Accounting policy

AB Volvo’s holding of shares in subsidiaries as of December 31, 2012 is disclosed after the notes of the Parent Company in AB Volvo’s holding of shares. Significant acquisitions, formations and divestments within the Group are listed below.

Business combinations during the period
In the fourth quarter 2012, the Volvo Group finalized the acquisition of the French automotive manufacturer Panhard. Panhard was a private owned company specialized in manufacturing of light transport vehicles adapted for defense operations. Panhard is included in the Volvo Group's governmental sales business area. The purchase price amounted to 538 and the goodwill to 326. The acquisition is not expected to have a significant impact on the Volvo Group's earnings and financial position. In addition to that the Volvo Group has not made any acquisitions during 2012 and 2011, which solely or jointly have had a significant impact on the Volvo Group’s financial statements. For acquisitions in 2012 and 2011, the fair-value adjustments to the acquisition balance sheets have not had a significant impact on 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:

Acquisitions 2012 2011
Intangible assets 190 1
Property, plant and equipment 176 132
Assets under operating lease 475 1,503
Inventories 503 38
Current receivables 257 236
Cash and cash equivalents 21 39
Other assets 14 1
Minority interests - 387
Provisions (87) (36)
Loans (225) (1,510)
Current liabilities (622) (191)
Acquired net assets  702 600
     
Goodwill 888 967
Negative goodwill (42) -
Total 1,548 1,567
     
Cash and cash equivalents paid (1,548) (1,567)
Cash and cash equivalents according to acquisition analysis 21 39
Effect on Group cash and cash equivalents (1,527) (1,528)
Effect on Group net financial position (1,714) (2,248)

Divestments
In the fourth quarter 2012, AB Volvo finalized the sale of Volvo Aero to the global engineering company, GKN, for the equivalent of SEK 6.9 billion on a debt-free basis. The total capital gain amount to 568. The adjusted purchase price is expected to be paid during 2013. In addition to that the Volvo Group has not made any divestments during 2012 or 2011, which solely or jointly have had a significant impact on the Volvo Group’s financial statements.

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 2012 2011
Intangible assets (3,220) (5)
Property, plant and equipment (1,786) (4)
Assets under operating lease (244) 0
Shares and participations (17) 0
Inventories (2,505) (45)
Other receivables (1,395) (130)
Cash and cash equivalents (323) (21)
Other provisions 1,108 17
Other liabilities 3,385 143
Divested net assets (4,997) (45)
     
Goodwill (300) 0
Total (5,297) (45)
Additional purchase price 653 -
     
Cash and cash equivalents received 5,240 (41)
Cash and cash equivalents, divested companies (323) (21)
Effect on Group cash and cash equivalents 4,917 (62)
 Effect on Group net financial position 5,594 (62)
Acquisitions and divestments after the end of the period
The Volvo Group 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
As of December 31, 2012 there were no assets or liabilities classified as held for sale. For the comparison year 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 was included in other comprehensive income. This referred to the divestment of Volvo Aero.
Assets and liabilities held for sale Dec 31,
2012
Dec 31,
2011
Intangible assets - 3,316
Tangible assets - 1,984
Inventories - 2,216
Accounts receivable - 566
Other current receivables - 982
Other assets - 284
Total assets - 9,348
     
Trade payables - 1,025
Other current liabilities - 3,691
Total liabilities - 4,716