Volvo 2015 Annual Report Download - page 155

GROUP PERFORMANCE 2015 NOTES
153
Fees to the auditors 2015 2014
PricewaterhouseCoopers AB
– Audit fees 105 100
– Audit-related fees 5 4
– Tax advisory services 13 14
– Other fees 14 22
Total 137 140
Audit fees to others 3 2
Volvo Group Total 140 142
The audit assignment involves review of the Annual report and financial
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
defined as other.
NOTE 28 FEES TO THE AUDITORS
Cash flow analysis
The cash flow statement is prepared in accordance with the indirect
method. The cash flow statements of foreign Group companies are trans-
lated at the average rate. Changes in Group structure, acquisitions and
divestments, are recognized net, excluding cash and cash equivalents, in
the item Acquired and divested operations and are included in cash flow
from investing activities.
Read more in Note 18 regarding the accounting policy for Marketable securi-
ties and liquid funds.
As of January 1, 2016 a divestment of an operation with the main purpose
to dispose fixed assets will be included in the item disposal of fixed assets
and leasing vehicles.
Other non-cash items 2015 2014
Risk provisions and losses related to doubtful
accounts receivable/customer-financing receivables 1,376 1,223
Capital gains/losses on divested operations –293 –1,020
Unrealized exchange rate gains/losses on accounts
receivable and payable 257 –367
Unrealized exchange rate gains/losses on other
operating assets and liabilities 458 518
Provision for global profit sharing program 450 –
Provisionrelated toengine emission case in the U.S. – 422
Provisionrelated toEU antitrust investigation – 3,790
Provision for restructuring cost 1,120 708
Gains/losses on sale of shares and participations –4,590 17
Credit losses in Volvo CE in China1398 577
Other changes 372 273
Total Other items not affecting cash flow –452 6,141
1 SEK 349 M (83) is included in risk provisions related to doubtful accounts receivables.
Read more in Note 8 Other operating income and expenses about Credit
losses in Volvo CE in China.
Acquired and divested shares
and participations, net 2015 2014
New issue of shares –5 –6
Capital contribution 151 –
Acquisitions –7,072 –21
Divestments 4,900 96
Other 42 –
Total cash flow from acquired and divested
shares and participations, net –1,984 69
In 2015 Volvo Group completed the acquisition of 45% of the shares in
Dongfeng Commercial Vehicles Co., Ltd, DFCV, in China. The purchase
consideration amounted to approximately SEK 7.0 billion.
During 2015 Volvo Group sold the holding of the shares in the listed
Indian automotive manufacturer Eicher Motors Limited. The sale gener-
ated a gain of SEK 4.6 billion.
Read more in Note 5 Investments in joint ventures, associated companies
and other shares and participations
Acquired and divested operations, net 2015 2014
Acquired subsidiaries and other
business units – –1,103
Divested subsidiaries and other
business units 408 8,501
Total cash flow from acquired and divested
subsidiaries and other business units 408 7,398
Read more in Note 3 Acquisitions and divestments of shares in subsidiaries
regarding the effecton the Volvo Group’s net financial position from the acqui-
sitions and divestments.
ACCOUNTING POLICY
NOTE 29 CASH FLOW