Accounting policies

Joint ventures
The Volvo Group's investments in joint ventures are listed below.

  Dec 31,
2012
  Dec 31,
2011
  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
       
 1) Direct equity holding amounts to 45,6% and indirect equity holding amounts to 4,6%.
Volvo Group’s share of joint ventures’ income statements VE Commercial Vehicles, Ltd. Other joint ventures Total
2012
VE Commercial Vehicles, Ltd. Other joint ventures Total
2011
Net sales 3,302 902 4,204 3,453 743 4,196
Operating income 148 (4) 144 246 77 323
Income after financial items 202 (22) 180 310 69 379
Income taxes (47) 2 (45) (72) (1) (73)
Volvo Group’s share of joint ventures' income for the period 155 (20) 135 238 68 306
             
             
Volvo Group’s share of joint ventures’ balance sheets VE Commercial Vehicles, Ltd.  Other joint ventures Total as of
Dec 31, 2012
VE Commercial Vehicles, Ltd.    Other joint ventures Total as of
Dec 31, 2011
Non-current assets 1,925 256 2,181 1,746 169 1,915
Current assets 1,329 766 2,095 1,521 727 2,248
The Volvo Group's share of joint ventures' assets 3,254 1,022 4,276 3,267 896 4,163
             
Shareholders’ equity 2,140 240 2,380 2,231 274 2,505
Provisions 232 3 235 271 3 274
Long-term liabilities 3 2 5 3 3 6
Current liabilities 879 777 1,656 762 616 1,378
The Volvo Group's share of joint ventures' equity and liabilities 3,254 1,022 4,276 3,267 896 4,163

Net financial position for the joint ventures (excluding post-employment benefits) amounted to 244 as of December 31, 2012.

As of December 31, Volvo Group’s share of contingent liabilities in its joint ventures totaled 61 (38).

  2012   2011
Volvo Group's share of Number of of which   Number of of which
total number of employees employees women, %   employees women, %
Shanghai Sunwin Bus Corp. 577 14   453 16
Dong Feng Nissan Diesel Motor Co., Ltd. 158 15   152 13
VE Commercial Vehicles, Ltd. 4,880 1   3,600 1
Volvo Group's share of total number of employees 5,615 3   4,205 3

Associated companies

         
Investments in associated companies Registration Percentage Dec 31, 2012 Dec 31, 2011
  number holding Carrying value Carrying value
Deutz AG, Germany1) 25 1,359 -
Blue Chip Jet II HB, Sweden 969717-2105 50 386 405
UD Trucks Doto Corporation, Japan 38 90 103
UD Trucks Niigata Corporation, Japan 34 59 69
Shanghai Green Bus Drive Systems Co.,Ltd, China 40 43 -
JV Fonderie Venissieux, France   49 36 35
Merkavim Metal Works Ltd, Israel 27 20 17
Powercell Sweden AB, Sweden 556759-8353 32 10 17
Blue Chip Jet HB, Sweden 969639-1011 50 9 8
Quingdao Sunwin Bus Corp, China 43 9 9
Arabian Vehicle & Truck Industry Ltd, Saudi Arabia 25 9 9
Other holdings 15 12
Total shares and participations in associated companies     2,045 684

1) In 2012 an additional 18% of the shares in Deutz AG was acquired and thereby the company is recognized as an associated company. In 2011 the holding in Deutz AG was 7% and recognized as other shares and participations. The fair value of investments in Deutz AG amounted to 924 as of December 31, 2012. 

The following table presents summarized financial information for the Volvo Group's associated companies. The income statement and balance sheet below reflect the total associated companies, not only the Volvo Group's investment.
Income statement Deutz AG1)  Other associated companies Total
2012
Total
2011
Net sales 8,448 3,208 11,656 2,543
Cost of sales (8,242) (3,144) (11,386) (2,491)
Financial income and expense (87) (33) (120) (29)
Income before taxes 119 31 150 23
         
Income taxes (21) (120) (141) (23)
Income of the period 98 (89) 9 0
         
         
Balance sheet Deutz AG Other associated companies Total
Dec 31,
2012
Total
Dec 31,
2011
Non-current assets 5,612 1,979 7,591 2,094
Current assets 3,644 1,654 5,297 1,485
Total assets 9,256 3,633 12,889 3,579
         
