{ "documentInfo": { "documentType": "https://xbrl.org/2021/xbrl-json", "features": { "xbrl:canonicalValues": true }, "namespaces": { "abvolvo": "http://volvogroup.com", "ifrs-full": "https://xbrl.ifrs.org/taxonomy/2022-03-24/ifrs-full", "iso4217": "http://www.xbrl.org/2003/iso4217", "scheme": "http://standards.iso.org/iso/17442", "xbrl": "https://xbrl.org/2021", "xbrli": "http://www.xbrl.org/2003/instance" }, "taxonomy": [ "http://volvogroup.com/abvolvo-2023-12-31.xsd" ] }, "facts": { "fact-2": { "value": "limited company", "dimensions": { "concept": "ifrs-full:LegalFormOfEntity", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-3": { "value": "Sweden", "dimensions": { "concept": "ifrs-full:CountryOfIncorporation", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-7": { "value": "AB Volvo ", "dimensions": { "concept": "ifrs-full:NameOfParentEntity", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1": { "value": "Gothenburg, Sweden", "dimensions": { "concept": "ifrs-full:DomicileOfEntity", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-8": { "value": "AB Volvo ", "dimensions": { "concept": "ifrs-full:NameOfUltimateParentOfGroup", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-4": { "value": "SE-405 08 Gothenburg, Sweden", "dimensions": { "concept": "ifrs-full:AddressOfRegisteredOfficeOfEntity", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-6": { "value": "The Volvo Group drives prosperity through transport and infrastructure solutions, offering trucks, buses, construction equipment, power solutions for marine and industrial applications, financing and services that increase our customers\u2019 uptime and productivity. Founded in 1927, the Volvo Group is committed to shaping the future landscape of sustainable transport and infrastructure solutions.", "dimensions": { "concept": "ifrs-full:DescriptionOfNatureOfEntitysOperationsAndPrincipalActivities", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-5": { "value": "A significant part of the Group\u2019s opera - tions is in Sweden. Other significant operations are found in the US, Brazil, India, France and China.", "dimensions": { "concept": "ifrs-full:PrincipalPlaceOfBusiness", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-930": { "value": "Events after the balance sheet date No material events have occurred after the end of the financial year that are expected to have a material effect on the Volvo Group\u2019s financial statements.", "dimensions": { "concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-29": { "value": "533269000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Revenue", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-30": { "value": "459703000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Revenue", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-31": { "value": "24012000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Revenue", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-32": { "value": "17355000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Revenue", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-33": { "value": "-4518000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Revenue", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-34": { "value": "-3579000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Revenue", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-35": { "value": "552764000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Revenue", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-36": { "value": "473479000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Revenue", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-37": { "value": "391576000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CostOfSales", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-38": { "value": "354682000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CostOfSales", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-39": { "value": "16385000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CostOfSales", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-40": { "value": "10641000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CostOfSales", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-41": { "value": "-4518000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CostOfSales", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-42": { "value": "-3581000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CostOfSales", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-43": { "value": "403443000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CostOfSales", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-44": { "value": "361741000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CostOfSales", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-45": { "value": "141693000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:GrossProfit", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-46": { "value": "105021000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:GrossProfit", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-47": { "value": "7627000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:GrossProfit", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-48": { "value": "6714000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:GrossProfit", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-49": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:GrossProfit", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-50": { "value": "2000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:GrossProfit", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-51": { "value": "149321000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:GrossProfit", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-52": { "value": "111737000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:GrossProfit", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-53": { "value": "26645000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ResearchAndDevelopmentExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-54": { "value": "22526000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ResearchAndDevelopmentExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-55": { "value": "-0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ResearchAndDevelopmentExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-56": { "value": "-0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ResearchAndDevelopmentExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-57": { "value": "-0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ResearchAndDevelopmentExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-58": { "value": "-0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ResearchAndDevelopmentExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-59": { "value": "26645000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ResearchAndDevelopmentExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-60": { "value": "22526000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ResearchAndDevelopmentExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-61": { "value": "30380000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:SellingExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-62": { "value": "26066000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:SellingExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-63": { "value": "3295000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:SellingExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-64": { "value": "2978000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:SellingExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-65": { "value": "-0", "decimals": -6, "dimensions": { "concept": "ifrs-full:SellingExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-66": { "value": "-0", "decimals": -6, "dimensions": { "concept": "ifrs-full:SellingExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-67": { "value": "33675000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:SellingExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-68": { "value": "29044000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:SellingExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-69": { "value": "7342000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdministrativeExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-70": { "value": "5867000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdministrativeExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-71": { "value": "14000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdministrativeExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-72": { "value": "13000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdministrativeExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-73": { "value": "-0", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdministrativeExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-74": { "value": "-0", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdministrativeExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-75": { "value": "7356000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdministrativeExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-76": { "value": "5880000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdministrativeExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-77": { "value": "-11687000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherOperatingIncomeExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-78": { "value": "-4498000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherOperatingIncomeExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-79": { "value": "-594000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherOperatingIncomeExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-80": { "value": "-2876000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherOperatingIncomeExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-81": { "value": "2000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherOperatingIncomeExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-82": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherOperatingIncomeExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-83": { "value": "-12280000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherOperatingIncomeExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-84": { "value": "-7374000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherOperatingIncomeExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-85": { "value": "-2568000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ShareOfProfitLossOfAssociatesAndJointVenturesAccountedForUsingEquityMethod", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-86": { "value": "-1333000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ShareOfProfitLossOfAssociatesAndJointVenturesAccountedForUsingEquityMethod", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-87": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ShareOfProfitLossOfAssociatesAndJointVenturesAccountedForUsingEquityMethod", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-88": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ShareOfProfitLossOfAssociatesAndJointVenturesAccountedForUsingEquityMethod", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-89": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ShareOfProfitLossOfAssociatesAndJointVenturesAccountedForUsingEquityMethod", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-90": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ShareOfProfitLossOfAssociatesAndJointVenturesAccountedForUsingEquityMethod", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-91": { "value": "-2568000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ShareOfProfitLossOfAssociatesAndJointVenturesAccountedForUsingEquityMethod", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-92": { "value": "-1333000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ShareOfProfitLossOfAssociatesAndJointVenturesAccountedForUsingEquityMethod", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-93": { "value": "-9000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherGainsLosses", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-94": { "value": "132000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherGainsLosses", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-95": { "value": "-5000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherGainsLosses", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-96": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherGainsLosses", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-97": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherGainsLosses", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-98": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherGainsLosses", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-99": { "value": "-14000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherGainsLosses", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-100": { "value": "132000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherGainsLosses", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-101": { "value": "63063000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossFromOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-102": { "value": "44862000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossFromOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-103": { "value": "3719000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossFromOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-104": { "value": "848000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossFromOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-105": { "value": "2000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossFromOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-106": { "value": "2000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossFromOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-107": { "value": "66784000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossFromOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-108": { "value": "45712000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossFromOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-109": { "value": "3207000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:RevenueFromInterest", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-110": { "value": "1315000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:RevenueFromInterest", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-111": { "value": "1000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:RevenueFromInterest", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-112": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:RevenueFromInterest", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-113": { "value": "-518000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:RevenueFromInterest", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-114": { "value": "-307000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:RevenueFromInterest", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-115": { "value": "2690000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:RevenueFromInterest", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-116": { "value": "1008000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:RevenueFromInterest", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-117": { "value": "1685000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-118": { "value": "1512000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-119": { "value": "-0", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-120": { "value": "-0", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-121": { "value": "-518000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-122": { "value": "-307000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-123": { "value": "1167000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-124": { "value": "1205000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestExpense", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-125": { "value": "-1581000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherFinanceIncomeCost", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-126": { "value": "-437000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherFinanceIncomeCost", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-127": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherFinanceIncomeCost", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-128": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherFinanceIncomeCost", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-129": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherFinanceIncomeCost", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-130": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherFinanceIncomeCost", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-131": { "value": "-1581000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherFinanceIncomeCost", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-132": { "value": "-437000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherFinanceIncomeCost", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-133": { "value": "63005000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossBeforeTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-134": { "value": "44228000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossBeforeTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-135": { "value": "3720000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossBeforeTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-136": { "value": "848000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossBeforeTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-137": { "value": "2000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossBeforeTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-138": { "value": "2000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossBeforeTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-139": { "value": "66726000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossBeforeTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-140": { "value": "45077000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossBeforeTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-141": { "value": "15770000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxExpenseContinuingOperations", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-142": { "value": "11207000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxExpenseContinuingOperations", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-143": { "value": "1024000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxExpenseContinuingOperations", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-144": { "value": "901000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxExpenseContinuingOperations", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-145": { "value": "-0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxExpenseContinuingOperations", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-146": { "value": "-0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxExpenseContinuingOperations", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-147": { "value": "16794000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxExpenseContinuingOperations", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-148": { "value": "12108000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxExpenseContinuingOperations", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-149": { "value": "47235000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-150": { "value": "33021000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-151": { "value": "2695000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-152": { "value": "-53000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-153": { "value": "2000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-154": { "value": "1000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-155": { "value": "49932000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-156": { "value": "32969000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-157": { "value": "49825000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossAttributableToOwnersOfParent", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-158": { "value": "32722000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossAttributableToOwnersOfParent", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-159": { "value": "107000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossAttributableToNoncontrollingInterests", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-160": { "value": "247000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossAttributableToNoncontrollingInterests", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-161": { "value": "24.5", "decimals": 2, "dimensions": { "concept": "ifrs-full:BasicEarningsLossPerShare", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK/xbrli:shares" } }, "fact-162": { "value": "16.09", "decimals": 2, "dimensions": { "concept": "ifrs-full:BasicEarningsLossPerShare", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK/xbrli:shares" } }, "fact-163": { "value": "24.5", "decimals": 2, "dimensions": { "concept": "ifrs-full:DilutedEarningsLossPerShare", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK/xbrli:shares" } }, "fact-164": { "value": "16.09", "decimals": 2, "dimensions": { "concept": "ifrs-full:DilutedEarningsLossPerShare", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK/xbrli:shares" } }, "fact-9": { "value": "49932000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-10": { "value": "32969000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-11": { "value": "-2400000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesOnRemeasurementsOfDefinedBenefitPlans", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-12": { "value": "3817000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesOnRemeasurementsOfDefinedBenefitPlans", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-13": { "value": "15000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesFromInvestmentsInEquityInstruments", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-14": { "value": "-45000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesFromInvestmentsInEquityInstruments", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-15": { "value": "-2905000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:GainsLossesOnExchangeDifferencesOnTranslationNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-16": { "value": "10544000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:GainsLossesOnExchangeDifferencesOnTranslationNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-17": { "value": "-678000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ShareOfOtherComprehensiveIncomeOfAssociatesAndJointVenturesAccountedForUsingEquityMethodThatWillBeReclassifiedToProfitOrLossNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-18": { "value": "1279000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ShareOfOtherComprehensiveIncomeOfAssociatesAndJointVenturesAccountedForUsingEquityMethodThatWillBeReclassifiedToProfitOrLossNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-19": { "value": "318000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ReclassificationAdjustmentsOnExchangeDifferencesOnTranslationNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-20": { "value": "-0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ReclassificationAdjustmentsOnExchangeDifferencesOnTranslationNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-21": { "value": "-6285000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncome", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-22": { "value": "15596000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncome", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-23": { "value": "43647000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-24": { "value": "48565000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-25": { "value": "43731000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncomeAttributableToOwnersOfParent", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-26": { "value": "48140000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncomeAttributableToOwnersOfParent", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-27": { "value": "-84000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncomeAttributableToNoncontrollingInterests", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-28": { "value": "425000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncomeAttributableToNoncontrollingInterests", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-931": { "value": "
Operating income
In 2023, the Volvo Group\u2019s adjusted operating income amounted
to SEK 77.6 billion (50.5), excluding a total negative effect of SEK
10.9 billion relating to items of a one-time character, not directly
linked to the underlying business operations. Adjusted operating
income in 2022 excluded a total negative impact of SEK 4.8 billion.
For information on adjustments, see Key Ratios on page 218. The
adjusted operating margin amounted to 14.0% (10.7).
Profitability was good in yet another challenging year with
geopolitical turmoil, supply chain constraints and high inflation
pressure. Compared with 2022, the increased adjusted operating
income is mainly due to successful mitigation of cost inflation with
price management and a favorable brand and product mix, partly
offset by higher material costs despite efficient handling of distur-
bances in the supply chain.
Reported operating income amounted to SEK 66.8 billion (45.7).
2019 2020 2021 20232022
432
338
473
553
372
Net sales SEK bn
2019 2020 2021 2022 2023
49.5
27.5
43.1
45.7
66.8
Operating income SEK bn
Net sales by operating segment,
SEK M
2023 2022 %
Trucks 373,048 310,536 20
Construction Equipment 104,981 100,261 5
Buses 22,423 18,583 21
Volvo Penta 21,006 18,102 16
Group Functions & Other 16,809 16,376 3
Eliminations \u20134,998 \u20134,155 \u2013
Industrial Operations 533,269 459,703 16
Financial Services 24,012 17,355 38
Reclassifications and eliminations \u20134,518 \u20133,579 \u2013
Volvo Group
1
522,764 473,479 17
1 Adjusted for changes in currency rates, net sales increased by 11%.
Net sales by geographical region,
SEK M
2023 2022 %
Europe 236,613 191,165 24
North America 164,825 137,154 20
South America 49,165 51,734 \u20135
Asia 66,105 64,392 3
Africa and Oceania 36,056 29,033 24
Volvo Group 552,764 473,479 17
Of which:
Vehicles 425,301 363,659 17
Services 127,463 109,820 16
Adjusted operating income by
operating segment, SEK M
2023 2022
Trucks 55,394 33,821
Construction Equipment 16,993 13,244
Buses 1,059 353
Volvo Penta 3,230 2,530
Group Functions & Other \u20132,950 \u20132,911
Eliminations 55 12
Industrial Operations 73,782 47,049
Financial Services 3,855 3,416
Reclassifications and eliminations 2 2
Volvo Group adjusted operating income 77,638 50,467
Adjustments\u00b9 \u201310,854 \u20134,755
Volvo Group operating income 66,784 45,712
1 For more information on adjusted operating income, please see section for Key ratios
Adjusted operating margin, % 2023 2022
Trucks 14.8 10.9
Construction Equipment 16.2 13.2
Buses 4.7 1.9
Volvo Penta 15.4 14.0
Industrial Operations 13.8 10.2
Volvo Group adjusted operating margin 14.0 10.7
Volvo Group operating margin 12.1 9.7
Change in operating income, Volvo Group SEK bn Change (excluding currency) Currency impact Total Operating income 2022 45.7 Change in gross income Industrial Operations 30.4 6.3 36.7 Change in gross income Financial Services 0.6 0.3 0.9 Lower expected credit losses\u00b9 2.8 \u2013 2.8 Sale of tangible and intangible assets 0.9 \u2013 0.9 Divestment of group companies\u00b2 \u20130.8 \u2013 \u20130.8 Financial impact related to the planned divestment of Arquus and the ABG paver business \u20131.5 \u2013 \u20131.5 Higher research and development expenditures \u20133.9 \u20130.2 \u20134.1 Higher selling and administrative expenses \u20134.5 \u20131.6 \u20136.1 Loss from investments in joint ventures and associated companies \u20131.4 \u2013 \u20131.4 Higher damages and litigation expenses\u00b3 \u20134.4 \u2013 \u20134.4 Restructuring costs\u2074 \u20132.7 \u2013 \u20132.7 Other 0.7 \u2013 0.7 Operating income 2023 16.3 4.8 66.8 1 In 2022, a provision of assets related to Russia was included. 2 The Volvo Group divested the Russian entities. The divestment resulted in a negative impact on other operating income and expenses of SEK 0.8 billion. 3 For 2023, costs of SEK 6 billion are included for claims from the European Com- mission\u2019s 2016 antitrust settlement decision. For 2022, costs for a civil penalty from the National Highway Traffic Safety Administration in the US was included. 4 Includes restructuring charges of SEK 1.3 billion in Buses and SEK 1.3 billion in Group Functions & Other, which negatively impacted the operating income during 2023. Impact of exchange rates on operating income, Volvo Group, Compared with preceding year, SEK M Net sales 1 26,030 Cost of sales \u201319,435 Research and development expenses \u2013262 Selling and administrative expenses \u20131,577 Other 2 Total effect of changes in exchange rates on operating income 4,758 1 The Volvo Group sales are reported at monthly average rates. Impact of exchange rates on operating income In 2023, changes in exchange rates compared to last year impacted the Volvo Group\u2019s operating income positively by SEK 4.8 billion. The impact was related to translation of operating income in for- eign subsidiaries by SEK 2.8 billion, net flows in foreign currency by SEK 1.1 billion and revaluation of receivables and liabilities of SEK 0.9 billion. The translation of operating income was mainly impacted by the appreciation of the EUR, BRL and USD. The net flows in for- eign currency were positively impacted by an appreciation of the USD, PLN and GBP. Read more in Note 4 Goals and policies in financial risk management regard- ing Volvo Groups transaction exposure from operating net flows, graphs 4:5 and 4:7 and 4:8, for currency impact on operating income and sales", "dimensions": { "concept": "ifrs-full:DisclosureOfProfitLossFromOperatingActivitiesExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-932": { "value": "Expenses by nature, SEK M 2023 2022 Material cost (freight, distribution, warranty) and purchased services 332,215 301,407 Personnel 75,364 65,480 Amortization/depreciation 21,227 20,729 Other 42,311 31,575 Total 471,118 419,191", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesByNatureExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-165": { "value": "42378000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IntangibleAssetsAndGoodwill", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-166": { "value": "41471000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IntangibleAssetsAndGoodwill", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-167": { "value": "135000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IntangibleAssetsAndGoodwill", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-168": { "value": "73000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IntangibleAssetsAndGoodwill", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-169": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IntangibleAssetsAndGoodwill", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-170": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IntangibleAssetsAndGoodwill", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-171": { "value": "42512000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IntangibleAssetsAndGoodwill", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-172": { "value": "41544000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IntangibleAssetsAndGoodwill", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-173": { "value": "68340000000", "decimals": -6, "dimensions": { "concept": "abvolvo:PropertyPlantAndEquipmentLessAssetsUnderOperatingLeases", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-174": { "value": "63058000000", "decimals": -6, "dimensions": { "concept": "abvolvo:PropertyPlantAndEquipmentLessAssetsUnderOperatingLeases", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-175": { "value": "56000000", "decimals": -6, "dimensions": { "concept": "abvolvo:PropertyPlantAndEquipmentLessAssetsUnderOperatingLeases", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-176": { "value": "50000000", "decimals": -6, "dimensions": { "concept": "abvolvo:PropertyPlantAndEquipmentLessAssetsUnderOperatingLeases", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-177": { "value": "0", "decimals": -6, "dimensions": { "concept": "abvolvo:PropertyPlantAndEquipmentLessAssetsUnderOperatingLeases", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-178": { "value": "0", "decimals": -6, "dimensions": { "concept": "abvolvo:PropertyPlantAndEquipmentLessAssetsUnderOperatingLeases", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-179": { "value": "68396000000", "decimals": -6, "dimensions": { "concept": "abvolvo:PropertyPlantAndEquipmentLessAssetsUnderOperatingLeases", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-180": { "value": "63108000000", "decimals": -6, "dimensions": { "concept": "abvolvo:PropertyPlantAndEquipmentLessAssetsUnderOperatingLeases", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-181": { "value": "53000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InvestmentProperty", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-182": { "value": "54000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InvestmentProperty", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-183": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:InvestmentProperty", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-184": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:InvestmentProperty", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-185": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:InvestmentProperty", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-186": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:InvestmentProperty", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-187": { "value": "53000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InvestmentProperty", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-188": { "value": "54000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InvestmentProperty", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-189": { "value": "35154000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AssetsUnderOperatingLeases", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-190": { "value": "34109000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AssetsUnderOperatingLeases", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-191": { "value": "21318000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AssetsUnderOperatingLeases", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-192": { "value": "21372000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AssetsUnderOperatingLeases", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-193": { "value": "-14562000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AssetsUnderOperatingLeases", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-194": { "value": "-11963000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AssetsUnderOperatingLeases", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-195": { "value": "41910000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AssetsUnderOperatingLeases", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-196": { "value": "43518000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AssetsUnderOperatingLeases", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-197": { "value": "19158000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InvestmentAccountedForUsingEquityMethod", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-198": { "value": "21583000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InvestmentAccountedForUsingEquityMethod", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-199": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:InvestmentAccountedForUsingEquityMethod", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-200": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:InvestmentAccountedForUsingEquityMethod", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-201": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:InvestmentAccountedForUsingEquityMethod", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-202": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:InvestmentAccountedForUsingEquityMethod", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-203": { "value": "19158000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InvestmentAccountedForUsingEquityMethod", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-204": { "value": "21583000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InvestmentAccountedForUsingEquityMethod", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-205": { "value": "862000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethod", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-206": { "value": "587000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethod", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-207": { "value": "18000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethod", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-208": { "value": "18000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethod", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-209": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethod", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-210": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethod", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-211": { "value": "881000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethod", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-212": { "value": "605000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethod", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-213": { "value": "1605000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentFinanceLeaseReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-214": { "value": "1903000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentFinanceLeaseReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-215": { "value": "121987000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentFinanceLeaseReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-216": { "value": "105536000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentFinanceLeaseReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-217": { "value": "-1954000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentFinanceLeaseReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-218": { "value": "-2375000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentFinanceLeaseReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-219": { "value": "121638000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentFinanceLeaseReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-220": { "value": "105064000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentFinanceLeaseReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-221": { "value": "2039000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentRecognisedAssetsDefinedBenefitPlan", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-222": { "value": "2722000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentRecognisedAssetsDefinedBenefitPlan", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-223": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentRecognisedAssetsDefinedBenefitPlan", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-224": { "value": "5000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentRecognisedAssetsDefinedBenefitPlan", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-225": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentRecognisedAssetsDefinedBenefitPlan", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-226": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentRecognisedAssetsDefinedBenefitPlan", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-227": { "value": "2039000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentRecognisedAssetsDefinedBenefitPlan", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-228": { "value": "2727000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentRecognisedAssetsDefinedBenefitPlan", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-229": { "value": "3405000000", "decimals": -6, "dimensions": { "concept": "abvolvo:NonCurrentInterestBearingReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-230": { "value": "7227000000", "decimals": -6, "dimensions": { "concept": "abvolvo:NonCurrentInterestBearingReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-231": { "value": "950000000", "decimals": -6, "dimensions": { "concept": "abvolvo:NonCurrentInterestBearingReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-232": { "value": "1153000000", "decimals": -6, "dimensions": { "concept": "abvolvo:NonCurrentInterestBearingReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-233": { "value": "-950000000", "decimals": -6, "dimensions": { "concept": "abvolvo:NonCurrentInterestBearingReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-234": { "value": "-6578000000", "decimals": -6, "dimensions": { "concept": "abvolvo:NonCurrentInterestBearingReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-235": { "value": "3405000000", "decimals": -6, "dimensions": { "concept": "abvolvo:NonCurrentInterestBearingReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-236": { "value": "1803000000", "decimals": -6, "dimensions": { "concept": "abvolvo:NonCurrentInterestBearingReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-237": { "value": "6431000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherNoncurrentReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-238": { "value": "10997000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherNoncurrentReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-239": { "value": "283000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherNoncurrentReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-240": { "value": "227000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherNoncurrentReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-241": { "value": "-197000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherNoncurrentReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-242": { "value": "-202000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherNoncurrentReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-243": { "value": "6518000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherNoncurrentReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-244": { "value": "11022000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherNoncurrentReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-245": { "value": "14142000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DeferredTaxAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-246": { "value": "12219000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DeferredTaxAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-247": { "value": "2044000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DeferredTaxAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-248": { "value": "1969000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DeferredTaxAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-249": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DeferredTaxAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-250": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DeferredTaxAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-251": { "value": "16186000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DeferredTaxAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-252": { "value": "14189000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DeferredTaxAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-253": { "value": "193566000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-254": { "value": "195931000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-255": { "value": "146791000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-256": { "value": "130404000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-257": { "value": "-17662000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-258": { "value": "-21118000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-259": { "value": "322695000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-260": { "value": "305217000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-261": { "value": "75958000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Inventories", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-262": { "value": "75382000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Inventories", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-263": { "value": "904000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Inventories", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-264": { "value": "307000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Inventories", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-265": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Inventories", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-266": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Inventories", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-267": { "value": "76863000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Inventories", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-268": { "value": "75689000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Inventories", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-269": { "value": "1027000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentFinanceLeaseReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-270": { "value": "1128000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentFinanceLeaseReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-271": { "value": "110822000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentFinanceLeaseReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-272": { "value": "89145000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentFinanceLeaseReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-273": { "value": "-1284000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentFinanceLeaseReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-274": { "value": "-1409000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentFinanceLeaseReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-275": { "value": "110565000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentFinanceLeaseReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-276": { "value": "88864000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentFinanceLeaseReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-277": { "value": "1329000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentTaxAssetsCurrent", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-278": { "value": "1489000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentTaxAssetsCurrent", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-279": { "value": "895000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentTaxAssetsCurrent", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-280": { "value": "570000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentTaxAssetsCurrent", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-281": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentTaxAssetsCurrent", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-282": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentTaxAssetsCurrent", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-283": { "value": "2223000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentTaxAssetsCurrent", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-284": { "value": "2059000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentTaxAssetsCurrent", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-285": { "value": "2784000000", "decimals": -6, "dimensions": { "concept": "abvolvo:CurrentInterestBearingReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-286": { "value": "5690000000", "decimals": -6, "dimensions": { "concept": "abvolvo:CurrentInterestBearingReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-287": { "value": "0", "decimals": -6, "dimensions": { "concept": "abvolvo:CurrentInterestBearingReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-288": { "value": "0", "decimals": -6, "dimensions": { "concept": "abvolvo:CurrentInterestBearingReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-289": { "value": "-19000000", "decimals": -6, "dimensions": { "concept": "abvolvo:CurrentInterestBearingReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-290": { "value": "-27000000", "decimals": -6, "dimensions": { "concept": "abvolvo:CurrentInterestBearingReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-291": { "value": "2765000000", "decimals": -6, "dimensions": { "concept": "abvolvo:CurrentInterestBearingReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-292": { "value": "5663000000", "decimals": -6, "dimensions": { "concept": "abvolvo:CurrentInterestBearingReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-293": { "value": "10680000000", "decimals": -6, "dimensions": { "concept": "abvolvo:CurrentInternalFundingAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-294": { "value": "7991000000", "decimals": -6, "dimensions": { "concept": "abvolvo:CurrentInternalFundingAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-295": { "value": "0", "decimals": -6, "dimensions": { "concept": "abvolvo:CurrentInternalFundingAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-296": { "value": "0", "decimals": -6, "dimensions": { "concept": "abvolvo:CurrentInternalFundingAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-297": { "value": "-10680000000", "decimals": -6, "dimensions": { "concept": "abvolvo:CurrentInternalFundingAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-298": { "value": "-7991000000", "decimals": -6, "dimensions": { "concept": "abvolvo:CurrentInternalFundingAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-299": { "value": "0", "decimals": -6, "dimensions": { "concept": "abvolvo:CurrentInternalFundingAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-300": { "value": "0", "decimals": -6, "dimensions": { "concept": "abvolvo:CurrentInternalFundingAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-301": { "value": "41383000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentTradeReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-302": { "value": "46672000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentTradeReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-303": { "value": "1827000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentTradeReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-304": { "value": "1548000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentTradeReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-305": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentTradeReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-306": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentTradeReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-307": { "value": "43210000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentTradeReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-308": { "value": "48220000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentTradeReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-309": { "value": "22173000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherCurrentReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-310": { "value": "21390000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherCurrentReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-311": { "value": "3283000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherCurrentReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-312": { "value": "3302000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherCurrentReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-313": { "value": "-5084000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherCurrentReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-314": { "value": "-5319000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherCurrentReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-315": { "value": "20372000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherCurrentReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-316": { "value": "19373000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherCurrentReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-317": { "value": "89000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentHeldtomaturityInvestments", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-318": { "value": "93000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentHeldtomaturityInvestments", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-319": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentHeldtomaturityInvestments", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-320": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentHeldtomaturityInvestments", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-321": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentHeldtomaturityInvestments", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-322": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentHeldtomaturityInvestments", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-323": { "value": "89000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentHeldtomaturityInvestments", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-324": { "value": "93000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentHeldtomaturityInvestments", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-325": { "value": "78858000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashAndCashEquivalents", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-326": { "value": "76005000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashAndCashEquivalents", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-327": { "value": "5785000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashAndCashEquivalents", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-328": { "value": "9688000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashAndCashEquivalents", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-329": { "value": "-1318000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashAndCashEquivalents", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-330": { "value": "-1806000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashAndCashEquivalents", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-331": { "value": "83326000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashAndCashEquivalents", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-332": { "value": "83886000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashAndCashEquivalents", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-333": { "value": "11960000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSale", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-334": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSale", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-335": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSale", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-336": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSale", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-337": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSale", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-338": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSale", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-339": { "value": "11960000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSale", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-340": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSale", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-341": { "value": "246241000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-342": { "value": "235840000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-343": { "value": "123516000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-344": { "value": "104560000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-345": { "value": "-18384000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-346": { "value": "-16553000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-347": { "value": "351373000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-348": { "value": "323847000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-349": { "value": "439807000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Assets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-350": { "value": "431771000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Assets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-351": { "value": "270307000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Assets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-352": { "value": "234964000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Assets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-353": { "value": "-36046000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Assets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-354": { "value": "-37671000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Assets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-355": { "value": "674068000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Assets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-356": { "value": "629064000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Assets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-357": { "value": "156171000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:EquityAttributableToOwnersOfParent", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-358": { "value": "143921000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:EquityAttributableToOwnersOfParent", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-359": { "value": "21620000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:EquityAttributableToOwnersOfParent", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-360": { "value": "18796000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:EquityAttributableToOwnersOfParent", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-361": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:EquityAttributableToOwnersOfParent", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-362": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:EquityAttributableToOwnersOfParent", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-363": { "value": "177791000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:EquityAttributableToOwnersOfParent", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-364": { "value": "162717000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:EquityAttributableToOwnersOfParent", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-365": { "value": "2948000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncontrollingInterests", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-366": { "value": "3519000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncontrollingInterests", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-367": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncontrollingInterests", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-368": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncontrollingInterests", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-369": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncontrollingInterests", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-370": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncontrollingInterests", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-371": { "value": "2948000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncontrollingInterests", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-372": { "value": "3519000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncontrollingInterests", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-373": { "value": "159119000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-374": { "value": "147439000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-375": { "value": "21620000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-376": { "value": "18796000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-377": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-378": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-379": { "value": "180739000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-380": { "value": "166236000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-381": { "value": "11138000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentRecognisedLiabilitiesDefinedBenefitPlan", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-382": { "value": "8690000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentRecognisedLiabilitiesDefinedBenefitPlan", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-383": { "value": "81000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentRecognisedLiabilitiesDefinedBenefitPlan", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-384": { "value": "55000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentRecognisedLiabilitiesDefinedBenefitPlan", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-385": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentRecognisedLiabilitiesDefinedBenefitPlan", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-386": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentRecognisedLiabilitiesDefinedBenefitPlan", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-387": { "value": "11219000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentRecognisedLiabilitiesDefinedBenefitPlan", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-388": { "value": "8745000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentRecognisedLiabilitiesDefinedBenefitPlan", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-389": { "value": "12902000000", "decimals": -6, "dimensions": { "concept": "abvolvo:NonCurrentOtherProvisionsAndProvisionsForRestructuring", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-390": { "value": "12330000000", "decimals": -6, "dimensions": { "concept": "abvolvo:NonCurrentOtherProvisionsAndProvisionsForRestructuring", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-391": { "value": "76000000", "decimals": -6, "dimensions": { "concept": "abvolvo:NonCurrentOtherProvisionsAndProvisionsForRestructuring", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-392": { "value": "66000000", "decimals": -6, "dimensions": { "concept": "abvolvo:NonCurrentOtherProvisionsAndProvisionsForRestructuring", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-393": { "value": "0", "decimals": -6, "dimensions": { "concept": "abvolvo:NonCurrentOtherProvisionsAndProvisionsForRestructuring", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-394": { "value": "0", "decimals": -6, "dimensions": { "concept": "abvolvo:NonCurrentOtherProvisionsAndProvisionsForRestructuring", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-395": { "value": "12979000000", "decimals": -6, "dimensions": { "concept": "abvolvo:NonCurrentOtherProvisionsAndProvisionsForRestructuring", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-396": { "value": "12396000000", "decimals": -6, "dimensions": { "concept": "abvolvo:NonCurrentOtherProvisionsAndProvisionsForRestructuring", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-397": { "value": "24040000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentProvisions", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-398": { "value": "21020000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentProvisions", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-399": { "value": "157000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentProvisions", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-400": { "value": "121000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentProvisions", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-401": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentProvisions", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-402": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentProvisions", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-403": { "value": "24198000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentProvisions", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-404": { "value": "21141000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentProvisions", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-405": { "value": "96970000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentPortionOfNoncurrentBondsIssued", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-406": { "value": "102887000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentPortionOfNoncurrentBondsIssued", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-407": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentPortionOfNoncurrentBondsIssued", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-408": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentPortionOfNoncurrentBondsIssued", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-409": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentPortionOfNoncurrentBondsIssued", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-410": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentPortionOfNoncurrentBondsIssued", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-411": { "value": "96970000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentPortionOfNoncurrentBondsIssued", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-412": { "value": "102887000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentPortionOfNoncurrentBondsIssued", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-413": { "value": "23779000000", "decimals": -6, "dimensions": { "concept": "abvolvo:NoncurrentOtherLoans", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-414": { "value": "25446000000", "decimals": -6, "dimensions": { "concept": "abvolvo:NoncurrentOtherLoans", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-415": { "value": "19352000000", "decimals": -6, "dimensions": { "concept": "abvolvo:NoncurrentOtherLoans", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-416": { "value": "12325000000", "decimals": -6, "dimensions": { "concept": "abvolvo:NoncurrentOtherLoans", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-417": { "value": "-1599000000", "decimals": -6, "dimensions": { "concept": "abvolvo:NoncurrentOtherLoans", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-418": { "value": "-2086000000", "decimals": -6, "dimensions": { "concept": "abvolvo:NoncurrentOtherLoans", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-419": { "value": "41532000000", "decimals": -6, "dimensions": { "concept": "abvolvo:NoncurrentOtherLoans", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-420": { "value": "35684000000", "decimals": -6, "dimensions": { "concept": "abvolvo:NoncurrentOtherLoans", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-421": { "value": "-109059000000", "decimals": -6, "dimensions": { "concept": "abvolvo:NoncurrentInternalFundingLiability", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-422": { "value": "-110254000000", "decimals": -6, "dimensions": { "concept": "abvolvo:NoncurrentInternalFundingLiability", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-423": { "value": "112231000000", "decimals": -6, "dimensions": { "concept": "abvolvo:NoncurrentInternalFundingLiability", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-424": { "value": "98310000000", "decimals": -6, "dimensions": { "concept": "abvolvo:NoncurrentInternalFundingLiability", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-425": { "value": "-3173000000", "decimals": -6, "dimensions": { "concept": "abvolvo:NoncurrentInternalFundingLiability", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-426": { "value": "11944000000", "decimals": -6, "dimensions": { "concept": "abvolvo:NoncurrentInternalFundingLiability", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-427": { "value": "0", "decimals": -6, "dimensions": { "concept": "abvolvo:NoncurrentInternalFundingLiability", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-428": { "value": "0", "decimals": -6, "dimensions": { "concept": "abvolvo:NoncurrentInternalFundingLiability", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-429": { "value": "2486000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DeferredTaxLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-430": { "value": "3060000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DeferredTaxLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-431": { "value": "2238000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DeferredTaxLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-432": { "value": "2412000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DeferredTaxLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-433": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DeferredTaxLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-434": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DeferredTaxLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-435": { "value": "4725000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DeferredTaxLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-436": { "value": "5472000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DeferredTaxLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-437": { "value": "49600000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherNoncurrentLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-438": { "value": "51351000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherNoncurrentLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-439": { "value": "1701000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherNoncurrentLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-440": { "value": "1467000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherNoncurrentLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-441": { "value": "-9759000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherNoncurrentLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-442": { "value": "-7270000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherNoncurrentLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-443": { "value": "41542000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherNoncurrentLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-444": { "value": "45549000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherNoncurrentLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-445": { "value": "63776000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-446": { "value": "72490000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-447": { "value": "135522000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-448": { "value": "114514000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-449": { "value": "-14531000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-450": { "value": "2587000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-451": { "value": "184769000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-452": { "value": "189592000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-453": { "value": "19609000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentProvisions", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-454": { "value": "13095000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentProvisions", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-455": { "value": "14000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentProvisions", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-456": { "value": "24000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentProvisions", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-457": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentProvisions", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-458": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentProvisions", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-459": { "value": "19623000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentProvisions", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-460": { "value": "13119000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentProvisions", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-461": { "value": "46641000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentBondsIssuedAndCurrentPortionOfNoncurrentBondsIssued", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-462": { "value": "37794000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentBondsIssuedAndCurrentPortionOfNoncurrentBondsIssued", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-463": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentBondsIssuedAndCurrentPortionOfNoncurrentBondsIssued", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-464": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentBondsIssuedAndCurrentPortionOfNoncurrentBondsIssued", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-465": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentBondsIssuedAndCurrentPortionOfNoncurrentBondsIssued", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-466": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentBondsIssuedAndCurrentPortionOfNoncurrentBondsIssued", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-467": { "value": "46641000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentBondsIssuedAndCurrentPortionOfNoncurrentBondsIssued", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-468": { "value": "37794000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentBondsIssuedAndCurrentPortionOfNoncurrentBondsIssued", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-469": { "value": "40804000000", "decimals": -6, "dimensions": { "concept": "abvolvo:CurrentOtherLoans", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-470": { "value": "24666000000", "decimals": -6, "dimensions": { "concept": "abvolvo:CurrentOtherLoans", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-471": { "value": "11861000000", "decimals": -6, "dimensions": { "concept": "abvolvo:CurrentOtherLoans", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-472": { "value": "11163000000", "decimals": -6, "dimensions": { "concept": "abvolvo:CurrentOtherLoans", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-473": { "value": "-1017000000", "decimals": -6, "dimensions": { "concept": "abvolvo:CurrentOtherLoans", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-474": { "value": "-1247000000", "decimals": -6, "dimensions": { "concept": "abvolvo:CurrentOtherLoans", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-475": { "value": "51648000000", "decimals": -6, "dimensions": { "concept": "abvolvo:CurrentOtherLoans", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-476": { "value": "34583000000", "decimals": -6, "dimensions": { "concept": "abvolvo:CurrentOtherLoans", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-477": { "value": "-79494000000", "decimals": -6, "dimensions": { "concept": "abvolvo:CurrentInternalFundingLiability", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-478": { "value": "-50804000000", "decimals": -6, "dimensions": { "concept": "abvolvo:CurrentInternalFundingLiability", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-479": { "value": "89985000000", "decimals": -6, "dimensions": { "concept": "abvolvo:CurrentInternalFundingLiability", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-480": { "value": "79677000000", "decimals": -6, "dimensions": { "concept": "abvolvo:CurrentInternalFundingLiability", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-481": { "value": "-10491000000", "decimals": -6, "dimensions": { "concept": "abvolvo:CurrentInternalFundingLiability", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-482": { "value": "-28873000000", "decimals": -6, "dimensions": { "concept": "abvolvo:CurrentInternalFundingLiability", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-483": { "value": "0", "decimals": -6, "dimensions": { "concept": "abvolvo:CurrentInternalFundingLiability", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-484": { "value": "0", "decimals": -6, "dimensions": { "concept": "abvolvo:CurrentInternalFundingLiability", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-485": { "value": "81883000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:TradeAndOtherCurrentPayables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-486": { "value": "89174000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:TradeAndOtherCurrentPayables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-487": { "value": "1103000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:TradeAndOtherCurrentPayables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-488": { "value": "1003000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:TradeAndOtherCurrentPayables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-489": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:TradeAndOtherCurrentPayables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-490": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:TradeAndOtherCurrentPayables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-491": { "value": "82987000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:TradeAndOtherCurrentPayables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-492": { "value": "90177000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:TradeAndOtherCurrentPayables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-493": { "value": "4140000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentTaxLiabilitiesCurrent", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-494": { "value": "6147000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentTaxLiabilitiesCurrent", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-495": { "value": "947000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentTaxLiabilitiesCurrent", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-496": { "value": "760000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentTaxLiabilitiesCurrent", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-497": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentTaxLiabilitiesCurrent", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-498": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentTaxLiabilitiesCurrent", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-499": { "value": "5087000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentTaxLiabilitiesCurrent", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-500": { "value": "6907000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentTaxLiabilitiesCurrent", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-501": { "value": "71130000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherCurrentLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-502": { "value": "70749000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherCurrentLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-503": { "value": "9095000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherCurrentLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-504": { "value": "8906000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherCurrentLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-505": { "value": "-10007000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherCurrentLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-506": { "value": "-10138000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherCurrentLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-507": { "value": "70218000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherCurrentLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-508": { "value": "69517000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherCurrentLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-509": { "value": "8157000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:LiabilitiesIncludedInDisposalGroupsClassifiedAsHeldForSale", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-510": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:LiabilitiesIncludedInDisposalGroupsClassifiedAsHeldForSale", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-511": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:LiabilitiesIncludedInDisposalGroupsClassifiedAsHeldForSale", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-512": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:LiabilitiesIncludedInDisposalGroupsClassifiedAsHeldForSale", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-513": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:LiabilitiesIncludedInDisposalGroupsClassifiedAsHeldForSale", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-514": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:LiabilitiesIncludedInDisposalGroupsClassifiedAsHeldForSale", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-515": { "value": "8157000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:LiabilitiesIncludedInDisposalGroupsClassifiedAsHeldForSale", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-516": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:LiabilitiesIncludedInDisposalGroupsClassifiedAsHeldForSale", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-517": { "value": "173261000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-518": { "value": "177726000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-519": { "value": "112991000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-520": { "value": "101510000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-521": { "value": "-21515000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-522": { "value": "-40258000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-523": { "value": "264738000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-524": { "value": "238977000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-525": { "value": "439807000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:EquityAndLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-526": { "value": "431771000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:EquityAndLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-527": { "value": "270307000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:EquityAndLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-528": { "value": "234964000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:EquityAndLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-529": { "value": "-36046000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:EquityAndLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-530": { "value": "-37671000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:EquityAndLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-531": { "value": "674068000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:EquityAndLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-532": { "value": "629064000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:EquityAndLiabilities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-533": { "value": "63063000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossFromOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-534": { "value": "44862000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossFromOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-535": { "value": "3719000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossFromOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-536": { "value": "848000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossFromOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-537": { "value": "2000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossFromOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-538": { "value": "2000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossFromOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-539": { "value": "66784000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossFromOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-540": { "value": "45712000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossFromOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-541": { "value": "3050000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForAmortizationAndImpairmentOfIntangibleAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-542": { "value": "2918000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForAmortizationAndImpairmentOfIntangibleAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-543": { "value": "27000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForAmortizationAndImpairmentOfIntangibleAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-544": { "value": "53000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForAmortizationAndImpairmentOfIntangibleAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-545": { "value": "0", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForAmortizationAndImpairmentOfIntangibleAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-546": { "value": "0", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForAmortizationAndImpairmentOfIntangibleAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-547": { "value": "3078000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForAmortizationAndImpairmentOfIntangibleAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-548": { "value": "2971000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForAmortizationAndImpairmentOfIntangibleAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-549": { "value": "8681000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForDepreciationAndImpairmentOfTangibleAssetsLessLeasingVehicles", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-550": { "value": "8601000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForDepreciationAndImpairmentOfTangibleAssetsLessLeasingVehicles", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-551": { "value": "22000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForDepreciationAndImpairmentOfTangibleAssetsLessLeasingVehicles", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-552": { "value": "25000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForDepreciationAndImpairmentOfTangibleAssetsLessLeasingVehicles", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-553": { "value": "0", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForDepreciationAndImpairmentOfTangibleAssetsLessLeasingVehicles", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-554": { "value": "0", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForDepreciationAndImpairmentOfTangibleAssetsLessLeasingVehicles", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-555": { "value": "8703000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForDepreciationAndImpairmentOfTangibleAssetsLessLeasingVehicles", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-556": { "value": "8626000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForDepreciationAndImpairmentOfTangibleAssetsLessLeasingVehicles", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-557": { "value": "4442000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForDepreciationAndImpairmentOfLeasingVehicles", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-558": { "value": "4408000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForDepreciationAndImpairmentOfLeasingVehicles", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-559": { "value": "5005000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForDepreciationAndImpairmentOfLeasingVehicles", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-560": { "value": "4724000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForDepreciationAndImpairmentOfLeasingVehicles", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-561": { "value": "0", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForDepreciationAndImpairmentOfLeasingVehicles", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-562": { "value": "0", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForDepreciationAndImpairmentOfLeasingVehicles", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-563": { "value": "9446000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForDepreciationAndImpairmentOfLeasingVehicles", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-564": { "value": "9132000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForDepreciationAndImpairmentOfLeasingVehicles", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-565": { "value": "12655000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherAdjustmentsForNoncashItems", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-566": { "value": "3403000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherAdjustmentsForNoncashItems", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-567": { "value": "1187000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherAdjustmentsForNoncashItems", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-568": { "value": "3675000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherAdjustmentsForNoncashItems", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-569": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherAdjustmentsForNoncashItems", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-570": { "value": "-114000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherAdjustmentsForNoncashItems", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-571": { "value": "13842000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherAdjustmentsForNoncashItems", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-572": { "value": "6964000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherAdjustmentsForNoncashItems", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-573": { "value": "10240000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseInWorkingCapital", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-574": { "value": "2532000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseInWorkingCapital", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-575": { "value": "45097000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseInWorkingCapital", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-576": { "value": "26294000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseInWorkingCapital", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-577": { "value": "417000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseInWorkingCapital", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-578": { "value": "-152000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseInWorkingCapital", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-579": { "value": "55753000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseInWorkingCapital", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-580": { "value": "28674000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseInWorkingCapital", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-581": { "value": "627000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForDecreaseIncreaseInTradeAccountReceivable", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-582": { "value": "-5600000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForDecreaseIncreaseInTradeAccountReceivable", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-583": { "value": "-418000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForDecreaseIncreaseInTradeAccountReceivable", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-584": { "value": "-170000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForDecreaseIncreaseInTradeAccountReceivable", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-585": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForDecreaseIncreaseInTradeAccountReceivable", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-586": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForDecreaseIncreaseInTradeAccountReceivable", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-587": { "value": "209000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForDecreaseIncreaseInTradeAccountReceivable", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-588": { "value": "-5770000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForDecreaseIncreaseInTradeAccountReceivable", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-589": { "value": "98000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForDecreaseIncreaseInCustomerFinancingReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-590": { "value": "-169000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForDecreaseIncreaseInCustomerFinancingReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-591": { "value": "-44381000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForDecreaseIncreaseInCustomerFinancingReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-592": { "value": "-26330000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForDecreaseIncreaseInCustomerFinancingReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-593": { "value": "-407000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForDecreaseIncreaseInCustomerFinancingReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-594": { "value": "148000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForDecreaseIncreaseInCustomerFinancingReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-595": { "value": "-44690000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForDecreaseIncreaseInCustomerFinancingReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-596": { "value": "-26350000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForDecreaseIncreaseInCustomerFinancingReceivables", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-597": { "value": "-8786000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForDecreaseIncreaseInInventories", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-598": { "value": "-5804000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForDecreaseIncreaseInInventories", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-599": { "value": "-701000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForDecreaseIncreaseInInventories", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-600": { "value": "-106000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForDecreaseIncreaseInInventories", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-601": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForDecreaseIncreaseInInventories", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-602": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForDecreaseIncreaseInInventories", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-603": { "value": "-9486000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForDecreaseIncreaseInInventories", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-604": { "value": "-5911000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForDecreaseIncreaseInInventories", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-605": { "value": "-4848000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForIncreaseDecreaseInTradeAccountPayable", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-606": { "value": "7749000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForIncreaseDecreaseInTradeAccountPayable", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-607": { "value": "126000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForIncreaseDecreaseInTradeAccountPayable", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-608": { "value": "282000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForIncreaseDecreaseInTradeAccountPayable", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-609": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForIncreaseDecreaseInTradeAccountPayable", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-610": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForIncreaseDecreaseInTradeAccountPayable", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-611": { "value": "-4722000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForIncreaseDecreaseInTradeAccountPayable", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-612": { "value": "8031000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForIncreaseDecreaseInTradeAccountPayable", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-613": { "value": "2670000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForIncreaseDecreaseInOtherChangesInWorkingCapital", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-614": { "value": "1293000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForIncreaseDecreaseInOtherChangesInWorkingCapital", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-615": { "value": "277000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForIncreaseDecreaseInOtherChangesInWorkingCapital", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-616": { "value": "30000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForIncreaseDecreaseInOtherChangesInWorkingCapital", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-617": { "value": "-9000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForIncreaseDecreaseInOtherChangesInWorkingCapital", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-618": { "value": "4000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForIncreaseDecreaseInOtherChangesInWorkingCapital", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-619": { "value": "2937000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForIncreaseDecreaseInOtherChangesInWorkingCapital", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-620": { "value": "1327000000", "decimals": -6, "dimensions": { "concept": "abvolvo:AdjustmentsForIncreaseDecreaseInOtherChangesInWorkingCapital", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-621": { "value": "110000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsReceivedClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-622": { "value": "70000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsReceivedClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-623": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsReceivedClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-624": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsReceivedClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-625": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsReceivedClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-626": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsReceivedClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-627": { "value": "110000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsReceivedClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-628": { "value": "70000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsReceivedClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-629": { "value": "3147000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestReceivedClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-630": { "value": "1055000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestReceivedClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-631": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestReceivedClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-632": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestReceivedClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-633": { "value": "-518000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestReceivedClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-634": { "value": "56000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestReceivedClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-635": { "value": "2629000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestReceivedClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-636": { "value": "1111000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestReceivedClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-637": { "value": "1710000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestPaidClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-638": { "value": "1147000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestPaidClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-639": { "value": "-0", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestPaidClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-640": { "value": "-0", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestPaidClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-641": { "value": "-552000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestPaidClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-642": { "value": "-290000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestPaidClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-643": { "value": "1158000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestPaidClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-644": { "value": "856000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestPaidClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-645": { "value": "200000000", "decimals": -6, "dimensions": { "concept": "abvolvo:OtherFinancialItemsClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-646": { "value": "199000000", "decimals": -6, "dimensions": { "concept": "abvolvo:OtherFinancialItemsClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-647": { "value": "-0", "decimals": -6, "dimensions": { "concept": "abvolvo:OtherFinancialItemsClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-648": { "value": "-0", "decimals": -6, "dimensions": { "concept": "abvolvo:OtherFinancialItemsClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-649": { "value": "-0", "decimals": -6, "dimensions": { "concept": "abvolvo:OtherFinancialItemsClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-650": { "value": "-0", "decimals": -6, "dimensions": { "concept": "abvolvo:OtherFinancialItemsClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-651": { "value": "200000000", "decimals": -6, "dimensions": { "concept": "abvolvo:OtherFinancialItemsClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-652": { "value": "199000000", "decimals": -6, "dimensions": { "concept": "abvolvo:OtherFinancialItemsClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-653": { "value": "19570000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxesPaidClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-654": { "value": "10019000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxesPaidClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-655": { "value": "1238000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxesPaidClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-656": { "value": "1596000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxesPaidClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-657": { "value": "-0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxesPaidClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-658": { "value": "-0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxesPaidClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-659": { "value": "20807000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxesPaidClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-660": { "value": "11614000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxesPaidClassifiedAsOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-661": { "value": "63430000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-662": { "value": "51423000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-663": { "value": "-36375000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-664": { "value": "-18565000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-665": { "value": "-381000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-666": { "value": "386000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-667": { "value": "26675000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-668": { "value": "33244000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInOperatingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-669": { "value": "5207000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:PurchaseOfIntangibleAssetsClassifiedAsInvestingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-670": { "value": "5361000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:PurchaseOfIntangibleAssetsClassifiedAsInvestingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-671": { "value": "71000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:PurchaseOfIntangibleAssetsClassifiedAsInvestingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-672": { "value": "29000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:PurchaseOfIntangibleAssetsClassifiedAsInvestingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-673": { "value": "-0", "decimals": -6, "dimensions": { "concept": "ifrs-full:PurchaseOfIntangibleAssetsClassifiedAsInvestingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-674": { "value": "-0", "decimals": -6, "dimensions": { "concept": "ifrs-full:PurchaseOfIntangibleAssetsClassifiedAsInvestingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-675": { "value": "5278000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:PurchaseOfIntangibleAssetsClassifiedAsInvestingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-676": { "value": "5390000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:PurchaseOfIntangibleAssetsClassifiedAsInvestingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-677": { "value": "13091000000", "decimals": -6, "dimensions": { "concept": "abvolvo:PurchaseOfTangibleAssetsLessLeasingVehiclesClassifiedAsInvestingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-678": { "value": "11287000000", "decimals": -6, "dimensions": { "concept": "abvolvo:PurchaseOfTangibleAssetsLessLeasingVehiclesClassifiedAsInvestingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-679": { "value": "29000000", "decimals": -6, "dimensions": { "concept": "abvolvo:PurchaseOfTangibleAssetsLessLeasingVehiclesClassifiedAsInvestingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-680": { "value": "14000000", "decimals": -6, "dimensions": { "concept": "abvolvo:PurchaseOfTangibleAssetsLessLeasingVehiclesClassifiedAsInvestingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-681": { "value": "-0", "decimals": -6, "dimensions": { "concept": "abvolvo:PurchaseOfTangibleAssetsLessLeasingVehiclesClassifiedAsInvestingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-682": { "value": "-0", "decimals": -6, "dimensions": { "concept": "abvolvo:PurchaseOfTangibleAssetsLessLeasingVehiclesClassifiedAsInvestingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-683": { "value": "13120000000", "decimals": -6, "dimensions": { "concept": "abvolvo:PurchaseOfTangibleAssetsLessLeasingVehiclesClassifiedAsInvestingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-684": { "value": "11301000000", "decimals": -6, "dimensions": { "concept": "abvolvo:PurchaseOfTangibleAssetsLessLeasingVehiclesClassifiedAsInvestingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-685": { "value": "-0", "decimals": -6, "dimensions": { "concept": "abvolvo:PurchaseOfLeasingVehiclesClassifiedAsInvestingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-686": { "value": "1000000", "decimals": -6, "dimensions": { "concept": "abvolvo:PurchaseOfLeasingVehiclesClassifiedAsInvestingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-687": { "value": "10328000000", "decimals": -6, "dimensions": { "concept": "abvolvo:PurchaseOfLeasingVehiclesClassifiedAsInvestingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-688": { "value": "9173000000", "decimals": -6, "dimensions": { "concept": "abvolvo:PurchaseOfLeasingVehiclesClassifiedAsInvestingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-689": { "value": "-61000000", "decimals": -6, "dimensions": { "concept": "abvolvo:PurchaseOfLeasingVehiclesClassifiedAsInvestingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-690": { "value": "-19000000", "decimals": -6, "dimensions": { "concept": "abvolvo:PurchaseOfLeasingVehiclesClassifiedAsInvestingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-691": { "value": "10267000000", "decimals": -6, "dimensions": { "concept": "abvolvo:PurchaseOfLeasingVehiclesClassifiedAsInvestingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-692": { "value": "9155000000", "decimals": -6, "dimensions": { "concept": "abvolvo:PurchaseOfLeasingVehiclesClassifiedAsInvestingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-693": { "value": "689000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProceedsFromDisposalsOfPropertyPlantAndEquipmentIntangibleAssetsOtherThanGoodwillInvestmentPropertyAndOtherNoncurrentAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-694": { "value": "553000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProceedsFromDisposalsOfPropertyPlantAndEquipmentIntangibleAssetsOtherThanGoodwillInvestmentPropertyAndOtherNoncurrentAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-695": { "value": "5005000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProceedsFromDisposalsOfPropertyPlantAndEquipmentIntangibleAssetsOtherThanGoodwillInvestmentPropertyAndOtherNoncurrentAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-696": { "value": "5026000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProceedsFromDisposalsOfPropertyPlantAndEquipmentIntangibleAssetsOtherThanGoodwillInvestmentPropertyAndOtherNoncurrentAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-697": { "value": "-13000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProceedsFromDisposalsOfPropertyPlantAndEquipmentIntangibleAssetsOtherThanGoodwillInvestmentPropertyAndOtherNoncurrentAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-698": { "value": "-21000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProceedsFromDisposalsOfPropertyPlantAndEquipmentIntangibleAssetsOtherThanGoodwillInvestmentPropertyAndOtherNoncurrentAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-699": { "value": "5680000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProceedsFromDisposalsOfPropertyPlantAndEquipmentIntangibleAssetsOtherThanGoodwillInvestmentPropertyAndOtherNoncurrentAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-700": { "value": "5558000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProceedsFromDisposalsOfPropertyPlantAndEquipmentIntangibleAssetsOtherThanGoodwillInvestmentPropertyAndOtherNoncurrentAssets", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-701": { "value": "45821000000", "decimals": -6, "dimensions": { "concept": "abvolvo:OperatingCashFlow", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-702": { "value": "35327000000", "decimals": -6, "dimensions": { "concept": "abvolvo:OperatingCashFlow", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:IndustrialOperationsMember", "unit": "iso4217:SEK" } }, "fact-703": { "value": "-41796000000", "decimals": -6, "dimensions": { "concept": "abvolvo:OperatingCashFlow", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-704": { "value": "-22756000000", "decimals": -6, "dimensions": { "concept": "abvolvo:OperatingCashFlow", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "abvolvo:FinancialServicesMember", "unit": "iso4217:SEK" } }, "fact-705": { "value": "-334000000", "decimals": -6, "dimensions": { "concept": "abvolvo:OperatingCashFlow", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-706": { "value": "384000000", "decimals": -6, "dimensions": { "concept": "abvolvo:OperatingCashFlow", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:SegmentConsolidationItemsAxis": "ifrs-full:EliminationOfIntersegmentAmountsMember", "unit": "iso4217:SEK" } }, "fact-707": { "value": "3691000000", "decimals": -6, "dimensions": { "concept": "abvolvo:OperatingCashFlow", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-708": { "value": "12956000000", "decimals": -6, "dimensions": { "concept": "abvolvo:OperatingCashFlow", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-709": { "value": "1558000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherCashPaymentsToAcquireEquityOrDebtInstrumentsOfOtherEntitiesClassifiedAsInvestingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-710": { "value": "1085000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherCashPaymentsToAcquireEquityOrDebtInstrumentsOfOtherEntitiesClassifiedAsInvestingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-711": { "value": "323000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherCashReceiptsFromSalesOfEquityOrDebtInstrumentsOfOtherEntitiesClassifiedAsInvestingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-712": { "value": "157000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherCashReceiptsFromSalesOfEquityOrDebtInstrumentsOfOtherEntitiesClassifiedAsInvestingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-713": { "value": "77000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsUsedInObtainingControlOfSubsidiariesOrOtherBusinessesClassifiedAsInvestingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-714": { "value": "265000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsUsedInObtainingControlOfSubsidiariesOrOtherBusinessesClassifiedAsInvestingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-715": { "value": "-2268000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsFromLosingControlOfSubsidiariesOrOtherBusinessesClassifiedAsInvestingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-716": { "value": "153000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsFromLosingControlOfSubsidiariesOrOtherBusinessesClassifiedAsInvestingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-717": { "value": "-280000000", "decimals": -6, "dimensions": { "concept": "abvolvo:CashFlowsFromInterestBearingReceivablesInclMarketableSecuritiesClassifiedAsInvestingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-718": { "value": "-158000000", "decimals": -6, "dimensions": { "concept": "abvolvo:CashFlowsFromInterestBearingReceivablesInclMarketableSecuritiesClassifiedAsInvestingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-719": { "value": "-169000000", "decimals": -6, "dimensions": { "concept": "abvolvo:CashFlowAfterNetInvestments", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-720": { "value": "11758000000", "decimals": -6, "dimensions": { "concept": "abvolvo:CashFlowAfterNetInvestments", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-721": { "value": "241958000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProceedsFromBorrowingsClassifiedAsFinancingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-722": { "value": "172817000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProceedsFromBorrowingsClassifiedAsFinancingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-723": { "value": "211157000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:RepaymentsOfBorrowingsClassifiedAsFinancingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-724": { "value": "138836000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:RepaymentsOfBorrowingsClassifiedAsFinancingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-725": { "value": "28468000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaidToEquityHoldersOfParentClassifiedAsFinancingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-726": { "value": "26435000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaidToEquityHoldersOfParentClassifiedAsFinancingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-727": { "value": "457000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaidToNoncontrollingInterestsClassifiedAsFinancingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-728": { "value": "19000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaidToNoncontrollingInterestsClassifiedAsFinancingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-729": { "value": "-55000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherInflowsOutflowsOfCashClassifiedAsFinancingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-730": { "value": "-44000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherInflowsOutflowsOfCashClassifiedAsFinancingActivities", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-731": { "value": "1651000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseInCashAndCashEquivalentsBeforeEffectOfExchangeRateChanges", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-732": { "value": "19241000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseInCashAndCashEquivalentsBeforeEffectOfExchangeRateChanges", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-733": { "value": "-2211000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:EffectOfExchangeRateChangesOnCashAndCashEquivalents", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-734": { "value": "2520000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:EffectOfExchangeRateChangesOnCashAndCashEquivalents", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-735": { "value": "-560000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseInCashAndCashEquivalents", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-736": { "value": "21761000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseInCashAndCashEquivalents", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-737": { "value": "83886000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashAndCashEquivalents", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-738": { "value": "62126000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashAndCashEquivalents", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-739": { "value": "83326000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashAndCashEquivalents", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-740": { "value": "83886000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashAndCashEquivalents", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-741": { "value": "2562000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:SEK" } }, "fact-742": { "value": "8000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMember", "unit": "iso4217:SEK" } }, "fact-743": { "value": "2301000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:SEK" } }, "fact-744": { "value": "136174000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:SEK" } }, "fact-745": { "value": "141045000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:SEK" } }, "fact-746": { "value": "3073000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:SEK" } }, "fact-747": { "value": "144118000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-748": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:SEK" } }, "fact-749": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMember", "unit": "iso4217:SEK" } }, "fact-750": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:SEK" } }, "fact-751": { "value": "32722000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:SEK" } }, "fact-752": { "value": "32722000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:SEK" } }, "fact-753": { "value": "247000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:SEK" } }, "fact-754": { "value": "32969000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-755": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesOnRemeasurementsOfDefinedBenefitPlans", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:SEK" } }, "fact-756": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesOnRemeasurementsOfDefinedBenefitPlans", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMember", "unit": "iso4217:SEK" } }, "fact-757": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesOnRemeasurementsOfDefinedBenefitPlans", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:SEK" } }, "fact-758": { "value": "3817000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesOnRemeasurementsOfDefinedBenefitPlans", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:SEK" } }, "fact-759": { "value": "3817000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesOnRemeasurementsOfDefinedBenefitPlans", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:SEK" } }, "fact-760": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesOnRemeasurementsOfDefinedBenefitPlans", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:SEK" } }, "fact-761": { "value": "3817000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesOnRemeasurementsOfDefinedBenefitPlans", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-762": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesFromInvestmentsInEquityInstruments", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:SEK" } }, "fact-763": { "value": "-45000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesFromInvestmentsInEquityInstruments", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMember", "unit": "iso4217:SEK" } }, "fact-764": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesFromInvestmentsInEquityInstruments", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:SEK" } }, "fact-765": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesFromInvestmentsInEquityInstruments", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:SEK" } }, "fact-766": { "value": "-45000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesFromInvestmentsInEquityInstruments", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:SEK" } }, "fact-767": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesFromInvestmentsInEquityInstruments", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:SEK" } }, "fact-768": { "value": "-45000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesFromInvestmentsInEquityInstruments", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-769": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:GainsLossesOnExchangeDifferencesOnTranslationNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:SEK" } }, "fact-770": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:GainsLossesOnExchangeDifferencesOnTranslationNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMember", "unit": "iso4217:SEK" } }, "fact-771": { "value": "10366000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:GainsLossesOnExchangeDifferencesOnTranslationNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:SEK" } }, "fact-772": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:GainsLossesOnExchangeDifferencesOnTranslationNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:SEK" } }, "fact-773": { "value": "10366000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:GainsLossesOnExchangeDifferencesOnTranslationNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:SEK" } }, "fact-774": { "value": "179000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:GainsLossesOnExchangeDifferencesOnTranslationNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:SEK" } }, "fact-775": { "value": "10544000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:GainsLossesOnExchangeDifferencesOnTranslationNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-776": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ShareOfOtherComprehensiveIncomeOfAssociatesAndJointVenturesAccountedForUsingEquityMethodThatWillBeReclassifiedToProfitOrLossNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:SEK" } }, "fact-777": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ShareOfOtherComprehensiveIncomeOfAssociatesAndJointVenturesAccountedForUsingEquityMethodThatWillBeReclassifiedToProfitOrLossNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMember", "unit": "iso4217:SEK" } }, "fact-778": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ShareOfOtherComprehensiveIncomeOfAssociatesAndJointVenturesAccountedForUsingEquityMethodThatWillBeReclassifiedToProfitOrLossNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:SEK" } }, "fact-779": { "value": "1279000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ShareOfOtherComprehensiveIncomeOfAssociatesAndJointVenturesAccountedForUsingEquityMethodThatWillBeReclassifiedToProfitOrLossNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:SEK" } }, "fact-780": { "value": "1279000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ShareOfOtherComprehensiveIncomeOfAssociatesAndJointVenturesAccountedForUsingEquityMethodThatWillBeReclassifiedToProfitOrLossNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:SEK" } }, "fact-781": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ShareOfOtherComprehensiveIncomeOfAssociatesAndJointVenturesAccountedForUsingEquityMethodThatWillBeReclassifiedToProfitOrLossNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:SEK" } }, "fact-782": { "value": "1279000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ShareOfOtherComprehensiveIncomeOfAssociatesAndJointVenturesAccountedForUsingEquityMethodThatWillBeReclassifiedToProfitOrLossNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-783": { "value": "-0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ReclassificationAdjustmentsOnExchangeDifferencesOnTranslationNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:SEK" } }, "fact-784": { "value": "-0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ReclassificationAdjustmentsOnExchangeDifferencesOnTranslationNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMember", "unit": "iso4217:SEK" } }, "fact-785": { "value": "-0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ReclassificationAdjustmentsOnExchangeDifferencesOnTranslationNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:SEK" } }, "fact-786": { "value": "-0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ReclassificationAdjustmentsOnExchangeDifferencesOnTranslationNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:SEK" } }, "fact-787": { "value": "-0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ReclassificationAdjustmentsOnExchangeDifferencesOnTranslationNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:SEK" } }, "fact-788": { "value": "-0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ReclassificationAdjustmentsOnExchangeDifferencesOnTranslationNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:SEK" } }, "fact-789": { "value": "-0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ReclassificationAdjustmentsOnExchangeDifferencesOnTranslationNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-790": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncome", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:SEK" } }, "fact-791": { "value": "-45000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncome", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMember", "unit": "iso4217:SEK" } }, "fact-792": { "value": "10366000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncome", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:SEK" } }, "fact-793": { "value": "5096000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncome", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:SEK" } }, "fact-794": { "value": "15417000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncome", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:SEK" } }, "fact-795": { "value": "179000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncome", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:SEK" } }, "fact-796": { "value": "15596000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncome", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-797": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:SEK" } }, "fact-798": { "value": "-45000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMember", "unit": "iso4217:SEK" } }, "fact-799": { "value": "10366000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:SEK" } }, "fact-800": { "value": "37818000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:SEK" } }, "fact-801": { "value": "48140000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:SEK" } }, "fact-802": { "value": "425000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:SEK" } }, "fact-803": { "value": "48565000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-804": { "value": "-0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:SEK" } }, "fact-805": { "value": "-0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMember", "unit": "iso4217:SEK" } }, "fact-806": { "value": "-0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:SEK" } }, "fact-807": { "value": "26435000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:SEK" } }, "fact-808": { "value": "26435000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:SEK" } }, "fact-809": { "value": "19000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:SEK" } }, "fact-810": { "value": "26454000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-811": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:SEK" } }, "fact-812": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMember", "unit": "iso4217:SEK" } }, "fact-813": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:SEK" } }, "fact-814": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:SEK" } }, "fact-815": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:SEK" } }, "fact-816": { "value": "40000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:SEK" } }, "fact-817": { "value": "40000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-818": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:SEK" } }, "fact-819": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMember", "unit": "iso4217:SEK" } }, "fact-820": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:SEK" } }, "fact-821": { "value": "-33000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:SEK" } }, "fact-822": { "value": "-33000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:SEK" } }, "fact-823": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:SEK" } }, "fact-824": { "value": "-33000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-825": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransactionsWithOwners", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:SEK" } }, "fact-826": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransactionsWithOwners", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMember", "unit": "iso4217:SEK" } }, "fact-827": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransactionsWithOwners", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:SEK" } }, "fact-828": { "value": "-26468000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransactionsWithOwners", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:SEK" } }, "fact-829": { "value": "-26468000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransactionsWithOwners", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:SEK" } }, "fact-830": { "value": "20000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransactionsWithOwners", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:SEK" } }, "fact-831": { "value": "-26447000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransactionsWithOwners", "entity": "scheme:549300HGV012CNC8JD22", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-832": { "value": "2562000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:SEK" } }, "fact-833": { "value": "-37000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMember", "unit": "iso4217:SEK" } }, "fact-834": { "value": "12667000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:SEK" } }, "fact-835": { "value": "147524000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:SEK" } }, "fact-836": { "value": "162717000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:SEK" } }, "fact-837": { "value": "3519000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:SEK" } }, "fact-838": { "value": "166236000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-839": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:SEK" } }, "fact-840": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMember", "unit": "iso4217:SEK" } }, "fact-841": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:SEK" } }, "fact-842": { "value": "49825000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:SEK" } }, "fact-843": { "value": "49825000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:SEK" } }, "fact-844": { "value": "107000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:SEK" } }, "fact-845": { "value": "49932000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-846": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesOnRemeasurementsOfDefinedBenefitPlans", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:SEK" } }, "fact-847": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesOnRemeasurementsOfDefinedBenefitPlans", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMember", "unit": "iso4217:SEK" } }, "fact-848": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesOnRemeasurementsOfDefinedBenefitPlans", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:SEK" } }, "fact-849": { "value": "-2400000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesOnRemeasurementsOfDefinedBenefitPlans", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:SEK" } }, "fact-850": { "value": "-2400000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesOnRemeasurementsOfDefinedBenefitPlans", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:SEK" } }, "fact-851": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesOnRemeasurementsOfDefinedBenefitPlans", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:SEK" } }, "fact-852": { "value": "-2400000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesOnRemeasurementsOfDefinedBenefitPlans", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-853": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesFromInvestmentsInEquityInstruments", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:SEK" } }, "fact-854": { "value": "15000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesFromInvestmentsInEquityInstruments", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMember", "unit": "iso4217:SEK" } }, "fact-855": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesFromInvestmentsInEquityInstruments", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:SEK" } }, "fact-856": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesFromInvestmentsInEquityInstruments", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:SEK" } }, "fact-857": { "value": "15000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesFromInvestmentsInEquityInstruments", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:SEK" } }, "fact-858": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesFromInvestmentsInEquityInstruments", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:SEK" } }, "fact-859": { "value": "15000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesFromInvestmentsInEquityInstruments", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-860": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:GainsLossesOnExchangeDifferencesOnTranslationNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:SEK" } }, "fact-861": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:GainsLossesOnExchangeDifferencesOnTranslationNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMember", "unit": "iso4217:SEK" } }, "fact-862": { "value": "-2713000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:GainsLossesOnExchangeDifferencesOnTranslationNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:SEK" } }, "fact-863": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:GainsLossesOnExchangeDifferencesOnTranslationNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:SEK" } }, "fact-864": { "value": "-2713000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:GainsLossesOnExchangeDifferencesOnTranslationNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:SEK" } }, "fact-865": { "value": "-191000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:GainsLossesOnExchangeDifferencesOnTranslationNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:SEK" } }, "fact-866": { "value": "-2905000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:GainsLossesOnExchangeDifferencesOnTranslationNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-867": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ShareOfOtherComprehensiveIncomeOfAssociatesAndJointVenturesAccountedForUsingEquityMethodThatWillBeReclassifiedToProfitOrLossNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:SEK" } }, "fact-868": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ShareOfOtherComprehensiveIncomeOfAssociatesAndJointVenturesAccountedForUsingEquityMethodThatWillBeReclassifiedToProfitOrLossNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMember", "unit": "iso4217:SEK" } }, "fact-869": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ShareOfOtherComprehensiveIncomeOfAssociatesAndJointVenturesAccountedForUsingEquityMethodThatWillBeReclassifiedToProfitOrLossNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:SEK" } }, "fact-870": { "value": "-678000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ShareOfOtherComprehensiveIncomeOfAssociatesAndJointVenturesAccountedForUsingEquityMethodThatWillBeReclassifiedToProfitOrLossNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:SEK" } }, "fact-871": { "value": "-678000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ShareOfOtherComprehensiveIncomeOfAssociatesAndJointVenturesAccountedForUsingEquityMethodThatWillBeReclassifiedToProfitOrLossNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:SEK" } }, "fact-872": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ShareOfOtherComprehensiveIncomeOfAssociatesAndJointVenturesAccountedForUsingEquityMethodThatWillBeReclassifiedToProfitOrLossNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:SEK" } }, "fact-873": { "value": "-678000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ShareOfOtherComprehensiveIncomeOfAssociatesAndJointVenturesAccountedForUsingEquityMethodThatWillBeReclassifiedToProfitOrLossNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-874": { "value": "-0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ReclassificationAdjustmentsOnExchangeDifferencesOnTranslationNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:SEK" } }, "fact-875": { "value": "-0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ReclassificationAdjustmentsOnExchangeDifferencesOnTranslationNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMember", "unit": "iso4217:SEK" } }, "fact-876": { "value": "318000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ReclassificationAdjustmentsOnExchangeDifferencesOnTranslationNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:SEK" } }, "fact-877": { "value": "-0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ReclassificationAdjustmentsOnExchangeDifferencesOnTranslationNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:SEK" } }, "fact-878": { "value": "318000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ReclassificationAdjustmentsOnExchangeDifferencesOnTranslationNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:SEK" } }, "fact-879": { "value": "-0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ReclassificationAdjustmentsOnExchangeDifferencesOnTranslationNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:SEK" } }, "fact-880": { "value": "318000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ReclassificationAdjustmentsOnExchangeDifferencesOnTranslationNetOfTax", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-881": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncome", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:SEK" } }, "fact-882": { "value": "15000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncome", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMember", "unit": "iso4217:SEK" } }, "fact-883": { "value": "-3031000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncome", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:SEK" } }, "fact-884": { "value": "-3078000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncome", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:SEK" } }, "fact-885": { "value": "-6094000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncome", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:SEK" } }, "fact-886": { "value": "-191000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncome", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:SEK" } }, "fact-887": { "value": "-6285000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncome", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-888": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:SEK" } }, "fact-889": { "value": "15000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMember", "unit": "iso4217:SEK" } }, "fact-890": { "value": "-3031000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:SEK" } }, "fact-891": { "value": "46747000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:SEK" } }, "fact-892": { "value": "43731000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:SEK" } }, "fact-893": { "value": "-84000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:SEK" } }, "fact-894": { "value": "43647000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-895": { "value": "-0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:SEK" } }, "fact-896": { "value": "-0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMember", "unit": "iso4217:SEK" } }, "fact-897": { "value": "-0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:SEK" } }, "fact-898": { "value": "28468000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:SEK" } }, "fact-899": { "value": "28468000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:SEK" } }, "fact-900": { "value": "457000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:SEK" } }, "fact-901": { "value": "28926000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-902": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:SEK" } }, "fact-903": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMember", "unit": "iso4217:SEK" } }, "fact-904": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:SEK" } }, "fact-905": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:SEK" } }, "fact-906": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:SEK" } }, "fact-907": { "value": "-29000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:SEK" } }, "fact-908": { "value": "-29000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-909": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:SEK" } }, "fact-910": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMember", "unit": "iso4217:SEK" } }, "fact-911": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:SEK" } }, "fact-912": { "value": "-189000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:SEK" } }, "fact-913": { "value": "-189000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:SEK" } }, "fact-914": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:SEK" } }, "fact-915": { "value": "-189000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-916": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransactionsWithOwners", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:SEK" } }, "fact-917": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransactionsWithOwners", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMember", "unit": "iso4217:SEK" } }, "fact-918": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransactionsWithOwners", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:SEK" } }, "fact-919": { "value": "-28658000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransactionsWithOwners", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:SEK" } }, "fact-920": { "value": "-28658000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransactionsWithOwners", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:SEK" } }, "fact-921": { "value": "-486000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransactionsWithOwners", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:SEK" } }, "fact-922": { "value": "-29143000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransactionsWithOwners", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-923": { "value": "2562000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:SEK" } }, "fact-924": { "value": "-21000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesFromInvestmentsInEquityInstrumentsMember", "unit": "iso4217:SEK" } }, "fact-925": { "value": "9636000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:SEK" } }, "fact-926": { "value": "165614000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:SEK" } }, "fact-927": { "value": "177791000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:SEK" } }, "fact-928": { "value": "2948000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:SEK" } }, "fact-929": { "value": "180739000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:549300HGV012CNC8JD22", "period": "2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-933": { "value": "
1
Accounting policies
The consolidated financial statements for AB Volvo (publ) and its subsidiaries
are prepared in accordance with International Financial Reporting Standards
(IFRS) issued by the International Accounting Standards Board (IASB), as
adopted by the European Union (EU). This Annual Report is prepared in
accordance with IAS 1 Presentation of Financial Statements and the Swedish
Annual Accounts Act. In addition, RFR 1 Supplementary Rules for Groups has
been applied, which is issued by the Swe dish Sustainability and Financial
Reporting Board. Amounts in SEK M unless otherwise specified. The
amounts within parentheses refer to the preceding year.
1:1
Accounting policies Note IFRS standard
Acquisitions and divestments 3 Acquisitions and divestments of operations IFRS 3, IFRS 10
Assets and liabilities held for sale
and discontinued operations
3 Acquisitions and divestments of operations IFRS 5, IFRS 13
Joint ventures 5 Investments in joint ventures, associated
companies and other shares and participations
IFRS 11, IFRS 12, IAS 28
Associated companies 5 Investments in joint ventures, associated
companies and other shares and participations
IFRS 12, IAS 28
Other shares and participations 5 Investments in joint ventures, associated
companies and other shares and participations
IFRS 7, IFRS 9, IFRS 13, IAS 28, IAS 32
Operating segments 6 Segment reporting IFRS 8
Revenue
7 Revenue IFRS 9, IFRS 15, IFRS 16
Financial income and expenses 9 Other financial income and expenses IFRS 9
Income taxes 10 Income taxes IAS 12
Non-controlling interest 11 Non-controlling interest IFRS 10, IFRS 12
Research and development 12 Intangible assets IAS 36, IAS 38
Goodwill 12 Intangible assets IFRS 3, IAS 36, IAS 38
Tangible assets 13 Tangible assets IFRS 13, IFRS 16, IAS 16, IAS 36, IAS 40
Leasing 14 Leasing IFRS 16
Inventories 17 Inventories IAS 2
Earnings per share 19 Equity and number of shares IAS 33
Pensions and similar obligations 20 Provisions for post-employment benefits IFRS 2, IAS 19
Residual value risks 21 Other provisions IFRS 15, IAS 37
Product warranty 21 Other provisions IAS 37
Restructuring costs 21 Other provisions IAS 19, IAS 37
Extended coverage and service contracts 21 Other provisions IFRS 15, IAS 37
Insurance operations 21 Other provisions IFRS 4
Contingent liabilities and financial commit-
ments
24 Contingent liabilities and financial
commitments
IAS 37
Transactions with related parties 25 Transactions with related parties IAS 24
Government grants 26 Government grants IAS 20
Incentive programs 27 Personnel IFRS 2, IAS 19
Cash flow statement 29 Cash flow IAS 7
Financial instruments 4 Goals and policies in financial risk management IFRS 7, IFRS 9
15 Customer-financing receivables IFRS 7, IFRS 9, IFRS 13, IFRS 16, IAS 32
16 Receivables IFRS 7, IFRS 9, IFRS 13, IAS 32
18 Cash and cash equivalents IFRS 7, IFRS 9, IFRS 13, IAS 32
22 Liabilities IFRS 7, IFRS 9, IFRS 13, IAS 32
30 Financial instruments IFRS 7, IFRS 9, IFRS 13, IAS 32
VOLVO GROUP\u2019S ACCOUNTING POLICIES
The Volvo Group describes the most material accounting policies in con-
junction with each note with the aim of providing enhanced understand-
ing of each accounting area. The Volvo Group focuses on describing the
accounting choices made within the framework of the prevailing IFRS
standard and avoids repeating the actual text of the standard, unless the
Volvo Group considers it particularly important to the understanding of
the note\u2019s content. The following symbols
I/S
and
B/S
show if amounts
in the notes can be found in the income statement or balance sheet. The
total amount in tables and statements might not always summarize as
there are rounding differences. The aim is to have each line item corre-
sponding to the source and it might therefore be rounding differences in
the total. Refer to table 1:1 to see in which note each accounting policy
can be found and the applicable IFRS standard with material impact.
Consolidated financial statements
Principles for consolidation
The consolidated financial statements comprise the parent company and sub-
sidiaries over which the parent company exercises control. Control over a sub-
sidiary exists when the Volvo Group is exposed, or has rights, to variable
returns from its involvement with the subsidiary and has the ability to affect
those returns through its power over the company. Joint ventures and associ-
ated companies are recognized by applying the equity method accounting,
when the Volvo Group has joint control or exercise significant influence. Intra-
group trans actions as well as gains on transactions with joint ventures and
associated companies are eliminated in the consolidated financial statements.
Read more in Note 3 Acquisitions and divestment of operations.
Read more in Note 5 Investments in joint ventures, associated
companies and other shares and participations.
Read more in Note 11 Non-controlling interest.
Translation to Swedish kronor when consolidating companies that have
other functional currencies
The functional currency of each Volvo Group company is determined
based on the primary economic environment in which the company oper-
ates. The primary economic environment is normally in which the com-
pany primarily generates and expends cash. The functional currency is in
most cases, the currency in the country where the company is located. AB
Volvo\u2019s and the Volvo Group\u2019s presentation currency is SEK. In preparing
the consolidated financial statements, items in the income statements of
foreign subsidiaries are translated to SEK using monthly average exchange
rates. Balance sheet items are translated into SEK using exchange rates
at year end (closing rate). Exchange rate changes are recognized in other
comprehensive income and accumulated in equity.
Accumulated exchange rate changes related to a certain subsidiary,
joint venture or associated company are reversed to the income state-
ment as a part of the gain or loss arising from disposal of the company.
Receivables and liabilities in foreign currency
Receivables and liabilities in currencies other than the functional currency
of the reporting entity (foreign currencies) are translated to the functional
currency using the closing rate. Exchange rate changes arising from oper-
ating assets and liabilities impact operating income while exchange rate
changes arising from financial assets and liabilities impact other financial
income and expenses. Interest-bearing financial assets and liabilities are
defined as items included in the net financial position of the Volvo Group
(see section Key ratios).
Read more in Note 4 Goals and policies in financial risk management, about
currency exposure and currency risk management.
The most important exchange rates used in the consolidated financial state-
ments are shown in table 1:2.
1:2
Exchange rates Average rate Closing rate, Dec 31
Country Currency 2023 2022 2023 2022
Australia AUD 7.0474 7.0136 6.8178 7.0892
Brazil BRL 2.1263 1.9616 2.0572 1.9746
Canada CAD 7.8644 7.7712 7.5401 7.7060
China CNY 1.4983 1.5018 1.4075 1.5017
Euro Zone EUR 11.4770 10.6300 11.0542 11.1283
Great Britain GBP 13.1980 12.4672 12.7286 12.5811
Norway NOK 1.0054 1.0523 0.9803 1.0572
South Africa ZAR 0.5757 0.6182 0.5383 0.6146
South Korea KRW 0.0081 0.0078 0.0077 0.0083
United States USD 10.6134 10.1245 9.9830 10.4371
New accounting policies 2023
International Tax Reform - Pillar Two Model Rules
As from January 1, 2023, the Volvo Group applies the amendments to IAS
12 Income Taxes related to the International Tax Reform - Pillar Two Model
Rules. The amendments include disclosure requirements of the tax expo-
sure and an exception to recognize and disclose deferred taxes related to
Pillar Two Model Rules, which are disclosed in Note 10 Income Taxes.
No other new or revised accounting standards or interpretations effec-
tive from January 1, 2023 have materially affected the Volvo Group\u2019s
financial statements.
New long-term incentive plan
In 2023, a new long-term incentive plan was adopted by the Annual Gen-
eral Meeting. The plan is partly accounted for in accordance with IFRS 2
Share-based payments. More information of the new long-term incentive
plan is disclosed in Note 27 Personnel.
New accounting policies 2024 and later
Supplier Finance Arrangements
As from January 1, 2024, IAS 7 and IFRS 7 is amended by adding disclo-
sure requirements, both qualitative and quantitative, regarding supplier
finance arrangements.
No other new and revised accounting standards and interpretations
that have been published and are effective from 2024 and later are con-
sidered to have a material impact on the Volvo Group\u2019s financial state-
ments.
2
Key sources of estimation uncertainty, critical judgments and climate-related risks and opportunities
The preparation of the Volvo Group\u2019s financial statements requires the use
of estimates and assumptions that may affect the recognized amounts of
assets and liabilities at the date of the financial statements. In addition,
the recognized amounts of net sales and expenses during the periods
pres ented are affected.
The Volvo Group is targeting to reach net-zero greenhouse gas emis-
sions by 2040. This will enable the Group\u2019s customers to have net-zero
rolling fleets by 2050 as it takes approximately ten years to renew a rolling
fleet. The path to decarbonization includes a gradual shift into bat-
tery-electric vehicles, fuel cell-electric vehicles and vehicles with internal
combustion engines running on lower carbon fuels. The transition brings
risks such as transitional and physical risks as well as opportunities. The
financial impact in relation to the transition occurs gradually and has not
had a material effect on the financial statements as of December 31, 2023.
In preparing the financial statements, management has made its best
judgments of certain amounts included in the financial statements, materi-
ality taken into account. Actual results may differ from previously made esti-
mates. In accordance with IAS 1, the company is required to disclose the
assumptions and other major sources of estimation uncertainties that, if
actual results differ, may have a material impact on the financial statements.
SOURCES OF ESTIMATION UNCERTAINTY
AND CRITICAL JUDGMENTS
The sources of estimation uncertainty and critical judgments identified by
the Volvo Group and which are considered to fulfill these criteria are pre-
sented in connection to the items considered to be affected. Table 2:1
discloses where to find these descriptions and climate-related risks and
opportunities, if applicable.
2:1
Source of estimation uncertainty and critical judgments Note
Climate-related risks and
opportunities
Sales with residual value commitments and variable sales price 7 Revenue
Deferred taxes and uncertainty over income tax
treatments and claims 10 Income taxes
Impairment of goodwill and other intangible assets 12 Intangible assets
Impairment of tangible assets and residual value risks 13 Tangible assets
Measurement of lease liabilities and right-of-use assets 14 Leasing
Allowance for expected credit losses 15
16
Customer-financing receivables
Receivables
Write down of inventories 17 Inventories
Assumptions when calculating post-employment benefits 20 Provisions for post- employment benefits
Provisions for product warranty, other provisions
and provisions for legal proceedings 21 Other provisions
3
Acquisitions and divestments of operations
ACCOUNTING POLICY
Acquisitions
Companies are consolidated as of the date of acquisition, when the Volvo
Group obtains control over the operations. Business combinations are
recognized in accordance with the acquisition method. The identifiable
assets acquired and the liabilities assumed are measured at their fair values.
A surplus amount from the purchase price paid, possible non-controlling
interest, and fair value of previously held equity interests at the acquisition
date compared to the acquired net assets is recognized as goodwill. All
acquisition-related costs are expensed.
For acquisitions done in stages, a business combination occurs on the
date when control is achieved. As part of obtaining control, the acquired
identifiable net assets are measured at their fair values and goodwill is
recognized. The previously held equity interest is remeasured to its fair
value and any resulting gain or loss compared to the carrying amount is
recognized in the income statement. For each business combination, the
Volvo Group decides whether the non-controlling interest shall be valued
at fair value or at the non-controlling interest\u2019s proportionate share of the
net assets of the acquiree. Transactions between the Volvo Group and
owners with non-controlling interest are recognized in equity if control of
the subsidiary is retained.
Divestments
Subsidiaries that have been divested are included in the consolidated
financial statements until the date of the divestment, when the Volvo
Group loses control over the subsidiary. A decrease in ownership interest
of a subsidiary without losing control is accounted for as an equity trans-
action.
Assets and liabilities held for sale and discontinued operations
In a global group like the Volvo Group, activities are continuously ongoing
regarding the sale of assets or groups of assets at minor values. When the
criteria for being classified as assets and liabilities held for sale are fulfilled
and the asset or group of assets are of material value, the asset or group of
assets, both current and non-current, and the related liabilities are recog-
nized on separate lines in the balance sheet. The asset or group of assets
are measured at the lower of its carrying amount and fair value after deduc-
tions for selling expenses. The balance sheet items and the potential
income statement effect resulting from the revaluation to fair value less
selling expenses are, if related to Industrial Operations, normally recog-
nized in the segment Group functions & Other, otherwise in the Financial
Services segment. When the sale is completed the result is distributed to
the relevant segments.
Read more in Note 5 Investments in joint ventures, associated companies and
other shares and participations.
Read more in Note 11 Non-controlling interest.
Read more in Note 12 Investments in shares and participations in the parent com-
pany, about AB Volvo\u2019s holding of shares in subsidiaries as of December 31, 2023 .
Acquisitions during the period
The Volvo Group has not made any acquisitions of operations during 2023
and 2022, which solely or jointly had a material impact on the Volvo
Group\u2019s financial statements.
The total impact on the Volvo Group\u2019s balance sheet and cash flow state-
ment in connection with all acquisitions of operations are included in table 3:1.
3:1
Acquisitions
2023 2022
Acquired net assets 126 153
Non-controlling interest \u2013 \u201325
Goodwill 74 146
Purchase price \u2013198 \u2013274
Outstanding purchase price \u2013 9
Advance payment
1
121 \u2013
Effect on Volvo Group cash and
cash equivalents \u201377 \u2013265
1 2023 includes an advance payment for the acquisition of a battery business unit
from Proterra Inc. and Proterra Operating Company, and a recovered advance pay-
ment for the discontinued acquisition of a heavy-duty truck manufacturing operation
in China.
