Accounting policies

Amortization periods  
Trademarks 20 years
Distribution networks 10 years
Product and software development 3 to 8 years
   

Sources of estimation uncertainty

    Entrance  Capitalized    
    fees,  product and Other Total
    industrial software intangible intangible
Intangible assets, acquisition costs Goodwill1) programs development assets2) assets
 Acquisition cost as of Dec 31, 2010 22,936 3,800 27,851 6,889 61,476
 Capital expenditures3) - 109 4,238 122 4,469
 Sales/scrapping - (484) (657) (323) (1,464)
 Acquired and divested operations 967 0 (4) 0 963
 Translation differences 272 1 431 (32) 672
 Reclassified to assets held for sale (274) (3,199) (1,963) (60) (5,496)
 Reclassifications and others (2) (3) 6 54 55
Acquisition cost as of Dec 31, 2011 23,899 224 29,902 6,650 60,675
           
Capital expenditures3) - 93 5,385 101 5,579
Sales/scrapping - (14) (1,738) (12) (1,764)
Acquired and divested operations  588 (3,182) (2,109) 52 (4,651)
Translation differences (1,446) (11) (1,479) (592) (3,528)
Reclassified from assets held for sale 297 3,198 1,958 60 5,513
Reclassifications and other 0 (19) (23) (55) (97)
Acquisition cost as of Dec 31, 2012 23,338 289 31,896 6,204 61,727
    Entrance Capitalized    
    fees, product and Other Total
Accumulated amortization   industrial software intangible  intangible
and impairment Goodwill programs development assets2) assets
Accumulated amortization and impairment as of Dec 31, 2010 - 1,820 16,271 2,671 20,762
 Amortization and impairment5) - 76 2,788 383 3,247
 Sales/scrapping - (265) (406) (322) (993)
 Acquired and divested operations - 0 0 0 0
 Translation differences - 0 312 33 345
 Reclassified to assets held for sale  - (1,596) (570) (24) (2,190)
 Reclassifications and other - (2) 1 (2) (3)
Accumulated amortization and impairment  as of Dec 31, 2011 - 33 18,396 2,739 21,168
           
Amortization and impairment5) - 55 2,749 387 3,191
Sales/scrapping - 0 (1,734) (12) (1,746)
Acquired and divested operations  - (1,633) (547) (29) (2,209)
Translation differences - (1) (942) (188) (1,131)
Reclassified from assets held for sale  - 1,602 572 24 2,198
Reclassifications and other - (6) (38) (73) (117)
Accumulated amortization and impairment  as of Dec 31, 2012 - 50 18,456 2,848 21,354
           
Net value in balance sheet as of December 31, 20114) 23,899 191 11,506 3,911 39,507
Net value in balance sheet as of December 31, 20124) 23,338 239 13,440 3,356 40,373

1) Includes on the date of IFRS adoption, costs of 14,184 and accumulated amortization of 3,863.
2) Other intangible assets mainly consist of trademarks and distribution networks.
3) Includes capitalized borrowing costs of 295 (112).
4) Costs less accumulated, amortization and impairments.
5) Of which impairments 83 (74).

Goodwill per Business Area Dec 31,
 2012
Dec 31,
2011
Trucks 12,759 13,828
Construction Equipment 7,462 7,764
Buses 1,145 1,169
Volvo Rents 1,469 990
Other business areas 503 148
Total goodwill value 23,338 23,899