Volvo 2015 Annual Report Download - page 164

Amounts in SEK M unless otherwise specified. The amounts within
parentheses refer to the preceding year, 2014.
The Parent Company has prepared its financial 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 fiscal year begin-
ning January 1, 2015, have had no material impact on the financial state-
ments of the Parent Company.
The accounting policies applied by the Volvo Group are described in the
respective Notes in the consolidated financial 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. In accordance
with RFR 2 the Parent Company includes expenses related to acquisition
of a business in the acquisition value. Dividends are recognized in the
income statement. All shares and participations are related to business
operations and profit 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 financial contracts of
guarantee in favour of subsidiaries and associated companies. The Parent
Company recognizes the financial contracts of guarantee as contingent
liabilities.
According to RFR 2, application of the regulations in IAS 19 regarding
defined-benefit 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 benefits” 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 and Volvo profit sharing program costs by 3 (–).
OTHER OPERATING INCOME
AND EXPENSES
NOTE 4
NOTES TO FINANCIAL STATEMENTS
NOTE 1 ACCOUNTING POLICIES
The Parent Company’s net sales amounted to 884 (696), of which 756
(554) pertained to Group companies. Purchases from Group companies
amounted to 810 (494).
NOTE 2 INTRA-GROUP TRANSACTIONS
Depreciation
Administrative expenses include depreciation of 17 (18) of which 1 (2)
pertains to machinery and equipment, 1 (1) to buildings and 15 (15) to
other intangible assets.
Fees to the auditors 2015 2014
PricewaterhouseCoopers AB
– Audit fees 21 19
– Audit-related fees 1 1
– Tax advisory services 1 0
– Other fees 1 11
Total 24 31
Read more in Note 28 Fees to the Auditors in the consolidated financial
statements for a description of the different categories of fees.
Personnel
Wages, salaries and other remunerations amounted to 413 (354), social
costs to 123 (109) and pension costs to 123 (84). Pension cost of 9 (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 327 (317).
Read more in Note 27 Personnel in the consolidated financial 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
162
GROUP PERFORMANCE 2015 PARENT COMPANY NOTES