Divestments during the period
In 2023, the Volvo Group divested its Russian entities. The divestment
resulted in a negative impact on the operating income of SEK 794 M and
a total negative cash flow effect of SEK 2,499 M. In 2022, assets related
to Russia amounting to SEK 4,125 M were provisioned for with a negative
impact on operating income. The Volvo Group has not made any other
divestments of operations during 2023 that have had a material impact
on the financial statements. The Volvo Group received SEK 196 M in
2023 related to the earnout for the divestment of UD Trucks to Isuzu
Motors in 2021.
During 2022, the Volvo Group did not make any divestments which
solely or jointly had a impact on the Volvo Group\u2019s financial statements.
The Volvo Group received SEK 145 M in 2022 related to the earnout for
the divestment of UD Trucks to Isuzu Motors in 2021.
The total impact on the Volvo Group\u2019s balance sheet, income statement
and cash flow statement in connection with all divestments of operations
are specified in table 3:2.
3:2 Divestments 2023 2022 Divested net assets \u20134,448 \u2013 Whereof cash and cash equivalents \u20135,830 \u2013 Cash flow and net financial position 2023 2022 Cash and cash equivalents, received 3,562 153 Loan repayment \u2013 \u2013 Cash and cash equivalents, divested operations \u20135,830 \u2013 Effect on Volvo Group cash and cash equivalents \u20132,268 153 Effect on Volvo Group net financial position \u20131,108 \u2013 Details on divestments 2023 2022 Consideration received or receivable: Cash 3,562 \u2013 Fair value of contingent consideration \u2013 \u2013 Total disposal consideration 3,562 \u2013 Carrying amount of divested net assets \u20134,448 \u2013 Exchange rate changes reversed to income 318 \u2013 Net gain/loss \u2013569 \u2013 Transaction costs related to divestments amounted to: \u201325 \u2013 Assets and liabilities held for sale Assets and liabilities held for sale amounted to net SEK 3,803 M (-) as of December 31, 2023. It relates to the planned divestments of Arquus to John Cockerill Defense, Volvo Construction Equipment\u2019s ABG paver busi- ness to Ammann Group, and property divestments. The write-down of assets to fair value mainly relate to the planned divestments of Arquus and the paver business, and impacted the Volvo Group\u2019s operating income negatively by SEK 880 M and SEK 610 M respectively 2023. As of December 31, 2023, the total exchange rate changes to be recycled amounted to SEK 343 M. 3:3 Assets and liabilities held for sale Dec 31, 2023 Dec 31, 2022 Intangible assets 899 \u2013 Tangible assets 1,202 \u2013 Financial assets 1,858 \u2013 Inventories 3,871 \u2013 Accounts receivable 3,502 \u2013 Other current receivables 2,085 \u2013 Total assets before write-down of assets to fair value 13,417 \u2013 Write-down of assets to fair value \u20131,457 \u2013 B/S Total assets after writedown 11,960 \u2013 Provisions 503 \u2013 Other non-current liabilities 2,891 \u2013 Trade payables 1,279 \u2013 Other current liabilities 3,484 \u2013 B/S Total liabilities 8,157 \u2013 Acquisitions and divestments after the end of the period On February 1, 2024, the Volvo Group completed the previously announced transaction whereby the Volvo Group acquired the net assets related to the battery business from Proterra Inc. and Proterra Operating Company Inc., which includes a development center for battery modules and battery packs in California and an assembly factory in Greer, South Carolina, USA. With this acquisition, Volvo Group will complement the current, and accelerate its future, battery-electric road map. The acquisition was made at a purchase price of USD 210 M before adjust- ment for inventory level at closing. In connection with the acquisition, the Volvo Group made a preliminary purchase price allocation of identified assets and liabilities, which is expected to be finalized within 12 months from the acquisition date. The purchase price largely corresponds to the acquired net assets at fair value, mainly consisting of machinery and equipment (USD 80 M), inventory (USD 120 M), and surplus values related to technology (USD 20 M). Acquisition-related costs amounted to SEK 85 M and was recognized in other operating income and expense. As of February 1, 2024, the acquired operation is recognized in the segment Trucks in the Volvo Group financial statements. The Volvo Group has not made any other acquisitions or divestments after the end of the period that have had a material impact on the financial statements . 4 Goals and policies in financial risk management The Volvo Group\u2019s global operations expose the Group to financial risks in the form of interest rate risks, currency risks, credit risks, liquidity risks and other price risks. The board of AB Volvo has adopted a financial risk policy that regulates how these risks should be controlled and governed and defines roles and responsibilities within the Volvo Group. The financial risk policy also establishes principles for how financial activities shall be carried out, sets mandates and steering principles for the management of financial risks as well as defines the financial instruments to be used for mitigating these risks. Key mandates and steering principles are described in the respective risk section. The board and audit committee of AB Volvo are informed regularly during the year about the development of the Volvo Group\u2019s financial risks and other matters covered within the financial risk policy. The financial risk policy is reviewed on an annual basis. The Volvo Group manages financial risk as an integrated element of the business operations where parts of the responsibil- ity for the finance operation and financial risk management are centralized to Volvo Group Treasury, the internal bank of the Volvo Group. Their respon- sibilities include financing of Industrial Operations as well as financing of the credit portfolio in Financial Services. The Volvo Group\u2019s balance sheet is pres ented per segment where Volvo Group Treasury is part of the Indus- trial Operations and the internal lending from Industrial Operations to Financial Services is presented in the balance sheet as internal funding. In 2023 the volatility in the financial markets has decreased signifi- cantly although it\u2019s historically still on an elevated level. Market rates have increased and long market rates are now on higher levels than for many years. The Volvo Group has continued to perform financial activities and managed risk in accordance with the financial risk policy, without any pol- icy breaches. Read more in Note 30 Financial instruments, about accounting policies for financial instruments. Read more in sections financial management and risks and uncertainties about financial risk management. FINANCIAL RISKS INTEREST RATE RISKS CASH FLOW RISKS PRICE RISKS CURRENCY RISKS COMMERCIAL CURRENCY EXPOSURE FINANCIAL CURRENCY EXPOSURE CURRENCY EXPOSURE OF EQUITY CREDIT RISKS COMMERCIAL CREDIT RISK FINANCIAL CREDIT RISK FINANCIAL COUNTERPARTY RISK LIQUIDITY RISKS OTHER PRICE RISKS COMMODITY RISKS USD 21.2 BRL 10.1 INTEREST RATE RISKS INTEREST RATE RISKS Interest rate risk refers to the risk that changed interest rates will affect the Volvo Group\u2019s net income and cash flow (cash flow risk) or the fair value of financial assets and liabilities (price risk). Following the interest rate bench- mark reform USD LIBOR was replaced by SOFR during 2023. At the point of cessation the Volvo Group had a number of outstanding interest rate derivative contracts linked to USD LIBOR which were converted to SOFR with no material effect in the income statement. Currently no other major IBOR rates, where the Volvo Group have outstanding contracts, are sched- uled for cessation. POLICY Matching the interest fixing terms of financial assets and liabilities reduces the exposure. Interest rate swaps are used to change/influence the inter- est fixing term for the Volvo Group\u2019s financial assets and liabilities. Currency interest rate swaps enable borrowing in foreign currencies from different markets without introducing currency risk. Cash flow risks The effect of changed interest rate levels on future currency and interest flows primarily pertains to Financial Services and Industrial Operations\u2019 net financial items. The interest rate risk in Financial Services is managed with the objective to achieve a match of interest rate fixings on borrowing and lending, in order to eliminate interest rate risk. The matching degree is measured excluding equity, which amounted to 8% in Financial Services. At year-end 2023, the degree of such matching ratio was 101% (100) in Financial Services which is in accordance with the Group policy. In addition to the financial assets in Financial Services, the Volvo Group\u2019s interest-bearing assets at year-end 2023 consisted primarily of cash and cash equivalents. On December 31, 2023, the average interest on Industrial Operations financial assets was 4.6% (3.2). The increase relates to significantly higher underlying interest rates in most regions during the year. The Industrial Operations\u2019 results and profitability are closely aligned to the business cycle. Therefore, in order to minimize the interest rate risk, outstanding loans had interest terms corresponding to an interest rate fixing of between one to three months. The average interest rate on Indus- trial Operations financial liabilities at year end amounted to 5.7% (5.2), including the Volvo Group\u2019s credit costs, also affected by the increase in underlying interest rates. Table 4:1 shows the impact on income after financial items in Industrial Operations\u2019 net financial position, excluding lease liabilities and post-em- ployment benefits, if interest rates were to increase by 1 percentage point, assuming an average interest rate fixed term of three months on the liabil- ity side. 1 The impact on equity is earnings after tax. 1 The sensitivity analysis on interest rate risk is based on simplified assumptions. It is not unlikely for market interest rates to change by one percentage point on an annual basis. However, in reality, these rates often rise or decline at different points in time. The sen- sitivity analysis also assumes a parallel deferment of the return curve, and that the interest on assets and liabilities will be equally impacted by changes in market interest rates. Accordingly, the impact of real interest rate changes may differ from the analysis presented in table 4:1. Read more in Note 20 Provisions for post-employment benefits regarding sensitivity analysis on the defined benefit obligations when changes in the applied assumptions for discount rate and inflations are made .
The Volvo Group\u2019s net assets in
different currencies (SEK bn) =
Read more in section currency exposure
of equity in this note.
4:1
Risk net financial
position Dec 31,
2023
Net financial position
excl. post-employ-
ment benefits and
lease liabilities
Impact on income
after financial items
if interest rate rises 1%
(Interest rate risks)
Impact on net financial
position if SEK appreciates
against other currencies 10%
(Currency risks)
SEK M
SEK 49,678 533 \u2013
USD 11,291 102 \u20131,129
EUR 11,031 97 \u20131,103
GBP 5,498 48 \u2013550
CNY 2,635 30 \u2013264
BRL 2,027 22 \u2013203
Other 1,246 18 \u2013125
Total 83,407 850 \u20133,373
Read more in section financial position about the Industrial Operations net financial position.
Price risks
Exposure to price risk as a result of changed interest rate refers to financial
assets and liabilities with a longer interest rate fixing term (fixed interest).
All outstanding loans in Industrial Operations are signed with short inter-
est rate fixings, therefore the price risk is immaterial.
For Financial Services, financial assets and liabilities are matched in
order to limit risk. Volvo Group Treasury is allowed to take limited active
currency and interest rate positions in relation to the Financial Services
portfolio. This responsibility is subject to, and shall be within, applicable
market risk limitations. There are several measurements which can be
used to define market risk. Volvo Group Treasury is using Value-at-Risk
(VaR) as the main tool for mandating market risk (including interest rate
risk, currency risk and liquidity risk). Volvo Group Treasury measures VaR
over a one day holding period, using a 97.7% confidence level and histor-
ical volatility and correlation. The total VaR mandate for Volvo Group Trea-
sury is SEK 150 M, and the usage is measured daily. As of December 31,
2023, the VaR usage was SEK 20.6 M (40.8). VaR usage for 2022 was
excluding assets related to Russia which were risk measured separately.
CNY
15.0
INR 1.9
KRW 3.2
SEK
90.9
EUR
17.3
GBP 4.9
CURRENCY RISKS
The balance sheet may be affected by changes in different exchange
rates. Currency risks in the Volvo Group\u2019s operations are related to
changes in the value of contracted and expected future payment flows
(commercial currency exposure), changes in the value of loans and invest-
ments (financial currency exposure) and changes in the value of assets
and liabilities in foreign subsidiaries (currency exposure of equity).
POLICY
The aim of the Volvo Group\u2019s currency risk management is to secure cash
flow from firm flows through currency hedges pursuant to the established
Financial risk policy, and to minimize the exposure of financial items in the
Volvo Group\u2019s balance sheet. Below is a presentation on how this work is
conducted for commercial and financial currency exposure, and for
currency exposure of equity.
4:2
Volvo Group\u2019s outstanding derivatives hedging commercial
currency risks December 31, 2023
Nominal amount, millions GBP/SEK
Due date 2024 111
Due date 2025 10
Total local currency 121
Average contract rate 13.51
Market value of outstanding derivatives, SEK M 105
Read more in Note 30 Financial instruments, about derivatives used for hedg-
ing currency risk arising from future cashflow and the impact in the income state-
ment .
4:3
Sensitivity analysis
1
Risk currency
exposure
2023
Transaction
exposure from
operating
net flows
Impact on operating income
if currency rate appreciates
against all other currencies
by 10%
(Currency risks)SEK bn
SEK \u201363 \u20136.3
KRW \u20139 \u20130.9
GBP 15 1.5
USD 12 1.2
CAD 10 1.0
The deficit in transaction exposure in SEK is mainly generated from flows
in GBP, USD, CAD, AUD and NOK against SEK.
Commercial currency exposure
Transaction exposure from commercial flows
The Volvo Group conducts manufacturing in 18 countries around the
globe and more than 95% of net sales are generated in countries other
than Sweden. Transaction exposure from commercial flows in foreign
currency is generated from internal purchases and sales between manu-
facturing entities and market companies and external sales and purchases
in foreign currency around the globe. As the predominant parts of the
operations in the Volvo Group are situated outside Sweden, the fluctua-
tions in currency rates affecting the transaction flows in foreign currency
are in many cases not against SEK. Industrial Operations\u2019 transaction
exposure from commercial flows for key currencies is presented in graph
4:5. The graph represents the transaction exposure from commercial
operating cash flows in foreign currency, expressed as net surpluses or
deficits in key currencies. Commercial net flows increased compared to
previous year as an effect of improved demand for the Volvo Group\u2019s prod-
ucts and services. The deficit in SEK and KRW is mainly an effect of man-
ufacturing costs in the plants in Sweden and South Korea, but limited
external revenues in those currencies. The surplus in GBP is mainly
generated from internal and external sales to Great Britain. The surplus in
USD is mainly generated from internal and external sales to entities in
USA and emerging markets around the globe. The surplus in CAD is
mainly generated from internal and external sales to Canada. The transac-
tion exposure in Financial Service is limited as the lending is done in local
currency and the currency risk is managed through the matching in lend-
ing and borrowing.
The hedging of the Volvo Group\u2019s commercial currency exposure is exe-
cuted centrally. The Volvo Group\u2019s consolidated currency exposure is the
value of forecasted flows in foreign currency. The Volvo Group may hedge
the part of the forecasted currency exposure that is considered highly
probable to occur, however during 2023 only future cash flows for spe-
cific orders, decided on case-by-case basis, has been hedged. The Volvo
Group uses forward contracts and currency options to hedge the future
payment flows in foreign currency. The hedged amount of firm flows for all
periods fall within the framework of the Volvo Group\u2019s financial risk policy.
Table 4:2 shows outstanding derivatives for the hedging of commercial
currency risks.
Translation exposure from the consolidation of operating income in
foreign subsidiaries
In conjunction with the translation of operating income in foreign subsid-
iaries, the Volvo Group\u2019s income is impacted if currency rates change. The
Volvo Group does not hedge this risk. Graph 4:7 shows the translation
effect in key currencies when consolidating operating income for 2023 in
foreign subsidiaries in the Volvo Group.
Read more in section currency exposure of equity.
Sensitivity analysis for transaction exposure
1
The table 4:3 illustrates the impact on operating income if key currencies
for the Volvo Group appreciate by 10% against all other currencies. Hedge
accounting is not applied on hedging commercial cash flows in foreign
currency, hence the impact on equity equals the impact on operating
income.
Volvo Group currency review
The table and graphs 4:4 to 4:8 show the currency impact on operating
income and illustrate the transaction exposure and currency impact on
operating income from commercial net flows in foreign currency , transla-
tion effect when consolidating operating income in foreign subsidiaries
and currency impact on sales in key currencies.
Read more about Volvo Group transaction exposure in section commercial
currency exposure above.
Financial currency exposure
Loans and investments in the Volvo Group\u2019s subsidiaries are performed
mainly in local currencies through Volvo Group Treasury, which minimizes
individual companies\u2019 financial currency exposure. Volvo Group Treasury
uses various derivatives to facilitate lending and borrowing in different
currencies without increasing the risk for the Volvo Group. The net
financial position of the Volvo Group is affected by currency fluctuations
since financial assets and liabilities are distributed among the Volvo Group
companies that conduct their operations using different currencies.
Table 4:1 discloses the impact on income after financial items on Indus-
trial Operations net financial position, excl. post-employment benefits
and lease libilities, if SEK were to strengthen by 10%.
Currency exposure of equity
The carrying amount of assets and liabilities in foreign subsidiaries are
affected by current exchange rates in conjunction with the translation of
assets and liabilities to SEK. To minimize currency exposure of equity, the
size of equity in foreign subsidiaries is continuously optimized with respect
to commercial and legal conditions and in connection with this activity,
payments of major internal dividends in foreign currency can be subject for
hedging. Currency hedging of equity may occur in cases where a foreign
subsidiary is considered overcapitalized. Net assets in foreign subsidiaries,
associated companies and joint ventures amounted at year end 2023 to
SEK 90 billion (98). The need to undertake currency hedging relating to
investments in associated companies, joint ventures and other companies
is assessed on a case-by-case basis.
On the map on the previous pages the Volvo Group\u2019s net assets in
different currencies (SEK bn) are displayed.
Read more in Note 30 Financial instruments, about the Volvo Group\u2019s policy
choice on hedge accounting. Information on gain and losses regarding hedging
of internal dividends, refer to table 30:3.
1 The sensitivity analysis on currency rate risks is based on simplified assumptions.
It is not unlikely for a currency to appreciate by 10% in relation to other currencies.
In reality however, all currencies usually do not change in the same direction at
any given time, so the actual effect of exchange rate changes may differ from the
sensitivity analysis. Please refer to table 4:3 .
4:4
The Volvo Group\u2019s currency review
When the Volvo Group communicates the currency impact on operating income, the following factors are included:
Currency impact on operating income, Volvo Group, SEK million 2023 2022 Change
Net flows in foreign currency 1,093
Realized and unrealized gains and losses on currency hedging contracts \u201316 \u201344 29
Unrealized gains and losses on receivables and liabilities in foreign currency 94 \u2013738 832
Translation effect on operating income in foreign subsidiaries 2,805
Total currency impact on operating income, Volvo Group 4,758
Currency impact on net flows in foreign currency is detailed in graph 4:6 and translation effect on operating income in foreign subsidiaries
is detailed in graph 4:7 in key currencies.
4:5
Transaction exposure from commercial
net flows in 2023 and 2022
SEK bn
Currency flow 2022 Currency flow 2023
SEK
\u201363
\u201349
Other
11
11
KRW
\u20139
\u20137
EUR
3
1
ZAR
6
5
AUD
8
6
CAD
10
7
USD
12
8
NOK
8
6
GBP
15
12
\u201350
\u201360
\u201340
\u201330
\u201320
\u201310
0
10
20
The graph above represents the transaction exposure from commercial
operating net cash flows in foreign currency, expressed as net surpluses
or deficits in key currencies.
Read more in section commercial currency exposure.
4:6
Currency impact on operating income from net flows in foreign
currency 2023 versus 2022
SEK bn
Changes in currency rates compared to 2023 (Total SEK 1.1 bn).
Other
0.2
ZAR
\u20130.4
GBP
0.8
MXN
0.5
DKK
0.2
USD
0.5
KRW
\u20130.4
CAD
0.1
NOK
\u20130.4
\u20130.4
\u20130.2
0
1.0
0.8
0.6
0.4
0.2
Currency effect on operating income from net flows in foreign currency
in Volvo Group is presented in the graph above.
4:7
Translation effect on operating income in 2023 versus 2022
SEK M
BRL
828
USD
1,049
EUR
1,091
PLN
\u2013114
MXN
101
ZAR
\u201359
GBP
59
DKK
26
TRY
\u2013282
Other
106
Changes in currency rates compared to 2022 (Total SEK 2,805 M).
\u2013300
1,200
300
600
900
0
1,500
Translation effect when consolidating operating income in foreign
subsidiaries for Volvo Group is presented in the graph above.
4:8
Currency impact on net sales in 2023 versus 2022
Changes in currency rates compared to 2022 (Total SEK 26,030 M).
SEK M
3,000
0
\u20133,000
6,000
9,000
12,000
15,000
BRL
2,656
SGD
257
KRW
231
NOK
\u2013555
ZAR
\u2013584
Other
2,710
USD
7,318
EUR
12,576
GBP
1,421
Currency effect on net sales from inflows in foreign currency and
translation effect when consolidating net sales in foreign subsidiaries
for Volvo Group is presented in the graph above .
CREDIT RISKS
Credit risk is defined as the risk that the Volvo Group does not receive
payment for recognized accounts receivables and customer-financing
receivables (commercial credit risk), that the Volvo Group\u2019s investments
are unrealizable (financial credit risk) and that potential profit is not real-
ized due to the counterparty not fulfilling its part of the contract when
using derivative instruments (financial counterparty risk).
POLICY
The objective of the Volvo Group\u2019s credit risk management is to define,
measure and monitor the credit exposure in order to minimize the risk of
losses deriving from credit to customers and suppliers, financial credit risk,
counterparty risk and customer finance activities within Financial Services.
Commercial credit risk
The Volvo Group\u2019s credit granting is steered by group policies and
customer-classification rules. The credit portfolio should contain a distri-
bution among different customer categories and industries. The credit
risk is managed through active credit monitoring, follow-up routines and,
where applicable, product repossession. In addition to this, regular moni-
toring ensures that necessary allowances are made for expected credit
losses on financial assets. Risk management practices for Financial Ser-
vices are presented in note 15 Customer-financing receivables and for
Industrial Operations in note 16 Receivables. Moreover, note 15 includes
information on gross exposure for customer-financing receivables by past
due status while note 16 includes gross exposure for accounts receivables
by past due status in relation to allowance for expected credit losses.
The customer-financing receivables in the Volvo Group amounted to
net SEK 232 billion (194) on December 31, 2023. The credit risk of this
portfolio is distributed over a large number of retail customers and dealers.
Collateral is provided in the form of the financed products. In the credit
granting the Volvo Group strives for a balance between risk exposure and
expected return. Syndication of customer-financing receivables is made
in order to reduce concentration risk.
The Volvo Group\u2019s accounts receivables as of December 31, 2023
amounted to net SEK 43 billion (48).
Read more in Note 15 Customer-financing receivables, about the Volvo Group\u2019s
concentration of credit risk in Financial Services.
Read more in Note 16 Receivables.
Financial credit risk
The Volvo Group\u2019s financial assets are to a large extent managed by Volvo
Group Treasury. All investments must meet the requirements of high
liquid ity and low credit risk. According to the Volvo Group\u2019s financial risk
policy, this includes using counterparties for investments and derivative
transactions with a credit rating better or equivalent to A\u2013 from one of the
well-established credit rating institutions or similar.
Cash and cash equivalents including marketable securities as of December
31, 2023 amounted to SEK 83 billion (84) and consists primarily of bank
account positions.
Read more in Note 18 Cash and cash equivalents.
Financial counterparty risk
The use of derivatives involves a counterparty risk, in that a potential loss
may not be possible to offset (in full or in part) against a potential gain if the
counterparty fails to fulfill its part of the contract. The Volvo Group is
actively working with limits per counterpart in order to reduce the risk for
high net amounts towards individual counterparts. To reduce the expos ure
further the Volvo Group enters into master netting agreements, so called
ISDA agreements, with all counterparts eligible for derivative transactions.
The netting agreements provide the possibility for assets and lia bilities to
be offset under certain circumstances, such as in the case of the counter-
part\u2019s insolvency. A Credit Support Annex (CSA) often accompanies the
ISDA agreement. The CSA stipulates the terms and conditions under
which the two parties are required to make cash transfers to each other in
order to further reduce the exposure from the net open positions. The net-
ting agreements have no effect on the financial performance or the finan-
cial position of the Volvo Group, since derivative transactions are accounted
for on a gross basis. Table 4:9 shows the effect of netting agreements and
cash transfers on the Volvo Group\u2019s gross exposure from outstanding
interest and currency risk derivatives as of December 31, 2023.
Read more in Note 30 Financial instruments, about the Volvo Group\u2019s gross
exposure from derivatives per type of instrument.
4:9
The impact from netting agreements and cash transfers on the Volvo Group\u2019s gross exposure from derivatives, Dec 31, 2023
Gross amount
Netting
agreements Cash transfers Net position Change
Interest and currency risk derivatives reported as assets 6,293 \u20133,486 \u20131,773 1,034 84%
Interest and currency risk derivatives reported as liabilities 5,779 \u20133,486 \u20132,110 183 97%
LIQUIDITY RISKS
Liquidity risk is defined as the risk that the Volvo Group would be unable
to finance or refinance its assets or fulfill its payment obligations.
POLICY
The Volvo Group ensures sound financial preparedness by always keeping
a certain percentage of its sales in liquid assets, mainly as bank account
positions in banks rated at least A- from one of the well-established credit
rating institutions or similar. A sound balance between current and
non-current debt maturities, as well as non-current committed credit
facilities, is intended to secure liquidity preparedness, and thus the Volvo
Group\u2019s payment capability.
The Volvo Group\u2019s cash and cash equivalents amounted to SEK 83 billion
(84) on December 31, 2023. In addition to this, granted but unutilized
credit facilities amounted to SEK 53 billion (46). Graph 4:10 discloses
expected future cash flows related to financial liabilities. Capital flow refers
to expected payments of loans, lease liabilities and derivatives. Expected
interest flow refers to the future interest payments on loans, lease liabili-
ties and derivatives based on interest rates anticipated by the market. The
interest flow is recognized within cash flow from operating activities. The
maturity structure of the unutilized credit facilities is disclosed in note 22
Liabilities, in table 22:3. The predominant part of expected future cash
flows that will occur in 2024 and 2025 is an effect of the Volvo Group\u2019s
normal business cycle, with shorter duration in the portfolio within Finan-
cial Services compared to Industrial Operations.
Financial Services measure the degree to which the duration of borrow-
ing and lending matches. The calculation of the matching degree excludes
equity, which amounted to 8% in Financial Services. At year-end 2023,
the degree of such matching was 101% (100) for the segment Financial
Services, which was in line with the Volvo Group\u2019s policy. Volvo Group
Treasury has, for practical as well as business reasons, the mandate to
mismatch their portfolio for Financial Services between a matching ratio
of 80\u2013120%. At year-end 2023, the matching ratio was 91% (103). Any
gains or losses from the mismatch impact the segment Group functions &
other within Industrial Operations.
A hybrid bond amounting to EUR 1.5 billion was issued by the Volvo
Group in 2014. The final tranche of this bond (EUR 0.6 billion) was repaid
in March, 2023.
Read more in Note 14 Leasing, about the maturity for non-current lease liabilities
in table 14:4.
Read more in Note 22 Liabilities, about the maturity for non-current loans in
table 22:3
4:10
Future cash flow including lease liabilities and derivatives
related to non-current and current financial liabilities
1
0
\u201310
\u201320
\u201330
\u201340
\u201350
\u201360
\u201370
\u201380
\u201390
\u2013100
\u2013110
Capital flow Interest flow
2030 or later2029
\u201398.3 \u201360.2 \u201346.0
\u201318.5
\u20137.0 \u20133.5 \u20133.3
SEK bn
\u201310.3 \u20135.8 \u20133.5 \u20131.5 \u20130.8 \u20130.3 \u20130.2
2024 2025 2026 2027 2028
1 In addition to derivatives included in graph 4:10 there are also derivatives in the
Volvo Group related to financial liabilities recognized as assets, which are expected
to give a future capital flow of SEK 2.9 billion (1.7) and a future interest flow of
SEK
2.0 billion (2.9).
OTHER PRICE RISKS
OTHER PRICE RISKS
Commodity risks
Commodity risk refers to the risk that changed commodity prices may
affect the income for the period within the Volvo Group. Procurement of
commodities such as steel, precious metals and electricity are made in the
Volvo Group on a regular basis where prices are set in the global markets.
POLICY
Changes in commodity prices are included in the Volvo Group\u2019s product
cost calculation. Increased commodity prices are therefore reflected in
the sales price of the final products. Purchasing agreements with com-
modity suppliers may also be long-term in nature or structured in a way to
de crease the volatility in commodity prices.
5 Investments in joint ventures, associated companies and other shares and participations ACCOUNTING POLICY Joint ventures Joint ventures are companies in which the Volvo Group has joint control together with one or more external parties. Investments in joint ventures are recognized by applying equity method accounting. The Volvo Group\u2019s most material holdings in joint ventures are VE Commercial Vehicles, Ltd., (VECV) and cellcentric GmbH & Co. KG (cellcentric). Both investments are joint ventures since common agreement is needed for important matters related to the governance in the joint ventures. The investment in VECV aims at strengthening the Volvo Group\u2019s position in the market in India. cellcentric will develop, produce, and commercialize fuel-cell systems for use in heavy-duty trucks as the primary focus. Both investments are included in the Trucks segment. Associated companies Associated companies are companies in which the Volvo Group has a sig- nificant influence. A strong indication of such influence is when the Group\u2019s holding is more than 20% but less than 50% of the voting rights. Investments in associated companies are recognized by applying equity method accounting. The ownership in the Chinese automotive manufac- turer Dongfeng Commercial Vehicles Co., Ltd (DFCV) is classified as an associated company and is included in the Trucks segment. During 2023, the Volvo Group divested its shares in the associated companies Wire- lessCar Sweden AB and Imatech Marin & Industri AB. Equity method The Volvo Group\u2019s share of the companies\u2019 income/loss recognized according to the equity method is included in the Volvo Group\u2019s income statement as income/loss from investments in joint ventures and associ- ated companies. Where appropriate, the income has been reduced by depreciation of surplus values and the effect of applying different account- ing policies has been considered. Income from companies recognized in accordance with the equity method is included in operating income since the Volvo Group\u2019s investments are business related in nature. Dividends from joint ventures and associated companies are not included in the con- solidated income. The carrying amount of investments in joint ventures and associated companies are affected by the Volvo Group\u2019s share of the companies' net income, less depreciation of surplus values and dividends received. Investments in joint ventures and associated companies are also affected by the Volvo Group\u2019s share of the companies' other comprehen- sive income and by the exchange rate changes from translating the compa- nies\u2019 equity in the consolidation of the Volvo Group. When applying the equity method, losses recognized by joint ventures or associates could indicate impairment and additional impairment losses might be recognized. For instance, a significant or prolonged decline in the fair value of the shares is an indication of impairment. However, invest- ments accounted for in accordance with the equity method cannot amount to a negative carrying value. The Volvo Group\u2019s share of losses is therefore not adjusted for, if the holding is of a negative amount. Addi- tional losses are provided for to the extent that the Volvo Group has incurred legal or constructive obligations to make payments on behalf of the joint venture or the associated company . Other shares and participations Other shares and participations recognize holding of shares in which the Volvo Group does not hold a significant influence. This generally means the Volvo Group\u2019s holding of shares corresponds to less than 20% of the voting rights. Listed shares are recognized at fair value through other comprehensive income since the shares are not held for trading. For unlisted shares and participations, a fair value cannot be reasonably mea- sured, hence these are measured at amortized cost. Earned or paid inter- est attributable to these assets is recognized in the income statement as part of net financial items, in accordance with the effective interest method. Dividends received attributable to these assets are recognized as income from other investments within operating income. Read more in Note 30 Financial instruments, regarding classification and valuation of financial instruments .
Joint ventures
The Volvo Group\u2019s investments in joint ventures are listed below.
5:1
Investments in joint ventures Dec 31, 2023
Percentage holding
Dec 31, 2023
Carrying value
Dec 31, 2022
Percentage holding
Dec 31, 2022
Carrying value
cellcentric 50.0 7,786 50.0 7,622
VE Commercial Vehicles, Ltd., (VECV) 45.6 3,131 45.6 2,860
Other holdings in joint ventures\u00b9 483 179
Investments in joint ventures 11,400 10,661
1 Other holdings in joint ventures include investments in World of Volvo AB, Force R\u00e9seau and Milence.
The following tables present summarized financial information for the Volvo Group\u2019s joint ventures:
5:2
Summarized income statements
2023 2022
VECV cellcentric
Other joint
ventures Total VECV cellcentric
Other joint
ventures Total
Net sales 27,737 204 617 28,558 21,900 119 653 22,671
Operating income
1
1,581 \u20131,121 \u2013280 180 640 \u20131,164 \u201349 \u2013573
Interest income and similar credits 230 \u2013 \u2013 230 99 \u2013 \u2013 99
Interest expense and similar charges \u201361 \u2013 \u201359 \u2013120 \u201329 \u2013 \u201312 \u201341
Other financial income and expenses 7 \u20133 \u2013 4 \u20131 \u20137 \u2013 \u20138
Income taxes \u2013614 \u2013 \u2013 \u2013614 \u2013251 \u2013 4 \u2013247
Income for the period
2
1,143 \u20131,124 \u2013339 \u2013319 458 \u20131,172 \u201356 \u2013770
Other comprehensive income
3
\u20133 \u20135 \u2013 \u20138 \u20136 7 \u2013 1
Total comprehensive income 1,141 \u20131,129 \u2013339 \u2013327 452 \u20131,164 \u201356 \u2013768
1 Depreciation and amortization of SEK 1,325 M (1,205) are included within operating income.
2 Income for the period in joint ventures includes depreciation of surplus values.
3 Including the Volvo Group\u2019s share of other comprehensive income related to joint ventures.
Exchange rate changes from translating joint ventures\u2019 equity in the Volvo Group are excluded.
5:3
Summarized balance sheets Dec 31, 2023 Dec 31, 2022
VECV cellcentric
Other joint
ventures Total VECV cellcentric
Other joint
ventures Total
Non-current assets 6,172 15,114 1,688 22,975 5,871 14,571 1,077 21,519
Marketable securities, cash and cash
equivalents 2,908 675 \u2013 3,583 2,236 883 \u2013 3,119
Other current assets 8,976 737 1,206 10,920 7,419 561 271 8,250
Total assets 18,057 16,527 2,894 37,477 15,526 16,014 1,347 32,888
Equity
1
6,868 15,537 1,313 23,719 6,272 15,210 361 21,844
Non-current financial liabilities 705 287 1,391 2,383 133 317 801 1,251
Other non-current liabilities 390 64 22 476 512 57 8 577
Current financial liabilities 7,181 11 \u2013 7,191 6,192 7 \u2013 6,199
Other current liabilities 2,913 627 168 3,709 2,417 423 177 3,017
Total equity and liabilities 18,057 16,527 2,894 37,477 15,526 16,014 1,347 32,888
1 Including exchange rate changes from translating joint ventures\u2019 equity in the Volvo Group.
As of December 31, 2023, the net financial position (excluding post-employment benefits) for the joint ventures amounted to SEK 2,664 M (1,833),
and Volvo Group\u2019s share of contingent liabilities in its joint ventures amounted to SEK 105 M (110). Dividends received during 2023 from VECV
amounted to SEK 100 M (44).
Associated companies The Volvo Group\u2019s investments in associated companies are listed below. 5:4 Investments in associated companies Dec 31, 2023 Percentage holding Dec 31, 2023 Carrying value Dec 31, 2022 Percentage holding Dec 31, 2022 Carrying value Dongfeng Commercial Vehicles Co., Ltd (DFCV) 45.0 7,256 45.0 9,929 Other holdings in associated companies 1 501 992 Investments in associated companies 7,757 10,922 1 Other holdings in associated companies mainly relates to the investment in Blue Chip Jet II HB. The following tables present summarized financial information for the Volvo Group\u2019s associated companies: 5:5 Summarized income statements 2023 2022 DFCV Other associated companies Total DFCV Other associated companies Total Net sales 40,847 4,364 45,211 33,211 3,892 37,103 Operating income \u20133,993 86 \u20133,907 \u20132,998 78 \u20132,920 Income for the period 1 \u20134,723 13 \u20134,710 \u20131,952 57 \u20131,895 Other comprehensive income 2 \u20131 \u2013 \u20131 \u20135 \u2013 \u20135 Total comprehensive income \u20134,724 13 \u20134,711 \u20131,957 57 \u20131,900 1 Income for the period in associated companies includes depreciation/amortization of surplus values and internal transactions. 2 Including the Volvo Group\u2019s share of other comprehensive income related to associated companies. Exchange rate changes from translating the associated companies\u2019 equity in the Volvo Group are excluded. 5:6 Summarized balance sheets Dec 31, 2023 Dec 31, 2022 DFCV Other associated companies Total DFCV Other associated companies Total Non-current assets 18,364 1,261 19,625 21,474 1,327 22,801 Current assets 37,182 1,627 38,809 30,651 1,743 32,394 Total assets 55,546 2,887 58,434 52,124 3,070 55,195 Equity\u00b9 15,367 904 16,271 20,957 1,390 22,348 Non-current liabilities 3,575 616 4,191 4,701 545 5,245 Current liabilities 36,604 1,368 37,972 26,467 1,135 27,602 Total equity and liabilities 55,546 2,887 58,434 52,124 3,070 55,195 1 Including the exchange rate changes from translating associated companies\u2019 equity in the Volvo Group. During 2023 no dividend was received from DFCV (\u2013) .
5:7
Income/loss from investments in joint
ventures and associated companies 2023 2022
Income/loss joint ventures
VECV 525 212
cellcentric \u2013575 \u2013572
Other companies \u2013124 \u201315
Subtotal \u2013174 \u2013374
Income/loss associated companies
DFCV
1
\u20132,240 \u2013969
Other companies 46 10
Subtotal \u20132,194 \u2013959
Revaluation, write-down and gain on
divestment of shares
Other companies
2
\u2013200 \u2013
Subtotal \u2013200 \u2013
I/S
Income/loss from investments in joint
ventures and associated companies
3
\u20132,568 \u20131,333
1 Income/loss from DFCV includes an internal profit elimination of net SEK 36 M
(37) and an adjustment to Volvo Group Accounting policies of SEK \u2013130 M (\u201399).
2 During 2023, the Volvo Group divested the remaining shares of WirelessCar
Sweden AB and Imatech Marin & Industri AB, with a write-down and a loss of
SEK 132 M and SEK 68 M respectively.
3 Includes the Volvo Group\u2019s share of depreciation of surplus values of SEK 36 M
(37) in associated companies .
Other shares and participations
The carrying amount of the Volvo Group\u2019s holding of shares and partici-
pations in other companies is disclosed in the table below.
Read more in Note 30 Financial Instruments, regarding classification and
valuation of financial instruments.
5:8
Holding of shares in listed
and non-listed companies
Dec 31, 2023
Carrying value
Dec 31, 2022
Carrying value
Holdings in listed companies
1
22 6
Holdings in non-listed companies 859 599
B/S
Other shares and
participations 881 605
1 Changes in fair value is measured through other comprehensive income and
amounted to SEK
15 M (\u201345).
6
Segment reporting
ACCOUNTING POLICY
Operating segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision maker. The chief oper-
ating decision maker, identified as the Group Executive Board, makes
strategic decisions and is responsible for allocating resources and assess-
ing financial performance of the operating segments.
The Volvo Group comprises of ten business areas: Volvo Trucks, Mack
Trucks, Renault Trucks, Volvo Autonomous Solutions, Volvo Energy, Volvo
Construction Equipment, Volvo Buses, Volvo Penta, Arquus and Volvo
Financial Services.
Each business area is seen as a separate segment, except for the truck
business areas, Volvo Autonomous Solutions and Volvo Energy which are
included in the segment Trucks. This segment also comprises the associ-
ated companies and joint ventures Dongfeng Commercial Vehicles, VE
Commercial Vehicles, cellcentric and Milence. The truck segment has
shared operations for product development, purchasing and manufacturing
which are highly integrated, and strategic allocation of resources is done to
the total segment.
The segment Group functions & Other includes Arquus, Nova Bus and
common business support functions such as Volvo Group Digital & IT and
Volvo Group Real Estate. The costs of these business support functions
are shared between the different business areas based on utilization
according to principles set by the Volvo Group.
6:1
2023 Trucks
Con-
struction
Equipment Buses
Volvo
Penta
Group functions
& Other
incl. eliminations
Industrial
Operations
Financial
Services
Elimina-
tions
Volvo
Group
Net sales, external
customers 368,701 104,245 21,116 20,023 15,102 529,188 23,576 \u2013 552,764
Net sales, internal 4,347 736 1,307 983 \u20133,292 4,081 437 \u20134,518 \u2013
I/S
Net sales 373,048 104,981 22,423 21,006 11,811 533,269 24,012 \u20134,518 552,764
Expenses \u2013321,792 \u201388,599 \u201322,810 \u201317,731 \u201316,706 \u2013467,639 \u201320,293 4,520 \u2013483,413
I/S
Income from
investments in joint
ventures and associated
companies \u20132,363 \u2013 7 \u201346 \u2013167 \u20132,568 \u2013 \u2013 \u20132,568
I/S
Operating income 48,893 16,383 \u2013380 3,230 \u20135,062 63,063 3,719 2 66,784
I/S
Interest income and
similar credits 3,207 1 \u2013518 2,690
I/S
Interest expense and
similar charges \u20131,685 \u2013 518 \u20131,167
I/S
Other financial
income and expense \u20131,581 \u2013 \u2013 \u20131,581
I/S
Income after financial items 63,005 3,720 2 66,726
Other segment information
Depreciation, amortization
and impairment \u201315,180 \u20132,162 \u2013699 \u2013599 2,467 \u201316,173 \u20135,054 \u2013 \u201321,227
Restructuring costs \u201346 31 \u20131,300 \u2013 \u20131,328 \u20132,643 \u2013 \u2013 \u20132,643
Gains/losses from
divestments \u2013558 \u2013607 \u2013 \u2013 \u2013898 \u20132,063 \u2013136 \u2013 \u20132,199
Additions to
in-/tangible assets 28,450 4,125 534 1,061 \u20135,950 28,219 10,460 \u2013 38,680
B/S
Investments in joint
ventures and
associated companies 18,716 \u2013 93 1 347 19,158 \u2013 \u2013 19,158
B/S
Assets held for sale \u2013 357 \u2013 \u2013 11,603 11,960 \u2013 \u2013 11,960
B/S
Liabilities held for sale \u2013 \u2013218 \u2013 \u2013 \u20137,939 \u20138,157 \u2013 \u2013 \u20138,157
6:2
2022 Trucks
Con-
struction
Equipment Buses
Volvo
Penta
Group functions
& Other
incl. eliminations
Industrial
Operations
Financial
Services
Elimina-
tions
Volvo
Group
Net sales, external
customers 307,344 99,786 17,387 17,108 14,888 456,513 16,966 \u2013 473,479
Net sales, internal 3,192 475 1,196 994 \u20132,667 3,190 389 \u20133,579 \u2013
I/S
Net sales 310,536 100,261 18,583 18,102 12,221 459,703 17,355 \u20133,579 473,479
Expenses \u2013277,235 \u201387,354 \u201318,235 \u201315,584 \u201315,100 \u2013413,507 \u201316,508 3,581 \u2013426,433
I/S
Income from
investments in joint
ventures and associated
companies \u20131,325 \u2013 5 8 \u201321 \u20131,333 \u2013 \u2013 \u20131,333
I/S
Operating income 31,976 12,907 353 2,527 \u20132,900 44,862 848 2 45,712
I/S
Interest income and
similar credits 1,315 \u2013 \u2013307 1,008
I/S
Interest expense and
similar charges \u20131,512 \u2013 307 \u20131,205
I/S
Other financial
income and expense \u2013437 \u2013 \u2013 \u2013437
I/S
Income after financial items 44,228 848 2 45,077
Other segment information
Depreciation, amortization
and impairment \u201314,914 \u20132,119 \u2013687 \u2013549 2,341 \u201315,928 \u20134,802 \u2013 \u201320,729
Restructuring costs 33 49 \u20136 1 \u2013 77 \u2013 \u2013 77
Gains/losses from
divestments \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013
Additions to
in-/tangible assets 25,577 3,317 979 900 \u20133,808 26,965 9,229 \u2013 36,195
B/S
Investments in joint
ventures and associated
companies 20,599 \u2013 100 46 837 21,583 \u2013 \u2013 21,583
B/S
Assets held for sale \u2013 \u2013 \u2013 \u2013
B/S
Liabilities held for sale \u2013 \u2013 \u2013 \u2013
6:3
Reporting by
geographical
region
Net sales\u00b9 Non-current assets
2
2023 2022 2023 2022
Europe 236,613 191,165 88,083 83,351
of which Sweden 13,896 12,793 31,941 26,899
of which France 46,061 36,252 14,262 14,435
of which the UK 28,091 23,641 6,485 7,281
North America 164,825 137,154 27,403 27,472
of which USA 137,856 115,499 25,474 25,371
South America 49,165 51,734 3,996 2,780
of which Brazil 35,986 37,196 3,464 2,226
Asia 66,105 64,392 5,474 5,729
of which China 14,487 22,429 1,987 2,381
Africa and Oceania 36,056 29,033 3,054 3,256
I/S
B/S
Total 552,764 473,479 128,010 122,589
1 The reporting of net sales by geographical region is based
on where the delivery of the goods or services took place.
2 Non-current assets include tangible and intangible assets
excluding goodwill.
7
Revenue
ACCOUNTING POLICY
The recognized net sales in Industrial Operations pertain to revenues from
sales of vehicles and services. Revenue from vehicles and services are
recognized when control has been transferred from Volvo Group to the
customer. Control refers to the customers\u2019 ability to use vehicles or ser-
vices in its operations and to obtain the associated cash flow related to
the use. Vehicles and services are sold separately or as a combined offer.
In combined offers where the vehicle and services are separable from
each other and the customer can benefit from the vehicle and the service
independently, the transaction price is allocated between vehicles and
services based on stand-alone selling price according to price lists.
The recognized net sales in Financial Services pertain to interest
income related to finance leases and installment credits as well as income
from operating lease contracts. Interest income is recognized during the
underlying contract period and income from operating leasing is recog-
nized over the leasing period.
Vehicles
Vehicles include sales of new trucks, buses, machines and engines as well
as sales of used trucks, buses, machines, trailers, superstructures and spe-
cial vehicles. A contractual warranty is included as part of the sales. The
customer can pay for the vehicle at the point of sale or defer the payment by
entering into agreements such as installment credits and finance lease.
Read more in Note 21 Other provisions, about product warranty.
Revenue is recognized at a specific point in time, when control of the vehi-
cle has been transferred to the customer, normally when the vehicle has
been delivered to the customer. The value of rebates, returns and variable
sales price have been considered as part of the revenue recognition.
