Accounting policy

The share capital of the Parent Company is divided into two series of shares, A and B. Both series carry the same rights, except that each Series A share carries the right to one vote and each Series B share carries the right to one tenth of a vote. The shares quota value is SEK 1.20.

Cash dividend decided by the Annual General Meeting 2011 was SEK 2.50 (0.00) per share or total of SEK 5,068.6 million (0.0).

During 2011 AB Volvo transferred, free of consideration, 929 treasury B-shares, with a total quota value of 1,114.80 SEK, to participants of Volvo’s long-term, share-based incentive program for senior executives in the Volvo Group, as accelerated allotment. The transferred treasury shares represent an insignificant portion of the share capital of AB Volvo.

Unrestricted equity in the Parent Company at December 31, 2011 amounted to SEK 32,268 million (31,962). 

The cumulative amount of the exchange difference deferred to equity relating to assets held for sale amount to SEK 33 million (3).

Information regarding number of shares 2011 2010
Own Series A shares 20,728,135 20,728,135
Own Series B shares 80,264,131 80,265,060
Total own shares 100,992,266 100,993,195
     
Own shares in % of total registered shares 4.74 4.74
     
Outstanding Series A shares 642,766,887 656,873,495
Outstanding Series B shares 1,384,661,067 1,370,553,530
Total outstanding shares 2,027,427,954 2,027,427,025
     
Total registered Series A shares 663,495,022 677,601,630
Total registered Series B shares 1,464,925,198 1,450,818,590
Total registered shares 2,128,420,220 2,128,420,220
     
Average number of outstanding shares 2,027,427,172 2,027,427,025
Change in other reserves (SEK M) Hedge reserve Available-for-sale reserve Total
Balance at January 1, 2011 87 28 115
Hedge contracts reversed to income (3) (3)
Tax on hedge contracts reversed to income 1 1
Change in fair value of commodity contracts (142) (142)
Fair value adjustments regarding holding in Deutz (159) (159)
Fair value adjustments regarding holdings in Japanese companies 200 200
Fair value adjustments regarding other holdings (2) (2)
Balance at December 31, 2011 (57) 67 10
Earnings per share
The long-term share-based incentive program decided by the Annual General Meeting 2011 creates a dilution effect. For 2010 AB Volvo had no share-based incentive program. No other transactions have occurred that affected, or will have an effect on, the compilation of the reported share capital.
  2011 2010
Number of shares, December 31, in millions 2,027 2,027
Average number of shares before dilution in millions 2,027 2,027
Average number of shares after dilution in millions 2,028 2,027
Average share price, SEK 94.84 85.75
     
Net income attributable to Parent Company shareholders 17,751 10,866
Basic earnings per share, SEK 8.76 5.36
Diluted earnings per share, SEK 8.75 5.36