Shareholders' equity 4,090 1,603 5,693 1,605
Provisions 1,502 43 1,545 53
Non-current liabilities 1,333 624 1,957 621
Current liabilities 2,331 1,363 3,694 1,300
Total shareholders' equity and liabilities 9,256 3,633 12,889 3,579

1) For 2012, income statement and balance sheet are presented from January until September since Deutz AG is recognized in the Volvo Group with a time lag of one quarter. During 2011 Deutz AG was recognized as other shares and participations, as the Volvo Group's investment was below 20%.

Income from investments in associated companies
Income/loss 2012 2011
UD Trucks Niigata Co 8 5
JV Fonderie Venissieux 2 4
Merkavim Metal Works Ltd 9 17
Blue Chip Jet I & II HB 1 (46)
Holdings of Volvo Group Venture Capital (13) (6)
Other companies 3 2
Subtotal 10 (24)
     
Revaluation and write-down of shares    
Blue Chip Jet I & II HB (19) -
Holdings of Volvo Group Venture Capital (1) (48)
Other companies (12) (4)
Subtotal (32) (52)
     
Gains (losses) on divestment of shares in associated companies    
Holdings of Volvo Group Venture Capital - (5)
Subtotal - (5)
Total income (loss) from investments in associated companies (23) (81)


Changes in Volvo Group’s investments in associated companies 2012 2011
Investments in associated companies as of December 31, preceding year 684 684
Acquisitions and divestments 1,102 111
Write-downs - (52)
Capital contribution 7 15
Share of income in associated companies 10 (24)
Revaluation of shares to fair value (32) -
Translation differences (27) 1
Dividends (8) (35)
Reclassifications 308 (16)
Other 1 -
Investments in associated companies as of December 31 2,045 684

Other shares and participations
The carrying amount of the Volvo Group's holding of shares and participations in other companies as of December 31, 2012, is disclosed in the table below.
  Dec 31,
2012
Dec 31,
2012
Dec 31,
2011
Holding of shares
in listed companies
Percentage holding Carrying
value
Carrying
value
Deutz AG, Germany1) - - 299
Nippon Express Co.,Ltd., Japan 0.4 116 93
TBK Co.,Ltd., Japan 6.7 69 61
Sankyu Inc., Japan 0.5 42 44
Senko Co.,Ltd., Japan 0.9 35 32
Yamato Holdings Co.,Ltd., Japan 0.1 23 25
Tonami Transportation Co.,Ltd., Japan 1.1 15 15
Fukuyama Transporting Co.,Ltd., Japan 0.2 14 16
Holdings in other listed companies 33 50
Holding of shares in listed companies   347 635
       
Holding of shares in non-listed companies2)   498 555
Other shares and participations   845 1,190

1) In 2012 an additional 18% of the shares in Deutz AG was acquired and thereby the company is recognized as an associated company.
2) Unlisted shares and participations, for which a fair value cannot reasonably be determined, are measured at cost less any impairment losses.

Income from other shares and participations
Dividends received 2012 2011
Deutz AG - 2
Holdings in Japanese companies 16 13
Other 4 6
Subtotal 20 21
     
Write-downs of shares    
Holdings of Volvo Group Venture Capital (75) (43)
Holdings in Japanese companies (14) (226)
Other - (1)
Subtotal1) (89) (270)
     
Gain on divestment of shares    
Holdings of Volvo Group Venture Capital 12 11
Holdings in Japanese companies (1) 5
Other 11 8
Subtotal 22 24
Income from other investments (47) (225)

1) Write-downs of shares refer mainly to financial assets available for sale for which a reliable market value can be calculated.

Changes in Volvo Group’s holding of other shares and participations 2012 2011
Holding of other shares and participations as of December 31 preceding year 1,190 1,414
Change in Group structure - (19)
Acquisitions and divestments 93 (19)
Write-downs - (43)
Capital contribution 6 8
Revaluation of shares to fair value (89) (203)
Translation differences (87) 32
Reclassifications (308) 16
Other 40 4
Holding of other shares and participations as of December 31 845 1,190