If the sale of the vehicle is combined with a residual value commitment
(buybacks and tradebacks) the criterion of transferring control is based on
if the customer has a significant economic incentive to exercise the option
to return the vehicle or not. A significant economic incentive exists if the
repurchase price is higher than the assessed fair market value i.e. net real-
izable value at the end of the residual value commitment period, or if the
historical returns indicate that it is probable that the customer will return
the vehicle at the end of the commitment period. Thus, the control has not
been transferred and the sales transaction is recognized as an operating
lease transaction. The revenue and expense are recognized over the resid-
ual value commitment period in the income statement. Assets under
operating leases, a residual value liability, and a deferred lease income are
recognized in the balance sheet. The asset is depreciated over the com-
mitment period and the deferred lease income is recognized as revenue
over the same period. The residual value liability amount remains
unchanged until the end of the commitment period. If the vehicle is
returned at the end of the commitment period, the residual value liability
is paid to the customer and the vehicle is reclassified from assets under
operating lease to inventory.
Read more in Note 14 Leasing, about lease income on assets under
operating lease.
Read more in Sustainability notes and section EU Taxonomy regulation disclosures
about taxonomy eligible turnover.
If the customer is not considered to have a significant economic incentive
to return the vehicle, the sales transaction is recognized in accordance
with the right of return model. Revenue corresponding to the sales amount
less the buyback amount is recognized at the initial sale, as well as a pro-
portionate share of cost of goods sold. The remaining revenue is recog-
nized as a refund liability and the remaining cost of goods sold as a right of
return asset during the commitment period. If the vehicle is not returned
the refund liability is recognized as revenue and the right of return asset is
recognized as cost of goods sold at the end of the commitment period.
Services
Services include sale of spare parts, maintenance services, repairs, extended
coverage, connectivity solutions and other aftermarket products. The con-
trol of the service has been transferred to the customer when the Volvo
Group incurs the associated cost to deliver the service and the customer
can benefit from the use of the delivered services. For spare parts, revenue
is recognized at one point in time, normally when it is delivered to the cus-
tomer. For maintenance services, connectivity solutions and other after-
market products, revenue is recognized over time, i.e. normally during the
contract period. When payment for maintenance contracts is received in
advance, the payment is recognized as a contract liability.
Services also include sales in Financial Services related to finance
lease, installment credits and operating leases. During 2023, revenue
from Financial Services amounted to SEK 24,012 M (17,355).
Read more in Note 6 Segment reporting regarding net sales by segment and
geographical region.
Read more in Note 14 Leasing, about lease income on assets under operating
lease and finance income on customer-financing receivables .
SOURCE OF ESTIMATION UNCERTAINTY
AND CRITICAL JUDGMENTS
Sales with residual value commitments
When the Volvo Group enters into sales transactions of vehicles with resid-
ual value commitments (buybacks and tradebacks) the judgment whether
control has been transferred from the Volvo Group to the customer and at
what point in time revenue shall be recognized is critical. The judgment
made is when a significant economic incentive exists or not for the cus-
tomer to return the vehicle at the end of the commitment period. The
assessment of significant economic incentive is performed at the incep-
tion of the contract and the outcome at the end of the commitment period
can differ from the initial assessment. Factors that are considered and
requires judgment is the assessed fair market value i.e. net realizable value
at the end of the residual value commitment period and historical returns.
The future mix of vehicles and services is driven by customer demand for
products and solutions with lower environmental impact. The gradual shift
into battery electric and fuel cell electric products, as well as supply chain
and production disturbances imply to some extent uncertainties in the
assessment of fair market value.
Read more in Note 13 Tangible assets, for a description of residual value risks
and the assessment of fair market value.
Variable sales price
In some sales transactions, the sales price is variable. In assessing the
variable sales price the expected value method is used and revenue is rec-
ognized when it is highly probable that a reversal will not occur. Both the
expected value method and the assessment of highly probable requires
judgments to be able to make estimates. The estimates are made at the
contract start with continuous assessment at each reporting period .
7:1
Disaggregation
of revenue
Trucks
Construction
Equipment Buses
Volvo
Penta
Group func tions
& Other
incl. eliminations
Industrial
Operations
Financial
Services
Elimina-
tions
Volvo
Group
2023
Net sales per geographical region
Europe 175,203 34,228 7,007 10,787 4,955 232,180 8,727 \u20134,294 236,613
North America 107,975 29,590 9,200 4,070 6,280 157,115 7,775 \u201366 164,825
South America 36,897 4,101 2,207 783 \u2013144 43,844 5,374 \u201354 49,165
Asia 30,617 28,150 1,601 3,950 760 65,078 1,027 \u2013 66,105
Africa and Oceania 22,356 8,912 2,408 1,417 \u201340 35,052 1,108 \u2013104 36,056
I/S
Net sales 373,048 104,981 22,423 21,006 11,811 533,269 24,012 \u20134,518 552,764
Net sales per product group
Vehicles 300,516 89,009 17,007 15,507 7,767 429,805 \u2013 \u20134,505 425,301
Services 72,532 15,973 5,416 5,499 4,044 103,464 24,012 \u201314 127,463
I/S
Net sales 373,048 104,981 22,423 21,006 11,811 533,269 24,012 \u20134,518 552,764
Timing of revenue recognition
Revenue of vehicles and
services recognized at
the point of delivery 350,696 101,845 21,503 20,971 7,909 502,924 \u2013 \u20131,116 501,808
Revenue of vehicles and
services recognized over
contract period 22,352 3,136 920 35 3,902 30,345 24,012 \u20133,402 50,955
I/S
Net sales 373,048 104,981 22,423 21,006 11,811 533,269 24,012 \u20134,518 552,764
7:2
Disaggregation
of revenue
Trucks
Construction
Equipment Buses
Volvo
Penta
Group func tions
& Other
incl. eliminations
Industrial
Operations
Financial
Services
Elimina-
tions
Volvo
Group
2022
Net sales per geographical region
Europe 137,177 30,194 6,034 9,417 4,893 187,715 6,705 \u20133,255 191,165
North America 92,582 22,294 6,521 3,695 6,540 131,632 5,752 \u2013229 137,154
South America 38,254 6,491 3,154 635 \u2013133 48,400 3,338 \u20135 51,734
Asia 23,988 34,228 1,372 3,302 714 63,604 788 \u2013 64,392
Africa and Oceania 18,535 7,054 1,502 1,054 207 28,352 772 \u201390 29,033
I/S
Net sales 310,536 100,261 18,583 18,102 12,221 459,703 17,355 \u20133,579 473,479
Net sales per product group
Vehicles 245,681 85,465 14,185 13,221 8,682 367,234 \u2013 \u20133,575 363,659
Services 64,855 14,796 4,398 4,881 3,539 92,469 17,355 \u20134 109,820
I/S
Net sales 310,536 100,261 18,583 18,102 12,221 459,703 17,355 \u20133,579 473,479
Timing of revenue recognition
Revenue of vehicles and
services recognized at
the point of delivery 291,639 97,555 17,826 18,102 9,522 434,644 \u2013 \u2013839 433,805
Revenue of vehicles and
services recognized over
contract period 18,897 2,706 757 \u2013 2,699 25,059 17,355 \u20132,740 39,674
I/S
Net sales 310,536 100,261 18,583 18,102 12,221 459,703 17,355 \u20133,579 473,479
7:3 Contract and right of return assets Dec 31, 2023 Of which due within 12 months Of which due after 12 months Dec 31, 2022 Dec 31, 2021 Contract assets 1 14 \u2013 14 3,800 3,779 Right of return assets 1,535 184 1,351 1,857 1,889 Parts return assets 154 104 49 201 167 Total 1,702 288 1,414 5,858 5,835 1 Current and non-current contract assets of SEK 3,721 M (\u2013) have been reclassified to assets held for sale. Read more in Note 3 Acquisitions and divestment of operations. Contract assets are recognized within other receivables and include reve- nue that has been recognized but not yet invoiced for work performed. Right of return assets and parts return assets represents the product cost for the assets that might be returned to the Volvo Group. 7:4 Contract and refund liabilities Dec 31, 2023 Of which due within 12 months Of which due after 12 months Dec 31, 2022 Dec 31, 2021 Contract liabilities Deferred service revenue 24,916 4,557 20,359 21,939 18,155 Advances from customers 3,623 3,611 12 8,985 7,435 Other deferred income 1,460 1,383 76 2,237 1,928 Accrued expenses for dealer bonuses and rebates 6,952 6,940 12 5,789 5,009 Refund liabilities 2,054 518 1,536 2,483 2,435 Total 39,006 17,010 21,995 41,433 34,962 Contract liabilities are recognized within other liabilities and include advance payments received from customers, e.g. advance payments for service contracts and extended coverage, for which revenue is recognized when the service is provided. Refund liabilities related to the right to return products are included with an amount that is expected to be paid to the customer if the vehicle or spare part is returned. In service contracts, the revenue expected to be recognized over the remaining term of the con- tract for services not yet delivered amounted to SEK 34,262 M (28,187) as of December 31, 2023. Approximately 34% are expected to be recog- nized as revenue during 2024 and the remaining 66% as revenue during 2025\u20132027. The change in contract and refund liabilities are mainly due to decreased advances from customer. During 2023, revenue has been recognized with SEK 26,023 M (19,745) that was included in the contract liabilities at the beginning of the period . 8 Other operating income and expenses 8:1 Other operating income and expenses 2023 2022 Gains/losses on divestment of group companies 1 \u20132,199 \u2013 Change in allowances and write-offs for doubtful customer-financing receivables 2 \u2013795 \u20133,412 Change in allowances and write-offs for other doubtful receivables 3 \u2013671 \u2013842 Damages and litigations 4 \u20137,139 \u20132,733 Other income and expenses 5 \u20131,477 \u2013387 I/S Total \u201312,280 \u20137,374 1 In 2023, the Volvo Group divested its Russian entities. The divestment resulted in a negative impact on operating income of SEK 794 M. The planned divest- ments of the ABG paver business and Arquus had a negative impact on operating income of SEK 1,490 M. Read more in Note 3 Acquisitions and divestments of operations. 2 In 2022, a provision regarding assets related to Russia was included. Read more in Note 15 Customer-financing receivables. 3 Read more in Note 16 Receivables. 4 For 2023, costs of SEK 6,000 M are included for claims arising from the Euro- pean Commission\u2019s 2016 antitrust settlement decision. For 2022, costs for a civil penalty from the National Highway Traffic Safety Administration in the US was included. Read more in Note 21 Other provisions. 5 Includes restructuring charges of SEK 1,300 M in Buses and SEK 1,270 M in Group Functions & Other, which negatively impacted Volvo Group\u2019s operating income during 2023. Read more in Note 21 Other provisions . 9 Other financial income and expenses ACCOUNTING POLICY In other financial income and expenses unrealized revaluation on deriva- tives used to hedge interest rate exposure as well as realized result and unrealized revaluation on derivatives used to hedge future cash flow expo- sure in foreign currency are recognized. The derivatives are recognized at fair value through the income statement and no hedge accounting is applied. The unrealized revaluation on derivatives used to hedge interest rate exposure is mainly related to the debt portfolio within Industrial Operations and customer-financing portfolio within Financial Services where fluctuating interest rate levels has a major impact. Read more in Note 1 Accounting policies about receivables and liabilities in foreign currency. Read more in Note 30 Financial instruments regarding the accounting policy and effects on net income and cash flow for financial assets at fair value through the income statement . 9:1 Other financial income and expenses 2023 2022 Unrealized revaluation of derivatives used to hedge interest rate exposure \u2013736 18 Realized result and unrealized revalua- tion on derivatives used to hedge future cash flow exposure in foreign currency 105 1 Financial instruments at fair value through income statement -631 19 Exchange rate gains and losses on financial assets and liabilities \u2013956 \u2013332 Financial income and expenses related to taxes 27 107 Costs for Treasury function, credit facilities, etc. \u201320 \u2013231 I/S Total 1 \u20131,581 \u2013437 1 Other financial income and expenses attributable to financial instruments amounted to SEK \u20131,587 M (\u2013313). The amount is specified in note 30 Financial instruments in table 30:3 . 10 Income taxes ACCOUNTING POLICY Income tax for the period includes current and deferred taxes. Current taxes are calculated on the basis of the tax regulations prevailing in the countries where the group companies have operations. Deferred taxes are recognized on differences that arise between the tax- able value and carrying value of assets and liabilities as well as on tax-loss carryforwards. Deferred tax assets are recognized to the extent it is prob- able that they will be utilized against future taxable profits. Deferred tax liabilities related to temporary differences on investments in subsidiaries, joint ventures and associated companies are recognized in the balance sheet except when the Volvo Group controls the timing of the reversal of the temporary difference related to accumulated undistributed earnings and it is probable that a reversal will not be done in the foresee- able future. Tax laws in Sweden and certain other countries allow companies to defer payment of taxes through allocations to untaxed reserves. In the Volvo Group financial statements, untaxed reserves give rise to temporary differ- ences which are recognized as deferred tax liabilities. Tax liabilities are recognized for income tax charges that are probable as a result of identified tax risks. Hence, when it is probable that the taxation authority or court will not accept an uncertain income tax treatment under tax law, adjustments of the tax liability are made for the estimated out- come. Tax claims for which no adjustment of the tax liability is considered required are generally reported as contingent liabilities. Read more in Note 24 Contingent liabilities and financial commitments . SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Deferred taxes The Volvo Group recognizes deferred tax assets related to tax-loss carry- forwards. The deferred tax assets are recognized based on a thorough assessment in order to ensure that it is probable that sufficient taxable profits will be generated in the coming years that will enable the tax-loss carryforwards to be utilized. The assessment is based on an evaluation of business plans. In addition, the possibility to offset tax assets and tax lia bil- ities and the fact that the major part of the tax-loss carryforwards is related to countries with long or indefinite periods of utilization is considered. If deferred tax assets related to tax-loss carryforwards are not expected to be realized based on current business plans, valuation allowances are recognized. If actual results differ from the business plans, or if business plans for future periods are adjusted, changes in the valuation allowance may be required. Such recognitions and adjustments could have an impact on the financial position and the income for the period. Uncertainty over income tax treatments and claims The Volvo Group regularly evaluates income tax positions to determine if a tax liability or a contingent liability shall be recognized. The judgment is based on several factors, such as changes in facts and circumstances, the progress of the case and experience in similar cases. The actual outcome of income tax positions may deviate from the expected outcome and materi- ally affect future financial statements
The Volvo Group is within the scope of the OECD Pillar Two model rules,
an international tax reform which aims to ensure that large multinational
groups pay a minimum tax on income arising in each jurisdiction in which
they operate. Thus, Volvo Group becomes liable to pay top-up taxes on
profits in each jurisdiction where the effective tax rate calculated accord-
ing to the GloBE rules is below the minimum tax rate of 15%. Pillar Two
legislation has been enacted in Sweden and will start to apply as from
financial year 2024. Since the legislation was not applicable on financial
year 2023 there is no related current tax exposure. The Volvo Group
applies the exception to recognizing and disclosing information about
deferred tax assets and liabilities related to Pillar Two income taxes, pro-
vided in the amendments to IAS 12. Potential exposure arising from the
new legislation is not expected to have any material impact on the Volvo
Group\u2019s tax expense.
10:1
Distribution of income taxes 2023 2022
Current taxes relating to the period \u201319,294 \u201315,081
Adjustment of current
taxes for prior periods 238 12
Deferred taxes originated or
reversed during the period 2,209 2,712
Remeasurements of deferred tax assets 53 249
I/S
Total income taxes \u201316,794 \u201312,108
The Swedish corporate income tax rate amounted to 20.6% (20.6) in
2023. Table 10:2 explains the major reasons for the difference between
the Swedish corporate income tax rate and the Volvo Group\u2019s effective tax
rate, based on income after financial items.
10:2
Reconciliation of effective tax rate % 2023 2022
Swedish corporate income tax rate 20.6 20.6
Difference between corporate tax
rate in Sweden and other countries 2.9 4.1
Non-taxable income \u20131.6 \u20131.4
Non-deductible expenses 2.3 3.5
Current taxes related to prior years \u20130.4 \u20130.1
Remeasurement of deferred taxes 0.6 \u20130.8
Other differences 0.7 0.9
Effective tax rate for the Volvo Group 25.2 26.8
The effective tax rate for the Volvo Group, as of December 31, 2023, was
mainly impacted by the country mix in the Volvo Group's earnings.
10:3
Specification of deferred tax assets
and liabilities
Dec 31,
2023
Dec 31,
2022
Deferred tax assets:
Unused tax-loss carryforwards 1,676 1,208
Other unused tax credits 705 633
Intercompany profit in inventories 1,986 1,473
Write down of inventories 590 574
Valuation allowance for
doubtful receivables 1,512 1,618
Provisions for warranties 4,177 3,941
Provisions for residual value risks 512 428
Lease liabilities 1,336 1,300
Provisions for post-
employment benefits 3,109 2,415
Provisions for restructuring measures 300 29
Other deductible temporary
differences 9,221 8,915
Deferred tax assets before deduction
for valuation allowance 25,125 22,533
Valuation allowance \u20131,199 \u2013692
Deferred tax assets after deduction
for valuation allowance 23,926 21,841
Netting of deferred tax
assets and liabilities \u20137,740 \u20137,652
B/S
Deferred tax assets, net 16,186 14,189
Deferred tax liabilities:
Accelerated depreciation on property,
plant and equipment 2,042 2,148
Accelerated depreciation
on leasing assets 2,359 2,362
Right-of-use assets, leased 1,280 1,243
LIFO valuation of inventories 587 552
Capitalized product and
software development 2,892 2,557
Untaxed reserves 929 1,693
Other taxable temporary differences 2,377 2,581
Deferred tax liabilities 12,465 13,137
Netting of deferred tax
assets and liabilities \u20137,740 \u20137,664
B/S
Deferred tax liabilities, net 4,725 5,472
Deferred tax assets and liabilities, net
1
11,461 8,717
1 The deferred tax assets and liabilities are recognized in the balance sheet partially
on a net basis, after taking into account offsetting possibilities. Deferred tax
assets and liabilities have been measured at the tax rates that are expected to
be applied during the period when the asset is realized or the liability is settled,
according to the tax rates and tax regulations that have been resolved or enacted
at the balance sheet date.
The total valuation allowance for deferred tax assets amounted to SEK
1,199 M (692) as of December 31, 2023, whereof SEK 643 M (559) con-
sisted of an allowance for a tax credit in Brazil.
As of December 31, 2023, the Volvo Group\u2019s gross unused tax-loss
carry forwards amounted to SEK 6,398 M (4,638) pertaining to deferred
tax assets of SEK 1,676 M (1,208) recognized in the balance sheet. Out of
the total deferred tax assets attributable to unused tax-loss carryforwards,
SEK 466 M (505) pertained to France and SEK 711 M (338) to Canada.
The gross unused tax-loss carryforwards will expire according to table
10:4.
10:4
Due date, unused tax-loss
carryforwards, gross
Dec 31,
2023
Dec 31,
2022
after 1 year 24 \u2013
after 2 years 52 \u2013
after 3 years \u2013 30
after 4 years 207 14
after 5 years 521 297
after 6 years or more
1
5,594 4,297
Total 6,398 4,638
1 Tax-loss carryforwards with long or indefinite periods of utilization were mainly
related to France and Canada. Tax-loss carryforwards with indefinite periods of
utilization amounted to SEK 2,740 M (2,904) which corresponded to 43% (63)
of the total unused tax-losses carryforward.
10:5
Changes in deferred tax assets
and liabilities, net
2023 2022
Deferred tax assets and liabilities,
net, opening balance 8,717 6,021
Recognized in income statement 2,262 2,961
Recognized in other comprehensive
income:
Remeasurements of defined-
benefit pension plans 657 \u20131,109
Exchange rate changes \u2013351 1,224
Reclassification to assets and liabilities held
for sale 74 \u2013
Reclassifications 103 \u2013380
Deferred tax assets and liabilities,
net, December 31 11,461 8,717
The cumulative amount of undistributed earnings in foreign subsidiaries,
which the Volvo Group currently intends to indefinitely reinvest outside
of Sweden and which no deferred income tax have been accounted for,
amounted to SEK 19 billion (28) at year end. Undistributed earnings
pertaining to countries where the dividends are not taxable are excluded.
Read more in Note 4 Goals and policies in financial risk management, how the
Volvo Group handles currency exposure of equity.
11
Non-controlling interest
ACCOUNTING POLICY
Owners with a non-controlling interest have a limited ownership of shares
and voting rights in a subsidiary, and thereby also limited rights to the sub-
sidiary's equity. Non-controlling interest equity is presented separately
from equity attributable to owners of AB Volvo. In acquisitions, non-con-
trolling interests are valued either at fair value or to a proportionate share of
the acquired company\u2019s net assets. Ownership changes in non-controlling
interests, not resulting in change of control, are recognized within equity .
The Volvo Group has a few non-wholly owned subsidiaries, of which Shan-
dong Lingong Construction Machinery Co. (Lingong) in China is the largest
company with non-controlling interest. Owners with non- controlling inter-
ests hold a 30% shareholding in the company. During 2023, the profit allo-
cated to the non-controlling interest in Lingong amounted to SEK 86 M
(214). The accumulated amount allocated to the non- controlling interest
within equity of Lingong amounts to SEK 2,838 M (3,390).
The following tables present summarized financial information for Lingong.
11:1
Summarized income statement 2023 2022
Net sales 11,971 19,838
Operating income 223 731
Income for the period 286 715
Other comprehensive income
1
\u2013628 586
Total comprehensive income
for the period
1
\u2013342 1,301
Dividend to non-controlling interest 450 \u2013
11:2
Summarized balance sheet Dec 31,
2023
Dec 31,
2022
Non-current assets 2,242 2,794
Marketable securities,
cash and cash equivalents 3,567 4,933
Other current assets 13,567 16,679
Total assets 19,375 24,406
Non-current liabilities 1,398 2,311
Current liabilities 8,518 10,794
Total liabilities 9,916 13,105
Equity attributable to:
Owners of AB Volvo
1
6,621 7,910
Non-controlling interest
1
2,838 3,390
1 Includes exchange rate changes from translating equity in foreign subsidiaries in
the Volvo Group.
ACCOUNTING POLICY Volvo Group applies the cost method for recognition of intangible assets, consisting of goodwill, capitalized product and software development and other intangible assets. Read more in Sustainability notes and section EU Taxonomy regulation disclosures about taxonomy eligible capital expenditure. Goodwill Goodwill is recognized as an intangible asset with indefinite useful life. For non-depreciable assets such as goodwill, impairment tests are performed annually, as well as if there are indications of impairments during the year. Goodwill is allocated and tested at the level of cash-generating units which are identified as the Volvo Group\u2019s operating segments. However, in the seg- ment Group Functions & Other three cash-generating units, Nova Bus, Designwerk and Arquus are included. If the carrying amount of the tested cash-generating unit exceeds the calculated recoverable amount, an impair- ment loss is recognized for the difference. The recoverable amount for a cash-generating unit is determined by the value in use, which is based on a discounted cash flow model with a forecast period of five years. The valuation is based on a business plan which is an integral part of the Volvo Group\u2019s finan- cial planning process and represents management\u2019s best estimate of the development of the operations. The ongoing transition of the transport sector towards new technologies and new service-based business models bring business opportunities but also transitional risks for the Volvo Group, which have been integrated into the strategy and business plans. Assumption of 2% (2) long-term market growth beyond the forecast period and the expected development of the operations in relation to this environment is a basis for the valuation. In the model, the Volvo Group is expected to maintain stable capital efficiency over time. Other parameters considered in the calculation are oper- ating income, mix of products and services , the transition towards electrifica- tion and other low-carbon transport solutions, expenses and level of capital expenditures. Macroeconomic risks and opportunites are reflected in the esti- mated future cash flows for each cash-generating unit. The Volvo Group uses a discount rate at 10% (10) before tax for 2023. In 2023, the recoverable amount of Volvo Group\u2019s operations exceeded the carrying amount for all cash-generating units, thus no impairment was recognized. The Volvo Group has also analyzed whether a negative adjust- ment of several percentage points on the used assumptions for discount rate and operating income would result in impairment for goodwill, how- ever none of the cash-generating units would be impaired as a result of this analysis. The operating parameters applied in the valuation are based on management\u2019s strategy and could indicate higher value than historical performance for each cash-generating unit. Furthermore, the Volvo Group is operating in a cyclical industry why performance could vary over time. Headroom differs between the cash-generating units and they are sen- sitive to changes in the assumptions described above to a varying degree. Therefore, the Volvo Group continuously follows the performance of the cash-generating units whose headroom is dependent on the fulfillment of the Volvo Group\u2019s assessments. Instability in the recovery of the market and volatility in interest and currency rates may lead to indications of a need for impairment. The most important factors for the future operations of the Volvo Group are described in the Volvo Group\u2019s operating seg- ments, as well as in the Risk management section. Research and development Expenditures for the development of new products and software are recog- nized as intangible assets if such expenditures, with a high degree of cer- tainty, will result in future economic benefits for the company. Intangible assets are amortized over its estimated useful life. The rules require stringent criteria to be met for these development expenditures to be recognized as assets. For example, it must be possible to prove the technical feasibility of completing the new product or software, so that it will be available for use or sale, before its development expendi- ture is recognized as an asset. In normal cases, this means that expendi- tures are capitalized only during the industrialization phase of a product development project. Other research and development costs are recog- nized in the income statement as incurred. The Volvo Group has developed a process for conducting product and soft- ware development projects. The product and software development process has six phases (including waterfall method and to some extent an agile approach) focused on separate parts of the project. Every phase starts and ends with a reconciliation point, known as a gate, for which the criteria must be met for the project\u2019s decision making committee to allow the project to progress to the next phase. During the industrialization phase, the industrial system is prepared for serial production and the product is launched. A substantial part of investments is directed towards zero tailpipe emissions technology, which is expected to increase over time. As the transition will take place gradually, the running fleets in the transportation sector are likely to include different technologies for vehicle and machin- ery propulsion that can be powered by renewable energy such as bat- tery-electric, fuel cell-electric or internal combustion engines running on lower carbon fuels. Existing products is therefore expected to generate economic benefits during the transition period and be used during its remaining useful life. Other intangible assets Other intangible assets include trademarks, distribution networks, licenses and other rights. When participating in industrial projects in partnership with other companies the Volvo Group in certain cases pays an entrance fee to participate, which is capitalized as an intangible asset . Amortization and impairment with finite useful life Intangible assets with finite useful life are amortized on a straight line basis over their estimated useful life. Amortization is based on the cost of the assets, adjusted by impairments when applicable and estimated useful lives. Amortization is recognized in the respective function to which it belongs, meaning that amortization of product development is part of the research and development expenses in the income statement. Impair- ment tests for amortizable assets are performed if there are indications of impairment. In addition, impairment tests are performed annually for cap- italized development cost for products and software not yet in use by cal- culating the recoverable amount. The recoverable amount is the higher of the fair value less costs of disposal and the value in use. The value in use is measured as the discounted future cash flows, which the asset is expected to generate either by itself or from the lowest cash-generating unit to which the asset belongs. If the recoverable amount is less than the carry- ing amount, an impairment is recognized and the carrying amount of the asset is reduced to the recoverable amount . SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Impairment of goodwill and other intangible assets When conducting impairment tests of goodwill and other intangible assets, estimates have to be made to determine the recoverable amounts of cash-generating units. The recoverable amount is based upon manage- ment\u2019s projections of future cash flows and are to a varying degree sensitive to changes in assumptions and the business environment. The broadening of the customer offer with focus to switch to more sustainable solutions accel- erates investments in research and development. The magnitude of invest- ments and the assessment of future useful life is uncertain due to technology and infrastructure development, emission regulations, government incen- tives and customer demand. While management believes that estimates of future cash flows and other assumptions made are reasonable, there are uncertainties which could materially affect the valuations . 1 2:1 Intangible assets, Dec 31, 2023 Goodwill Product and software development Other intangible assets Total Acquisition cost Opening balance 2023 25,636 54,753 7,872 88,261 Additions \u2013 4,845 433 5,278 Additions through acquired operations 1 74 \u2013 15 89 Disposals 1 , 2 \u2013138 \u201323 \u201324 \u2013185 Exchange rate changes \u2013266 \u201328 \u201369 \u2013362 Reclassifications to assets held for sale 1 \u2013445 \u20131,327 \u2013868 \u20132,641 Reclassifications and other \u2013 28 2 29 Acquisition cost, Dec 31, 2023 24,861 58,248 7,360 90,469 Accumulated amortization and impairment Opening balance 2023 \u2013 \u201341,361 \u20135,356 \u201346,717 Amortization \u2013 \u20132,874 \u2013150 \u20133,024 Impairment \u2013 \u201343 \u201311 \u201353 Disposals 1 \u2013 17 22 39 Exchange rate changes \u2013 25 43 67 Reclassifications to assets held for sale 1 \u2013 996 734 1,730 Reclassifications and other \u2013 \u2013 \u2013 \u2013 Accumulated amortization and impairment, Dec 31, 2023 \u2013 \u201343,240 \u20134,717 \u201347,957 B/S Carrying amount, Dec 31, 2023 24,861 15,008 2,643 42,512 12:2 Intangible assets, Dec 31, 2022 Goodwill Product and software development Other intangible assets Total Acquisition cost Opening balance 2022 23,924 49,723 6,833 80,480 Additions \u2013 4,786 604 5,390 Additions through acquired operations 1 146 7 98 251 Disposals 1 \u2013 \u201334 \u201367 \u2013102 Exchange rate changes 1,567 250 379 2,196 Reclassifications to assets held for sale 1 \u2013 \u2013 \u2013 \u2013 Reclassifications and other \u2013 20 25 45 Acquisition cost, Dec 31, 2022 25,636 54,753 7,872 88,261 Accumulated amortization and impairment Opening balance 2022 \u2013 \u201338,325 \u20135,086 \u201343,411 Amortization \u2013 \u20132,852 \u2013118 \u20132,970 Impairment \u2013 \u2013 \u20131 \u20131 Disposals 1 \u2013 21 67 88 Exchange rate changes \u2013 \u2013204 \u2013218 \u2013422 Reclassifications to assets held for sale 1 \u2013 \u2013 \u2013 \u2013 Reclassifications and other \u2013 \u2013 \u2013 \u2013 Accumulated amortization and impairment, Dec 31, 2022 \u2013 \u201341,361 \u20135,356 \u201346,717 B/S Carrying amount, Dec 31, 2022 25,636 13,393 2,516 41,544 1 Read more in Note 3 Acquisitions and divestments of operations, for a description of acquired and divested operations as well as assets and liabilities held for sale. 2 Nova Bus is exiting bus production in the US market whereof disposal of goodwill amounting to SEK 0.1 billion was part of the restructuring costs. 12:3 Goodwill per cash-generating unit Dec 31,2023 Dec 31, 2022 Trucks 13,203 13,237 Construction Equipment 9,620 9,814 Buses 853 865 Volvo Penta 371 382 Other cash-generating units 1 814 1,337 Total 24,861 25,636 12:4 Estimated useful life Trademarks Max 5 years Distribution networks 10 years Product and software development 3\u20138 years Other intangible assets 3\u20135 years 1 As of December 31, 2023 Arquus has been reclassified to assets held for sale. Read more in Note 3 Acquisitions and divestments of operations
ACCOUNTING POLICY
The Volvo Group applies the cost method for measurement of tangible
assets, consisting of property, plant, equipment and investment property
as well as assets under operating leases.
Buildings include owner-occupied properties and investment proper-
ties. Investment properties are properties owned for the purpose of
obtaining rental income and appreciation in value. Investment properties
are recognized at cost. For disclosure purposes, information regarding the
estimated fair value of investment properties is based on an internal dis-
counted cash flow projection as relevant observable market inputs for the
assets are not available. The required return is based on current property
market conditions for comparable properties in comparable locations.
Hence, the applied valuation method to measure fair value is classified as
level 3 of the fair value hierarchy and there have not been any changes in
valuation method during the year. Land includes land and land improve-
ments. Machinery and equipment consist of production related assets
such as machinery, type-bound tools and other equipment. A substantial
part of investments is directed towards zero tailpipe emissions technol-
ogy, which is expected to increase over time. However, both electric
trucks and trucks with combustion engines can be produced on the same
assembly lines, thus limiting the investments needed for this transition in
the industrial system. Construction in progress are assets under con-
struction and advanced payments. Right-of-use assets relates to lease
contracts with the Volvo Group as a lessee.
Assets under operating leases are mainly owned by the Volvo Group.
These transactions are accounted for as operating lease transactions and
consists of contractual operating lease agreements with customers
within Financial Services and rental fleet which are assets used in a fleet
for rental business within Industrial Operations. Some rental fleet assets
are leased by the Volvo Group and later sub-leased to customers as oper-
ating leases. Sales with residual value commitments within Industrial
Operations are also recognized within assets under operating leases.
Read more in Note 7 Revenue, about sales with residual value commitments.
Read more in Note 14 Leasing, about right-of-use assets and assets under
operating leases.
Read more in Sustainability notes and section EU Taxonomy regulation
disclosures about taxonomy eligible capital expenditure.
Depreciation and impairment
Property, plant, equipment and investment property are depreciated over
their estimated useful lives. Land is not depreciated. Depreciation is rec-
ognized on a straight-line basis based on the cost of the assets, adjusted
by residual value when applicable, and estimated useful lives. Right-of-
use assets are generally depreciated over the lease term on a straight-line
basis. Assets under operating leases are depreciated on a straight-line
basis over the contract period. During the contract period, the depreciable
amount is adjusted by accelerated depreciation and/or write-downs. The
adjustment is recognized through the income statement to correspond to
estimated future net realizable value to continuously reflect potential
residual value risks at the end of the contract period. The net realizable
value is impacted by value of optional equipment, mileage, current condi-
tion, expected future price development, change of market conditions,
the transition towards electrification and other low-carbon transport
solutions, alternative distribution channels, inventory lead-time, repair
and reconditioning costs, handling costs, indirect costs associated with
the sale of used vehicles and legislative demands. Some of the locations
may also be subject to increased risks from physical weather events
depending on climate developments. These risks are monitored and are
not expected to materially impact the estimated useful life. The deprecia-
tion is recog nized in the respective function to which it belongs. Impair-
ment tests are performed if there are indications of impairment by calcu-
lating a recoverable amount which is the higher of the asset\u2019s fair value
less cost of disposal and its value in use.
13:1
Estimated useful life
Type-bound tools 3\u20138 years
Operating leases, rental fleet 3\u20135 years
Sales with residual value commitments 3\u20135 years
Machinery and equipment 5\u201320 years
Buildings and investment properties 20\u201350 years
Land improvements 20 years
SOURCE OF ESTIMATION UNCERTAINTY
AND CRITICAL JUDGMENTS
Impairment of tangible assets
Impairment tests are performed if there is any indication that a tangible
asset has been impaired. The impairment tests are based on estimation of
the recoverable amount of the asset, or the cash-generating unit to which
the asset belongs. To determine the recoverable amount, projections of
future cash flows are used, which are based upon internal business plans
and forecasts. The ongoing transition of the transport sector towards new
technologies with electrified and other lower emission technology vehicles
bring uncertainties regarding current and future investments in production
facilities as well as estimated useful life. Also, some of the production sites
are located in areas with physical climate risks and may in the long run be
subject to increased stress from physical weather events. Physical risks
bring uncertainties when estimating useful life and indication of impair-
ment. While management believes that estimates of future cash flows and
other assumptions made are reasonable, there are uncertainties which
could materially affect the valuations.
Residual value risks
Volvo Group is exposed to residual value risks related to assets under
operating leases which are the risks that the Volvo Group in the future
would have to dispose used vehicles at a loss if the price development of
these products is worse than what was expected when the contracts
were entered. The assessment of residual value risks is based upon an
estimation of the used vehicle\u2019s future net realizable value (fair market
value) and a declined value may negatively affect the Volvo Group\u2019s oper-
ating income. High inventories in the truck industry and the construction
equipment industry and low demand may have a negative impact on the
prices of new and used vehicles. The estimated future net realizable value
of the vehicles at the end of the contract period is monitored individually
on a continuing basis. In monitoring the estimated net realizable value of
each vehicle, management considers current price level of the used vehi-
cle, supply chain and production disturbances and the transition to elec-
trified and other lower emission technology vehicles which imply to some
extent uncertainties in the assessment.
Reclassifications
Reclassifications of construction in progress and assets under operating
lease are presented in the tables 13:2 and 13:3.
For construction in progress, reclassifications occurs when the asset is
available for use by transferring the assets to the respective category
within property, plant and equipment. The transfer is reported within
reclassifications and other.
For operating leases, rental fleet and sales with residual value commit-
ments (buyback and trade backs), reclassifications occur when vehicles
are sold or rented out to customers. The vehicle is transferred from inven-
tory to assets under operating leases and reported as additions. If the
vehicle is returned by the end of the residual value commitment period or
the leasing period, the vehicle is transferred back to inventory and
reported as disposals.
Investment properties
The acquisition value of investment properties at year-end amounted to
SEK 95 M (93). Reclassifications amounted to SEK 0 M (0). Accumulated
depreciation amounted to SEK 43 M (39) at year-end, of which SEK 4 M
(3) refers to 2023. The net carrying value amounted to SEK 53 M (54).
The estimated fair value of investment properties amounted to SEK 117 M
(102) at year-end and 97% (97) of the area available for lease was leased
out during the year. Operating income was affected by rental income from
investment properties that amounted to SEK 12 M (11) and direct costs
that amounted to SEK 6 M (1).
13:2
Tangible assets, Dec 31, 2023 Property, plant, equipment
and investment property
Assets under
operating leases\u00b9
Buildings
Land and
land
improve-
ments
Machinery
and equip-
ment
Construc-
tion in
progress
Right-
of-use
assets\u00b9
Operating
leases
2
Rental
fleet
Sales w.
residual
value
commit-
ments\u00b3 Total
Acquisition cost
Opening balance 2023 39,685 7,906 91,455 12,273 13,504 31,740 4,744 27,442 228,749
Additions 961 104 2,420 9,634 1,832 10,267 3,131 4,826 33,176
Additions through acquired operations
4
50 26 16 \u2013 45 \u2013 \u2013 \u2013 137
Disposals
4
\u20131,088 \u201392 \u20133,032 \u20137 \u20131,183 \u201310,576 \u20131,816 \u20136,125 \u201323,918
Exchange rate changes \u2013832 \u2013165 \u20131,390 \u2013281 \u2013330 \u2013617 \u2013116 \u2013326 \u20134,059
Reclassifications to assets held for sale
4
\u20131,253 \u2013232 \u20131,508 \u201317 \u2013391 \u2013 \u2013 \u2013 \u20133,401
Reclassifications and other 2,017 217 3,058 \u20135,345 1,461 30 \u201395 \u20131,105 238
Acquisition costs, Dec 31, 2023 39,539 7,764 91,020 16,257 14,938 30,843 5,848 24,712 230,922
Accumulated depreciation
and impairments
Opening balance 2023 \u201321,691 \u20131,638 \u201371,224 \u20133 \u20137,105 \u201310,348 \u20131,553 \u20138,506 \u2013122,068
Depreciation \u20131,448 \u2013130 \u20134,600 \u2013 \u20132,363 \u20134,973 \u2013791 \u20133,018 \u201317,323
Impairment \u201310 \u2013 \u201395 \u201358 \u2013 \u20133 \u2013 \u2013662 \u2013827
Disposals
4
1,135 56 2,956 \u2013 1,130 5,591 760 3,131 14,757
Exchange rate changes 474 26 1,082 \u2013 167 175 17 112 2,054
Reclassifications to assets held for sale
4
654 84 1,195 \u2013 254 \u2013 \u2013 \u2013 2,187
Reclassifications and other 52 1 \u20135 \u2013 35 9 17 548 658
Accumulated depreciation and
impairments, Dec 31, 2023 \u201320,834 \u20131,602 \u201370,691 \u201361 \u20137,882 \u20139,549 \u20131,549 \u20138,395 \u2013120,562
B/S
Carrying amount, Dec 31, 2023
18,706 6,162 20,329 16,196 7,056 21,295 4,299 16,317 110,359
1 Read more in Note 14 Leasing, about right-of-use assets and assets under operating leases.
2 Operating leases mainly consists of contractual operating lease agreements with customers within Financial Services.
3
Read more in Note 7 Revenue, about sales with residual value commitments.
4
Read more in Note 3 Acquisitions and divestments of operations, for a description of acquired and divested operations as well as assets and liabilities held for sale .
