Accounting policy

AB Volvo’s holding of shares in subsidiaries as of December 31, 2011 is shown in the disclosures of AB Volvo’s holding of shares in Note 5. Significant acquisitions, formations and divestments within the Group are listed below.

Acquisitions for the period
The Volvo Group has not made any acquisitions during 2010 and 2011, which solely or jointly have had a significant impact on the Volvo Group’s financial statements. For acquisitions in 2010 and 2011, the fair-value adjustments to the acquisition balance sheets have thus not been significant for the Volvo Group.

The impact on the Volvo Group’s balance sheet and cash-flow statement in connection with the acquisition of subsidiaries and other business units are specified in the following table based on valuations on the respective acquisition dates:

Acquisitions  2011 2010
Intangible assets 1 0
Property, plant and equipment 132 32
Assets under operating lease 1,503 468
Inventories 38 56
Current receivables 236 99
Cash and cash equivalents 39 15
Other assets 1 12
Minority interests 387 20
Provisions (36) (22)
Loans (1,510) (374)
Current liabilities (191) (143)
  600 163
     
Goodwill 967 52
Acquired net assets 1,567 215
     
Cash and cash equivalents paid (1,567) (229)
Cash and cash equivalents according to acquisition analysis 39 15
Effect on Group cash and cash equivalents (1,528) (214)

Divestments
The Volvo Group has not made any divestments during 2011, which solely or jointly have had a significant impact on the Volvo Group’s financial statements. Comparative figures for 2010 include the divestment of Volvo Aero’s US subsidiary, Volvo Aero Services (VAS) and Volvo CE's distribution networks in Turkey and Russia.

The impact on the Volvo Group’s balance sheet and cash-flow statement in connection with the divestment of subsidiaries and other business units are specified in the following table:

Divestments 2011 2010
Intangible assets (5) 0
Property, plant and equipment (4) (32)
Assets under operating lease 0 (190)
Shares and participations 0 0
Inventories (45) (1,096)
Other receivables (130) (334)
Cash and cash equivalents (21) (176)
Other provisions 17 (10)
Other liabilities 143 540
  (45) (1,298)
     
Goodwill 0 (122)
Divested net assets (45) (1,420)
     
Cash and cash equivalents received (41) 1,007
Cash and cash equivalents, divested companies (21) (176)
Effect on Group cash and cash equivalents (62) 831
Acquisitions and divestments after the end of the period
Volvo has not made any acquisitions or divestments after the end of the period that have had any significant impact on the Volvo Group.

Assets and liabilities held for sale
At year-end 2011, the Volvo Group recognized assets amounting to 9,348 and liabilities amounting to 4,716 as assets and liabilities held for sale. Translation differences on foreign operations of 3 is included in other comprehensive income. This is referring to the initiated process to divest the business area Volvo Aero. A divestment is in line with the further streamlining of the Volvo Group towards commercial vehicles. Depending on the progress with the sales process, changes in the business environment, access to liquidity, market outlook, etc. the fair value of assets held for sale may change in the forthcoming periods or when the transaction is finalized. For the comparative year 2010, the Volvo Group recognized assets amounting to 136 and liabilities to 135 classified as assets and liabilities held for sale.
Assets and liabilities held for sale 2011 2010
Intangible assets 3,316 0
Tangible assets 1,984 43
Inventories 2,216 8
Accounts receivable 566 56
Other current receivables 982 24
Other assets 284 5
Total assets 9,348 136
     
Trade payables 1,025 31
Other current liabilities 3,691 104
Total liabilities 4,716 135