Accounting policies

Joint ventures
Group holdings of shares in joint ventures are listed below.

  Dec 31,
2011
  Dec 31,
2010
  Holding   Holding
Shares in joint ventures percentage   percentage
Shanghai Sunwin Bus Corp., China 50   50
Dong Feng Nissan Diesel Motor Co., Ltd., China 50   50
VE Commercial Vehicles, Ltd., India 501   501
Xian Silver Bus Corp., China -   50
       
 1) Direct and indirect ownership.      
Volvo’s share of joint ventures’ income statements 2011 2010
Net sales 4,196 4,178
Operating income 323 127
Income after financial items 379 169
Income taxes (73) (66)
Volvo’s share of income for the period 306 103
     
     
Volvo’s share of joint ventures’ balance sheets Dec 31, 2011 Dec 31, 2010
Non-current assets 1,915 1,932
Current assets 2,248 2,206
Total assets 4,163 4,138
     
Shareholders’ equity 2,505 2,627
Provisions 274 294
Long-term liabilities 6 12
Current liabilities 1,378 1,205
Total shareholders’ equity and liabilities 4,163 4,138
At December 31, 2011, guarantees amounting to 0 (78) were issued by AB Volvo for the benefit of joint ventures. At the same date, Volvo’s share of contingent liabilities in its joint ventures totaled 38 (46).
  2011   2010
Volvo's share of total Number of of which   Number of of which
number of employees employees women, %   employees women, %
Shanghai Sunwin Bus Corp. 453 16   455 16
Xian Silver Bus Corp. - -   144 21
Dong Feng Nissan Diesel Motor Co., Ltd. 152 13   141 14
VE Commercial Vehicles, Ltd. 3,600 1   1,479 1
Volvo's share of total number of employees 4,205 3   2,219 7

Associated companies
The following table presents summarized financial information for Volvo's associated companies. The income statement and balance sheet below reflect the total associated companies, not only the part consolidated by Volvo.

         
Shares and participations in associated companies, Registration Percentage Dec 31, 2011 Dec 31, 2010
equity method of accounting number holding Carrying value Carrying value
         
Blue Chip Jet II HB, Sweden 969717-2105 50 405 319
UD Trucks Doto Corporation, Japan 38 103 94
UD Trucks Niigata Corporation, Japan 34 69 61
Merkavim Metal Works Ltd, Israel 27 17 37
JV Fonderie Venissieux, France 49 35 32
PK-UD Axle Co.,Ltd. (HangZhou), China(1 51 - 30
Diamond Finance Ltd, Great Britain(2 - 18
Blue Chip Jet HB, Sweden 969639-1011 50 8 3
Quingdao Sunwin Bus Corp, China 43 9 9
Arabian Vehicle & Truck Industry Ltd, Saudi Arabia 25 9 9
 Effpower AB, Sweden(3 556570-8541 9 - 29
 Powercell Sweden AB, Sweden 556759-8353 47 17 27
Other holdings 12 16
Total shares and participations in associated companies(4     684 684

1) In 2011 Volvo acquired additional 6% and the company is now a subsidiary. In 2010 the holding in PK-UD Axle Co., Ltd was 45%.
2) The company was liquidated during 2011. In 2010 the holding in Diamond Finance Ltd was 40%.
3)  In 2011 the holding was reduced to 9% and the company is therefore no longer accounted for as an associated company. In 2010 the holding in Effpower AB was 34%.
4) Volvo’s share of shareholders' equity in associated companies (incl. equity in untaxed reserves) amounted to 684 (684).

The following table presents summarized financial information for Volvo’s associated companies. The income statement and balance sheet below reflect the total associated companies, not only the part consolidated by Volvo.
Income statement data 2011 2010
Net sales 2,543 3,794
Cost of sales (2,491) (3,840)
Financial income and expense (29) (32)
Income before taxes 23 (78)
     
Income taxes (23) (46)
Income of the period 0 (124)
     
  Dec 31 Dec 31
Balance sheet data 2011 2010
Non-current assets 2,094 2,085
Current assets 1,485 1,558
Total assets 3,579 3,643
     
Shareholders' equity 1,605 1,686
Provisions 53 61
Non-current liabilities 621 452
Current liabilities 1,300 1,444
Total shareholders' equity and liabilities 3,579 3,643
Income from investments in associated companies
Income/loss 2011 2010
UD Trucks Niigata Co 5 7
JV Fonderie Venissieux 4 (1)
Merkavim Metal Works Ltd 17 15
Blue Chip Jet I & II HB (46) (39)
Holdings of Volvo Technology Transfer(1 (6) (58)
Other companies 2 1
Subtotal (24) (75)
     
Revaluation and write-down of shares    
 Blue Chip Jet I & II HB - (11)
Holdings of Volvo Technology Transfer(1 (48) -
Other companies (4) -
Subtotal (52) (11)
     
Gains (losses) on divestment of shares in associated companies    
Holdings of Volvo Technology Transfer(1 (5) -
Subtotal (5) -
Total income (loss) from investments in associated companies (81) (86)
1) Investments held by the Volvo venture-capital company.

Shares and participations in other companies
The carrying amount of Volvo’s holdings of shares and participations in other companies as of December 31, 2011, is shown in the table below.
    Dec 31,
2011
Dec 31,
2010
 
Holdings in listed companies Percentage holding Carrying
value
Carrying
value
 
Deutz AG, Germany 7.2 299 458  
Nippon Express Co.,Ltd., Japan 0.4 93 131  
TBK Co.,Ltd., Japan 6.7 61 68  
Sankyu Inc., Japan 0.5 44 53  
Fukuyama Transporting Co.,Ltd., Japan 0.2 16 15  
Senko Co.,Ltd, Japan 1.0 32 30  
Tonami Holdings Co.,Ltd., Japan 1.1 15 14  
Yamato Holdings Co.,Ltd., Japan 0.1 25 21  
Holdings in other listed companies 50 46  
Total holdings in listed other companies   635 836  
         
Holdings in non-listed companies(1   555 578  
Total shares and participations in other companies   1,190 1,414  
 1) Unlisted shares and participations, in which fair value cannot be reasonably determined, are measured at cost less any impairment losses.        
         
Income from other investments
Dividends received 2011 2010
Deutz AG 2 2
Holdings in Japanese companies 13 14
Other 6 7
Subtotal 21 23
     
Write-downs of shares    
Holdings of Volvo Technology Transfer(1 (43) (107)
Holdings in Japanese companies (226) -
Other (1) (1)
Subtotal(2 (270) (108)
     
Gain on divestment of shares    
Holdings of Volvo Technology Transfer(1 11 10
Holdings in Japanese companies 5 24
Other 8 (7)
Subtotal 24 27
Total (225) (58)

1) Investments held by the Volvo venture-capital company.
2) Write-downs of shares refer mainly to financial assets available for sale for which a reliable market value can be calculated.

Changes in the Volvo Group’s holdings of shares and participations: 2011 2010
Balance sheet, December 31, preceding year 2,098 2,044
Change in Group structure (19)
Acquisitions and divestments, net 92 104
Write-downs (96) (119)
Capital contribution 23 31
Share of income in associated companies (24) (75)
Revaluation of shares to fair value (203) 148
Translation differences 34 22
Dividends (35) (1)
Reclassifications - (42)
Other 4 (14)
Balance sheet, December 31 1,874 2,098