13:3 Tangible assets, Dec 31, 2022 Property, plant, equipment and investment property Assets under operating leases\u00b9 Buildings Land and land improve- ments Machinery and equip- ment Construc- tion in progress Right- of-use assets\u00b9 Operating leases 2 Rental fleet Sales w. residual value commit- ments\u00b3 Total Acquisition cost Opening balance 2022 34,705 7,107 82,209 8,792 10,965 28,770 4,660 25,095 202,304 Additions 498 103 2,575 8,125 1,475 9,155 2,048 6,521 30,498 Additions through acquired operations 4 \u2013 \u2013 35 11 1 \u2013 8 \u2013 56 Disposals 4 \u2013173 \u201391 \u20131,917 \u201347 \u2013523 \u20139,540 \u20131,779 \u20136,500 \u201320,571 Exchange rate changes 2,880 583 5,150 710 907 2,699 433 2,042 15,403 Reclassifications to assets held for sale 4 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 Reclassifications and other 1,775 205 3,403 \u20135,318 679 657 \u2013626 284 1,059 Acquisition costs, Dec 31, 2022 39,685 7,906 91,455 12,273 13,504 31,740 4,744 27,442 228,749 Accumulated depreciation and impairments Opening balance 2022 \u201318,516 \u20131,406 \u201364,446 \u2013 \u20135,006 \u20139,131 \u20131,568 \u20137,856 \u2013107,930 Depreciation \u20131,333 \u2013112 \u20134,376 \u2013 \u20132,144 \u20134,741 \u2013677 \u20133,039 \u201316,423 Impairment \u2013448 \u201330 \u2013165 \u20133 \u201314 20 \u20134 \u2013691 \u20131,336 Disposals 4 130 21 1,761 \u2013 451 4,588 591 3,510 11,051 Exchange rate changes \u20131,527 \u2013109 \u20134,011 \u2013 \u2013425 \u2013843 \u2013145 \u2013642 \u20137,701 Reclassifications to assets held for sale 4 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 Reclassifications and other 4 \u20132 14 \u2013 34 \u2013241 250 212 271 Accumulated depreciation and impairments, Dec 31, 2022 \u201321,691 \u20131,638 \u201371,224 \u20133 \u20137,105 \u201310,348 \u20131,553 \u20138,506 \u2013122,068 B/S Carrying amount, Dec 31, 2022 17,994 6,268 20,231 12,270 6,399 21,392 3,191 18,936 106,681 1 Read more in Note 14 Leasing, about right-of-use assets and assets under operating leases. 2 Operating leases mainly consists of contractual operating lease agreements with customers within Financial Services. 3 Read more in Note 7 Revenue, about sales with residual value commitments. 4 Read more in Note 3 Acquisitions and divestments of operations, for a description of acquired and divested operations as well as assets and liabilities held for sale . ACCOUNTING POLICY Volvo Group as the lessor Leasing contracts are defined in two categories, operating and finance leases, depending on the contracts\u2019 financial implications. Operating leases are offered from Financial Services (contractual oper- ating leases) and from Industrial Operations (rental fleet agreements). Sales with residual value commitments (buybacks and tradebacks) are also accounted for as operating lease transactions when the customer has a significant economic incentive to exercise the option to return the vehicle and the control therefore has not been transferred to the customer. Oper- ating lease agreements are recognized as tangible assets in assets under operating leases and are valued at cost less accumulated depreciation and impairment, if needed. The cost of an asset comprises the acquisition value and any initial direct costs related to the contract. Depreciation of the asset is recognized on a straight-line basis over the contract period. During the period the depreciable amount is adjusted through the income statement by depreciations or write-downs to correspond to the estimated future realizable value and reflect residual value risks at the end of the contract period. Lease income is equally distributed over the contract period and recognized within net sales. Read more in Note 7 Revenue, about sales with residual value commitments. Read more in Note 13 Tangible assets, about residual value risks related to assets under operating lease. Finance leases are offered from Financial Services. As Industrial Oper- ations manufacture the vehicles which are leased from Financial Services to the customers, the Volvo Group is acting as a manufacturer lessor. Hence, a finance lease asset gives rise to a selling profit which is recognized within Industrial Operations. Finance lease contracts are mainly recognized as non-current and current customer-financing receiv- ables within Financial Services. The asset is measured at an amount equal to the net investment in the finance lease contract corresponding to the gross investment (future minimum lease payments and unguaranteed residual value) discounted with the rate in the finance lease contract and reduced by unearned finance income and allowance for expected credit losses. Assessment of allowance for expected credit losses is reflected in the valuation of customer-financing receivables and recorded at initial recognition and reassessed during the contract period. Lease income is recognized as interest income within net sales in Financial Services. Vari- able lease payments not dependent on an index or rate are recognized as income as they occur. Payments received from finance lease contracts are distributed between interest income and amortization of the receivable. Read more in Note 15 Customer-financing receivables, about finance leases. Volvo Group as the lessee Lease contracts are recognized as right-of-use (RoU) assets as well as interest-bearing lease liabilities in the balance sheet. Lease liabilities are recognized within other loans and are measured by the present value of future lease payments. The lease payments are discounted by using a rate reflecting what the Volvo Group would have to pay to borrow funds to acquire a similar asset, with similar collateral and similar term. RoU assets are presented as tangible assets and are valued at cost less accumulated depreciation and impairment, if needed. The cost of an RoU asset contains the initial amount of the lease liability adjusted for any lease payments made before the commencement date, less any lease incentives received. Moreover, any initial direct costs are included, as well as an estimate of costs to be incurred in dismantling, removing or restoring the underlying asset. The leased asset is depreciated on a straight-line basis over the lease term, or over the useful life of the underlying asset if the ownership is transferred to the Volvo Group at the end of the lease term. The lease expense is recognized as depreciation of the asset within operating income and interest expense within the finance net. Payments made are distributed between interest paid and amortization of the lease liability. Lease contracts with the Volvo Group as the lessee are primarily con- tracts for real estate (such as office buildings, warehouses and dealer premises), company cars and production related assets. For real estate and company car leases, service components are normally a considerable portion of the contracts and are therefore separated. The service compo- nents are recognized as operating expenses and not included in the RoU asset and the lease liability. For other lease contracts, both the leased asset and services are included in the RoU asset and the lease liability. If a lease contract includes variable lease payments not dependent on an index or rate, or include a low value asset or has a lease term that is twelve months or less, the lease payments are recognized as operating expenses as they occur . SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Measurement of lease liabilities and right-of-use assets When entering a lease contract, judgments related to contract scope, lease term and interest rate to be used when discounting future lease pay- ments are made which affect the measurement of the lease liability and the RoU asset. Assessment of contract scope includes judgments whether a leased asset and/or a service component is identified in the contract. In com- bined contracts, the total contract amount is allocated between the leased asset and the service by using a market stand-alone price. When determining the lease term of a contract, judgments are also required. The lease term includes the non-cancellable period. If the Volvo Group is reasonably certain to use an option to extend the lease, or not to use an option to terminate the lease in advance, this is also considered. The contracts contain a range of different conditions. Extension and ter- mination options are mainly related to real estate leases. Thus, all relevant facts and circumstances that create an economic incentive to include optional periods are evaluated. The importance of the underlying asset in the operations and its location, availability of suitable alternatives, signifi- cant leasehold improvements, level of rentals in optional periods com- pared to market rates as well as past practice are examples of factors included in the assessment. Lease terms are negotiated on an individual basis and are reassessed if an option is exercised. Judgments are also required to determine the interest rate when dis- counting future lease payments and whether the interest rate implicit in the lease can be readily determined and thereby used, or if the Volvo Group\u2019s incremental borrowing rate should be used. Read more in Note 15 Customer-financing receivables, about allowance for expected credit losses Volvo Group as the lessor 14:1 Lease income Dec 31, 2023 Dec 31, 2022 Finance leases Interest income on customer- financing receivables 3,842 2,766 Total 3,842 2,766 Operating leases Lease income on assets under operating lease 12,771 11,317 Total 12,771 11,317 During 2023, the profit from sale of vehicles subject to finance leases amounted to SEK 8,713 M (6,280) and was recognized within Industrial Operations. As of December 31, 2023, future lease income from non-cancellable finance and operating leases (minimum lease fees excluding sales with residual value commitments) amounted to SEK 96,596 M (89,441). Read more in Note 15 Customer-financing receivables about finance leases. 14:2 Maturity analysis of lease payments receivable Finance leases Operating leases 2024 24,883 8,350 2025 19,424 6,074 2026 14,678 3,882 2027 9,414 2,139 2028 4,342 1,155 2029 or later 1,865 391 Total undiscounted lease payments 74,605 21,991 Unguaranteed residual value 1,417 Unearned interest income \u20137,500 Allowance for expected credit losses \u20131,491 Customer-financing receivables (current and non-current) 67,030 Volvo Group as the lessee 14:3 Lease liabilities Dec 31, 2023 Dec 31, 2022 Non-current lease liabilities 5,314 4,806 Current lease liabilities 1,877 1,777 Total lease liabilities 7,191 6,583 14:4 Non-current lease liabilities maturities, SEK M 2030 or later 2025 2026 2027 2028 2029 1,047 1,665 1,111 744 442 304 During 2023, total cash outflow related to leases amounted to SEK 3,454 M (3,162), with a distribution of SEK 1,085 M (888) within operating cash flow and SEK 2,369 M (2,274) within financing activities
14:5
Right-of-use assets, Dec 31, 2023
Buildings
Land and land
improvements
Machinery
and
equipment
Company
cars
Asset under
operating lease
and rental
fleet
1
Total
Acquisition cost
Opening balance 2023 9,929 711 1,307 1,557 434 13,938
Additions to right-of-use assets
2
1,268 \u201332 \u201312 209 \u201310 1,424
Acquisition cost, Dec 31, 2023 11,197 679 1,295 1,766 424 15,362
Accumulated depreciation and impairments
Opening balance 2023 \u20135,134 \u2013162 \u2013739 \u20131,070 \u2013182 \u20137,287
Depreciation and impairment \u20131,644 \u201337 \u2013249 \u2013432 \u201386 \u20132,449
Other changes 875 33 201 477 96 1,682
Accumulated depreciation and impairments, Dec 31, 2023 \u20135,904 \u2013167 \u2013787 \u20131,024 \u2013172 \u20138,054
Carrying amount, Dec 31, 2023 5,294 513 508 742 252 7,308
Right-of-use assets, Dec 31, 2022
Buildings
Land and land
improvements
Machinery
and
equipment
Company
cars
Asset under
operating lease
and rental
fleet
1
Total
Acquisition cost
Opening balance 2022 8,048 674 967 1,276 423 11,388
Additions to right-of-use assets
2
1,881 37 340 281 11 2,550
Acquisition cost, Dec 31, 2022 9,929 711 1,307 1,557 434 13,938
Accumulated depreciation and impairments
Opening balance 2022 \u20133,550 \u2013125 \u2013510 \u2013821 \u2013157 \u20135,163
Depreciation and impairment \u20131,494 \u201339 \u2013232 \u2013393 \u201363 \u20132,221
Other changes \u201390 2 3 144 38 97
Accumulated depreciation and impairments, Dec 31, 2022 \u20135,134 \u2013162 \u2013739 \u20131,070 \u2013182 \u20137,287
Carrying amount, Dec 31, 2022 4,795 549 568 487 252 6,651
1 Refers to assets leased by the Volvo Group which are later sub-leased to customers as operating lease.
2 Additions to RoU assets mainly relate to new lease contracts signed.
14:6
Recognized in the income statement 2023 2022
Interest expense on lease liabilities within Financial Services \u20134 \u20133
Depreciation and impairment of right-of-use assets \u20132,449 \u20132,221
Short term lease expense \u2013670 \u2013528
Low value asset expense \u201335 \u201366
Variable lease expense \u201353 \u201341
Income from sub-leasing right-of-use assets 157 168
Gains or losses arising from sale and leaseback transactions \u2013 \u2013
Gains or losses on right-of-use assets 9 \u20132
Recognized in operating income \u20133,045 \u20132,693
Interest expense on lease liabilities within Industrial Operations \u2013335 \u2013252
Recognized in net financial items \u2013335 \u2013252
nstallment credits, dealer financing and other receivables within customer- financing receivables are held as part of a business model whose objective is of collecting contractual cash flows. The contractual cash flows are solely payments of principal and interest and are measured at amortized cost in accordance with the effective interest method. Finance lease con- tracts are valued at amortized cost. Read more in Note 14 Leasing, for further information on recognition and classifi- cation of finance leases. The Volvo Group is applying the simplified expected credit loss model for customer-financing receivables, under which the loss allowance is measured at an amount equal to lifetime expected credit losses. The allowance is recorded at initial recognition and is reassessed during the contract period. Interest income on customer-financing receivables is recognized within net sales, mainly within Financial Services. Changes to the allowance for expected credit losses are recognized in other operating income and expense . SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Allowance for expected credit losses The assessment of allowances for expected credit losses on customer- financing receivables is dependent on estimates including assumptions regarding past dues, repossession rates and quality level of repossessed collateral. A collective assessment is made for customer-financing receivables that are not credit impaired by using a vintage layer analysis. It is based on historical loss experience within a homogenous pool of assets that are collectively assessed. The assets are grouped based on shared risk char- acteristics such as type of customer, geographical area, initial credit risk rating, collateral type and date of initial recognition to evaluate the credit losses collectively. The historical loss experience is used to forecast future losses, adjusted for current and expected conditions in the different mar- kets based on management\u2019s evaluation of macro-level and portfolio-level factors, such as GDP, oil prices, unemployment rates etc. Climate-related risk, such as the transition to electric vehicles, are closely monitored, and reflected in management's evaluation of current and forecasted condi- tions in assessing expected credit losses. Volvo Group has not identified material credit impairment related to transitional and physical climate risks that would require a significant adjustment to the credit reserves. An individual assessment is made for credit impaired customer-financing receivables based on the financial condition of the customers and the value of the underlying collateral and guarantees. The Volvo Group considers a financial asset credit impaired if it meets one or more of the following criteria; when there are indications that the customer is unlikely to pay, such as bankruptcy filing, unauthorized transfer of collateral, at surrender of collateral etc. or, at the latest, when the customer fails to make contractual payment within 90 days of when the receivable falls due. 15 Customer-financing receivables Risk management practices Other than the dealer financing, customer-financing receivables extend over several years, but normally the customers make monthly payments throughout the term to reduce the outstanding exposure. The customer- financing receivables are secured by the financed commercial vehicles and equipment. However, in the case of customer default, the value of the repossessed commercial vehicles and equipment may not necessarily cover the outstanding financed amount. In order to mitigate this risk, Financial Services has strong portfolio management processes based on prudent credit approval, active monitoring of individual loan performance, utilization of in-house and external collections, portfolio segmentation analysis, and on-going monitoring of the economic, political and industry conditions in each market. In addition, other credit enhancements such as down payments, personal guarantees, credit insurance, liens on other property owned by the borrower etc. may be required at the time of origi- nation or when there are signs of impairment. When customer- financing receivables exceed 90 days of overdue collateral repossession is initiated, although there may be circumstances where repossession is initiated earlier. When the collateral is repossessed, the net realizable value is established, and the vehicle is transferred to inventory and becomes part of the Volvo Group\u2019s normal business activity of selling used vehicles and equipment and the expected loss on the customer-financing receivable is written off. If repossession has not occurred on customer-financing receivables exceeding 180 days of overdue the expected loss on the receivable is written off. Financial Services continues to engage in enforcement activity on all customer financing- receivables written off during the year to attempt to recover the contractual amount not previously received from the customer. Read more in Note 4 Goals and policies in financial risk management, for a description of credit risks, interest risks and currency risks. As of December 31, 2023, the total allowances for impairment in Financial Services amounted to 1.37% (3.00) of the total credit portfolio in the segment. The total allowances for impairment excluding Russia and Belarus amounted to 1.37% (1.60). This reserve ratio is used as an import- ant measure for Financial Services and includes operating leases and inventory. Allowances for expected credit losses for customer- financing receivables has decreased since the beginning of the year from SEK 6,930 M to SEK 3,635 M primarily due to the divestment of the Russian entities. Excluding the divestment, higher volume in the credit portfolio increased expected credit losses, which was partly offset by a mix in the portfolio and decreased volumes in low performing markets. Read more in Note 3 Acquisitions and divestments of operations, for further information on the divestment. During 2023, customers continued to perform well and were able to make payments on time in most markets. However, the uncertainties in the geopolitical and macroeconomic environment including the effects of higher inflation and higher interest rates are continuing to impact our cus- tomers\u2019 ability to manage their obligations. Read more in Note 30 Financial instruments, for information on the gain or loss recognized in the operating income arising from derecognition of customer-financing receivables in table 30:3 .
15:6
Customer-financing receivables,
gross exposure
Dec 31, 2023 Dec 31, 2022
Not due
1\u201330
days
31\u201390
days
>90
days Total Not due
1\u201330
days
31\u201390
days
>90
days Total
Customer-financing receivables, gross 216,311 14,483 3,715 1,329 235,838 186,755 10,090 2,999 1,014 200,858
Whereof not credit impaired 215,128 13,975 2,847 314 232,265 185,958 9,767 2,455 326 198,506
Whereof credit impaired 1,183 508 868 1,015 3,574 797 323 544 688 2,352
15:1 Non-current customer- financing receivables Dec 31, 2023 Dec 31, 2022 Installment credits 74,934 64,600 Finance leases 44,289 38,122 Other receivables 2,415 2,342 B/S Non-current customer- financing receivables 121,638 105,064 The weighted average interest rate for non-current customer-financing receivables amounted to 6.99% (5.90) as of December 31, 2023. 15:2 Non-current customer- financing receivables maturities, SEK M 4,811 46,506 35,613 23,162 11,546 2024 2025 2026 2027 2028 or later 15:3 Current customer- financing receivables Dec 31, 2023 Dec 31, 2022 Installment credits 40,814 35,677 Finance leases 22,741 21,278 Dealer financing 43,659 28,863 Other receivables 3,350 3,046 B/S Current customer- financing receivables 110,565 88,864 The weighted average interest rate for current customer-financing receivables amounted to 6.36% (5.88) as of December 31, 2023. 15:4 Credit risk in customer- financing receivables Dec 31, 2023 Dec 31, 2022 Customer-financing receivables gross 235,838 200,858 Allowance for expected credit losses for customer-financing receivables \u20133,635 \u20136,930 Whereof allowance for credit impaired \u2013587 \u2013573 Whereof allowance for not credit impaired \u20133,048 \u20136,357 Customer-financing receivables, net of allowance 232,203 193,928 15:5 Change of allowance for expected credit losses for customer- financing receivables 2023 2022 Not credit impaired Credit impaired Not credit impaired Credit impaired Opening balance 6,357 573 2,691 617 New allowance charged to income 775 189 3,574 103 Reversal of allowance charged to income \u201381 \u201387 \u2013115 \u201380 Utilization of allowance related to actual losses \u2013 \u2013779 \u2013 \u2013125 Movements between not credit impaired/credit impaired 1 \u2013727 727 24 \u201324 Exchange rate changes \u2013121 \u201310 327 82 Syndication transactions and other \u201392 \u2013 \u2013144 \u2013 Divestment of the Russian entities \u20133,064 \u201326 \u2013 \u2013 Allowance for expected credit losses for customer- financing receivables, Dec 31 3,048 587 6,357 573 1 When a receivable becomes credit impaired a transfer of allowance is made to allowance for credit impaired receivables
ACCOUNTING POLICY
Receivables are measured at amortized cost. The Volvo Group is applying
the simplified expected credit loss model for accounts receivables, under
which the loss allowance is measured at an amount equal to lifetime
expected credit losses. The allowance is recorded at initial recognition
and is reassessed during the contract period. Changes to the allowance
for expected credit losses for accounts receivables are recognized in other
operating income and expense.
Read more in Note 30 Financial instruments, in section derecognition
of financial assets, about receivables subject to discounting activities .
Table 15:6 represents the gross credit exposure on customer-financing receivables within the Volvo Group per age interval. The lifetime expected credit loss allowance for customer-financing receivables not credit impaired amounted to SEK 3,048 M (6,357) and allowance for customer- financing receivables credit impaired amounted to SEK 587 M (573), included in tables 15:4 and 15:5. The remaining exposure was secured by liens on the financed commercial vehicles and equipment and, in certain circumstances, other credit enhancements such as personal guarantees, credit insurance, liens on other property owned by the borrower etc. Col- laterals taken in possession that meet the criteria for recognition in the balance sheet amounted to SEK 397 M (202) as of December 31, 2023. Concentration of credit risk Customer concentration The ten largest customers within Financial Services account for 6.8% (6.5) of the total asset portfolio. The rest of the portfolio is attributable to a large number of customers and the credit risk is therefore spread across many customers. During 2023 SEK 8.8 billion (12.2) of customer financ- ing receivables were syndicated in order to reduce concentration risks SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Allowance for expected credit losses Accounts receivables are short term by nature and consequently the risk assessment horizon is short. A collective assessment is made on accounts receivables not credit impaired. Historical information regarding credit loss experience is used to forecast future losses, adjusted for current and expected conditions. An individual assessment is made on credit impaired accounts receivables based on the financial condition of the customer. The past years have been affected by uncertainties in the geopolitical environment, high inflationary pressure, increased interest rates in many regions as well as the weakened Chinese construction equipment market which might impact the Volvo Group\u2019s customers\u2019 ability to fulfill their obli- gations and increase the risk for customer default. Based on this the assess- ment process for valuation allowances for expected credit losses for accounts receivables continues to be in focus in order to ensure allowances are in alignment with the current market conditions
Concentration by geographical market
Graph
15:7 discloses the concentration of Financial Services portfolio
divided into geographical markets.
Read more in Note 4 Goals and policies in financial risk management, about
credit risks.
Read more in the Board of Directors\u2019 report about Financial Services\u2019
development during the year.
15:7
Geographic market, percentage of customer-financing portfolio (% )
16:4
Age analysis of accounts receivables Dec 31, 2023 Dec 31, 2022
Not Due 1\u201330 31\u201390 >90 Total Not Due 1\u201330 31\u201390 >90 Total
Accounts receivables, gross 39,758 1,630 1,046 2,554 44,988 43,023 2,279 2,086 2,334 49,721
Allowance for expected credit losses
on accounts receivables \u2013355 \u201363 \u201368 \u20131,292 \u20131,778 \u2013678 \u201365 \u201354 \u2013704 \u20131,501
B/S
Accounts receivables, net 39,403 1,567 978 1,262 43,210 42,345 2,214 2,032 1,630 48,220
Risk management practices
Credit risks are managed through active credit monitoring and follow-up
routines in accordance with the Volvo Group Credit management direc-
tive. This directive includes different steps to perform when an invoice is
not paid at due date. When an increased credit risk is verified, for example
through a bankruptcy, or when an allowance has been unchanged for two
years and it can be demonstrated that all required steps have been per-
formed, the allowance is reversed and the accounts receivables are writ-
ten off. Apart from certain exceptions the Volvo Group continues to
engage in enforcement activity even after a write-off in order to recover
the contractual amount not previously received.
Due to the prevailing business model in the construction equipment
industry in China, with longer payment terms to customers, a substantial
part of the Volvo Groups accounts receivable is related to customers in
this market. The weakened Chinese construction equipment market is
currently impacting customers\u2019 and dealers\u2019 profitability negatively. This
might affect their ability to honor their obligations to the Volvo Group and
may consequently have a material adverse effect on the Volvo Group\u2019s
financial result and position.
Renegotiated receivables are on a slightly lower level than last year,
with a substantial part of the exposure related to renegotiated receivables
within Construction Equipment in China. Renegotiated receivables con-
tinue to be closely monitored for on-going payment performance and
signs of impairment.
As of December 31, 2023, the total allowance for expected credit losses
for accounts receivables amounted to 3.95% (3.02) of total accounts
receivables. The increase in allowances is primarily due to the weaker con-
struction equipment market in China this year compared to last year.
Read more in Note 4 Goals and policies in financial risk management, regarding
credit risk.
16:1
Non-current receivables Dec 31,
2023
Dec 31,
2022
Other interest-bearing receivables
1
902 676
Interest and currency risk derivatives
2
4,833 4,991
Contract and right of return assets
3
1,414 4,036
Other receivables 2,773 3,122
Non-current receivables 9,923 12,825
1 The amount is the non-current part of other interest-bearing receivables in note
30 Financial instruments, table
30:1.
2 The amount is the non-current part of interest and currency risk derivatives in
note 30 Financial instruments, table
30:1.
3 Non-current contract and right of return assets of SEK 1,678 M (
\u2013) have been
reclassified to assets held for sale.
Read more in Note 3 Acquisitions and
divestments of shares and operations and
Read more in Note 7 Revenue,
about contract and right of return assets.
16:2
Current receivables Dec 31,
2023
Dec 31,
2022
Other interest-bearing receivables
1
2,331 5,062
Tax assets 2,223 2,059
Accounts receivables
2
43,210 48,220
Prepaid expenses and accrued income 3,837 3,624
VAT receivables 5,777 5,917
Interest and currency risk derivatives
3
1,460 760
Contract and right of return assets
2, 4
288 1,822
Other receivables 9,444 7,852
Current receivables, after deduction of
allowance for expected credit losses on
receivable s 68,570 75,316
1 The amount is the current part of other interest-bearing receivables in note 30
Financial instruments, table
30:1.
2 Accounts receivables of SEK 3,502 M (
\u2013) and current contract and right of
return assets of SEK 2,043 M (
\u2013) have been reclassified to assets held for sale.
Read more in Note 3 Acquisitions and divestments of shares and operations.
3 The amount is the current part of interest and currency risk derivatives in note 30
Financial instruments, table
30:1.
4
Read more in Note 7 Revenue, about contract and right of return assets.
16:3
Change of allowance
for expected credit losses
for accounts receivables 2023 2022
Opening balance 1,501 846
New allowance charged to income 564 991
Reversal of allowance charged to income \u2013422 \u2013162
Utilization of allowance related to actual losses \u201361 \u201394
Exchange rate changes \u201373 53
Reclassifications, etc.
1
270 \u2013133
Allowance for expected credit losses for
accounts receivables, Dec 31 1,778 1,501
1 Whereof reclassification from other non-current receivables of SEK 288 M (\u2013127 ) .
17
Inventories
ACCOUNTING POLICY
Inventories are measured at the lower of cost and net realizable value. If
the estimated net realizable value is lower than cost, a write down of
invent ories is made.
The cost is established by using the first-in, first-out principle (FIFO) and
is based on a standard cost method, including costs for all direct manufac-
turing expenses and the attributable share of capacity and other manu-
facturing-related costs. The standard costs are reviewed regularly and
adjustments are made based on current conditions. Manufacturing costs
are based on normal capacity utilization which are allocated to inventory
while unabsorbed cost due to changes in production volume are recog-
nized in the income statement as incurred. Costs for research and develop-
ment, selling, administration and financial expenses are not in cluded.
Net realizable value is calculated as the selling price less costs attribut-
able to the sale.
SOURCE OF ESTIMATION UNCERTAINTY
AND CRITICAL JUDGMENTS
Write-down of inventories
The calculation of net realizable value is based on an estimation of a future
sales price, which is dependent on several parameters, such as market
demand, model changes and development of used products prices.
17:1
Inventories Dec 31,
2023
Dec 31,
2022
Finished products 41,129 37,854
Production materials etc. 35,734 37,835
B/S
Inventories\u00b9 76,863 75,689
1 Inventories amounting to SEK 3,871 M (\u2013) have been reclassified to assets held
for sale. Read more in Note 3 Acquisitions and divestments of operations.
The total value of inventories, net after write-downs, was SEK 76,863 M
(75,689) as of December 31, 2023. Inventories recognized as cost of sold
products during the period amounted to SEK 375,176 M (346,539).
17:2
Change in write-down of inventories 2023 2022
Opening balance 4,021 3,581
Change in write-down of
inventories charged to income 903 380
Scrapping \u2013241 \u2013259
Exchange rate changes \u201393 322
Reclassifications etc. \u2013671 \u20133
Write-down of inventories, December 31 3,918 4,021
18 Cash and cash equivalents ACCOUNTING POLICY Cash and cash equivalents include highly liquid interest-bearing securities that are considered easily convertible to cash, including market able secu- rities, with a date of maturity less than three months at the time of invest- ment. Interest-bearing securities with a date of maturity exceeding three months at the time of investment are recognized as marketable securities. Read more in Note 30 Financial instruments, about accounting policies for financial instruments . 18:1 Cash and cash equivalents Dec 31, 2023 Dec 31, 2022 Cash in banks 51,576 54,636 Marketable securities with original duration less than 3 months 1 3,735 5,109 Time deposits in banks 28,015 24,141 B/S Cash and cash equivalents 83,326 83,886 1 Additionally the Volvo Group recognized outstanding marketable securities with original duration exceeding three months of SEK 89 M (93) in government securities as of December 31, 2023. Cash and cash equivalents as of December 31, 2023, included SEK 2.2 bil- lion (2.3) that is not available for use by the Volvo Group and SEK 7.6 billion (14.5) where other limitations exist, mainly cash and cash equivalents in countries where exchange controls or other legal restrictions apply. There- fore, it is not possible to immediately use these cash and cash equivalents in other parts of the Volvo Group, however there is normally no limitation to use them for the Volvo Group\u2019s operation in the respective country .
19
Equity and number of shares
ACCOUNTING POLICY
Dividend resolutions are approved at the annual general meeting or, in
certain cases, during an extraordinary general meeting. When the deci-
sion has been approved, equity is reduced and the dividend is reported as
a liability to the shareholders in the balance sheet until the payment has
taken place .
The Annual General Meeting, held on April 4, 2023, resolved that an ordi-
nary dividend of SEK 7.00 (6.50) per share and an extraordinary dividend
of SEK 7.00 (6.50) per share, totaling SEK 14. 00 (13.00) per share should
be paid to shareholders. During 2023, the Volvo Group distributed SEK
28.5 billion (26.4) to the shareholders.
The share capital of the Parent company amounted to SEK 2,562 M
(2,562) on December 31, 2023 and is divided into two series of shares, A
and B. Both series carry the same rights, except that each Series A share
carries the right to one vote and each Series B share carries the right to
one tenth of a vote. The shares\u2019 quota value is SEK 1.26 (1.26). During
2023 AB Volvo converted a total of 1,725 Series A shares to Series B
shares. Unrestricted equity in the Parent company as of December 31,
2023 amounted to SEK 75,848 M (59,504).
For the year 2023, the Board of Directors proposes an ordinary divi-
dend of SEK 7.50 per share and an extraordinary dividend of SEK 10.50
per share, a total of SEK 18 .00 per share amounting to SEK 36. 6 billion.
Read more in Changes in equity in the Parent company about AB Volvo\u2019s share
capital.
19:1
Change in other reserves Holding of
shares at
fair value
Other reserves, Dec 31, 2022 \u201337
Remeasurements of holdings of
shares at fair value 15
Disposal \u2013
Other reserves, Dec 31, 2023 \u201321
19:2
Information regarding
number of shares
Dec 31,
2023
Dec 31,
2022
Own Series A shares \u2013 \u2013
Own Series B shares \u2013 \u2013
Total own shares \u2013 \u2013
Own shares in % of total
registered shares \u2013 \u2013
Outstanding Series A shares 444,986,150 444,987,875
Outstanding Series B shares 1,588,465,934 1,588,464,209
Total outstanding shares 2,033,452,084 2,033,452,084
Total registered Series A shares 444,986,150 444,987,875
Total registered Series B shares 1,588,465,934 1,588,464,209
Total registered shares 2,033,452,084 2,033,452,084
Average number of
outstanding shares 2,033,452,084 2,033,452,084
19:3
Series A shares Series B shares Total
Outstanding shares 2023 2022 2023 2022 2023 2022
Outstanding shares opening balance 444,987,875 444,987,946 1,588,464,209 1,588,464,138 2,033,452,084 2,033,452,084
Converting Series A shares to Series B shares \u20131,725 \u201371 1,725 71 \u2013 \u2013
Outstanding shares, Dec 31 444,986,150 444,987,875 1,588,465,934 1,588,464,209 2,033,452,084 2,033,452,084
19:4
Information regarding shares 2023 2022
Number of outstanding shares, December 31, in millions 2,033 2,033
Average number of shares before dilution in millions 2,033 2,033
Average number of shares after dilution in millions 2,033 2,033
Average share price, SEK 218,70 179,32
Net income attributable to owners of AB Volvo, SEK M 49,825 32,722
Basic earnings per share, SEK 24.50 16.09
Diluted earnings per share, SEK 24.50 16.09
20
Provisions for post-employment benefits
ACCOUNTING POLICY
The Volvo Group\u2019s post-employment benefits, such as pensions, health-
care and other benefits are mainly settled by means of regular payments
to independent authorities or bodies that assume pension obligations and
administer pensions through defined contribution plans. For defined con-
tribution plans, expenses for premiums are recognized in the income
statement as incurred.
Part of the post-employment benefits are defined benefit plans where
the obligations remain within the Volvo Group and are secured primarily
by proprietary pension foundations. The Volvo Group\u2019s largest defined
benefit plans relate to subsidiaries in the USA and comprise both pensions
and other benefits, such as healthcare. Other large-scale defined benefit
plans apply to white collar employees in Sweden (mainly through the ITP
pension plan) and employees in Great Britain, Belgium and France.
Actuarial calculations are made for all defined benefit plans, subject to
materiality, in order to determine the present value of the obligation for
benefits vested by its current and former employees. The actuarial calcu-
lations are prepared annually and are based upon actuarial assumptions
that are determined at the end of the reporting period. Changes in the
present value of obligations due to revised actuarial assumptions and
experience adjustments constitute remeasurements.
Provisions for post-employment benefits in the Volvo Group\u2019s balance
sheet correspond to the present value of obligations at year-end, less fair value
of plan assets. The fair value of buy-In contracts are set equal to the defined
benefit obligations for the specific group of members the contract covers.
All changes in the net defined liability (asset) are recognized when they occur.
Service cost and net interest expense (income) are recognized in the income
statement, while remeasurements such as actuarial gains and losses are rec-
ognized in other comprehensive income. Special payroll tax is included in the
pension liability for pension plans in Sweden and Belgium.
SOURCE OF ESTIMATION UNCERTAINTY
AND CRITICAL JUDGMENTS
Assumptions when calculating post-employment benefits
Provisions and costs for post-employment benefits, mainly pensions and
health care benefits, are dependent on actuarial assumptions. The actuar-
ial assumptions and calculations are made separately for each defined
benefit plan. The most significant assumptions are discount rate and infla-
tion. Inflation assumptions are generally set as a long term assumption
based on an evaluation of external market indicators. A sensitivity analysis
is included in graph 20:6 and shows the effect on the defined benefit
obligations if significant assumptions are changed. There are also other
assumptions made such as salary increases, retirement rates, mortality
rates, health care cost trends rates and other factors. The salary increase
assumptions reflect the historical trend, the near-term and long-term out-
look and assumed inflation. Retirement and mortality rates are based pri-
marily on officially available mortality statistics. Healthcare cost trend
assumptions are based on historical data as well as the near-term outlook
and an assessment of likely long-term trends. The Volvo Group has
engaged a global actuary in order to ensure that a professional assess-
ment is made and that assumptions are consistently developed across
jurisdictions. The actuarial assumptions are reviewed annually by the
Volvo Group and modified when deemed appropriate.
Actual inflation continued above long term assumptions and previous
central bank projections during the year resulting in additional monetary
policy tightening globally. Expectations of higher interest rates for longer
period have led to a general increase in long term interest rates, while risk
assets have experienced a volatile and fragmented performance during the
year. Funding levels for the Volvo Group\u2019s funded pensions plans remains
strong despite challenging financial conditions .
The following tables disclose information about defined benefit plans. The
Volvo Group recognizes the difference between the obligations and the
plan assets, adjusted for potential asset ceilings, in the balance sheet. The
disclosures refer to assumptions applied for actuarial calculations, recog-
nized costs during the financial year and the value of obligations and plan
assets at year-end. The tables also include a reconciliation of obligations
and plan assets during the year.
20:1
Assumptions applied for
actuarial calculations
Dec 31,
2023
Dec 31,
2022
Sweden
Discount rate, %
1
3.45 3.95
Inflation, %
2
2.00 2.00
Expected salary increase, % 2.65 2.65
Assumed life expectancy on
retirement at age 65 (Male/Female)
Retiring today (member age 65), year 22.3/23.3 22.2/24.4
Retiring in 25 years
(member age 40 today), year 25.2/26.2 24.6/26.8
USA
Discount rate, %
1
4.80\u20135.02 5.00\u20135.35
Inflation, % 2.50 2.50
Expected salary increase, % 3.89 3.68
Assumed life expectancy on
retirement at age 65 (Male/Female)
Retiring today (member age 65), year 20.6/22.4 20.5/22.4
Retiring in 25 years
(member age 40 today), year 22.5/24.2 22.4/24.2
Great Britain
Discount rate, %
1
4.75 4.95
Inflation, % 3.05 3.15
Expected salary increase, % 0.00 0.00
Assumed life expectancy on
retirement at age 65 (Male/Female)
Retiring today (member age 65), year 22.3/24.3 22.2/23.9
Retiring in 25 years
(member age 40 today), year 22.4/25.6 24.3/26.7
Belgium
Discount rate, %
1
3.50 4.17
Inflation, % 2.00 2.00
Expected salary increase, % 2.89 2.86
France
Discount rate, %
1
3.49 4.19
Inflation, % 2.00 2.00
Expected salary increase, % 3.01 3.01
1 The discount rate for each country is determined by reference to market yields on
high quality corporate bonds. In countries where there is no functioning market in
such bonds, the market yields on government bonds are used. The discount rate
for the Swedish pension obligation is determined by extra polating current market
rates along the yield curve of mortgage bonds.
2 The long term inflation assumption is 2.00%. The pension obligations in Sweden
have been adjusted for short-term inflation for the year 2024.
20:2
Summary of provisions for
post-employment benefits
Dec 31,
2023
Dec 31,
2022
Obligations \u201357,097 \u201352,862
Fair value of plan assets 47,917 46,844
Net provisions for post-employment
benefits \u20139,180 \u20136,018
20:3
Pension costs 2023 2022
Current year service costs 1,112 1,553
Interest costs 2,176 1,325
Interest income \u20132,102 \u20131,255
Past service costs 131 13
Gain/loss on settlements \u2013 \u201322
Pension costs for the period,
defined benefit plans 1,317 1,614
Pension costs for defined contribution plans 4,136 3,653
Total pension costs for the period 5,453 5,267
20:4
Costs for the period, post-employment
benefits other than pensions 2023 2022
Current year service costs 96 106
Interest costs 205 134
Interest income \u201334 \u201331
Past service costs 1 \u2013
Gain/loss on settlements \u2013 \u2013
Remeasurements 161 99
Total costs for the period 428 308
20:5
Sweden
Pensions
USA
Pensions
Great Britain
Pensions
Belgium
Pensions
France
Pensions
USA
Other benefits
Average duration of the obligations, years 19.3 9.7 10.2 10.6 12.3 8.6
The analysis in graph 20:6 presents the sensitivity of the defined benefit
obligations when changes in the applied assumptions for discount rate
and inflation are made. The sensitivity analysis for the discount rate is
based on a change in the assump tion while holding all other assump-
tions constant. In practice, this is not probable, and a change in the
assumption may be correlated. The sensitivity analysis for a change in
long-term inflation correlates with other inflation linked assumptions.
Depending on specific plan and benefit design, the sensitivity effect on
the obligation differs for the respective assumptions.
20:6 \u2212 + Effect on obligation, SEK M Sweden Pensions USA Pensions USA Other benefits Other plans France Pensions Great Britain Pensions If inflation decreases 0.5% If inflation increases 0.5% Sweden Pensions USA Pensions USA Other benefits Other plans France Pensions Great Britain Pensions Belgium Pensions SENSITIVITY ANALYSIS 2023 If discount rate decreases 0.5% Belgium Pensions If discount rate increases 0.5% 2,332 774 289 187 118 150 168 0 168 0 55 139 5 2,332 \u20132,076 \u2013707 \u2013268 \u2013168 \u2013109 \u2013135 \u2013154 \u20132,076 0 \u2013188 \u2013128 0 \u201351 \u20135 20:7 Obligations in defined benefit plans Sweden Pensions USA Pensions Great Britain Pensions Belgium Pensions France Pensions USA Other benefits Other plans Total Obligations opening balance 2022 23,948 19,819 7,934 3,607 2,600 3,480 3,735 65,122 Acquisitions, divestments and other changes \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u20136 \u20135 Current year service costs 819 225 \u2013 205 167 39 203 1,659 Interest costs 475 581 144 44 32 95 89 1,460 Past service costs 25 \u2013 \u2013 \u2013 \u2013 \u2013 \u201312 12 Settlements \u2013 \u2013934 \u2013 \u2013 \u2013 \u2013 \u2013143 \u20131,077 Employee contributions \u2013 \u2013 \u2013 \u2013 \u2013 20 58 79 Remeasurements 1 : \u2013 Effect of changes in demographic assumptions 602 \u2013 \u2013 \u2013 17 \u201320 \u2013 598 \u2013 Effect of changes in financial assumptions \u20136,516 \u20135,034 \u20133,027 \u20131,002 \u2013810 \u2013777 \u2013800 \u201317,967 \u2013 Effect of experience adjustments 590 \u2013209 426 165 106 136 20 1,234 Exchange rate changes \u2013 3,047 276 316 225 524 312 4,701 Benefits paid \u2013587 \u20131,306 \u2013287 \u2013132 \u201373 \u2013364 \u2013203 \u20132,953 Obligations, Dec 31, 2022 19,357 16,190 5,465 3,203 2,264 3,132 3,252 52,862 of which Funded defined benefit plans \u201318,984 \u201315,542 \u20135,465 \u20133,203 \u201312 \u2013 \u20132,268 \u201345,475 Acquisitions, divestments and other changes 2 \u2013 \u20136 \u2013 \u2013 \u2013223 17 \u201384 \u2013296 Current year service costs 513 169 \u2013 173 139 27 188 1,209 Interest costs 755 821 276 131 97 152 149 2,381 Past service costs 16 103 4 \u2013 \u2013 \u2013 8 132 Settlements \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 Employee contributions \u2013 \u2013 \u2013 \u2013 \u2013 21 69 90 Remeasurements 1 : \u2013 Effect of changes in demographic assumptions 192 \u2013 \u2013148 \u2013 \u2013134 \u20137 \u20135 \u2013103 \u2013 Effect of changes in financial assumptions 3,737 437 79 228 220 74 173 4,950 \u2013 Effect of experience adjustments \u2013280 \u201359 \u201380 \u201351 81 149 20 \u2013221 Exchange rate changes \u2013 \u2013746 64 \u201329 \u201321 \u2013136 \u201391 \u2013960 Benefits paid \u2013644 \u20131,137 \u2013289 \u2013221 \u201378 \u2013377 \u2013199 \u20132,947 Obligations, Dec 31, 2023 23,645 15,772 5,370 3,434 2,345 3,051 3,479 57,097 of which Funded defined benefit plans \u201323,246 \u201315,137 \u20135,370 \u20133,434 \u20138 \u2013 \u20132,408 \u201349,604 1 Out of the total remeasurement of the defined benefit obligation, SEK \u20134,462 M (16,227) has been recognized in Other Comprehensive Income, and SEK \u2013164 M (\u201392) in the Income Statement. 2 A reclassification has been made to asset held for sale of SEK 265 M ( \u2013). Read more in Note 3 Acquisitions and divestments of operations . 20:8 Fair value of plan assets in funded plans Sweden Pensions USA Pensions Great Britain Pensions Belgium Pensions France Pensions USA Other benefits Other plans Total Plan assets opening balance 2022 20,845 21,013 8,024 3,113 14 37 2,271 55,317 Acquisitions, divestments and other changes \u2013 \u2013 \u2013 \u2013 1 \u2013 \u2013 2 Interest income 417 617 146 39 \u2013 \u2013 67 1,286 Settlements \u2013 \u2013901 \u2013 \u2013 \u2013 \u2013 \u2013154 \u20131,055 Remeasurements 1 \u20132,274 \u20135,484 \u20133,349 \u2013480 \u2013 \u2013 \u2013239 \u201311,826 Asset ceiling \u2013 \u2013 481 \u2013 \u2013 \u2013 14 495 Employer contributions \u2013156 16 66 158 \u2013 \u2013 328 411 Employee contributions \u2013 34 \u2013 \u2013 \u2013 \u2013 58 93 Exchange rate changes \u2013 3,225 281 275 1 5 202 3,989 Benefits paid \u20131 \u20131,302 \u2013287 \u2013132 \u20131 \u2013 \u2013144 \u20131,867 Plan assets, Dec 31, 2022 18,831 17,218 5,362 2,972 15 42 2,403 46,844 Acquisitions, divestments and other changes \u2013 \u20136 \u2013 \u2013 \u2013 16 \u201339 \u201328 Interest income 744 877 272 125 1 \u2013 118 2,136 Settlements \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 Remeasurements 1 1,116 211 257 57 \u2013 \u2013 7 1,648 Asset ceiling \u2013 \u2013 \u2013293 \u2013 \u2013 \u2013 \u2013 \u2013293 Employer contributions \u2013245 \u2013 59 203 \u2013 \u2013 120 136 Employee contributions \u2013 34 \u2013 \u2013 \u2013 \u2013 69 103 Exchange rate changes \u2013 \u2013775 58 \u201329 \u2013 \u20132 \u201391 \u2013839 Benefits paid \u20132 \u20131,131 \u2013289 \u2013221 \u20131 \u2013 \u2013146 \u20131,791 Plan assets, Dec 31, 2023 20,445 16,428 5,426 3,107 14 56 2,440 47,917 1 Out of the total remeasurement of the plan assets, SEK 1,356 M (\u201311,331) has been recognized in Other Comprehensive Income. 20:9 Net provisions for post-employment benefits Sweden Pensions USA Pensions Great Britain Pensions Belgium Pensions France Pensions USA Other benefits Other plans Total Net provisions for post-employment benefits, Dec 31, 2022 \u2013525 1,029 \u2013103 \u2013231 \u20132,249 \u20133,089 \u2013849 \u20136,018 of which reported as: B/S Net pension assets 389 2,005 25 \u2013 \u2013 42 266 2,727 B/S Provisions for post-employment benefits \u2013914 \u2013976 \u2013128 \u2013231 \u20132,249 \u20133,132 \u20131,115 \u20138,745 Net provisions for post-employment benefits, Dec 31, 2023 \u20133,201 656 56 \u2013327 \u20132,330 \u20132,995 \u20131,038 \u20139,180 of which reported as: B/S Net pension assets 107 1,689 16 \u2013 7 56 162 2,039 B/S Provisions for post-employment benefits \u20133,308 \u20131,033 39 \u2013327 \u20132,338 \u20133,051 \u20131,201 \u201311,219 Sweden The main defined benefit plan in Sweden is the ITP2 plan which is based on final salary. The plan is semi-closed, meaning that only new employees born before 1979 enters the ITP2 solution. The Volvo Group\u2019s pension foundation in Sweden was formed in 1996 to secure obligations relating to retirement pensions for white collar workers in Sweden in accordance with the ITP plan. The plan assets in the Volvo Group\u2019s Swedish pension foundation are mainly invested in interest-bearing securities and in alterna- tive assets, in accordance with a strategic allocation that is determined by the foundation\u2019s Board of Directors. As of December 31, 2023, the fair value of the foundation\u2019s plan assets amounted to SEK 20,425 M (18,810), of which 6% (6) was invested in equity instruments. At the same point in time, retirement pension obligations attributable to the ITP plan amounted to SEK 23,231 M (18,970) Swedish companies can secure new pension obligations through balance sheet provisions or pension fund contributions. Furthermore, a credit insurance policy must be taken out for the value of the obligations. In addition to benefits relating to retirement pensions, the ITP plan also includes, for example, a collective family pension, which the Volvo Group finances through an insurance policy with the Alecta insurance company. According to an interpretation from the Swedish Sustainability and Finan- cial Reporting Board, this is a multi-employer defined benefit plan. For the fiscal year 2023, the Volvo Group did not have access to information from Alecta that would have enabled this plan to be recognized as a defined ben- efit plan. Accordingly, the plan has been recognized as a defined contribu- tion plan. The Volvo Group estimates it will pay premiums of about SEK 203 M to Alecta in 2024. The collective consolidation level measures the apportionable assets in relation to the insurance commitment. According to Alecta\u2019s consolidation policy for defined benefit pension insurance, the col- lective consolidation level is normally allowed to vary between 125% and 175%. Alecta\u2019s preliminary consolidation ratio amounts to 157% (172). If the consolidation level falls short or exceeds the normal interval, one mea- sure may be to increase the contract price for new subscription or to intro- duce premium reductions. The Volvo Group\u2019s share of the total saving premiums for ITP2 in Alecta as of December 31, 2023 amounted to 0.25% (0.23) and the share of the total number of active policy holders amounted to 1.90% (1.77). All employees in Sweden benefit from a jubilee awards plan according to which they receive a certain number of shares after they have rendered 25, 35 and 45 years of services. This plan is accounted for as a share-based payment program, where the fair value of the equity-settled payments is determined at the grant date. The plan is recognized as other liabilities. USA In the USA, the Volvo Group has tax qualified pension plans, post- retirement medical plans and non-qualified pension plans. The tax qualified pension plans are funded while the other plans are generally unfunded. There are five funded defined benefit plans, whereof all are closed to new entrants. Three out of five plans are open for future accruals. The Volvo Group\u2019s subsidiaries in the USA mainly secure their pension obligations through transfer of funds to pension plans. The US Retirement Trust manages the assets related to the five funded plans. The strategic allocation of plan assets must comply with the investment policy as decided by the Board of Directors of the Trust. All members of the board are nominated by the company although each member is subject to strict regulatory require- ments on fiduciary responsibility. During 2023, the US Retirement Trust entered into a contract regarding a buy-in insurance with an insurance company. The contract entails elimination of risks related to investment and longevity for a significant portion of the US pension obligations. As of December 31, 2023, the total value of pension obligations secured by pension plans of this type amounted to SEK 15,137 M (15,542). At the same point in time, the total value of the plan assets in these plans amounted to SEK 16,428 M (17,218), of which 6% (8) was invested in equity instruments. The regulations for securing pension obligations stipulate certain minimum levels concerning the ratio between the value of the plan assets and the value of the obligations. During 2023 no contri- butions were made by the Volvo Group to the USA pension plans. 20:10 Cash and cash equivalents 1,090 (2%) Equity instruments 2,771 (6%) Debt instruments 34,080 (71%) Real estate 2,134 (4%) Assets held by insurance company 7,846 (16%) Other assets 334 (1%) Plan assets by category, December 31, 2023\u00b9 Cash and cash equivalents 509 (1%) Equity instruments 2,985 (6%) Debt instruments 38,450 (82%) Real estate 2,057 (5%) Assets held by insurance company 2,274 (5%) Other assets 623 (1%) Plan assets by category, December 31, 2022\u00b9 20:11 Fair value of plan assets Dec 31, 2023 Dec 31, 2022 Cash and cash equivalents 1,090 509 With a quoted market price Equity instruments 624 553 Debt instruments 33,698 38,013 Derivatives 10 13 Assets held by insurance com- pany 6,037 569 Other 364 523 With an unquoted market price Other 6,434 6,717 Total 1 48,255 46,898 1 Excluding asset ceiling of SEK 340 M (54) Great Britain In Great Britain, the Volvo Group has five defined benefit pension plans, which are all funded. The pension funds are set up as separate legal enti- ties, which are governed by a professional trustee. All plans are closed to new entrants and closed for future accruals to existing members. The allo- cation of plan assets must comply with the investment strategy agreed between the company and the professional trustee. For three of the plans, if a net surplus is recognized in the balance sheet when the pension scheme runs-off, the Volvo Group has an unconditional right to the sur- plus of that plan or plans. For two plans this is not strictly legally the case and therefore an asset ceiling is applied. As of December 31, 2023, the total value of pension obligations amounted to SEK 5,370 M (5,465). At the same point in time, the total value of the plan assets in these plans amounted to SEK 5,426 M (5,362), of which 3% (4) was invested in equity instruments. During 2023, the Volvo Group contributed SEK 59 M (66) to the Great Britain pension plans. Belgium In Belgium, the Volvo Group has four traditional defined benefit pension plans based on final salary, whereof all are closed to new entrants. All plans are open for future accruals. Two plans are funded via an external pension fund with a legally ringfenced Volvo section and two are funded via the group insurance product referred to in Belgium as Branch 21. Benefits are paid as a lump sum at retirement. There is also an open defined contribu- tion pension plan as well as a local profit sharing program whereby any pay-outs are contributed to a defined contribution pension plan managed by the own pension fund or through a group insurance. All defined contribu- tion pension plans in Belgium have a statutory minimum return guarantee and are therefore accounted for as defined benefit plans. The strategic asset allocation of plan assets must comply with the investment policy as proposed by the Volvo Group and formally adopted by the Board of Direc- tors of the pension fund. As of December 31, 2023, the total value of pen- sion obligations amounted to SEK 3,434 M (3,203). At the same point in time, the plan assets of these plans amounted to SEK 3,107 M (2,972), of which 10% (9) was invested in equity instruments. During 2023, the Volvo Group contributed SEK 203 M (158) to the Belgium pension plans. France In France, the Volvo Group has two types of defined benefit plans, Indemnit\u00e9 de Fin de Carri\u00e8re (IFC) and jubilee awards plan. The plans are unfunded. The IFC is compulsory in France. The benefits are based on the Collective Bargaining Agreement applicable in the company, on the employee\u2019s seniority at retirement date and on the final pay. The benefit payment is due only if employees are working for the company when they retire. The jubilee award plan is an internal agreement and the benefit is based on the employee\u2019s seniority career at 20, 30, 35 and 40 years. As of December 31, 2023, the total value of pension obligations amounted to SEK 2,345 M (2,264). Investment strategy and risk management The Volvo Group manages the allocation and investment of pension plan assets with the purpose of meeting the long term objectives. The main objectives are to meet present and future benefit obligations, provide sufficient liquidity to meet such payment requirements and to provide a total return that maximizes the ratio of the plan assets in relation to the plan liabilities by maximizing return on the assets at an appropriate level of risk. The final investment decision often resides with the local trustee, but the investment policy for all plans ensures that the risks in the investment portfolios are well diversified. The primary risk mitigating activity in the long run is to close defined benefit plans to new entrants or to future accru- als for existing members and replace these plans with defined contribution plans when and where possible. The risks related to already accrued pension obligations, e.g. longevity and inflation, as well as buy out premiums and matching strategies are monitored on an ongoing basis in order to further limit the Volvo Group\u2019s exposure where and when possible. In the last couple of years, some of the defined benefit plans have been closed to new entrants and replaced by defined contribution plans in order to reduce risk for the Volvo Group. In Sweden, the minimum funding target is decided by PRI Pensions- garanti. This is mandatory in order to stay in the system and get insurance for the pension liability. The contributions usually represent one year\u2019s new accrued benefits plus any shortfall towards the minimum funding target unless there is a surplus according to local scheme valuation principles. In the USA, the minimum funding target is decided by the company in order to avoid penalties, keep flexibility and avoid extensive filing with the Internal Revenue Service and participants in the pension plan. The mini- mum contributions usually represents one year\u2019s accrued benefits plus a seventh of any deficit unless a scheme is showing a surplus according to local scheme valuation principles. In Great Britain, there is no minimum funding ratio. There is a regulatory requirement for each scheme to perform triennial valuations whereby any scheme showing a deficit must develop a recovery plan that returns the scheme to a fully funded basis within a reasonable time frame. The recovery plan shall be agreed with the company and submitted to the regulator for approval. In Belgium, the minimum funding level is regulated by law and monitored by the financial supervisory authority, FSMA. The framework for the mini- mum funding requirement is based on a discount rate, which is based on the expected return of the plan assets. The pension fund must be fully funded on this basis at all times. The contribution policy of the pension fund is designed to provide stability in contributions over the duration of the plan. In 2024, the Volvo Group estimates to transfer less than SEK 500 M to defined benefit pension plans .
