shandong Lingong Construction Machinery Co., (Lingong), in China has a
minority interest holding amounting to 30% share and voting rights in the
company. During the year, the profit allocated to the minority interest of
Lingong amounted to 34 (139) and the accumulated minority interest at
the end of December 31, 2015, amounted to 1,752 (1,683).
The following table presents summarized financial information for
Shandong Lingong Construction Machinery Co., Lingong:
Summarized income statement 2015 2014
Net sales 5,297 7,324
Operating income 116 559
Income for the period 113 464
Other comprehensive income1115 8 2 9
Total comprehensive income 229 1,293
Dividends paid to minority interest – –
Summarized balance sheet Dec31,
2015 Dec 31, 2014
Non-current assets 1,693 1,633
Marketable securities, cash and cash equivalents 2,236 2,584
Current assets 5,636 7,117
Total assets 9,565 11,334
Non-currentliabilities 167 187
Current liabilities 3,558 5,536
Total liabilities 3,725 5,723
Equity attributable to the Volvo Group’s shareholders 4,088 3,928
Minority interests 1,752 1,683
1 Includes translation differences from translating company equity in the Volvo
Group.
ACCOUNTING POLICY
NOTE 11 MINORITY INTERESTS
GROUP PERFORMANCE 2015 NOTES
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