Accounting policies

Volvo Group as the lessor
As of december 31, 2012, future rental income from non-cancellable financial and operational leases (minimum leasing fees) amounted to 52,322 (50,704). Future rental income is distributed as follows:
  Finance leases Operating leases
2013 14,844 4,511
2014-2017 22,576 9,121
2018 or later 726 544
Total 38,146 14,176
Allowance for uncollectible future rental income (436)  
Unearned rental income (2,847)  
Present value of future rental income related to non-cancellable leases 34,863  

Volvo Group as a lessee
As of december 31, 2012, future rental payments (minimum leasing fees) related to non-cancellable leases amounted to 3,817 (3,799).

Future rental payments are distributed as follows:

  Finance leases Operating leases
2013 124 950
2014-2017  224 1,875
2018 or later 139 505
Total 487 3,330
Rental expenses amounted to:
  2012 2011
Finance leases:    
  Contingent rents (10) (12)
Operating leases:    
  Contingent rents (36) (20)
  Rental payments (1,113) (1,035)
  Sublease payments 7 5
Total (1,152) (1,062)
Carrying amount of assets subject to financial leases:
  Dec 31, 2012 Dec 31, 2011
Costs:    
Buildings 226 92
Land and land improvements 41 53
Machinery and equipment 627 1,901
Assets under operating lease1) 57 194
Total 951 2,240
     
Accumulated depreciation:    
Buildings (58) (30)
Land and land improvements (1) -
Machinery and equipment (288) (1,231)
Assets under operating lease1) (14) (68)
Total (361) (1,329)
     
Carrying amount in the balance sheet:    
Buildings 168 62
Land and land improvements 40 53
Machinery and equipment 339 670
Assets under operating lease1) 43 126
Total 590 911
1) Refer to assets leased by the Volvo Group as financial lease which are later leased to customers as operating lease.