21
Other provisions
ACCOUNTING POLICY
Provisions are recognized in the balance sheet when a legal or construc-
tive obligation exists as a result from a past event, it is probable that an
outflow of resources will be required to settle the obligation and the
amount can be reliably estimated. When these criteria are not met, a con-
tingent liability may be recognized. Long-term provisions are mainly
expected to be settled within 2 to 3 years.
Provisions for product warranty
Provisions for product warranty are recognized as cost of sales and
include contractual warranty and campaign warranty. Provisions for con-
tractual warranty are recognized when the products are sold. Provision for
campaigns in connection with specific quality problems are recognized
when the campaign is decided.
Provisions for extended coverage
An extended coverage is a product insurance sold to a customer to cover
a product according to specific conditions for an agreed period as an addi-
tional insurance to the factory contractual warranty. The provision is
intended to cover the risk that the expected cost of providing services
under the extended coverage contract exceed the expected revenue.
Provisions in insurance operations
Volvo Group has a captive insurance company and the provisions in insur-
ance operations are related to third party claims addressed to companies
within the Volvo Group. The claims reserve also includes a provision for
unreported losses based on past experience. The unearned premium
reserve is reported within other current liabilities.
Provisions for restructuring costs
A provision for decided restructuring measures is recognized when a
detailed plan for the implementation of the measures is complete and
when this plan is communicated to those who are affected. A provision
and costs for termination benefits as a result of a voluntary termination
program is recognized when the employee accepts the offer. Normally
restructuring costs are included in other operating income and expenses.
Provisions for residual value risks
Residual value risks are the risks that the Volvo Group in the future would
have to dispose used vehicles at a loss if the price development of these
products is worse than expected when the contracts were entered. The
residual value risks pertain to operating lease contracts and sales transac-
tions with residual value commitments (buybacks and tradebacks) where
the Volvo Group has a residual value commitment. The majority of these
contracts are recognized as assets under operating leases or as right of
return asset in the balance sheet. The potential residual value risks related
to these assets are not recognized as provisions, but are reflected as a
reduction of the assets through accelerated depreciation and/or write-
downs.
Read more in Note 13 Tangible assets about residual value risks.
Residual value commitments that are independent from the sales trans-
action are not recognized as assets under operating leases or as right of
return in the balance sheet, hence the potential residual value risks related
to these contracts are recognized as provisions. To the extent the residual
value exposure does not meet the definition of a provision, the gross exposure
is reported as a contingent liability.
Read more in Note 24 Contingent liabilities and financial commitments.
Provisions for service contracts
Service contracts offer the customer preventive maintenance according to
an agreed service plan. The provision is intended to cover the risk that the
expected cost of providing services and repairs under the service contract
exceeds the expected revenue.
Other provisions
Other provisions mainly include provisions for legal disputes, provisions
for externally issued credit guarantees and other provisions, unless sepa-
rately specified.
SOURCE OF ESTIMATION UNCERTAINTY
AND CRITICAL JUDGMENTS
The uncertainties about the amount or timing of outflows vary for different
kind of provisions. Regarding provisions for product warranty, extended cov-
erage, residual value risks and service contracts, the provisions are based on
historical statistics and estimated future costs, which is why the provided
amount has a high correlation with the outflow of resources. Regarding pro-
visions for disputes, like tax and legal disputes, the uncertainty is higher.
Provisions for product warranty
Warranty provisions are estimated with consideration of historical statis-
tics with regard to known changes in warranty claims, warranty periods,
the average time-lag between faults occurring until claims are received by
the company and anticipated changes in quality indexes. The actual out-
come of product warranties may deviate from the expected outcome and
materially affect the warranty costs and provisions in future periods.
Re funds from suppliers, that decrease the Volvo Group\u2019s warranty costs,
are recognized to the extent these are considered to be certain.
Other provisions
The Volvo Group works actively to ensure compliance with applicable
environmental laws and regulations, which are often complex and uncer-
tain. If the Volvo Group fails to meet climate related targets or regulatory
requirements it could be subject to significant penalties and other sanc-
tions which could materially affect the financial statements.
Provisions for legal proceedings
The Volvo Group regularly reviews the development of significant out-
standing legal disputes in which the Volvo Group companies are parties,
both regarding civil law and tax disputes, in order to assess the need for
provisions and contingent liabilities in the financial statements. Among the
factors that the Volvo Group considers in making decisions on provisions
and contingent liabilities are the nature of the dispute, the amount claimed,
the progress of the case, the opinions of legal and other advisers, experi-
ence in similar cases, and any decision of the Volvo Group\u2019s management
as to how the Volvo Group intends to handle the dispute. The actual out-
come of a legal dispute may deviate from the expected outcome of the
dispute. The difference between actual and expected outcome of a dispute
might materially affect future financial statements, with an adverse impact
upon the Volvo Group\u2019s operating income, financial position and liquidity.
Provisions for legal disputes are included within other provisions in
table 21:1.
Read more in Note 24 Contingent liabilities and financial commitments.
21:1 Carrying value, Dec 31, 2022 Provisions Reversals Utilizations Acquired and divested operations 2 Exchange rate changes Other reclassi- fications 2 Carrying value , Dec 31, 2023 Of which due within 12 months Of which due after 12 months Provisions for product warranty 1 16,841 11,427 \u20131,963 \u20138,729 \u201332 \u2013407 194 17,331 8,575 8,756 Provisions for extended coverage 692 568 \u2013116 \u2013479 \u2013 \u201320 \u2013 645 237 408 Provisions in insurance operations 848 350 \u2013109 \u201325 \u2013 \u201327 \u2013 1,037 \u2013 1,037 Provisions for restructuring costs 3 212 2,345 \u2013126 \u2013135 \u2013 \u201389 \u201352 2,155 1,771 384 Provisions for residual value risks 259 186 \u201388 \u2013152 \u2013 1 \u20136 200 100 100 Provisions for service contracts 558 367 \u2013180 \u2013158 \u2013 \u201310 \u201317 560 255 305 Other provisions 4 6,105 11,016 \u20131,194 \u20134,818 \u201316 \u2013169 \u2013250 10,674 8,685 1,989 B/S Total 25,515 26,259 \u20133,776 \u201314,496 \u201348 \u2013721 \u2013131 32,602 19,623 12,979 1 Including a provision for emission control component. For more information see below. 2 Read more in Note 3 Acquisitions and divestments of operations, for a description of acquired and divested operations as well as assets and liabilities held for sale. 3 For more information see below. 4 Includes costs of SEK 6 billion, for claims arising from the European Commission\u2019s 2016 antitrust settlement decision, recognized in the second quarter of 2023. Read more in Note 24 Contingent liabilities and financial commitments about the European Commission\u2019s 2016 antitrust settlement decision. The Volvo Group has detected that an emissions control component used in certain markets and models, may degrade more quickly than expected, affecting the vehicles emission performance negatively. The Volvo Group made a provision of SEK 7 billion impacting the operating income in 2018, relating to the estimated costs to address the issue. The negative cash flow effect started in 2019 and will continue in the coming years. As of year-end 2023, approximately half of the initial provision had been uti- lized. The Volvo Group will continuously assess the size of the provision as the matter develops. Volvo Buses has decided to close its bodybuilding factory in Wroclaw, Poland, during the first quarter of 2024. Restructuring costs of SEK 1.3 billion impacted operating income negatively in 2023 whereof restructur- ing provision SEK 1.2 billion and write down of assets SEK 0.1 billion. Nova Bus is exiting bus production in the US market. Consequently, the company has decided to close its Plattsburgh manufacturing and delivery facility by 2025. Restructuring costs of SEK 1.3 billion impacted the Volvo Group\u2019s operating income negatively in 2023, whereof restructuring provi- sion SEK 1.0 billion, disposal of goodwill SEK 0.1 billion and write down of assets SEK 0.2 billion 22 Liabilities ACCOUNTING POLICY Loans are measured at amortized cost using the effective interest rate method. Read more in Note 30 Financial instruments for accounting policies related to financial instruments. Read more in Note 14 Leasing, for accounting policies related to lease liabilities . Bond loans and other loans The Volvo Group\u2019s non-current and current loans are disclosed in tables 22:1 and 22:2 below, with the issued bond loans listed by currency. Loans in the Volvo Group\u2019s subsidiaries are mainly denominated in local curren- cies through Volvo Group Treasury which minimizes the currency exposure in the individual companies. Volvo Group Treasury uses various derivatives to facilitate lending and borrowing in different currencies without increas- ing the risk for the Volvo Group. 22:1 Non-current bond loans and other loans Currency Weighted average interest rate Dec 31, 2023, % Dec 31, 2023 Dec 31, 2022 Bond loans EUR 2.65 67,219 78,319 SEK 4.55 21,440 18,054 GBP 5.47 7,614 3,125 USD 2.72 698 730 NOK \u2013 1,691 HKD \u2013 969 B/S Bond loans 1 96,970 102,887 Other loans Other loans 1 33,983 26,699 Lease liabilities 5,314 4,806 Revaluation of outstanding derivatives to SEK 2 2,236 4,179 B/S Other loans 41,532 35,684 1 Non-current loans of SEK 1,900 M (1,093) were secured by assets pledged. Read more in Note 23 Assets pledged 2 Read more in Note 30 Financial instruments, table 30:1 regarding non-current part of outstanding interest and currency risk derivatives. 22:2 Current bond loans and other loans Currency Weighted average interest rate Dec 31, 2023, % Dec 31, 2023 Dec 31, 2022 Bond loans EUR 2.61 38,137 21,762 SEK 3.51 6,011 13,890 NOK 6.09 1,568 1,216 HKD 2.31 925 \u2013 JPY \u2013 926 B/S Bond loans 1 46,641 37,794 Other loans Other loans 1 48,731 31,084 Lease liabilities 1,877 1,777 Revaluation of outstanding derivatives to SEK 2 1,040 1,722 B/S Other loans 51,648 34,583 1 Current loans of SEK 4,694 M (1,994) were secured by assets pledged. Read more in Note 23 Assets pledged. 2 Read more in Note 30 Financial instruments, table 30:1 regarding current part of outstanding interest and currency risk derivatives. . 22:3 Maturity Year Bond loans and other loans Not utilized non-current credit facilities 2025 60,224 7,553 2026 46,043 23,108 2027 18,466 \u2013 2028 6,975 22,108 2029 3,534 \u2013 2030 or later 3,260 \u2013 Total 138,502 52,770 Read more in Note 14 Leasing, table 14:4 for maturities of non-current lease liabilities. A total of SEK 142,108 M (133,905) in bond loans and SEK 76,020 M (51,770) in other loans in tables 22:1 and 22:2 were borrowed to finance the credit portfolio in Financial services. The interest rate risk in Financial Services is managed with the objective to achieve a match of interest rate fixings on borrowing and lending, in order to eliminate interest rate risk. The average interest rate on Industrial Operations financial liabilities at year end amounted to 5.7% (5.2), including the Volvo Group\u2019s credit costs. Read more in Note 4 Goals and policies in financial risk management on how the funding for Industrial operations and Financial Services respectively is man- aged and presented in the Volvo Group\u2019s balance sheet. A hybrid bond amounting to EUR 1.5 billion was issued in the Volvo Group in 2014. The final tranche of this bond (EUR 0.6 billion) was repaid in March, 2023 without any impact on the net financial position of the Volvo Group. The predominant part of loans that mature in 2025 is an effect of the Volvo Group\u2019s normal business cycle, with shorter duration in the Finan- cial Services portfolio compared to Industrial Operations. Granted but not utilized credit facilities consist of stand-by facilities for loans. A fee is charged for granted credit facilities and recognized in the income statement within other financial income and expenses. Read more in Note 9 Other financial income and expenses Other liabilities 22:4 Non-current other liabilities Dec 31, 2023 Dec 31, 2022 Deferred leasing income 1 6,251 6,928 Residual value liabilities 1 7,408 9,747 Deferred service revenue 1 20,359 17,493 Refund liabilities 1 1,536 1,700 Advances from customers 1, 2 12 3,093 interest and currency risk derivatives 3 2,100 3,011 Other liabilities 3,876 3,577 B/S Other liabilities 41,542 45,549 1 Read more in Note 7 Revenue regarding contract and refund liabilities, and sales with residual value commitments. 2 Non-current advances from customers of SEK 2,605 M ( \u2013) have been reclassi- fied to liabilities held for sale. Read more in Note 3 Acquisitions and divest- ments of shares and operations. 3 Read more in Note 30 Financial instruments, table 30:1 regarding non-cur- rent part of interest and currency risk derivatives. 22:5 Current other liabilities Dec 31, 2023 Dec 31, 2022 Trade payables 1 82,987 90,177 Tax liabilities 5,087 6,907 Advances from customers 1, 2 3,611 5,892 Wages, salaries and withholding taxes 16,939 14,805 VAT liabilities 6,167 5,717 Accrued expenses for dealer bonuses and rebates 2 6,940 5,767 Other accrued expenses 14,917 15,071 Deferred leasing income 2 3,739 3,852 Deferred service revenue 2 4,557 4,446 Other deferred income 2 1,383 1,829 Residual value liabilities 2 4,545 4,559 Refund liabilities 2 519 783 Other financial liabilities 249 330 Interest and currency risk derivatives 3 404 64 Other liabilities 6,248 6,403 Other liabilities 158,292 166,601 1 Trade payables of SEK 1,279 M (\u2013) and current advances from customers of SEK 1,974 M (\u2013) have been reclassified to liabilities held for sale. Read more in Note 3 Acquisitions and divestments of shares and operations. 2 Read more in Note 7 Revenue, regarding contract and refund liabilities, and sales with residual value commitments. 3 Read more in Note 30 Financial instruments, table 30:1 regarding current part of interest and currency risk derivatives. Non interest-bearing current liabilities, including liabilities held for sale, amounted to SEK 166,052 M (166,601), or 63% (70) of the Volvo Group\u2019s total current liabilities . 23 Assets pledged 23:1 Assets pledged Dec 31, 2023 Dec 31, 2022 Property, plant and equipment mortgages \u2013 60 Assets under operating leases 44 249 Customer-financing receivables 7,605 3,273 Cash and cash equivalents 1 274 565 Total assets pledged 7,924 4,147 1 Read more in Note 18 Cash and cash equivalents regarding cash not available for use. Non-current and current loans of SEK 6,594 M (3,087) were secured by assets pledged to an amount of SEK 7,924 M (4,147). Under the terms of asset-backed securitizations, securities were issued, whereof SEK 598 M (2,783) is outstanding. These are secured by customer- financing receivables of SEK 1,016 M (3,273) with trucks and construction equipments as collaterals and cash and cash equivalents of SEK 274 (565) not available for use. A warehouse facility is used to fund customer-financing receivables in preparation for asset-backed securitizations. At December 31, 2023, SEK 5,975 M ( \u2013) was outstanding under this facility which is secured by SEK 6,589 M (\u2013) of customer-financing receivables. Read more in Note 22 Liabilities
24
Contingent liabilities and financial commitments
ACCOUNTING POLICY
A contingent liability is recognized for a possible obligation, for which it is
not yet confirmed that a present obligation exists that could lead to an
outflow of resources. Alternatively, there is a present obligation that does
not meet the definitions of a provision or a liability as it is not probable that
an outflow of resources will be required to settle the obligation or a suffi-
ciently reliable estimate of the amount of the obligation cannot be made.
Financial commitments are contractual commitments to a possible
expense at a future date and is not reported as liabilities on the balance
sheet date.
24:1
Contingent liabilities Dec 31,
2023
Dec 31,
2022
Credit guarantees issued for
customers and others 3,806 5,947
Tax claims 6,041 5,661
Residual value commitments 152 342
Other contingent liabilities 5,907 6,251
Total contingent liabilities 15,907 18,201
Total contingent liabilities at December 31, 2023, amounted to SEK 15,907
M (18,201).
Credit guarantees issued amounted to SEK 3,806 M (5,947). The recog-
nized amount for credit guarantees corresponds to the gross exposure
and has not been reduced by the value of counter guarantees received or
other collaterals such as the right to repossess products. The value of
counter guarantees and other collaterals reducing the exposure is depen-
dent on the development of used products prices and on the possibility to
repossess products.
A major part of the credit guarantees pertains to the credit guarantees
related to Chinese dealers and retail customers within Construction
Equipment.
Tax claims amounted to SEK 6,041 M (5,661) and pertain to charges or
expected claims against the Volvo Group for which the criteria for recog-
nizing a tax liability or a provision were not met. Global companies such as
the Volvo Group are occasionally involved in tax processes of varying
scope and in various stages. Volvo Group regularly assesses these tax
processes. When it is probable that additional taxes must be paid and the
outcome can be reliably estimated, the required provision is made. Of total
tax claims, SEK 1.4 billion (1.7) is related to a transfer price audit in Brazil
and SEK 2.5 billion (2.5) are related to two custom duties audits in India.
Residual value commitments amounted to SEK 152 M (342) and were
attributable to sales transactions with residual value commitments (buy-
backs and tradebacks) that are independent from the sales transaction
and therefore not recognized as assets in the balance sheet. The amount
corresponds to the gross exposure and has not been reduced by the esti-
mated net selling price of used products taken as collaterals. To the extent
the used products pertaining to those transactions are expected to be
disposed at a loss, a provision for residual value risk is recognized.
Read more in Note 21 Other provisions about provisions for residual value risks.
Other contingent liabilities amounted to SEK 5,907 M (6,251) and include
for example bid and performance clauses and legal proceedings.
Legal proceedings
Starting in January 2011, the Volvo Group, together with a number of other
truck manufacturers, was investigated by the European Commission in rela-
tion to a possible violation of EU antitrust rules. In July 2016 the European
Commission adopted a settlement decision against the Volvo Group and
other truck manufacturers finding that they were involved in an antitrust
infringement which, in the case of the Volvo Group, covered a 14-year period
from 1997 to 2011. The Volvo Group paid a monetary fine of EUR 670 million.
Following the adoption of the European Commission\u2019s settlement deci-
sion, the Volvo Group has received and is defending itself against a signif-
icant number of private damages claims brought by customers and other
third parties alleging that they suffered loss, directly or indirectly, by rea-
son of the conduct covered in the decision. The claims relate primarily to
Volvo Group trucks sold during the 14-year period of the infringement
and, in some cases, to trucks sold in certain periods after the infringement
ended. Some claims have also been made against the Volvo Group that
relate to trucks sold by other manufacturers. The truck manufacturers
subject to the 2016 settlement decision are, in most countries, jointly and
severally liable for any losses arising from the infringement.
In the region of 3,000 claims are being brought in over 20 countries
(including EU Member States, the United Kingdom, Norway and Israel) by
large numbers of claimants either acting individually or as part of a wider
group or class of claimants. Further claims may be commenced. The liti-
gation in many countries can be expected to run for several years.
Several hundred thousand trucks sold by the Volvo Group are currently
subject to claims against it or other truck manufacturers, with claimants
alleging that the infringement resulted in an increase in the prices paid for
Volvo Group trucks which directly or indirectly caused them loss.
The Volvo Group maintains its firm view that no damage was caused to
its customers or any third party by the conduct set out in the settlement
decision, and in fact, the European Commission did not assess any poten-
tial effects of the infringement on the market. The Volvo Group considers
that transaction prices our customers paid for their trucks were unaf-
fected by the infringement and were the outcome of individual negotia-
tions across all elements of their purchasing requirements, including not
only the prices for new trucks but also (where relevant) associated prod-
ucts and services sold together with new trucks such as service con-
tracts, financing, buy-back guarantees etc.
Litigation developments so far have been mixed with some adverse
outcomes, although uncertainty regarding ultimate exposure to the litiga-
tion remains high and it is inherent in complex litigation that outlooks and
risks fluctuate over time.
At this stage it is not possible to make a reliable estimate of the total
liability that could arise from such proceedings given the complexity of the
claims and the different (and in some cases relatively early) stages to
which national proceedings have progressed. However, the litigation is
substantial in scale and any adverse outcome or outcomes of some or all
of the litigation, depending on the nature and extent of such outcomes,
may have a material negative impact on the Volvo Group\u2019s financial results,
cash flows and financial position. In light of progress in litigations and
current risks, the Volvo Group has in Q2 2023 recognized a cost of SEK 6
billion, besides legal fees to advisors, which relate to aspects of the litiga-
tion that are currently possible to estimate and where an outflow of
resources is probable. This is Volvo Group\u2019s current assessment, which
may change as the litigation progresses.
The Volvo Group is also involved in a number of legal proceedings other
than those described above. The Volvo Group\u2019s assessment is that such
other legal proceedings in aggregate are not likely to entail any risk of
having a material effect on the Volvo Group\u2019s financial position.
Read more in Note 21 Other provisions .
Financial commitments In 2023, Volvo Group and Westport signed a letter of intent to establish a joint venture for high-pressure gas injection fuel systems (HPDI). Volvo will acquire 45% of the shares for approximately SEK 300 M (USD 28 M) plus up to an additional approximately SEK 500 M (USD 45 M) depending on the performance of the joint venture. Volvo Group, Renault Group and CMA CGM Group will join forces to address the growing needs of decarbonized and efficient logistics with an all-new generation of fully electric vans. A new company is expected to be established in the beginning of 2024 and remains subject to the comple- tion of all regulatory approval processes. The Volvo Group is planning to invest EUR 300 M over the course of the next three years. In 2022, the Volvo Group, Daimler Truck and the Traton Group estab- lished the joint venture Milence for charging infrastructure in Europe. The Volvo Group is committing to invest EUR 167 M within a few years from the establishment of the joint venture, whereof EUR 123 M remains as of December 31, 2023 . 25 Transactions with related parties ACCOUNTING POLICY The Volvo Group engages in transactions with some of its related parties, such as associated companies and joint ventures. The transactions arise in the ordinary course of business and are conducted on commercial terms and market prices. They mainly consist of sales of vehicles, parts, equip- ment and services as well as purchases of parts, engines and vehicles for resale. Transactions between AB Volvo and its subsidiaries have been elim- inated in the consolidated financial statements and transactions with the Board of Directors and the Group Executive Board consist of remunera- tions, which are not disclosed in this note. Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Read more in Note 27 Personnel, about remunerations to the Board of Directors and the Group Executive Board. Read more in Corporate Governance Report about Board of Directors and Group Executive Board . The Volvo Group\u2019s transactions with related parties are presented in table 25:1 and 25:2 . 25:1 Sales of goods, services and other income Purchases of goods, services and other expense 2023 2022 2023 2022 Associated companies 2,549 1,557 213 145 Joint ventures 3,541 2,336 1,380 1,260 25:2 Receivables Payables Dec 31, 2023 Dec 31, 2022 Dec 31, 2023 Dec 31, 2022 Associated companies 259 113 106 63 Joint ventures 535 472 85 122 26 Government grants ACCOUNTING POLICY Government grants are financial grants from governmental or supra- national bodies that are received in exchange for fulfillment of certain con- ditions by the Volvo Group. The financial grants are recognized in the financial statement when there is a reasonable assurance that the condi- tions will be complied with and that the grants will be received. Government grants related to assets are usually reported as deferred income in the balance sheet. Government grants related to income are reported as deferred income in the balance sheet and recognized in the income statement to match the related costs. If the costs incurred before the grants have been received, but there is an agreement that grants will be received, grants are recognized in the income statement to match the related costs. In 2023, government grants of SEK 1,057 M (689) were received, and SEK 618 M (701) were recognized in the income statement. Government grants includes tax credits of SEK 373 M (312) related to product development, which were primarily received in France and in the United States. Other grants were mainly received from Swedish, Chinese and US governmental organizations and from the European Commission
27
Personnel
ACCOUNTING POLICY
Incentive programs
The Volvo Group has a long-term and a short-term incentive program which
are cash-settled.
The LTI Program 2023-2025 (as defined below) has a performance
period of three-years and includes two performance measures, relative
total shareholder return (relative TSR) and return on capital employed
(ROCE). The relative TSR includes a fair value component, hence this part
of the program is accounted for as a share-based payment program. A
liability is recognized and measured at fair value using a Monte Carlo sim-
ulation at each reporting date. Changes in the fair value are recognized in
the income statement for each period until the liability is settled by a cash
payment. To estimate the fair value, the Monte Carlo simulation uses sev-
eral inputs where assumptions are made such as vesting period, risk free
annual interest rate, expected share price volatility and TSR-price.
The LTI Transition Program 2023 (as defined below) has a performance
period of one-year and includes two performance measures, operating
income and ROCE.
The short-term incentive program has a performance period of one-
year and includes performance measures which for example may relate to
operating income, operating cash flow, ROCE or similar ratios, or sustain-
ability targets.
Performance measures included in the programs such as ROCE, oper-
ating income and operating cash flow or similar ratios are based on best
estimate and are accounted for as employee benefits.
During the vesting period, the total remuneration expenses for the
incentive programs are recognized as an expense in the income statement
and as other non-current or current liabilities depending on when in time
the liability will be settled. The liability at the end of the vesting period
corresponds to the actual payout in cash.
Guidelines for remuneration to the Volvo Group Executive Board,
approved by the Annual General Meeting on 4 April 2023
The Annual General Meeting 2023 decided upon the following guidelines
for remuneration and other terms of employment for the members of the
Volvo Group Executive Board (\u201cExecutives\u201d).
The guidelines are forward-looking, i.e. they are applicable to remuner-
ation agreed, and amendments to remuneration already agreed, after the
proposed adoption of these guidelines by the 2023 annual general meet-
ing. These guidelines do not apply to any remuneration separately decided
or approved by the general meeting.
The guidelines\u2019 promotion of the Volvo Group\u2019s business strategy,
long-term interests and sustainability
It is a prerequisite for the successful implementation of the Volvo Group\u2019s
business strategy and safeguarding of its long-term interests, including
its sustainability, that the Group can recruit, retain and develop senior
management. These guidelines enable AB Volvo to offer Executives a
competitive total remuneration. More information regarding the Volvo
Group\u2019s business strategy is available in the Volvo Group Annual Report.
Types of remuneration
Volvo Group remuneration to Executives shall consist of the following
components: base salary, short-term and long-term variable incentives,
pension benefits and other benefits.
Short-term incentives may, for the President and CEO, amount to a
maximum of 100% of the base salary and, for other Executives,
a maximum of 80% of the base salary.
Long-term incentives may, for the President and CEO, amount to a max-
imum of 150% of the base salary and, for other Executives, a maximum of
80% of the base salary. Current and proposed long-term incentives are
described and addressed separately by the 2023 general meeting.
Further cash remuneration may be awarded in extraordinary circum-
stances, provided that such extraordinary arrangements are limited in time
and only made on an individual basis, either for the purpose of recruiting or
retaining Executives, or as remuneration for extraordinary performance
beyond the individual\u2019s ordinary tasks. Such remuneration may not exceed
an amount corresponding to 100% of the annual base salary. Any resolution
on such remuneration shall be made by the Board of Directors based on a
proposal from the Remuneration Committee.
For the President and CEO, pension benefits shall be granted on the
basis of a defined contribution plan. The pensionable salary shall include
base salary only. The pension contributions for the President and CEO
attributable to the annual base salary shall amount to not more than 35%
of the base salary.
Other benefits may include, for example, life insurance, medical and
health insurance, and company cars. Premiums and other costs relating to
such benefits may amount to not more than 3% of the annual base salary
for the President and CEO.
For other Executives, pension benefits shall be granted on the basis of
a defined contribution plan except where law or collective agreement
requires a defined benefit pension. The pensionable salary shall include
base salary and, where required by law or collective agreement, incen-
tives. The total pension contributions for other Executives shall amount to
not more than 35% of base salary, unless a higher percentage results
from the application of law or collective agreement.
Other benefits may include, for example, life insurance, medical and
health insurance, and company cars. Premiums and other costs relating to
such benefits may amount to not more than 10% of the annual base salary
for other Executives.
Remuneration for Executives that reside outside Sweden or reside in
Sweden but having a material connection to or having been residing in a
country other than Sweden may be duly adjusted to comply with manda-
tory rules or local practice, taking into account, to the extent possible, the
overall purpose of these guidelines.
In addition to remuneration set out above, Executives who relocate for
the purposes of the position or who work in other multiple countries may
also receive such remuneration and benefits as are reasonable to reflect
the special circumstances associated with such arrangements, taking
into account the overall purpose of these guidelines and alignment with
the general policies and practices within the Volvo Group applicable to
cross border work.
Termination of employment
Upon termination of an Executive\u2019s employment, the notice period may
not exceed twelve months. Base salary during the notice period and sev-
erance pay may not together exceed an amount corresponding to the base
salary for two years.
Executives that reside outside Sweden or reside in Sweden but having
a material connection to or having been residing in a country other than
Sweden may be offered notice periods for termination and severance pay-
ment as are reasonable to reflect the special circumstances, taking into
account the overall purpose of these guidelines and alignment with the
general policies and practices within the Volvo Group.
Criteria for awarding variable remuneration, etc.
Plans for long-term and short-term incentives shall be linked to predeter-
mined and measurable criteria, to be determined by the Board of Directors.
The criteria \u2013 which for example may relate to EBIT, cash flow, return on
capital employed or similar ratios, or sustainability targets \u2013 shall be
devised to promote the Volvo Group\u2019s strategy and long-term value cre- ation and strengthen the link between achieved performance targets and reward. The satisfaction of the criteria shall be measured over periods of one or multiple years, depending on the type of incentive plan. To which extent the criteria for awarding incentives has been satisfied shall be determined when the relevant measurement period has ended. The Board of Directors is responsible for the determination of the incen- tives to be paid, if any, to all Executives. Claw-back and adjustments Executives participating in the Volvo Group\u2019s short-term and long-term incentive plans are obliged, in certain circumstances and for specified periods of time, to repay, partially or in its entirety, incentive awards already paid if payments have been made by mistake or been based on intentionally falsified data or in the event of material restatement of the Volvo Group\u2019s financial results. Furthermore, the Board of Directors may decide on adjustments of pay-out under the incentive plans (before pay- ment has been made) in case of extraordinary circumstances or to adjust for unforeseen one-timers. Salary and employment conditions for employees In the preparation of the Board of Directors\u2019 proposal for these guidelines, the Board has considered that the various benefits offered to the Execu- tives need to be aligned with the general structures applicable for employ- ees of AB Volvo at levels that are competitive in the market. Thus, salary and employment conditions for other AB Volvo employees have been taken into account by including information thereon in the Remuneration Committee\u2019s and the Board of Directors\u2019 basis of decision when evaluat- ing whether the guidelines and the limitations set out herein are appropriate. The decision-making process to determine, review and implement the guidelines The Board of Directors has established a Remuneration Committee. The Committee\u2019s tasks include preparing the Board of Directors\u2019 decision to propose guidelines for executive remuneration. The Board of Directors shall prepare a proposal for new guidelines at least every fourth year and submit it to the general meeting. The guidelines shall be in force until new guidelines are adopted by the general meeting. The Remuneration Com- mittee shall also monitor and evaluate plans for variable remuneration for Executives, the application of the guidelines for executive remuneration as well as the current remuneration structures and compensation levels in the Group. The members of the Remuneration Committee are independent of AB Volvo and its executive management. The President and CEO and other members of the executive management do not participate in the Board of Directors\u2019 processing of and resolutions regarding remuneration-related matters in so far as they are affected by such matters. Derogation from the guidelines The Board of Directors may temporarily resolve to derogate from the guidelines, in whole or in part, if in a specific case there is special cause for the derogation and a derogation is necessary to serve the Volvo Group\u2019s long-term interests, including its sustainability, or to ensure the Group\u2019s financial viability. As set out above, the Remuneration Committee\u2019s tasks include preparing the Board of Directors\u2019 resolutions in remuneration- related matters. This includes any resolutions to derogate from the guide- lines. Description of changes to the guidelines, etc. During 2022, the company has carefully considered feedback received from shareholders and proxy advisors in connection with the general meeting 2022 and otherwise during the year. As a result of this dialogue, the Board and the Remuneration Committee have during 2022 per- formed a review of the design of the Group\u2019s long-term incentives. As a result of this review, the Board proposes the adoption of a new long-term incentive plan with a three-year performance period, to be implemented starting 2023. It is proposed that the transition into a new long-term incentive plan with a three-year performance period will be made in paral- lel with a two-year phasing out of the current long-term incentive plan. For further information, please refer to the Board\u2019s separate proposal for a new long-term incentive plan. For further information about the dialogue with shareholders and proxy advisors, please refer to the Remuneration Report 2022. Fees paid to the Board of Directors According to a resolution adopted at the Annual General Meeting 2023, fees to the Board of Directors appointed at the Annual General Meeting for the period until the close of the Annual General Meeting 2024 shall be paid as follows: The Chairman of the Board should be awarded SEK 3,925,000 (3,850,000) and each of the other members elected by the Annual Gen- eral Meeting SEK 1,175,000 (1,150,000) with exception of the President and CEO of AB Volvo, who does not receive a director\u2019s fee. In addition, SEK 445,000 (405,000) should be awarded to the Chairman of the Audit Committee and SEK 250,000 (190,000) to each of the other members of the Audit Committee, and SEK 175,000 (170,000) to the Chairman of the Remuneration Committee and SEK 130,000 (125,000) to each of the other members of the Remuneration Committee, and SEK 300,000 (200,000) to the Chairman of the Volvo CE Transformation Committee and SEK 200,000 (170,000) to each of the other members of the Volvo CE Transformation Committee. Long-term incentive plans Long-term incentive plan valid from 2016 In 2016, the Board of Directors approved a long-term cash-based incen- tive plan comprising the top 300 persons from senior management, including Executives, in the Volvo Group. During 2022, it was decided to increase the plan size with an additional 100 slots to accommodate attraction and retention of employees with rare and/or deep expertise and skills that are hard to find in the external market and are key to the Volvo Group\u2019s transformation journey. For more information, please refer to Types of remuneration on page 141. Long-term incentive plan valid from 2023 In 2023, the Annual General Meeting adopted a new long-term incentive plan comprising a maximum number of 600 participants from senior management, including Executives and employees in certain busi- ness-critical positions within the Volvo Group. The new plan will replace the current long-term incentive plan adopted in 2016. The replacement will, due to increased performance period under the new plan, take place during a two-year phase out of the current plan via two long-term transition pro- grams for 2023 and 2024, respectively. Hence, in 2023 the Board of Direc- tors approved a long-term incentive program for 2023 to 2025 (the \u201cLTI Program 2023-2025) issued under the long-term incentive plan adopted in 2023. In addition, as part of the two-year phase out of the current long-term incentive plan, the Board of Directors also approved a long-term incentive transition program for 2023 (the \u201cLTI Transition Program 2023\u201d) based on the terms of the long-term incentive plan adopted in 2016. The LTI Transi- tion Program 2023 only applies to participants who were also enrolled in the long-term incentive program decided by the Board of Directors in 2022. Measures have been taken to ensure that parallel application of the long- term programs do not lead to annual pay-outs exceeding the annual maxi- mum percentage for long-term incentives.
27:1
Remuneration to the Group
Executive Board
SEK
Fixed remuneration Variable remuneration
Fixed salary
Other
benefits
1
Short-term
incentives
Long-term
incentives
Other
remunerations
2
Pension
premiums
President and CEO 18,072,526 239,119 17,271,313 26,699,958 \u2013 6,229,991
Other members of the
Group Executive Board
3
101,003,684 4,625,316 77,198,042 80,206,754 \u2013 33,749,987
Total 2023 119,076,210 4,864,435 94,469,355 106,906,712 \u2013 39,979,978
Total 2022 122,676,039 15,054,935 71,552,876 76,663,918 3,165,174 39,289,073
1 Other benefits mainly pertain to company cars, housing and, various insurance costs.
2 Other remunerations include payments in 2022 to Swedish individuals in the Group Executive Board in connection to a change in their pension benefits.
3 The Group Executive Board comprised, except the President and CEO, of 13 (13) members at the end of the year.
The new plan has a three-year performance period followed by a one-
year lock-in period for the AB Volvo shares that the participants are required
to acquire. At the end of the lock-in period, participants may sell their
shares. However, Executives may only do so if they meet the requirement
for owning AB Volvo shares at a value of at least two years of gross base
salary for the President and CEO and one year of the gross base salary for
the other Executives. The holding requirements for participants shall cease
upon termination of a participant\u2019s employment, and the Board may grant
such other exceptions to the requirements as the Board deems appropriate.
Participants in the long-term incentive programs must be employed on
December 31 of the final year of the performance period in order to qualify
for a pay-out. Participants who terminate their employment before this
date lose entitlements to a (pro-rated) pay-out, unless they leave the
Volvo Group in certain predefined situations (pension, disability, divesti-
ture, etc.). These so-called \u201cgood leaver\u201d situations are subject to approval
by the Remuneration Committee.
The long-term incentive plan is linked to two predetermined perfor-
mance measures:
\u2022 AB Volvo\u2019s three-year average ROCE with a linear scale (0% at mini-
mum, 100% at maximum of the scale; relative weighting 70%) and
\u2022 The relative three-year average Volvo B total shareholder return vs.
MSCI World Machinery Index with a linear scale (20% at minimum,
100% at maximum of the scale; relative weighting 30%) (relative TSR)
The result on each of these two performance measures is determined
after the relevant three-year measurement period has ended.
The total remuneration expenses including social security charges for
the LTI Program 2023-2025 affecting the income statement for 2023
amounts to SEK 170 M (-) and the total liability as of December 31, 2023,
amounts to SEK 170 M (-). The income statement effect is an estimate of
the outcome and will during the three-year period be continuously
adjusted to reflect the outcome at the end of the program. The final out-
come of the LTI Program 2023-2025 will be presented in the annual
report for 2025.
Terms of employment and remuneration to the President and CEO
Fixed salary, short-term and long-term incentives
The President and CEO is entitled to a remuneration consisting of a fixed
annual salary and short-term and long-term incentives.
During 2023, the short-term incentive program is based on operating
income, operating cash flow and electric vehicle volume for the Volvo Group;
the LTI Program 2023-2025 is based on relative TSR and three-year aver-
age ROCE; the LTI Transition Program 2023 is based on operating income
and one-year ROCE. The short-term incentive program amounts to a maxi-
mum of 100% of the annual base salary, the LTI Program 2023-2025 (to be
paid out in 2026) and the LTI Transition Program 2023 (to, subject to divi-
dend pay-out, be paid out in 2024) amounts to a maximum of 150% of the
annual base salary (measures have been taken to ensure that parallel appli-
cation of the long-term programs do not lead to annual pay-outs exceeding
the annual maximum percentage for long-term incentives).
For the financial year 2023, the President and CEO received a fixed
salary including vacation payment of SEK 18,072,526 (17,496,875) and a
short-term incentive of SEK 17,271,313 (13,910,861). The short-term
incentive was 97.0% (80.7) of the annual base salary. Other benefits,
mainly pertaining to a company car and insurance benefits, amounted to
SEK 239,119 (279,057).
The President and CEO also participated in the LTI Program 2023-
2025 and the LTI Transition Program 2023. During the financial year
2023, the outcome of the LTI Transition Program 2023 amounted to SEK
26,699,958 (19,183,651), which was 150.0% (111.3) of the annual base
salary. The full net amount shall be invested in Volvo B shares, which will be
subject to a lock-in period of three years. There is to be no pay-out of the
amount if the Annual General Meeting held in 2024 decides not to distrib-
ute any dividends to the shareholders for 2023. As the outcome of the LTI
Program 2023-2025 is measured over a period of three years (i.e. deter-
mined as of 31 December 2025) no amounts has been paid out during
2023 (for the CEO).
Pensions
The President and CEO was covered by a pension benefit in the form of a
defined contribution plan with a contribution amounting to 35% of the
annual base salary. There were no commitments other than the payment
of the contributions.
Total pension premiums for the President and CEO amounted to SEK
6,229,991 (6,035,732) in 2023.
Severance payments
The President and CEO has a 12 months' notice period upon termination by
AB Volvo and a 6 months' notice period upon termination on his own initia-
tive. If terminated by the company, the President and CEO is entitled to a
severance payment equivalent to 12 months\u2019 salary. In the event of new
employment during the severance period, the severance pay is reduced
with an amount equal to 100% of the income from the new employment.
Remuneration to the Group Executive Board
Fixed salary, short-term and long-term incentives
Members of the Group Executive Board receive short-term and long-term
incentives in addition to fixed salaries.
During 2023, the short-term incentive program is based on operating
income, operating cash flow and electric vehicle volume for the Volvo
Group; the LTI Program 2023-2025 is based on relative TSR and three-
year average ROCE; the LTI Transition Program 2023 is based on operat-
ing income and one-year ROCE. The short-term incentive program, the LTI
Program 2023-2025 (to be paid out in 2026) and the LTI Transition Pro-
gram 2023 (to, subject to dividend pay-out, be paid out in 2024) for Group
Executive Board members excluding the President and CEO, in 2023,
could each amount to a maximum of 80% of the annual base salary (mea-
sures have been taken to ensure that parallel application of the long-term
programs do not lead to annual pay-outs exceeding the annual maximum
percentage for long-term incentives).
For the financial year 2023, fixed salaries including vacation payment
amounted to SEK 101,003,684 (95,635,834) for the Group Executive
Board members excluding the President and CEO. The short-term incentive
amounted to SEK 77,198,042 (51,590,551) for the Group Executive Board
members excluding the President and CEO. Short-term incentive was in
average 77.0% (59.0) of the annual base salary. Other benefits, including
company cars, housing, and insurance benefits, amounted to SEK
4,625,316 (14,565,147).
The Group Executive Board also participated in the LTI Program 2023-
2025 and the (to the extent they participated in the long-term incentive
program decided by the Board of Directors in 2022) LTI Transition Pro-
gram 2023. During the financial year 2023, the outcome of the LTI Transi-
tion Program 2023 amounted to SEK 80,206,754 (51,916,788) for the
Group Executive Board members, excluding the President and CEO, which
was 80.0% (59.4) of the annual base salaries. The full net amount shall be
invested in Volvo B shares, which will be subject to a lock-in period of three
years. There is to be no pay-out of the amount if the Annual General Meet-
ing held in 2024 decides not to distribute any dividends to the sharehold-
ers for 2023. As the outcome of the LTI Program 2023-2025 is measured
over a period of three years (i.e. determined as of 31 December 2025) no
amounts has been paid out during 2023 (for the Executive Board excl. the
President and CEO).
