Other information

Financial instruments
  June 30, 2013
SEK M Carrying value Fair value
Financial assets at fair value through profit and loss 1)    
The Volvo Group's outstanding interest and currency risk derivatives (A) 2,302 2,302
The Volvo Group's outstanding raw materials derivatives 4 4
Marketable securities 5,843 5,843
  8,149 8,149
Loans receivable and other receivables    
Accounts receivable 31,588
Customer financing receivables 2) 82,589
Other interest-bearing receivables 1,004
Financial assets available for sale    
Holding of shares in listed companies 1,211 1,211
Holding of shares in non-listed companies 512
  1,723 1,211
Cash and cash equivalents 22,737 22,737
Financial liabilities at fair value through profit and loss 1)    
The Volvo Group's outstanding interest and currency risk derivatives 3) 2,853 2,853
The Volvo Group's outstanding raw materials derivatives 60 60
  2,913 2,913
Financial liabilities valued at amortized cost 4)    
Long term bond loans and other loans 82,938 86,991
Short term bank loans and other loans 54,897 54,058
  137,835 141,049
Trade Payables 52,282

1) IFRS 7 classifies financial instruments based on the degree that market values have been utilized when measuring fair value. All financial instruments measured at fair value held by Volvo are classified as level 2 with the exception of shares and participations, which are classified as level 1 for listed instruments and level 3 for unlisted instruments. Refer to Note 5 in the Volvo Group Annual Report 2012 for more information regarding valuation principles. None of these individual shareholdings is of significant value for Volvo. The valuation of level 2 instruments is based on market conditions using quoted market data existing at each balance sheet date. The basis for the interest is the zero-coupon-curve in each currency which calculates the present value of all the estimated future cash-flows. The fair value of forward exchange contracts is discounted to balance sheet date based on the forward rates for each currency as per balance sheet date.
2) Volvo does not estimate the risk premium for the customer financing receivables and chooses therefore not to disclose fair value for this category.
3) Includes a fair value of a loan related to hedge accounting negative SEK 1,211 M, netted against the derivative used to hedge the risk, positive SEK 1,227 M (B).
4) In the Volvo Group consolidated financial position, financial liabilities include loan-related derivatives amounting to negative SEK 2,011 M. These derivatives are presented as financial liabilities at fair value through profit and loss in the table above.

In accordance with Volvo Group policy, Volvo Group enters into netting agreement (primarily so called ISDA agreements) with all counterparts eligible for derivative transactions. The netting agreements provide the possibility for assets and liabilities to be set off under certain circumstances, such as in the case of the counterpart’s insolvency. These netting agreements have no effect on the financial result and position of the Volvo Group, since derivative transactions are accounted for on a gross-basis, with the exception of the derivatives described in note 3 of the above table. The Volvo Group’s gross exposure from positive derivatives, amounting to SEK 3,529 M (A in the table + B in footnote number 3), is reduced by 42% to SEK 2,033 M by netting agreements and cash deposits, so called CSA agreements. The Volvo Group is actively working with limits per counterpart in order to reduce risk for high net amounts towards individual counterparts.