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68 Electrolux Annual Report 2004
Notes
Amounts in SEKm, unless otherwise stated
The consolidated financial statements have been prepared in accordance
with Swedish accounting standards (Swedish GAAP), which differ in
certain significant respects from accounting principles generally accept-
ed in the United States of America (US GAAP). Following is a descrip-
tion of those differences that have a significant effect on net income
and shareholders’ equity. The Group also submits an annual report on
Form 20-F to the US Securities and Exchange Commission (SEC).
Acquisitions
According to Swedish accounting standards, prior to 1996, the tax
benefit arising from realized pre-acquisition loss carry-forwards of an
acquired subsidiary could be recognized in earnings as a reduction of
current tax expenses when utilized. Under US GAAP, the benefits
Note 31 US GAAP information
Subsidiaries Holding, %
Major Group companies
Australia Electrolux Home Products Pty. Ltd 100
Austria Electrolux Hausgeräte G.m.b.H. 100
Electrolux Austria G.m.b.H. 100
Belgium Electrolux Home Products Corp. N.V. 100
Electrolux Belgium N.V. 100
Diamant Boart International S.A. 100
Brazil Electrolux do Brasil S.A. 100
Canada Electrolux Canada Corp. 100
China Electrolux Home Appliances (Hangzhou) Co. Ltd 100
Electrolux (China) Home Appliance Co. Ltd 100
Electrolux (Changsha) Appliance Co. Ltd 100
Denmark Electrolux Home Products Denmark A/S 100
Finland Oy Electrolux Ab Electrolux Kotitalouskoneet 100
France Electrolux France SAS 100
Electrolux Home Products France SAS 100
Electrolux Professionnel SAS 100
Germany Electrolux Deutschland GmbH 100
AEG Hausgeräte GmbH 100
Hungary Electrolux Lehel Hütögépgyár Kft 100
India Electrolux Kelvinator Ltd 90
Italy Electrolux Zanussi Italia S.p.A. 100
Electrolux Professional S.p.A. 100
Electrolux Italia S.p.A. 100
Electrolux Home Products Italy S.p.A. 100
Luxembourg Electrolux Luxembourg S.à r.l. 100
Mexico Electrolux de Mexico, S.A. de CV 100
The Netherlands Electrolux Associated Company B.V. 100
Electrolux Holding B.V. 100
Electrolux Home Products (Nederland) B.V. 100
Norway Electrolux Home Products Norway AS 100
Spain Electrolux España S.A. 100
Electrolux Home Products España S.A. 100
Electrolux Home Products Operations España S.L. 100
Sweden Husqvarna AB 100
Electrolux Laundry Systems Sweden AB 100
Electrolux HemProdukter AB 100
Electrolux Professional AB 100
Electrolux Floor Care and Light Appliances AB 100
Switzerland Electrolux Holding AG 100
A+T Hausgeräte AG 100
United Kingdom Electrolux Plc 100
Electrolux Outdoor Products Ltd 100
Electrolux Professional Ltd 100
USA Electrolux Home Products Inc. 100
Electrolux North America Inc. 100
Electrolux Professional Inc. 100
Electrolux Professional Outdoor Products Inc. 100
A detailed specification of Group companies has been submitted to the
Swedish Companies Registration Office and is available on request
from AB Electrolux, Investor Relations and Financial Information.
Note 30 continued
arising from such loss carry-forwards are required to be recorded as a
component of purchase accounting, usually as a reduction of goodwill.
From 1996, these differences no longer exist. Up to 2001, acquisition
provisions could be established under Swedish accounting standards
for restructuring costs related to other subsidiaries affected by the
acquisition. These provisions are reversed to goodwill under US GAAP.
From 2001, these differences no longer exist.
Goodwill and other intangible assets
Under Swedish GAAP, all intangible assets including goodwill must be
amortized over the expected useful life of the asset. Assigning indefinite
useful life is not permitted.
According to the US accounting standard SFAS 142, “Goodwill and