Pensions
During 2023, the Group Executive Board members enrolled in the Swed-
ish pension plan continued to participate in the collective bargain agree-
ment (ITP), as well as the Volvo Executive Pension (VEP) plan. The VEP
plan is a defined contribution plan with a contribution amounting to 35%
of the annual base salary exceeding 30 income base amounts (SEK
2,229,000 in 2023). There were no commitments other than the pay-
ment of the contributions.
Pension premiums for the Group Executive Board, excluding the President
and CEO, amounted to SEK 33,749,987 (30,022,143) in 2023.
Severance payments
The employment contracts for Group Executive Board members contain
rules governing severance payments when AB Volvo terminates the
employment. For Executives resident in Sweden, the notice period upon
termination by the company shall not exceed 12 months and the notice
period upon termination by the Executive shall not exceed 6 months. In
addition, in the event of termination by the company, the Executive is enti-
tled to a maximum of 12 months\u2019 severance pay.
Executives resident outside Sweden or resident in Sweden but having
a material connection to or having been resident in a country other than
Sweden may be offered notice periods for termination and severance pay-
ment that are competitive in the country where the Executives are or have
been resident or to which the Executives have a material connection, pref-
erably solutions comparable to the solutions applied to Executives resi-
dent in Sweden.
Volvo Group's total cost for remuneration and benefits to the Group
Executive Board
The total cost for remuneration and benefits to the Group Executive Board
amounted to SEK 493 M (411) and pertained to fixed salaries, short-term
and long-term incentives, other benefits and pensions. It also included
social fees on salaries and benefits, special payroll tax and additional
costs for other benefits. Out of the SEK 493 M, SEK 31 M pertains to the
LTI Program 2023-2025 and is an estimate of the outcome which will be
continuously adjusted to reflect the outcome at the end of the program.
27:2
Average number of
employees
2023 2022
Number of employees of which women, % Number of employees of which women, %
AB Volvo
Sweden 297 49 282 50
Subsidiaries
Sweden 23,247 25 22,013 25
Western Europe (excl. Sweden) 21,779 18 20,817 18
Eastern Europe 6,072 22 6,224 22
North America 17,908 22 17,459 21
South America 6,971 19 7,110 19
Asia 10,687 19 10,137 18
Other countries 2,321 20 2,275 19
Volvo Group 89,282 21 86,316 21
27:3 Board members and other senior executives 2023 2022 Number at year-end of which women, % Number at year-end of which women, % AB Volvo Board members 1 11 36 11 45 CEO & other senior executives 14 29 15 33 Volvo Group Board members 532 24 561 25 Presidents and other senior executives 599 29 613 28 1 Board members elected by the Annual General meeting. 27:4 Wages, salaries and other remunerations SEK M 2023 2022 Board and Presidents of which variable salaries Other employees Board and Presidents of which variable salaries Other employees AB Volvo 1 84.4 49.6 513.1 88.0 41.8 399.9 Subsidiaries 1,049.9 334.7 55,372.4 816.4 216.3 48,226.6 Volvo Group 1,134.3 384.3 55,885.5 904.4 258.0 48,626.4 27:5 Wages, salaries and other remunerations and social costs SEK M 2023 2022 Wages, salaries remuneration Social costs Pension costs Wages, salaries remuneration Social costs Pension costs AB Volvo 2 597.4 178.7 129.4 487.9 140.2 121.6 Subsidiaries 56,422.3 12,712.7 5,323.5 49,043.0 10,541.4 5,145.9 Volvo Group 3 57,019.8 12,891.4 5,452.9 49,530.9 10,681.6 5,267.5 1 Including current and former Board members and the President and CEO. 2 The parent company\u2019s pension costs, pertaining to Board members and Presidents are disclosed in note 3 Administrative expenses in the annual report of the parent company. 3 Of the Volvo Group\u2019s pension costs, SEK 106 M (93) pertain to Board members and Presidents, including current and former Board members, Presidents and CEO, and other senior executives. The Volvo Group\u2019s outstanding pension obligations to these individuals amount to SEK 618 M (567). The cost for non-monetary benefits in the Volvo Group amounted to SEK 4,092 M (3,409) of which SEK 41 M (33) pertained to Board members and Presidents. The cost for non-monetary benefits in the parent company amounted to SEK 4.9 M (7.4) of which SEK 0.2 M (0.4) to Board members and President . 28 Fees to the auditors 28:1 Fees to the auditors 2023 2022 Deloitte \u2013 Audit assignment 140 122 whereof to Deloitte AB 45 41 \u2013 Audit-related assignments 9 8 whereof to Deloitte AB 3 3 \u2013 Tax advisory services 1 \u2013 whereof to Deloitte AB \u2013 \u2013 \u2013 Other services 52 5 whereof to Deloitte AB \u2013 \u2013 Total Deloitte 202 135 Audit fees to others 3 2 Total fees to the auditors 205 137 The audit assignment involves review of the Annual report and financial accounting and the administration by the Board and the President. Audit-related assignments mean quality assurance services required by enactment, articles of association, regulations or agreement. The amount includes the fee for reviewing the half-year report. Tax advisory services include both tax consultancy and tax compliance services. All other tasks are defined as other services. 29 Cash flow ACCOUNTING POLICY Cash flow statement The cash flow statement is prepared in accordance with the indirect method. The cash flows of foreign group companies are translated at aver- age rates. Changes in group structure, acquisitions and divestments are recognized gross and are included in cash flow from investing activities, in the items acquired operations and divested operations. Operating cash flow The operating cash flow is a measure of the amount of cash generated by the Volvo Group\u2019s regular business operations. The operating cash flow also includes investments and disposals of intangible and tangible assets, which are part of the investing activities. Read more in Note 18 Cash and cash equivalents. 29:1 Other non-cash items 2023 2022 Allowance for expected credit losses on receivables/customer-financing receivables 1 1,398 4,260 Gains/losses on divested operations 2 710 \u2013 Unrealized exchange rate gains/losses on accounts receivables and payables \u2013150 455 Unrealized exchange rate gains/losses on other operating assets and liabilities 55 283 Provision for incentive programs 2,619 1,761 Gains/losses on disposals of in-/tangible assets \u2013422 \u2013232 Gains/losses on divestments of shares and participations 231 \u2013109 Results from investments in joint ventures 2,368 1,333 Service cost related to pensions 1,209 1,659 Deferred sales with residual value commitments \u20134,316 \u20133,957 Provisions for restructuring charges related to the US bus production for Nova Bus and the European bus operation 2,336 \u2013 Financial impact related to the planned divestment of Arquus and the ABG paver business 1,490 \u2013 Other changes 3 6,313 1,512 Total other non-cash items 13,842 6,964 1 The increase in 2022 was mainly referred to the financial impact related to Russia. 2 Includes financial impact related to the divestment of the Russian entities. 3 Includes costs for claims arising from the European Commission's 2016 antitrust settlement decision. The comparative figures also includes costs for a civil pen- alty from the National Highway Traffic Safety Administration in the US
29:2
Changes in loans 2023 Cash flows Non-cash items
December
31, 2022
New
borrowings
Repayment of
borrowings
Reclass i-
fications
and other
changes
1
Unrealized
currency
effects
Exchange
rate
changes
December 31,
2023
Current bond loans and other loans 72,377 160,207 \u2013206,589 72,517 3,683 \u20133,906 98,289
Non-current bond loans and other loans 138,571 77,472 \u2013153 \u201371,184 \u20131,943 \u20134,261 138,502
Interest and currency risk derivatives \u20131,730 \u2013 \u2013 \u2013 \u20131,320 7 \u20133,043
Realized derivatives \u2013 \u2013 \u2013967 \u2013 \u2013 \u2013 \u2013
Cash transfers
2
\u2013 6,111 \u20133,449 \u2013 \u2013 \u2013 \u2013
Other \u2013 \u20131,832
3
\u2013 \u2013 \u2013 \u2013 \u2013
Cash flow impact from changes in loans 241,958 \u2013211,157
Changes in loans 2022 Cash flows Non-cash items
December
31, 2021
New
borrowings
Repayment of
borrowings
Reclass i-
fications
and other
changes
1
Unrealized
currency
effects
Exchange
rate
changes
December 31,
2022
Current bond loans and other loans 49,447 95,984
4
\u2013131,481
4
51,763 131 6,532 72,377
Non-current bond loans and other loans 104,177 74,108 \u20131,970 \u201350,958 2,259 10,955 138,571
Interest and currency risk derivatives \u20132,013 \u2013 \u2013 \u2013 306 \u201323 \u20131,730
Realized derivatives \u2013 \u2013 2,605 \u2013 \u2013 \u2013 \u2013
Cash transfers
2
\u2013 4,191 \u20137,990 \u2013 \u2013 \u2013 \u2013
Other \u2013 \u20131,466
3
\u2013 \u2013 \u2013 \u2013 \u2013
Cash flow impact from changes in loans 172,817 \u2013138,836
1 Includes remeasurements of lease liabilities which had no impact on cash flow.
2 Cash transfers for credit support annexes (CSA) are used to reduce the exposure from net open positions on interest and currency risk derivatives.
Cash transfers for CSAs are also included in current bond loans and other loans, where the net cash flow amounted to SEK 1,702 M (1,059).
The netting agreements have no effect on the financial performance or the net financial position of the Volvo Group.
3 During 2023, new lease liabilities of SEK 1.8 billion (1.5), included in non-current other loans, were adjusted as non-cash items.
4 The comparative figures are restated due to a reclassification between new borrowings and repayments of borrowings.
Net borrowings increased by SEK 30.8 billion (34.0), mainly due to sig-
nificantly higher new business volume in the credit portfolio. During
2023, a decision was made to call the final tranche (EUR 0.6 billion) of
the hybrid bond with payment date on March 10, 2023.
Syndications were performed in Financial Services to an amount of
SEK 8.8 billion (12.2). All syndications have impacted cash flow this year.
Read more in Note 4 Goals and policies in financial risk management about
credit support annexes (CSA).
Read more in Note 22 Liabilities regarding Bond loans and other loans.
30
Financial instruments
ACCOUNTING POLICY
Financial assets and liabilities are recognized on the transaction date accord-
ing to the contractual terms of the instrument. Transaction costs are included
in the assets\u2019 fair value, except in cases in which the change in value is recog-
nized in the income statement. The transaction costs that arise in conjunction
with the admission of financial liabilities are amortized over the term of the
loan as financial cost.
A financial asset is derecognized from the balance sheet when the rights to
the cash flows from the asset have expired at maturity or when all significant
risks and rewards related to the asset have been transferred to a third party.
The fair value of financial assets is determined based on valid market
prices, when available. If market prices are unavailable, the fair value is deter-
mined for each asset through the use of various measurement techniques.
The fair value of financial instruments is classified based on the degree that
market values have been utilized when measuring fair value. The majority
of financial instruments measured at fair value held by Volvo Group is clas-
sified as level 2. 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
is used to calculate the present value of all the estimated future cash flows.
For forward exchange contracts the basis is the forward premium based
on current spot rate for each currency and future date. The fair value is then
discounted based on the forward rates as per the balance sheet date.
Holding of shares are classified as level 1 for listed shares and level 3 for
non-listed shares. Call options are classified as level 3 and are based on the
Black & Scholes option pricing formula.
Financial assets and liabilities measured at fair value
through the income statement
Volvo Group\u2019s financial assets and liabilities held for trading are recog-
nized at fair value through the income statement. As presented in table
30:1, these instruments are derivatives, used for hedging interest and
currency risks and marketable securities, further presented in note 18
Cash and cash equivalents.
Derivatives used for hedging interest rate exposure financing the cus-
tomer financing porfolio within Financial Services as well as the debt port-
folio in Industrial Operations are included in this category. Unrealized gains
and losses from fluctuations in the fair value of the financial instruments
are recognized in other financial income and expenses, with the exception
of derivatives entered into by Financial Services, which are recognized in
operating income. The Volvo Group intends to hold these derivatives to
maturity, which is why, over time, the market valuation will have no impact
on financial performance or cash flow.
Financial instruments used for hedging currency risks arising from
future cash flows are also recognized in this category. When hedging
future cash flows for specific orders, the classification in the income
statement is decided on a case by case basis. In 2023, SEK 16 M (44)
have been recognized in operating income and SEK 105 M (1) in finance
net. The result from hedging future cash flows in foreign currency from
dividends paid to group companies is included in operating income with
an amount of SEK 27 M (177).
Read more in Note 4 Goals and policies in financial risk management.
Financial assets measured at fair value through other comprehensive
income
In this category the Volvo Group includes holding of shares in listed compa-
nies as the shares are not held for trading. Changes in fair value is measured
through other comprehensive income and amounted to SEK 15 M (\u201345).
Read more in Note 5 Investments in joint ventures, associated companies and
other shares and participations.
Financial assets measured at amortized cost
Customer-financing receivables are held as part of a business model
whose objective is to collect contractual cash flows. The contractual cash
flows are solely payments of principal and interest and are valued at amor-
tized cost in accordance with the effective interest method. In this cate-
gory the Volvo Group also includes accounts receivables and holding of
shares in non-listed companies for which a fair value cannot reasonably be
determined. The carrying value has been analyzed and compared with an
estimated fair value and is a reasonable approximation of the fair value.
Read more in Note 5 Investments in joint ventures, associated companies and
other shares and participations.
Read more in Note 15 Customer-financing receivables.
Read more in Note 16 Receivables.
Hedge Accounting is not applied by the Volvo Group .
Information regarding carrying amounts and fair values
In table 30:1, carrying amounts are compared with fair values for all of the
Volvo Group\u2019s financial instruments.
30:1
Carrying amounts and fair values on financial instruments
Dec 31, 2023 Dec 31, 2022
Carrying
value
Fair
value
Carrying
value
Fair
value
Assets
Financial assets measured at fair value through the income statement
Interest and currency risk derivatives
1
Note 16 6,293 6,293 5,751 5,751
Other derivatives
2
564 564 564 564
B/S
Marketable securities Note 18 89 89 93 93
6,945 6,945 6,408 6,408
Financial assets measured at fair value through other comprehensive income
Holding of shares in listed companies Note 5 22 22 6 6
Financial assets measured at amortized cost
B/S
Accounts receivables Note 16 43,210 43,210 48,220 48,220
Customer-financing receivables Note 15 232,203 232,203 193,928 193,928
Holding of shares in non-listed companies Note 5 859 859 599 599
Other interest-bearing receivables
3
Note 16 3,233 3,233 5,738 5,738
279,505 279,505 248,485 248,485
B/S
Cash and cash equivalents Note 18 83,326 83,326 83,886 83,886
Liabilities Note 22
Financial liabilities measured at fair value through the income statement
Interest and currency risk derivatives
4
5,779 5,779 8,975 8,975
Financial liabilities measured at amortized cost
5
Non-current bond loans and other loans 136,267 135,652 134,392 130,794
Current bond loans and other loans
3
97,250 97,102 70,655 70,475
B/S
Trade Payables 82,987 82,987 90,177 90,177
316,503 315,741 295,224 291,446
1 The Volvo Group\u2019s gross exposure from derivatives reported as assets was reduced by
84% (79) by netting agreements and cash deposits to SEK 1,034 M (1,223).
2 The input data used in the valuation model for calculating the fair value has not
changed during 2023.
3 The amount includes cash deposits for credit support annexes (CSA), where the
receivable amounted to SEK 2,297 M (4,959) and the liability amounted to SEK
\u20131,889 M (\u2013187). The agreements have no effect on the financial performance or
net financial position of the Volvo Group.
4 The Volvo Group\u2019s gross exposure from derivatives reported as liabilities was reduced
by 97% (98) by netting agreements and cash deposits to SEK 183 M (189).
5 In the Volvo Group balance sheet, financial liabilities include loan-related deriva-
tives amounting to SEK \u20133,275 M (\u20135,900). The credit risk is included in the fair
value of loans.
Read more in Note 4 Goals and policies in financial risk management about
credit support annexes (CSA) .
Derecognition of financial assets The Volvo Group is involved in discounting activities to reduce financial risks. An evaluation is performed to establish whether substantially all the risks and rewards have been transferred to an external party when entering into an agreement. The Volvo Group\u2019s intention is not to be involved in discounting activities if not substantially all the risks and rewards can be transferred to an external party. As of December 31, 2023, there were no transferred financial assets in the Volvo Group that did not fulfill the requirements for derecognition. Financial assets are derecognized from the balance sheet when the rights to the cash flows from the assets have expired or when substan- tially all risks and rewards have been transferred. Involvement in these assets is reflected in the Volvo Group\u2019s balance sheet as part of the exter- nal credit guarantees. They are valued at best estimate and recognized as provisions in the balance sheet to an amount of SEK 0.1 billion (0.2). The Volvo Group\u2019s maximum loss exposure is considered being the total recourse relating to transferred and derecognized assets that are part of the recognized credit guarantees, i.e. the total amount the Volvo Group would have to pay in case of default of the customers. The likelihood for all custom- ers going into default at the same time is considered to be low. The gross exposure for the Volvo Group amounted to SEK 3.8 billion (5.9) related to credit guarantees issued for customers and others and is part of the Volvo Group\u2019s contingent liabilities. This amount has not been reduced by the value of counter guarantees received or other collaterals such as the right to repos- sess the products. Read more in Note 21 Other provisions. Read more in Note 24 Contingent liabilities and financial commitments. Gains, losses, interest income and interest expenses from financial instruments Table 30:3 shows how gains and losses, as well as interest income and interest expenses have affected income after financial items in the Volvo Group divided by the different categories of financial instruments. In table 30:2, outstanding derivatives hedging currency and interest rate risks are presented. 30:2 Outstanding derivative instruments Dec 31, 2023 Dec 31, 2022 Nominal amount Carrying value Nominal amount Carrying value Interest-rate swaps \u2013 receivable position 232,945 5,932 217,951 5,532 \u2013 payable position 142,572 \u20135,478 162,277 \u20138,616 Foreign exchange derivatives \u2013 receivable position 38,282 361 33,932 218 \u2013 payable position 21,108 \u2013301 30,486 \u2013359 Options purchased \u2013 receivable position 111 \u2013 56 \u2013 Options written \u2013 payable position \u2013 \u2013 56 \u2013 Total 514 \u20133,224
30:3
Recognized in operating income 2023 2022
Gain/
Loss
Interest
income
Interest
expense
Gain/
Loss
Interest
income
Interest
expense
Financial assets and liabilities at fair value through the income statement
Interest and currency risk derivatives
1, 2
\u201389 \u2013 8 133 \u2013 \u2013
Marketable securities \u20131 \u2013 \u2013 16 \u2013 \u2013
Financial assets measured at amortized cost
Accounts receivables/trade payables
3
\u2013785 \u2013 \u2013 \u20131,600 \u2013 \u2013
Cash and cash equivalents \u201332 \u2013 \u2013 77 \u2013 \u2013
Customer-financing receivables
4
287 15,829 \u2013 145 10,005 \u2013
Holding of shares in listed companies
5
\u2013 \u2013 \u2013 \u2013 \u2013 \u2013
Holding of shares in non-listed companies \u201314 \u2013 \u2013 132 \u2013 \u2013
Financial liabilities measured at amortized cost
6
\u2013 \u2013 \u20139,837 \u2013 \u2013 \u20134,599
Impact on operating income \u2013634 15,829 \u20139,829 \u20131,099 10,005 \u20134,599
Recognized in net financial items
7, 8
2023 2022
Gain/
Loss
Interest
income
Interest
expense
Gain/
Loss
Interest
income
Interest
expense
Financial assets and liabilities at fair value through the income statement
Marketable securities \u20138 5 \u2013 3 1 \u2013
Interest and currency risk derivatives
1, 2
1,165 \u2013 \u20131,411 \u20134,816 \u201335 \u20131,470
Financial assets measured at amortized cost
Cash and cash equivalents \u2013744 2,685 \u2013 \u2013179 1,042 \u2013
Financial liabilities measured at amortized cost \u20132,000 \u2013 483 4,678 \u2013 432
Impact on net financial items
7, 8
\u20131,587 2,690 \u2013928 \u2013313 1,008 \u20131,038
1 Accrued interest related to financial assets and liabilities measured at fair value
through the income statement is included in the amounts for gains and losses.
2 The Volvo Group uses forward contracts and currency options to hedge the value
of future cash flows in foreign currency. Both unrealized and realized result of
currency risk contracts is included in the table.
3 Information regarding changes in allowance for expected credit losses on accounts
receivables is provided in note 16 Receivables and note 8 Other operating income
and expenses. The amount includes gains/losses of SEK \u201358 M (\u2013199) from revalu-
ation of receivables in foreign currency related to dividends paid to group companies.
4 The amount includes gains/losses due to derecognition of assets where SEK
144 M (\u201311) is related to the sale of customer-financing receivables and SEK 143
M (155) is related to early buy-out revenue. Information regarding changes in
allowance for expected credit losses on customer-financing receivables is pro-
vided in note 15 Customer-financing receivables and note 8 Other operating
income and expenses.
5 Changes in fair value on shares and participations in listed companies through
other comprehensive income amounted to SEK 15 M (\u201345).
Read more in Note 5 Investments in joint ventures, associated companies
and other shares and partici pations.
6 Interest expenses attributable to financial liabilities measured at amortized cost
recognized in operating income include interest expenses for financing operating
lease activities, which are not classified as financial instruments.
7 In gain/loss, income and expenses related to financial instruments recognized in
net financial items, SEK \u20131,587 M (\u2013313) was recognized in other financial
income and expenses.
Read more in Note 9 Other financial income and expenses.
8 Interest expenses attributable to pensions reported in net financial items of
SEK \u2013238 M (\u2013167) are not included in this table .
", "dimensions": { "concept": "ifrs-full:DisclosureOfNotesAndOtherExplanatoryInformationExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-934": { "value": "1 Accounting policies The consolidated financial statements for AB Volvo (publ) and its subsidiaries are prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), as adopted by the European Union (EU). This Annual Report is prepared in accordance with IAS 1 Presentation of Financial Statements and the Swedish Annual Accounts Act. In addition, RFR 1 Supplementary Rules for Groups has been applied, which is issued by the Swe dish Sustainability and Financial Reporting Board. Amounts in SEK M unless otherwise specified. The amounts within parentheses refer to the preceding year. 1:1 Accounting policies Note IFRS standard Acquisitions and divestments 3 Acquisitions and divestments of operations IFRS 3, IFRS 10 Assets and liabilities held for sale and discontinued operations 3 Acquisitions and divestments of operations IFRS 5, IFRS 13 Joint ventures 5 Investments in joint ventures, associated companies and other shares and participations IFRS 11, IFRS 12, IAS 28 Associated companies 5 Investments in joint ventures, associated companies and other shares and participations IFRS 12, IAS 28 Other shares and participations 5 Investments in joint ventures, associated companies and other shares and participations IFRS 7, IFRS 9, IFRS 13, IAS 28, IAS 32 Operating segments 6 Segment reporting IFRS 8 Revenue 7 Revenue IFRS 9, IFRS 15, IFRS 16 Financial income and expenses 9 Other financial income and expenses IFRS 9 Income taxes 10 Income taxes IAS 12 Non-controlling interest 11 Non-controlling interest IFRS 10, IFRS 12 Research and development 12 Intangible assets IAS 36, IAS 38 Goodwill 12 Intangible assets IFRS 3, IAS 36, IAS 38 Tangible assets 13 Tangible assets IFRS 13, IFRS 16, IAS 16, IAS 36, IAS 40 Leasing 14 Leasing IFRS 16 Inventories 17 Inventories IAS 2 Earnings per share 19 Equity and number of shares IAS 33 Pensions and similar obligations 20 Provisions for post-employment benefits IFRS 2, IAS 19 Residual value risks 21 Other provisions IFRS 15, IAS 37 Product warranty 21 Other provisions IAS 37 Restructuring costs 21 Other provisions IAS 19, IAS 37 Extended coverage and service contracts 21 Other provisions IFRS 15, IAS 37 Insurance operations 21 Other provisions IFRS 4 Contingent liabilities and financial commit- ments 24 Contingent liabilities and financial commitments IAS 37 Transactions with related parties 25 Transactions with related parties IAS 24 Government grants 26 Government grants IAS 20 Incentive programs 27 Personnel IFRS 2, IAS 19 Cash flow statement 29 Cash flow IAS 7 Financial instruments 4 Goals and policies in financial risk management IFRS 7, IFRS 9 15 Customer-financing receivables IFRS 7, IFRS 9, IFRS 13, IFRS 16, IAS 32 16 Receivables IFRS 7, IFRS 9, IFRS 13, IAS 32 18 Cash and cash equivalents IFRS 7, IFRS 9, IFRS 13, IAS 32 22 Liabilities IFRS 7, IFRS 9, IFRS 13, IAS 32 30 Financial instruments IFRS 7, IFRS 9, IFRS 13, IAS 32 VOLVO GROUP\u2019S ACCOUNTING POLICIES The Volvo Group describes the most material accounting policies in con- junction with each note with the aim of providing enhanced understand- ing of each accounting area. The Volvo Group focuses on describing the accounting choices made within the framework of the prevailing IFRS standard and avoids repeating the actual text of the standard, unless the Volvo Group considers it particularly important to the understanding of the note\u2019s content. The following symbols I/S and B/S show if amounts in the notes can be found in the income statement or balance sheet. The total amount in tables and statements might not always summarize as there are rounding differences. The aim is to have each line item corre- sponding to the source and it might therefore be rounding differences in the total. Refer to table 1:1 to see in which note each accounting policy can be found and the applicable IFRS standard with material impact. Consolidated financial statements Principles for consolidation The consolidated financial statements comprise the parent company and sub- sidiaries over which the parent company exercises control. Control over a sub- sidiary exists when the Volvo Group is exposed, or has rights, to variable returns from its involvement with the subsidiary and has the ability to affect those returns through its power over the company. Joint ventures and associ- ated companies are recognized by applying the equity method accounting, when the Volvo Group has joint control or exercise significant influence. Intra- group trans actions as well as gains on transactions with joint ventures and associated companies are eliminated in the consolidated financial statements. Read more in Note 3 Acquisitions and divestment of operations. Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Read more in Note 11 Non-controlling interest. Translation to Swedish kronor when consolidating companies that have other functional currencies The functional currency of each Volvo Group company is determined based on the primary economic environment in which the company oper- ates. The primary economic environment is normally in which the com- pany primarily generates and expends cash. The functional currency is in most cases, the currency in the country where the company is located. AB Volvo\u2019s and the Volvo Group\u2019s presentation currency is SEK. In preparing the consolidated financial statements, items in the income statements of foreign subsidiaries are translated to SEK using monthly average exchange rates. Balance sheet items are translated into SEK using exchange rates at year end (closing rate). Exchange rate changes are recognized in other comprehensive income and accumulated in equity. Accumulated exchange rate changes related to a certain subsidiary, joint venture or associated company are reversed to the income state- ment as a part of the gain or loss arising from disposal of the company. Receivables and liabilities in foreign currency Receivables and liabilities in currencies other than the functional currency of the reporting entity (foreign currencies) are translated to the functional currency using the closing rate. Exchange rate changes arising from oper- ating assets and liabilities impact operating income while exchange rate changes arising from financial assets and liabilities impact other financial income and expenses. Interest-bearing financial assets and liabilities are defined as items included in the net financial position of the Volvo Group (see section Key ratios). Read more in Note 4 Goals and policies in financial risk management, about currency exposure and currency risk management. The most important exchange rates used in the consolidated financial state- ments are shown in table 1:2. 1:2 Exchange rates Average rate Closing rate, Dec 31 Country Currency 2023 2022 2023 2022 Australia AUD 7.0474 7.0136 6.8178 7.0892 Brazil BRL 2.1263 1.9616 2.0572 1.9746 Canada CAD 7.8644 7.7712 7.5401 7.7060 China CNY 1.4983 1.5018 1.4075 1.5017 Euro Zone EUR 11.4770 10.6300 11.0542 11.1283 Great Britain GBP 13.1980 12.4672 12.7286 12.5811 Norway NOK 1.0054 1.0523 0.9803 1.0572 South Africa ZAR 0.5757 0.6182 0.5383 0.6146 South Korea KRW 0.0081 0.0078 0.0077 0.0083 United States USD 10.6134 10.1245 9.9830 10.4371 New accounting policies 2023 International Tax Reform - Pillar Two Model Rules As from January 1, 2023, the Volvo Group applies the amendments to IAS 12 Income Taxes related to the International Tax Reform - Pillar Two Model Rules. The amendments include disclosure requirements of the tax expo- sure and an exception to recognize and disclose deferred taxes related to Pillar Two Model Rules, which are disclosed in Note 10 Income Taxes. No other new or revised accounting standards or interpretations effec- tive from January 1, 2023 have materially affected the Volvo Group\u2019s financial statements. New long-term incentive plan In 2023, a new long-term incentive plan was adopted by the Annual Gen- eral Meeting. The plan is partly accounted for in accordance with IFRS 2 Share-based payments. More information of the new long-term incentive plan is disclosed in Note 27 Personnel. New accounting policies 2024 and later Supplier Finance Arrangements As from January 1, 2024, IAS 7 and IFRS 7 is amended by adding disclo- sure requirements, both qualitative and quantitative, regarding supplier finance arrangements. No other new and revised accounting standards and interpretations that have been published and are effective from 2024 and later are con- sidered to have a material impact on the Volvo Group\u2019s financial state- ments. ", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-935": { "value": "1 Accounting policies The consolidated financial statements for AB Volvo (publ) and its subsidiaries are prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), as adopted by the European Union (EU). This Annual Report is prepared in accordance with IAS 1 Presentation of Financial Statements and the Swedish Annual Accounts Act. In addition, RFR 1 Supplementary Rules for Groups has been applied, which is issued by the Swe dish Sustainability and Financial Reporting Board. Amounts in SEK M unless otherwise specified. The amounts within parentheses refer to the preceding year. 1:1 Accounting policies Note IFRS standard Acquisitions and divestments 3 Acquisitions and divestments of operations IFRS 3, IFRS 10 Assets and liabilities held for sale and discontinued operations 3 Acquisitions and divestments of operations IFRS 5, IFRS 13 Joint ventures 5 Investments in joint ventures, associated companies and other shares and participations IFRS 11, IFRS 12, IAS 28 Associated companies 5 Investments in joint ventures, associated companies and other shares and participations IFRS 12, IAS 28 Other shares and participations 5 Investments in joint ventures, associated companies and other shares and participations IFRS 7, IFRS 9, IFRS 13, IAS 28, IAS 32 Operating segments 6 Segment reporting IFRS 8 Revenue 7 Revenue IFRS 9, IFRS 15, IFRS 16 Financial income and expenses 9 Other financial income and expenses IFRS 9 Income taxes 10 Income taxes IAS 12 Non-controlling interest 11 Non-controlling interest IFRS 10, IFRS 12 Research and development 12 Intangible assets IAS 36, IAS 38 Goodwill 12 Intangible assets IFRS 3, IAS 36, IAS 38 Tangible assets 13 Tangible assets IFRS 13, IFRS 16, IAS 16, IAS 36, IAS 40 Leasing 14 Leasing IFRS 16 Inventories 17 Inventories IAS 2 Earnings per share 19 Equity and number of shares IAS 33 Pensions and similar obligations 20 Provisions for post-employment benefits IFRS 2, IAS 19 Residual value risks 21 Other provisions IFRS 15, IAS 37 Product warranty 21 Other provisions IAS 37 Restructuring costs 21 Other provisions IAS 19, IAS 37 Extended coverage and service contracts 21 Other provisions IFRS 15, IAS 37 Insurance operations 21 Other provisions IFRS 4 Contingent liabilities and financial commit- ments 24 Contingent liabilities and financial commitments IAS 37 Transactions with related parties 25 Transactions with related parties IAS 24 Government grants 26 Government grants IAS 20 Incentive programs 27 Personnel IFRS 2, IAS 19 Cash flow statement 29 Cash flow IAS 7 Financial instruments 4 Goals and policies in financial risk management IFRS 7, IFRS 9 15 Customer-financing receivables IFRS 7, IFRS 9, IFRS 13, IFRS 16, IAS 32 16 Receivables IFRS 7, IFRS 9, IFRS 13, IAS 32 18 Cash and cash equivalents IFRS 7, IFRS 9, IFRS 13, IAS 32 22 Liabilities IFRS 7, IFRS 9, IFRS 13, IAS 32 30 Financial instruments IFRS 7, IFRS 9, IFRS 13, IAS 32 VOLVO GROUP\u2019S ACCOUNTING POLICIES The Volvo Group describes the most material accounting policies in con- junction with each note with the aim of providing enhanced understand- ing of each accounting area. The Volvo Group focuses on describing the accounting choices made within the framework of the prevailing IFRS standard and avoids repeating the actual text of the standard, unless the Volvo Group considers it particularly important to the understanding of the note\u2019s content. The following symbols I/S and B/S show if amounts in the notes can be found in the income statement or balance sheet. The total amount in tables and statements might not always summarize as there are rounding differences. The aim is to have each line item corre- sponding to the source and it might therefore be rounding differences in the total. Refer to table 1:1 to see in which note each accounting policy can be found and the applicable IFRS standard with material impact. Consolidated financial statements Principles for consolidation The consolidated financial statements comprise the parent company and sub- sidiaries over which the parent company exercises control. Control over a sub- sidiary exists when the Volvo Group is exposed, or has rights, to variable returns from its involvement with the subsidiary and has the ability to affect those returns through its power over the company. Joint ventures and associ- ated companies are recognized by applying the equity method accounting, when the Volvo Group has joint control or exercise significant influence. Intra- group trans actions as well as gains on transactions with joint ventures and associated companies are eliminated in the consolidated financial statements. Read more in Note 3 Acquisitions and divestment of operations. Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Read more in Note 11 Non-controlling interest. Translation to Swedish kronor when consolidating companies that have other functional currencies The functional currency of each Volvo Group company is determined based on the primary economic environment in which the company oper- ates. The primary economic environment is normally in which the com- pany primarily generates and expends cash. The functional currency is in most cases, the currency in the country where the company is located. AB Volvo\u2019s and the Volvo Group\u2019s presentation currency is SEK. In preparing the consolidated financial statements, items in the income statements of foreign subsidiaries are translated to SEK using monthly average exchange rates. Balance sheet items are translated into SEK using exchange rates at year end (closing rate). Exchange rate changes are recognized in other comprehensive income and accumulated in equity. Accumulated exchange rate changes related to a certain subsidiary, joint venture or associated company are reversed to the income state- ment as a part of the gain or loss arising from disposal of the company. Receivables and liabilities in foreign currency Receivables and liabilities in currencies other than the functional currency of the reporting entity (foreign currencies) are translated to the functional currency using the closing rate. Exchange rate changes arising from oper- ating assets and liabilities impact operating income while exchange rate changes arising from financial assets and liabilities impact other financial income and expenses. Interest-bearing financial assets and liabilities are defined as items included in the net financial position of the Volvo Group (see section Key ratios). Read more in Note 4 Goals and policies in financial risk management, about currency exposure and currency risk management. The most important exchange rates used in the consolidated financial state- ments are shown in table 1:2. 1:2 Exchange rates Average rate Closing rate, Dec 31 Country Currency 2023 2022 2023 2022 Australia AUD 7.0474 7.0136 6.8178 7.0892 Brazil BRL 2.1263 1.9616 2.0572 1.9746 Canada CAD 7.8644 7.7712 7.5401 7.7060 China CNY 1.4983 1.5018 1.4075 1.5017 Euro Zone EUR 11.4770 10.6300 11.0542 11.1283 Great Britain GBP 13.1980 12.4672 12.7286 12.5811 Norway NOK 1.0054 1.0523 0.9803 1.0572 South Africa ZAR 0.5757 0.6182 0.5383 0.6146 South Korea KRW 0.0081 0.0078 0.0077 0.0083 United States USD 10.6134 10.1245 9.9830 10.4371 New accounting policies 2023 International Tax Reform - Pillar Two Model Rules As from January 1, 2023, the Volvo Group applies the amendments to IAS 12 Income Taxes related to the International Tax Reform - Pillar Two Model Rules. The amendments include disclosure requirements of the tax expo- sure and an exception to recognize and disclose deferred taxes related to Pillar Two Model Rules, which are disclosed in Note 10 Income Taxes. No other new or revised accounting standards or interpretations effec- tive from January 1, 2023 have materially affected the Volvo Group\u2019s financial statements. New long-term incentive plan In 2023, a new long-term incentive plan was adopted by the Annual Gen- eral Meeting. The plan is partly accounted for in accordance with IFRS 2 Share-based payments. More information of the new long-term incentive plan is disclosed in Note 27 Personnel. New accounting policies 2024 and later Supplier Finance Arrangements As from January 1, 2024, IAS 7 and IFRS 7 is amended by adding disclo- sure requirements, both qualitative and quantitative, regarding supplier finance arrangements. No other new and revised accounting standards and interpretations that have been published and are effective from 2024 and later are con- sidered to have a material impact on the Volvo Group\u2019s financial state- ments. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-936": { "value": "1 Accounting policies The consolidated financial statements for AB Volvo (publ) and its subsidiaries are prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), as adopted by the European Union (EU). This Annual Report is prepared in accordance with IAS 1 Presentation of Financial Statements and the Swedish Annual Accounts Act. In addition, RFR 1 Supplementary Rules for Groups has been applied, which is issued by the Swe dish Sustainability and Financial Reporting Board. Amounts in SEK M unless otherwise specified. The amounts within parentheses refer to the preceding year. 1:1 Accounting policies Note IFRS standard Acquisitions and divestments 3 Acquisitions and divestments of operations IFRS 3, IFRS 10 Assets and liabilities held for sale and discontinued operations 3 Acquisitions and divestments of operations IFRS 5, IFRS 13 Joint ventures 5 Investments in joint ventures, associated companies and other shares and participations IFRS 11, IFRS 12, IAS 28 Associated companies 5 Investments in joint ventures, associated companies and other shares and participations IFRS 12, IAS 28 Other shares and participations 5 Investments in joint ventures, associated companies and other shares and participations IFRS 7, IFRS 9, IFRS 13, IAS 28, IAS 32 Operating segments 6 Segment reporting IFRS 8 Revenue 7 Revenue IFRS 9, IFRS 15, IFRS 16 Financial income and expenses 9 Other financial income and expenses IFRS 9 Income taxes 10 Income taxes IAS 12 Non-controlling interest 11 Non-controlling interest IFRS 10, IFRS 12 Research and development 12 Intangible assets IAS 36, IAS 38 Goodwill 12 Intangible assets IFRS 3, IAS 36, IAS 38 Tangible assets 13 Tangible assets IFRS 13, IFRS 16, IAS 16, IAS 36, IAS 40 Leasing 14 Leasing IFRS 16 Inventories 17 Inventories IAS 2 Earnings per share 19 Equity and number of shares IAS 33 Pensions and similar obligations 20 Provisions for post-employment benefits IFRS 2, IAS 19 Residual value risks 21 Other provisions IFRS 15, IAS 37 Product warranty 21 Other provisions IAS 37 Restructuring costs 21 Other provisions IAS 19, IAS 37 Extended coverage and service contracts 21 Other provisions IFRS 15, IAS 37 Insurance operations 21 Other provisions IFRS 4 Contingent liabilities and financial commit- ments 24 Contingent liabilities and financial commitments IAS 37 Transactions with related parties 25 Transactions with related parties IAS 24 Government grants 26 Government grants IAS 20 Incentive programs 27 Personnel IFRS 2, IAS 19 Cash flow statement 29 Cash flow IAS 7 Financial instruments 4 Goals and policies in financial risk management IFRS 7, IFRS 9 15 Customer-financing receivables IFRS 7, IFRS 9, IFRS 13, IFRS 16, IAS 32 16 Receivables IFRS 7, IFRS 9, IFRS 13, IAS 32 18 Cash and cash equivalents IFRS 7, IFRS 9, IFRS 13, IAS 32 22 Liabilities IFRS 7, IFRS 9, IFRS 13, IAS 32 30 Financial instruments IFRS 7, IFRS 9, IFRS 13, IAS 32 VOLVO GROUP\u2019S ACCOUNTING POLICIES The Volvo Group describes the most material accounting policies in con- junction with each note with the aim of providing enhanced understand- ing of each accounting area. The Volvo Group focuses on describing the accounting choices made within the framework of the prevailing IFRS standard and avoids repeating the actual text of the standard, unless the Volvo Group considers it particularly important to the understanding of the note\u2019s content. The following symbols I/S and B/S show if amounts in the notes can be found in the income statement or balance sheet. The total amount in tables and statements might not always summarize as there are rounding differences. The aim is to have each line item corre- sponding to the source and it might therefore be rounding differences in the total. Refer to table 1:1 to see in which note each accounting policy can be found and the applicable IFRS standard with material impact. Consolidated financial statements Principles for consolidation The consolidated financial statements comprise the parent company and sub- sidiaries over which the parent company exercises control. Control over a sub- sidiary exists when the Volvo Group is exposed, or has rights, to variable returns from its involvement with the subsidiary and has the ability to affect those returns through its power over the company. Joint ventures and associ- ated companies are recognized by applying the equity method accounting, when the Volvo Group has joint control or exercise significant influence. Intra- group trans actions as well as gains on transactions with joint ventures and associated companies are eliminated in the consolidated financial statements. Read more in Note 3 Acquisitions and divestment of operations. Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Read more in Note 11 Non-controlling interest. Translation to Swedish kronor when consolidating companies that have other functional currencies The functional currency of each Volvo Group company is determined based on the primary economic environment in which the company oper- ates. The primary economic environment is normally in which the com- pany primarily generates and expends cash. The functional currency is in most cases, the currency in the country where the company is located. AB Volvo\u2019s and the Volvo Group\u2019s presentation currency is SEK. In preparing the consolidated financial statements, items in the income statements of foreign subsidiaries are translated to SEK using monthly average exchange rates. Balance sheet items are translated into SEK using exchange rates at year end (closing rate). Exchange rate changes are recognized in other comprehensive income and accumulated in equity. Accumulated exchange rate changes related to a certain subsidiary, joint venture or associated company are reversed to the income state- ment as a part of the gain or loss arising from disposal of the company. Receivables and liabilities in foreign currency Receivables and liabilities in currencies other than the functional currency of the reporting entity (foreign currencies) are translated to the functional currency using the closing rate. Exchange rate changes arising from oper- ating assets and liabilities impact operating income while exchange rate changes arising from financial assets and liabilities impact other financial income and expenses. Interest-bearing financial assets and liabilities are defined as items included in the net financial position of the Volvo Group (see section Key ratios). Read more in Note 4 Goals and policies in financial risk management, about currency exposure and currency risk management. The most important exchange rates used in the consolidated financial state- ments are shown in table 1:2. 1:2 Exchange rates Average rate Closing rate, Dec 31 Country Currency 2023 2022 2023 2022 Australia AUD 7.0474 7.0136 6.8178 7.0892 Brazil BRL 2.1263 1.9616 2.0572 1.9746 Canada CAD 7.8644 7.7712 7.5401 7.7060 China CNY 1.4983 1.5018 1.4075 1.5017 Euro Zone EUR 11.4770 10.6300 11.0542 11.1283 Great Britain GBP 13.1980 12.4672 12.7286 12.5811 Norway NOK 1.0054 1.0523 0.9803 1.0572 South Africa ZAR 0.5757 0.6182 0.5383 0.6146 South Korea KRW 0.0081 0.0078 0.0077 0.0083 United States USD 10.6134 10.1245 9.9830 10.4371 New accounting policies 2023 International Tax Reform - Pillar Two Model Rules As from January 1, 2023, the Volvo Group applies the amendments to IAS 12 Income Taxes related to the International Tax Reform - Pillar Two Model Rules. The amendments include disclosure requirements of the tax expo- sure and an exception to recognize and disclose deferred taxes related to Pillar Two Model Rules, which are disclosed in Note 10 Income Taxes. No other new or revised accounting standards or interpretations effec- tive from January 1, 2023 have materially affected the Volvo Group\u2019s financial statements. New long-term incentive plan In 2023, a new long-term incentive plan was adopted by the Annual Gen- eral Meeting. The plan is partly accounted for in accordance with IFRS 2 Share-based payments. More information of the new long-term incentive plan is disclosed in Note 27 Personnel. New accounting policies 2024 and later Supplier Finance Arrangements As from January 1, 2024, IAS 7 and IFRS 7 is amended by adding disclo- sure requirements, both qualitative and quantitative, regarding supplier finance arrangements. No other new and revised accounting standards and interpretations that have been published and are effective from 2024 and later are con- sidered to have a material impact on the Volvo Group\u2019s financial state- ments. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-937": { "value": "1 Accounting policies The consolidated financial statements for AB Volvo (publ) and its subsidiaries are prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), as adopted by the European Union (EU). This Annual Report is prepared in accordance with IAS 1 Presentation of Financial Statements and the Swedish Annual Accounts Act. In addition, RFR 1 Supplementary Rules for Groups has been applied, which is issued by the Swe dish Sustainability and Financial Reporting Board. Amounts in SEK M unless otherwise specified. The amounts within parentheses refer to the preceding year. 1:1 Accounting policies Note IFRS standard Acquisitions and divestments 3 Acquisitions and divestments of operations IFRS 3, IFRS 10 Assets and liabilities held for sale and discontinued operations 3 Acquisitions and divestments of operations IFRS 5, IFRS 13 Joint ventures 5 Investments in joint ventures, associated companies and other shares and participations IFRS 11, IFRS 12, IAS 28 Associated companies 5 Investments in joint ventures, associated companies and other shares and participations IFRS 12, IAS 28 Other shares and participations 5 Investments in joint ventures, associated companies and other shares and participations IFRS 7, IFRS 9, IFRS 13, IAS 28, IAS 32 Operating segments 6 Segment reporting IFRS 8 Revenue 7 Revenue IFRS 9, IFRS 15, IFRS 16 Financial income and expenses 9 Other financial income and expenses IFRS 9 Income taxes 10 Income taxes IAS 12 Non-controlling interest 11 Non-controlling interest IFRS 10, IFRS 12 Research and development 12 Intangible assets IAS 36, IAS 38 Goodwill 12 Intangible assets IFRS 3, IAS 36, IAS 38 Tangible assets 13 Tangible assets IFRS 13, IFRS 16, IAS 16, IAS 36, IAS 40 Leasing 14 Leasing IFRS 16 Inventories 17 Inventories IAS 2 Earnings per share 19 Equity and number of shares IAS 33 Pensions and similar obligations 20 Provisions for post-employment benefits IFRS 2, IAS 19 Residual value risks 21 Other provisions IFRS 15, IAS 37 Product warranty 21 Other provisions IAS 37 Restructuring costs 21 Other provisions IAS 19, IAS 37 Extended coverage and service contracts 21 Other provisions IFRS 15, IAS 37 Insurance operations 21 Other provisions IFRS 4 Contingent liabilities and financial commit- ments 24 Contingent liabilities and financial commitments IAS 37 Transactions with related parties 25 Transactions with related parties IAS 24 Government grants 26 Government grants IAS 20 Incentive programs 27 Personnel IFRS 2, IAS 19 Cash flow statement 29 Cash flow IAS 7 Financial instruments 4 Goals and policies in financial risk management IFRS 7, IFRS 9 15 Customer-financing receivables IFRS 7, IFRS 9, IFRS 13, IFRS 16, IAS 32 16 Receivables IFRS 7, IFRS 9, IFRS 13, IAS 32 18 Cash and cash equivalents IFRS 7, IFRS 9, IFRS 13, IAS 32 22 Liabilities IFRS 7, IFRS 9, IFRS 13, IAS 32 30 Financial instruments IFRS 7, IFRS 9, IFRS 13, IAS 32 VOLVO GROUP\u2019S ACCOUNTING POLICIES The Volvo Group describes the most material accounting policies in con- junction with each note with the aim of providing enhanced understand- ing of each accounting area. The Volvo Group focuses on describing the accounting choices made within the framework of the prevailing IFRS standard and avoids repeating the actual text of the standard, unless the Volvo Group considers it particularly important to the understanding of the note\u2019s content. The following symbols I/S and B/S show if amounts in the notes can be found in the income statement or balance sheet. The total amount in tables and statements might not always summarize as there are rounding differences. The aim is to have each line item corre- sponding to the source and it might therefore be rounding differences in the total. Refer to table 1:1 to see in which note each accounting policy can be found and the applicable IFRS standard with material impact. Consolidated financial statements Principles for consolidation The consolidated financial statements comprise the parent company and sub- sidiaries over which the parent company exercises control. Control over a sub- sidiary exists when the Volvo Group is exposed, or has rights, to variable returns from its involvement with the subsidiary and has the ability to affect those returns through its power over the company. Joint ventures and associ- ated companies are recognized by applying the equity method accounting, when the Volvo Group has joint control or exercise significant influence. Intra- group trans actions as well as gains on transactions with joint ventures and associated companies are eliminated in the consolidated financial statements. Read more in Note 3 Acquisitions and divestment of operations. Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Read more in Note 11 Non-controlling interest. Translation to Swedish kronor when consolidating companies that have other functional currencies The functional currency of each Volvo Group company is determined based on the primary economic environment in which the company oper- ates. The primary economic environment is normally in which the com- pany primarily generates and expends cash. The functional currency is in most cases, the currency in the country where the company is located. AB Volvo\u2019s and the Volvo Group\u2019s presentation currency is SEK. In preparing the consolidated financial statements, items in the income statements of foreign subsidiaries are translated to SEK using monthly average exchange rates. Balance sheet items are translated into SEK using exchange rates at year end (closing rate). Exchange rate changes are recognized in other comprehensive income and accumulated in equity. Accumulated exchange rate changes related to a certain subsidiary, joint venture or associated company are reversed to the income state- ment as a part of the gain or loss arising from disposal of the company. Receivables and liabilities in foreign currency Receivables and liabilities in currencies other than the functional currency of the reporting entity (foreign currencies) are translated to the functional currency using the closing rate. Exchange rate changes arising from oper- ating assets and liabilities impact operating income while exchange rate changes arising from financial assets and liabilities impact other financial income and expenses. Interest-bearing financial assets and liabilities are defined as items included in the net financial position of the Volvo Group (see section Key ratios). Read more in Note 4 Goals and policies in financial risk management, about currency exposure and currency risk management. The most important exchange rates used in the consolidated financial state- ments are shown in table 1:2. 1:2 Exchange rates Average rate Closing rate, Dec 31 Country Currency 2023 2022 2023 2022 Australia AUD 7.0474 7.0136 6.8178 7.0892 Brazil BRL 2.1263 1.9616 2.0572 1.9746 Canada CAD 7.8644 7.7712 7.5401 7.7060 China CNY 1.4983 1.5018 1.4075 1.5017 Euro Zone EUR 11.4770 10.6300 11.0542 11.1283 Great Britain GBP 13.1980 12.4672 12.7286 12.5811 Norway NOK 1.0054 1.0523 0.9803 1.0572 South Africa ZAR 0.5757 0.6182 0.5383 0.6146 South Korea KRW 0.0081 0.0078 0.0077 0.0083 United States USD 10.6134 10.1245 9.9830 10.4371 New accounting policies 2023 International Tax Reform - Pillar Two Model Rules As from January 1, 2023, the Volvo Group applies the amendments to IAS 12 Income Taxes related to the International Tax Reform - Pillar Two Model Rules. The amendments include disclosure requirements of the tax expo- sure and an exception to recognize and disclose deferred taxes related to Pillar Two Model Rules, which are disclosed in Note 10 Income Taxes. No other new or revised accounting standards or interpretations effec- tive from January 1, 2023 have materially affected the Volvo Group\u2019s financial statements. New long-term incentive plan In 2023, a new long-term incentive plan was adopted by the Annual Gen- eral Meeting. The plan is partly accounted for in accordance with IFRS 2 Share-based payments. More information of the new long-term incentive plan is disclosed in Note 27 Personnel. New accounting policies 2024 and later Supplier Finance Arrangements As from January 1, 2024, IAS 7 and IFRS 7 is amended by adding disclo- sure requirements, both qualitative and quantitative, regarding supplier finance arrangements. No other new and revised accounting standards and interpretations that have been published and are effective from 2024 and later are con- sidered to have a material impact on the Volvo Group\u2019s financial state- ments. ", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-938": { "value": "1 Accounting policies The consolidated financial statements for AB Volvo (publ) and its subsidiaries are prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), as adopted by the European Union (EU). This Annual Report is prepared in accordance with IAS 1 Presentation of Financial Statements and the Swedish Annual Accounts Act. In addition, RFR 1 Supplementary Rules for Groups has been applied, which is issued by the Swe dish Sustainability and Financial Reporting Board. Amounts in SEK M unless otherwise specified. The amounts within parentheses refer to the preceding year. 1:1 Accounting policies Note IFRS standard Acquisitions and divestments 3 Acquisitions and divestments of operations IFRS 3, IFRS 10 Assets and liabilities held for sale and discontinued operations 3 Acquisitions and divestments of operations IFRS 5, IFRS 13 Joint ventures 5 Investments in joint ventures, associated companies and other shares and participations IFRS 11, IFRS 12, IAS 28 Associated companies 5 Investments in joint ventures, associated companies and other shares and participations IFRS 12, IAS 28 Other shares and participations 5 Investments in joint ventures, associated companies and other shares and participations IFRS 7, IFRS 9, IFRS 13, IAS 28, IAS 32 Operating segments 6 Segment reporting IFRS 8 Revenue 7 Revenue IFRS 9, IFRS 15, IFRS 16 Financial income and expenses 9 Other financial income and expenses IFRS 9 Income taxes 10 Income taxes IAS 12 Non-controlling interest 11 Non-controlling interest IFRS 10, IFRS 12 Research and development 12 Intangible assets IAS 36, IAS 38 Goodwill 12 Intangible assets IFRS 3, IAS 36, IAS 38 Tangible assets 13 Tangible assets IFRS 13, IFRS 16, IAS 16, IAS 36, IAS 40 Leasing 14 Leasing IFRS 16 Inventories 17 Inventories IAS 2 Earnings per share 19 Equity and number of shares IAS 33 Pensions and similar obligations 20 Provisions for post-employment benefits IFRS 2, IAS 19 Residual value risks 21 Other provisions IFRS 15, IAS 37 Product warranty 21 Other provisions IAS 37 Restructuring costs 21 Other provisions IAS 19, IAS 37 Extended coverage and service contracts 21 Other provisions IFRS 15, IAS 37 Insurance operations 21 Other provisions IFRS 4 Contingent liabilities and financial commit- ments 24 Contingent liabilities and financial commitments IAS 37 Transactions with related parties 25 Transactions with related parties IAS 24 Government grants 26 Government grants IAS 20 Incentive programs 27 Personnel IFRS 2, IAS 19 Cash flow statement 29 Cash flow IAS 7 Financial instruments 4 Goals and policies in financial risk management IFRS 7, IFRS 9 15 Customer-financing receivables IFRS 7, IFRS 9, IFRS 13, IFRS 16, IAS 32 16 Receivables IFRS 7, IFRS 9, IFRS 13, IAS 32 18 Cash and cash equivalents IFRS 7, IFRS 9, IFRS 13, IAS 32 22 Liabilities IFRS 7, IFRS 9, IFRS 13, IAS 32 30 Financial instruments IFRS 7, IFRS 9, IFRS 13, IAS 32 VOLVO GROUP\u2019S ACCOUNTING POLICIES The Volvo Group describes the most material accounting policies in con- junction with each note with the aim of providing enhanced understand- ing of each accounting area. The Volvo Group focuses on describing the accounting choices made within the framework of the prevailing IFRS standard and avoids repeating the actual text of the standard, unless the Volvo Group considers it particularly important to the understanding of the note\u2019s content. The following symbols I/S and B/S show if amounts in the notes can be found in the income statement or balance sheet. The total amount in tables and statements might not always summarize as there are rounding differences. The aim is to have each line item corre- sponding to the source and it might therefore be rounding differences in the total. Refer to table 1:1 to see in which note each accounting policy can be found and the applicable IFRS standard with material impact. Consolidated financial statements Principles for consolidation The consolidated financial statements comprise the parent company and sub- sidiaries over which the parent company exercises control. Control over a sub- sidiary exists when the Volvo Group is exposed, or has rights, to variable returns from its involvement with the subsidiary and has the ability to affect those returns through its power over the company. Joint ventures and associ- ated companies are recognized by applying the equity method accounting, when the Volvo Group has joint control or exercise significant influence. Intra- group trans actions as well as gains on transactions with joint ventures and associated companies are eliminated in the consolidated financial statements. Read more in Note 3 Acquisitions and divestment of operations. Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Read more in Note 11 Non-controlling interest. Translation to Swedish kronor when consolidating companies that have other functional currencies The functional currency of each Volvo Group company is determined based on the primary economic environment in which the company oper- ates. The primary economic environment is normally in which the com- pany primarily generates and expends cash. The functional currency is in most cases, the currency in the country where the company is located. AB Volvo\u2019s and the Volvo Group\u2019s presentation currency is SEK. In preparing the consolidated financial statements, items in the income statements of foreign subsidiaries are translated to SEK using monthly average exchange rates. Balance sheet items are translated into SEK using exchange rates at year end (closing rate). Exchange rate changes are recognized in other comprehensive income and accumulated in equity. Accumulated exchange rate changes related to a certain subsidiary, joint venture or associated company are reversed to the income state- ment as a part of the gain or loss arising from disposal of the company. Receivables and liabilities in foreign currency Receivables and liabilities in currencies other than the functional currency of the reporting entity (foreign currencies) are translated to the functional currency using the closing rate. Exchange rate changes arising from oper- ating assets and liabilities impact operating income while exchange rate changes arising from financial assets and liabilities impact other financial income and expenses. Interest-bearing financial assets and liabilities are defined as items included in the net financial position of the Volvo Group (see section Key ratios). Read more in Note 4 Goals and policies in financial risk management, about currency exposure and currency risk management. The most important exchange rates used in the consolidated financial state- ments are shown in table 1:2. 1:2 Exchange rates Average rate Closing rate, Dec 31 Country Currency 2023 2022 2023 2022 Australia AUD 7.0474 7.0136 6.8178 7.0892 Brazil BRL 2.1263 1.9616 2.0572 1.9746 Canada CAD 7.8644 7.7712 7.5401 7.7060 China CNY 1.4983 1.5018 1.4075 1.5017 Euro Zone EUR 11.4770 10.6300 11.0542 11.1283 Great Britain GBP 13.1980 12.4672 12.7286 12.5811 Norway NOK 1.0054 1.0523 0.9803 1.0572 South Africa ZAR 0.5757 0.6182 0.5383 0.6146 South Korea KRW 0.0081 0.0078 0.0077 0.0083 United States USD 10.6134 10.1245 9.9830 10.4371 New accounting policies 2023 International Tax Reform - Pillar Two Model Rules As from January 1, 2023, the Volvo Group applies the amendments to IAS 12 Income Taxes related to the International Tax Reform - Pillar Two Model Rules. The amendments include disclosure requirements of the tax expo- sure and an exception to recognize and disclose deferred taxes related to Pillar Two Model Rules, which are disclosed in Note 10 Income Taxes. No other new or revised accounting standards or interpretations effec- tive from January 1, 2023 have materially affected the Volvo Group\u2019s financial statements. New long-term incentive plan In 2023, a new long-term incentive plan was adopted by the Annual Gen- eral Meeting. The plan is partly accounted for in accordance with IFRS 2 Share-based payments. More information of the new long-term incentive plan is disclosed in Note 27 Personnel. New accounting policies 2024 and later Supplier Finance Arrangements As from January 1, 2024, IAS 7 and IFRS 7 is amended by adding disclo- sure requirements, both qualitative and quantitative, regarding supplier finance arrangements. No other new and revised accounting standards and interpretations that have been published and are effective from 2024 and later are con- sidered to have a material impact on the Volvo Group\u2019s financial state- ments. ", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-939": { "value": "1 Accounting policies The consolidated financial statements for AB Volvo (publ) and its subsidiaries are prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), as adopted by the European Union (EU). This Annual Report is prepared in accordance with IAS 1 Presentation of Financial Statements and the Swedish Annual Accounts Act. In addition, RFR 1 Supplementary Rules for Groups has been applied, which is issued by the Swe dish Sustainability and Financial Reporting Board. Amounts in SEK M unless otherwise specified. The amounts within parentheses refer to the preceding year. 1:1 Accounting policies Note IFRS standard Acquisitions and divestments 3 Acquisitions and divestments of operations IFRS 3, IFRS 10 Assets and liabilities held for sale and discontinued operations 3 Acquisitions and divestments of operations IFRS 5, IFRS 13 Joint ventures 5 Investments in joint ventures, associated companies and other shares and participations IFRS 11, IFRS 12, IAS 28 Associated companies 5 Investments in joint ventures, associated companies and other shares and participations IFRS 12, IAS 28 Other shares and participations 5 Investments in joint ventures, associated companies and other shares and participations IFRS 7, IFRS 9, IFRS 13, IAS 28, IAS 32 Operating segments 6 Segment reporting IFRS 8 Revenue 7 Revenue IFRS 9, IFRS 15, IFRS 16 Financial income and expenses 9 Other financial income and expenses IFRS 9 Income taxes 10 Income taxes IAS 12 Non-controlling interest 11 Non-controlling interest IFRS 10, IFRS 12 Research and development 12 Intangible assets IAS 36, IAS 38 Goodwill 12 Intangible assets IFRS 3, IAS 36, IAS 38 Tangible assets 13 Tangible assets IFRS 13, IFRS 16, IAS 16, IAS 36, IAS 40 Leasing 14 Leasing IFRS 16 Inventories 17 Inventories IAS 2 Earnings per share 19 Equity and number of shares IAS 33 Pensions and similar obligations 20 Provisions for post-employment benefits IFRS 2, IAS 19 Residual value risks 21 Other provisions IFRS 15, IAS 37 Product warranty 21 Other provisions IAS 37 Restructuring costs 21 Other provisions IAS 19, IAS 37 Extended coverage and service contracts 21 Other provisions IFRS 15, IAS 37 Insurance operations 21 Other provisions IFRS 4 Contingent liabilities and financial commit- ments 24 Contingent liabilities and financial commitments IAS 37 Transactions with related parties 25 Transactions with related parties IAS 24 Government grants 26 Government grants IAS 20 Incentive programs 27 Personnel IFRS 2, IAS 19 Cash flow statement 29 Cash flow IAS 7 Financial instruments 4 Goals and policies in financial risk management IFRS 7, IFRS 9 15 Customer-financing receivables IFRS 7, IFRS 9, IFRS 13, IFRS 16, IAS 32 16 Receivables IFRS 7, IFRS 9, IFRS 13, IAS 32 18 Cash and cash equivalents IFRS 7, IFRS 9, IFRS 13, IAS 32 22 Liabilities IFRS 7, IFRS 9, IFRS 13, IAS 32 30 Financial instruments IFRS 7, IFRS 9, IFRS 13, IAS 32 VOLVO GROUP\u2019S ACCOUNTING POLICIES The Volvo Group describes the most material accounting policies in con- junction with each note with the aim of providing enhanced understand- ing of each accounting area. The Volvo Group focuses on describing the accounting choices made within the framework of the prevailing IFRS standard and avoids repeating the actual text of the standard, unless the Volvo Group considers it particularly important to the understanding of the note\u2019s content. The following symbols I/S and B/S show if amounts in the notes can be found in the income statement or balance sheet. The total amount in tables and statements might not always summarize as there are rounding differences. The aim is to have each line item corre- sponding to the source and it might therefore be rounding differences in the total. Refer to table 1:1 to see in which note each accounting policy can be found and the applicable IFRS standard with material impact. Consolidated financial statements Principles for consolidation The consolidated financial statements comprise the parent company and sub- sidiaries over which the parent company exercises control. Control over a sub- sidiary exists when the Volvo Group is exposed, or has rights, to variable returns from its involvement with the subsidiary and has the ability to affect those returns through its power over the company. Joint ventures and associ- ated companies are recognized by applying the equity method accounting, when the Volvo Group has joint control or exercise significant influence. Intra- group trans actions as well as gains on transactions with joint ventures and associated companies are eliminated in the consolidated financial statements. Read more in Note 3 Acquisitions and divestment of operations. Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Read more in Note 11 Non-controlling interest. Translation to Swedish kronor when consolidating companies that have other functional currencies The functional currency of each Volvo Group company is determined based on the primary economic environment in which the company oper- ates. The primary economic environment is normally in which the com- pany primarily generates and expends cash. The functional currency is in most cases, the currency in the country where the company is located. AB Volvo\u2019s and the Volvo Group\u2019s presentation currency is SEK. In preparing the consolidated financial statements, items in the income statements of foreign subsidiaries are translated to SEK using monthly average exchange rates. Balance sheet items are translated into SEK using exchange rates at year end (closing rate). Exchange rate changes are recognized in other comprehensive income and accumulated in equity. Accumulated exchange rate changes related to a certain subsidiary, joint venture or associated company are reversed to the income state- ment as a part of the gain or loss arising from disposal of the company. Receivables and liabilities in foreign currency Receivables and liabilities in currencies other than the functional currency of the reporting entity (foreign currencies) are translated to the functional currency using the closing rate. Exchange rate changes arising from oper- ating assets and liabilities impact operating income while exchange rate changes arising from financial assets and liabilities impact other financial income and expenses. Interest-bearing financial assets and liabilities are defined as items included in the net financial position of the Volvo Group (see section Key ratios). Read more in Note 4 Goals and policies in financial risk management, about currency exposure and currency risk management. The most important exchange rates used in the consolidated financial state- ments are shown in table 1:2. 1:2 Exchange rates Average rate Closing rate, Dec 31 Country Currency 2023 2022 2023 2022 Australia AUD 7.0474 7.0136 6.8178 7.0892 Brazil BRL 2.1263 1.9616 2.0572 1.9746 Canada CAD 7.8644 7.7712 7.5401 7.7060 China CNY 1.4983 1.5018 1.4075 1.5017 Euro Zone EUR 11.4770 10.6300 11.0542 11.1283 Great Britain GBP 13.1980 12.4672 12.7286 12.5811 Norway NOK 1.0054 1.0523 0.9803 1.0572 South Africa ZAR 0.5757 0.6182 0.5383 0.6146 South Korea KRW 0.0081 0.0078 0.0077 0.0083 United States USD 10.6134 10.1245 9.9830 10.4371 New accounting policies 2023 International Tax Reform - Pillar Two Model Rules As from January 1, 2023, the Volvo Group applies the amendments to IAS 12 Income Taxes related to the International Tax Reform - Pillar Two Model Rules. The amendments include disclosure requirements of the tax expo- sure and an exception to recognize and disclose deferred taxes related to Pillar Two Model Rules, which are disclosed in Note 10 Income Taxes. No other new or revised accounting standards or interpretations effec- tive from January 1, 2023 have materially affected the Volvo Group\u2019s financial statements. New long-term incentive plan In 2023, a new long-term incentive plan was adopted by the Annual Gen- eral Meeting. The plan is partly accounted for in accordance with IFRS 2 Share-based payments. More information of the new long-term incentive plan is disclosed in Note 27 Personnel. New accounting policies 2024 and later Supplier Finance Arrangements As from January 1, 2024, IAS 7 and IFRS 7 is amended by adding disclo- sure requirements, both qualitative and quantitative, regarding supplier finance arrangements. No other new and revised accounting standards and interpretations that have been published and are effective from 2024 and later are con- sidered to have a material impact on the Volvo Group\u2019s financial state- ments. ", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-940": { "value": "The consolidated financial statements for AB Volvo (publ) and its subsidiaries are prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), as adopted by the European Union (EU). This Annual Report is prepared in accordance with IAS 1 Presentation of Financial Statements and the Swedish Annual Accounts Act. In addition, RFR 1 Supplementary Rules for Groups has been applied, which is issued by the Swe dish Sustainability and Financial Reporting Board. Amounts in SEK M unless otherwise specified. The amounts within parentheses refer to the preceding year. ", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-941": { "value": "AB Volvo (publ)", "dimensions": { "concept": "ifrs-full:NameOfReportingEntityOrOtherMeansOfIdentification", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-942": { "value": "VOLVO GROUP\u2019S ACCOUNTING POLICIES The Volvo Group describes the most material accounting policies in con- junction with each note with the aim of providing enhanced understand- ing of each accounting area. The Volvo Group focuses on describing the accounting choices made within the framework of the prevailing IFRS standard and avoids repeating the actual text of the standard, unless the Volvo Group considers it particularly important to the understanding of the note\u2019s content. The following symbols I/S and B/S show if amounts in the notes can be found in the income statement or balance sheet. The total amount in tables and statements might not always summarize as there are rounding differences. The aim is to have each line item corre- sponding to the source and it might therefore be rounding differences in the total. Refer to table 1:1 to see in which note each accounting policy can be found and the applicable IFRS standard with material impact. ACCOUNTING POLICY Acquisitions Companies are consolidated as of the date of acquisition, when the Volvo Group obtains control over the operations. Business combinations are recognized in accordance with the acquisition method. The identifiable assets acquired and the liabilities assumed are measured at their fair values. A surplus amount from the purchase price paid, possible non-controlling interest, and fair value of previously held equity interests at the acquisition date compared to the acquired net assets is recognized as goodwill. All acquisition-related costs are expensed. For acquisitions done in stages, a business combination occurs on the date when control is achieved. As part of obtaining control, the acquired identifiable net assets are measured at their fair values and goodwill is recognized. The previously held equity interest is remeasured to its fair value and any resulting gain or loss compared to the carrying amount is recognized in the income statement. For each business combination, the Volvo Group decides whether the non-controlling interest shall be valued at fair value or at the non-controlling interest\u2019s proportionate share of the net assets of the acquiree. Transactions between the Volvo Group and owners with non-controlling interest are recognized in equity if control of the subsidiary is retained. Divestments Subsidiaries that have been divested are included in the consolidated financial statements until the date of the divestment, when the Volvo Group loses control over the subsidiary. A decrease in ownership interest of a subsidiary without losing control is accounted for as an equity trans- action. Assets and liabilities held for sale and discontinued operations In a global group like the Volvo Group, activities are continuously ongoing regarding the sale of assets or groups of assets at minor values. When the criteria for being classified as assets and liabilities held for sale are fulfilled and the asset or group of assets are of material value, the asset or group of assets, both current and non-current, and the related liabilities are recog- nized on separate lines in the balance sheet. The asset or group of assets are measured at the lower of its carrying amount and fair value after deduc- tions for selling expenses. The balance sheet items and the potential income statement effect resulting from the revaluation to fair value less selling expenses are, if related to Industrial Operations, normally recog- nized in the segment Group functions & Other, otherwise in the Financial Services segment. When the sale is completed the result is distributed to the relevant segments. Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Read more in Note 11 Non-controlling interest. Read more in Note 12 Investments in shares and participations in the parent com- pany, about AB Volvo\u2019s holding of shares in subsidiaries as of December 31, 2023 . ACCOUNTING POLICY Joint ventures Joint ventures are companies in which the Volvo Group has joint control together with one or more external parties. Investments in joint ventures are recognized by applying equity method accounting. The Volvo Group\u2019s most material holdings in joint ventures are VE Commercial Vehicles, Ltd., (VECV) and cellcentric GmbH & Co. KG (cellcentric). Both investments are joint ventures since common agreement is needed for important matters related to the governance in the joint ventures. The investment in VECV aims at strengthening the Volvo Group\u2019s position in the market in India. cellcentric will develop, produce, and commercialize fuel-cell systems for use in heavy-duty trucks as the primary focus. Both investments are included in the Trucks segment. Associated companies Associated companies are companies in which the Volvo Group has a sig- nificant influence. A strong indication of such influence is when the Group\u2019s holding is more than 20% but less than 50% of the voting rights. Investments in associated companies are recognized by applying equity method accounting. The ownership in the Chinese automotive manufac- turer Dongfeng Commercial Vehicles Co., Ltd (DFCV) is classified as an associated company and is included in the Trucks segment. During 2023, the Volvo Group divested its shares in the associated companies Wire- lessCar Sweden AB and Imatech Marin & Industri AB. Equity method The Volvo Group\u2019s share of the companies\u2019 income/loss recognized according to the equity method is included in the Volvo Group\u2019s income statement as income/loss from investments in joint ventures and associ- ated companies. Where appropriate, the income has been reduced by depreciation of surplus values and the effect of applying different account- ing policies has been considered. Income from companies recognized in accordance with the equity method is included in operating income since the Volvo Group\u2019s investments are business related in nature. Dividends from joint ventures and associated companies are not included in the con- solidated income. The carrying amount of investments in joint ventures and associated companies are affected by the Volvo Group\u2019s share of the companies' net income, less depreciation of surplus values and dividends received. Investments in joint ventures and associated companies are also affected by the Volvo Group\u2019s share of the companies' other comprehen- sive income and by the exchange rate changes from translating the compa- nies\u2019 equity in the consolidation of the Volvo Group. When applying the equity method, losses recognized by joint ventures or associates could indicate impairment and additional impairment losses might be recognized. For instance, a significant or prolonged decline in the fair value of the shares is an indication of impairment. However, invest- ments accounted for in accordance with the equity method cannot amount to a negative carrying value. The Volvo Group\u2019s share of losses is therefore not adjusted for, if the holding is of a negative amount. Addi- tional losses are provided for to the extent that the Volvo Group has incurred legal or constructive obligations to make payments on behalf of the joint venture or the associated company . Other shares and participations Other shares and participations recognize holding of shares in which the Volvo Group does not hold a significant influence. This generally means the Volvo Group\u2019s holding of shares corresponds to less than 20% of the voting rights. Listed shares are recognized at fair value through other comprehensive income since the shares are not held for trading. For unlisted shares and participations, a fair value cannot be reasonably mea- sured, hence these are measured at amortized cost. Earned or paid inter- est attributable to these assets is recognized in the income statement as part of net financial items, in accordance with the effective interest method. Dividends received attributable to these assets are recognized as income from other investments within operating income. Read more in Note 30 Financial instruments, regarding classification and valuation of financial instruments ACCOUNTING POLICY Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief oper- ating decision maker, identified as the Group Executive Board, makes strategic decisions and is responsible for allocating resources and assess- ing financial performance of the operating segments. The Volvo Group comprises of ten business areas: Volvo Trucks, Mack Trucks, Renault Trucks, Volvo Autonomous Solutions, Volvo Energy, Volvo Construction Equipment, Volvo Buses, Volvo Penta, Arquus and Volvo Financial Services. Each business area is seen as a separate segment, except for the truck business areas, Volvo Autonomous Solutions and Volvo Energy which are included in the segment Trucks. This segment also comprises the associ- ated companies and joint ventures Dongfeng Commercial Vehicles, VE Commercial Vehicles, cellcentric and Milence. The truck segment has shared operations for product development, purchasing and manufacturing which are highly integrated, and strategic allocation of resources is done to the total segment. The segment Group functions & Other includes Arquus, Nova Bus and common business support functions such as Volvo Group Digital & IT and Volvo Group Real Estate. The costs of these business support functions are shared between the different business areas based on utilization according to principles set by the Volvo Group. ACCOUNTING POLICY The recognized net sales in Industrial Operations pertain to revenues from sales of vehicles and services. Revenue from vehicles and services are recognized when control has been transferred from Volvo Group to the customer. Control refers to the customers\u2019 ability to use vehicles or ser- vices in its operations and to obtain the associated cash flow related to the use. Vehicles and services are sold separately or as a combined offer. In combined offers where the vehicle and services are separable from each other and the customer can benefit from the vehicle and the service independently, the transaction price is allocated between vehicles and services based on stand-alone selling price according to price lists. The recognized net sales in Financial Services pertain to interest income related to finance leases and installment credits as well as income from operating lease contracts. Interest income is recognized during the underlying contract period and income from operating leasing is recog- nized over the leasing period. Vehicles Vehicles include sales of new trucks, buses, machines and engines as well as sales of used trucks, buses, machines, trailers, superstructures and spe- cial vehicles. A contractual warranty is included as part of the sales. The customer can pay for the vehicle at the point of sale or defer the payment by entering into agreements such as installment credits and finance lease. Read more in Note 21 Other provisions, about product warranty. Revenue is recognized at a specific point in time, when control of the vehi- cle has been transferred to the customer, normally when the vehicle has been delivered to the customer. The value of rebates, returns and variable sales price have been considered as part of the revenue recognition. If the sale of the vehicle is combined with a residual value commitment (buybacks and tradebacks) the criterion of transferring control is based on if the customer has a significant economic incentive to exercise the option to return the vehicle or not. A significant economic incentive exists if the repurchase price is higher than the assessed fair market value i.e. net real- izable value at the end of the residual value commitment period, or if the historical returns indicate that it is probable that the customer will return the vehicle at the end of the commitment period. Thus, the control has not been transferred and the sales transaction is recognized as an operating lease transaction. The revenue and expense are recognized over the resid- ual value commitment period in the income statement. Assets under operating leases, a residual value liability, and a deferred lease income are recognized in the balance sheet. The asset is depreciated over the com- mitment period and the deferred lease income is recognized as revenue over the same period. The residual value liability amount remains unchanged until the end of the commitment period. If the vehicle is returned at the end of the commitment period, the residual value liability is paid to the customer and the vehicle is reclassified from assets under operating lease to inventory. Read more in Note 14 Leasing, about lease income on assets under operating lease. Read more in Sustainability notes and section EU Taxonomy regulation disclosures about taxonomy eligible turnover. If the customer is not considered to have a significant economic incentive to return the vehicle, the sales transaction is recognized in accordance with the right of return model. Revenue corresponding to the sales amount less the buyback amount is recognized at the initial sale, as well as a pro- portionate share of cost of goods sold. The remaining revenue is recog- nized as a refund liability and the remaining cost of goods sold as a right of return asset during the commitment period. If the vehicle is not returned the refund liability is recognized as revenue and the right of return asset is recognized as cost of goods sold at the end of the commitment period. Services Services include sale of spare parts, maintenance services, repairs, extended coverage, connectivity solutions and other aftermarket products. The con- trol of the service has been transferred to the customer when the Volvo Group incurs the associated cost to deliver the service and the customer can benefit from the use of the delivered services. For spare parts, revenue is recognized at one point in time, normally when it is delivered to the cus- tomer. For maintenance services, connectivity solutions and other after- market products, revenue is recognized over time, i.e. normally during the contract period. When payment for maintenance contracts is received in advance, the payment is recognized as a contract liability. Services also include sales in Financial Services related to finance lease, installment credits and operating leases. During 2023, revenue from Financial Services amounted to SEK 24,012 M (17,355). Read more in Note 6 Segment reporting regarding net sales by segment and geographical region. Read more in Note 14 Leasing, about lease income on assets under operating lease and finance income on customer-financing receivables .
ACCOUNTING POLICY
In other financial income and expenses unrealized revaluation on deriva-
tives used to hedge interest rate exposure as well as realized result and
unrealized revaluation on derivatives used to hedge future cash flow expo-
sure in foreign currency are recognized. The derivatives are recognized at
fair value through the income statement and no hedge accounting is
applied. The unrealized revaluation on derivatives used to hedge interest
rate exposure is mainly related to the debt portfolio within Industrial
Operations and customer-financing portfolio within Financial Services
where fluctuating interest rate levels has a major impact.
Read more in Note 1 Accounting policies about receivables and liabilities
in foreign currency.
Read more in Note 30 Financial instruments regarding the accounting
policy and effects on net income and cash flow for financial assets at fair
value through the income statement .
ACCOUNTING POLICY Income tax for the period includes current and deferred taxes. Current taxes are calculated on the basis of the tax regulations prevailing in the countries where the group companies have operations. Deferred taxes are recognized on differences that arise between the tax- able value and carrying value of assets and liabilities as well as on tax-loss carryforwards. Deferred tax assets are recognized to the extent it is prob- able that they will be utilized against future taxable profits. Deferred tax liabilities related to temporary differences on investments in subsidiaries, joint ventures and associated companies are recognized in the balance sheet except when the Volvo Group controls the timing of the reversal of the temporary difference related to accumulated undistributed earnings and it is probable that a reversal will not be done in the foresee- able future. Tax laws in Sweden and certain other countries allow companies to defer payment of taxes through allocations to untaxed reserves. In the Volvo Group financial statements, untaxed reserves give rise to temporary differ- ences which are recognized as deferred tax liabilities. Tax liabilities are recognized for income tax charges that are probable as a result of identified tax risks. Hence, when it is probable that the taxation authority or court will not accept an uncertain income tax treatment under tax law, adjustments of the tax liability are made for the estimated out- come. Tax claims for which no adjustment of the tax liability is considered required are generally reported as contingent liabilities. Read more in Note 24 Contingent liabilities and financial commitments ACCOUNTING POLICY Owners with a non-controlling interest have a limited ownership of shares and voting rights in a subsidiary, and thereby also limited rights to the sub- sidiary's equity. Non-controlling interest equity is presented separately from equity attributable to owners of AB Volvo. In acquisitions, non-con- trolling interests are valued either at fair value or to a proportionate share of the acquired company\u2019s net assets. Ownership changes in non-controlling interests, not resulting in change of control, are recognized within equity . ACCOUNTING POLICY Volvo Group applies the cost method for recognition of intangible assets, consisting of goodwill, capitalized product and software development and other intangible assets. Read more in Sustainability notes and section EU Taxonomy regulation disclosures about taxonomy eligible capital expenditure. Goodwill Goodwill is recognized as an intangible asset with indefinite useful life. For non-depreciable assets such as goodwill, impairment tests are performed annually, as well as if there are indications of impairments during the year. Goodwill is allocated and tested at the level of cash-generating units which are identified as the Volvo Group\u2019s operating segments. However, in the seg- ment Group Functions & Other three cash-generating units, Nova Bus, Designwerk and Arquus are included. If the carrying amount of the tested cash-generating unit exceeds the calculated recoverable amount, an impair- ment loss is recognized for the difference. The recoverable amount for a cash-generating unit is determined by the value in use, which is based on a discounted cash flow model with a forecast period of five years. The valuation is based on a business plan which is an integral part of the Volvo Group\u2019s finan- cial planning process and represents management\u2019s best estimate of the development of the operations. The ongoing transition of the transport sector towards new technologies and new service-based business models bring business opportunities but also transitional risks for the Volvo Group, which have been integrated into the strategy and business plans. Assumption of 2% (2) long-term market growth beyond the forecast period and the expected development of the operations in relation to this environment is a basis for the valuation. In the model, the Volvo Group is expected to maintain stable capital efficiency over time. Other parameters considered in the calculation are oper- ating income, mix of products and services , the transition towards electrifica- tion and other low-carbon transport solutions, expenses and level of capital expenditures. Macroeconomic risks and opportunites are reflected in the esti- mated future cash flows for each cash-generating unit. The Volvo Group uses a discount rate at 10% (10) before tax for 2023. In 2023, the recoverable amount of Volvo Group\u2019s operations exceeded the carrying amount for all cash-generating units, thus no impairment was recognized. The Volvo Group has also analyzed whether a negative adjust- ment of several percentage points on the used assumptions for discount rate and operating income would result in impairment for goodwill, how- ever none of the cash-generating units would be impaired as a result of this analysis. The operating parameters applied in the valuation are based on management\u2019s strategy and could indicate higher value than historical performance for each cash-generating unit. Furthermore, the Volvo Group is operating in a cyclical industry why performance could vary over time. Headroom differs between the cash-generating units and they are sen- sitive to changes in the assumptions described above to a varying degree. Therefore, the Volvo Group continuously follows the performance of the cash-generating units whose headroom is dependent on the fulfillment of the Volvo Group\u2019s assessments. Instability in the recovery of the market and volatility in interest and currency rates may lead to indications of a need for impairment. The most important factors for the future operations of the Volvo Group are described in the Volvo Group\u2019s operating seg- ments, as well as in the Risk management section. Research and development Expenditures for the development of new products and software are recog- nized as intangible assets if such expenditures, with a high degree of cer- tainty, will result in future economic benefits for the company. Intangible assets are amortized over its estimated useful life. The rules require stringent criteria to be met for these development expenditures to be recognized as assets. For example, it must be possible to prove the technical feasibility of completing the new product or software, so that it will be available for use or sale, before its development expendi- ture is recognized as an asset. In normal cases, this means that expendi- tures are capitalized only during the industrialization phase of a product development project. Other research and development costs are recog- nized in the income statement as incurred. The Volvo Group has developed a process for conducting product and soft- ware development projects. The product and software development process has six phases (including waterfall method and to some extent an agile approach) focused on separate parts of the project. Every phase starts and ends with a reconciliation point, known as a gate, for which the criteria must be met for the project\u2019s decision making committee to allow the project to progress to the next phase. During the industrialization phase, the industrial system is prepared for serial production and the product is launched. A substantial part of investments is directed towards zero tailpipe emissions technology, which is expected to increase over time. As the transition will take place gradually, the running fleets in the transportation sector are likely to include different technologies for vehicle and machin- ery propulsion that can be powered by renewable energy such as bat- tery-electric, fuel cell-electric or internal combustion engines running on lower carbon fuels. Existing products is therefore expected to generate economic benefits during the transition period and be used during its remaining useful life. Other intangible assets Other intangible assets include trademarks, distribution networks, licenses and other rights. When participating in industrial projects in partnership with other companies the Volvo Group in certain cases pays an entrance fee to participate, which is capitalized as an intangible asset . Amortization and impairment with finite useful life Intangible assets with finite useful life are amortized on a straight line basis over their estimated useful life. Amortization is based on the cost of the assets, adjusted by impairments when applicable and estimated useful lives. Amortization is recognized in the respective function to which it belongs, meaning that amortization of product development is part of the research and development expenses in the income statement. Impair- ment tests for amortizable assets are performed if there are indications of impairment. In addition, impairment tests are performed annually for cap- italized development cost for products and software not yet in use by cal- culating the recoverable amount. The recoverable amount is the higher of the fair value less costs of disposal and the value in use. The value in use is measured as the discounted future cash flows, which the asset is expected to generate either by itself or from the lowest cash-generating unit to which the asset belongs. If the recoverable amount is less than the carry- ing amount, an impairment is recognized and the carrying amount of the asset is reduced to the recoverable amount ACCOUNTING POLICY The Volvo Group applies the cost method for measurement of tangible assets, consisting of property, plant, equipment and investment property as well as assets under operating leases. Buildings include owner-occupied properties and investment proper- ties. Investment properties are properties owned for the purpose of obtaining rental income and appreciation in value. Investment properties are recognized at cost. For disclosure purposes, information regarding the estimated fair value of investment properties is based on an internal dis- counted cash flow projection as relevant observable market inputs for the assets are not available. The required return is based on current property market conditions for comparable properties in comparable locations. Hence, the applied valuation method to measure fair value is classified as level 3 of the fair value hierarchy and there have not been any changes in valuation method during the year. Land includes land and land improve- ments. Machinery and equipment consist of production related assets such as machinery, type-bound tools and other equipment. A substantial part of investments is directed towards zero tailpipe emissions technol- ogy, which is expected to increase over time. However, both electric trucks and trucks with combustion engines can be produced on the same assembly lines, thus limiting the investments needed for this transition in the industrial system. Construction in progress are assets under con- struction and advanced payments. Right-of-use assets relates to lease contracts with the Volvo Group as a lessee. Assets under operating leases are mainly owned by the Volvo Group. These transactions are accounted for as operating lease transactions and consists of contractual operating lease agreements with customers within Financial Services and rental fleet which are assets used in a fleet for rental business within Industrial Operations. Some rental fleet assets are leased by the Volvo Group and later sub-leased to customers as oper- ating leases. Sales with residual value commitments within Industrial Operations are also recognized within assets under operating leases. Read more in Note 7 Revenue, about sales with residual value commitments. Read more in Note 14 Leasing, about right-of-use assets and assets under operating leases. Read more in Sustainability notes and section EU Taxonomy regulation disclosures about taxonomy eligible capital expenditure. Depreciation and impairment Property, plant, equipment and investment property are depreciated over their estimated useful lives. Land is not depreciated. Depreciation is rec- ognized on a straight-line basis based on the cost of the assets, adjusted by residual value when applicable, and estimated useful lives. Right-of- use assets are generally depreciated over the lease term on a straight-line basis. Assets under operating leases are depreciated on a straight-line basis over the contract period. During the contract period, the depreciable amount is adjusted by accelerated depreciation and/or write-downs. The adjustment is recognized through the income statement to correspond to estimated future net realizable value to continuously reflect potential residual value risks at the end of the contract period. The net realizable value is impacted by value of optional equipment, mileage, current condi- tion, expected future price development, change of market conditions, the transition towards electrification and other low-carbon transport solutions, alternative distribution channels, inventory lead-time, repair and reconditioning costs, handling costs, indirect costs associated with the sale of used vehicles and legislative demands. Some of the locations may also be subject to increased risks from physical weather events depending on climate developments. These risks are monitored and are not expected to materially impact the estimated useful life. The deprecia- tion is recog nized in the respective function to which it belongs. Impair- ment tests are performed if there are indications of impairment by calcu- lating a recoverable amount which is the higher of the asset\u2019s fair value less cost of disposal and its value in use. 13:1 Estimated useful life Type-bound tools 3\u20138 years Operating leases, rental fleet 3\u20135 years Sales with residual value commitments 3\u20135 years Machinery and equipment 5\u201320 years Buildings and investment properties 20\u201350 years Land improvements 20 years ACCOUNTING POLICY Volvo Group as the lessor Leasing contracts are defined in two categories, operating and finance leases, depending on the contracts\u2019 financial implications. Operating leases are offered from Financial Services (contractual oper- ating leases) and from Industrial Operations (rental fleet agreements). Sales with residual value commitments (buybacks and tradebacks) are also accounted for as operating lease transactions when the customer has a significant economic incentive to exercise the option to return the vehicle and the control therefore has not been transferred to the customer. Oper- ating lease agreements are recognized as tangible assets in assets under operating leases and are valued at cost less accumulated depreciation and impairment, if needed. The cost of an asset comprises the acquisition value and any initial direct costs related to the contract. Depreciation of the asset is recognized on a straight-line basis over the contract period. During the period the depreciable amount is adjusted through the income statement by depreciations or write-downs to correspond to the estimated future realizable value and reflect residual value risks at the end of the contract period. Lease income is equally distributed over the contract period and recognized within net sales. Read more in Note 7 Revenue, about sales with residual value commitments. Read more in Note 13 Tangible assets, about residual value risks related to assets under operating lease. Finance leases are offered from Financial Services. As Industrial Oper- ations manufacture the vehicles which are leased from Financial Services to the customers, the Volvo Group is acting as a manufacturer lessor. Hence, a finance lease asset gives rise to a selling profit which is recognized within Industrial Operations. Finance lease contracts are mainly recognized as non-current and current customer-financing receiv- ables within Financial Services. The asset is measured at an amount equal to the net investment in the finance lease contract corresponding to the gross investment (future minimum lease payments and unguaranteed residual value) discounted with the rate in the finance lease contract and reduced by unearned finance income and allowance for expected credit losses. Assessment of allowance for expected credit losses is reflected in the valuation of customer-financing receivables and recorded at initial recognition and reassessed during the contract period. Lease income is recognized as interest income within net sales in Financial Services. Vari- able lease payments not dependent on an index or rate are recognized as income as they occur. Payments received from finance lease contracts are distributed between interest income and amortization of the receivable. Read more in Note 15 Customer-financing receivables, about finance leases. Volvo Group as the lessee Lease contracts are recognized as right-of-use (RoU) assets as well as interest-bearing lease liabilities in the balance sheet. Lease liabilities are recognized within other loans and are measured by the present value of future lease payments. The lease payments are discounted by using a rate reflecting what the Volvo Group would have to pay to borrow funds to acquire a similar asset, with similar collateral and similar term. RoU assets are presented as tangible assets and are valued at cost less accumulated depreciation and impairment, if needed. The cost of an RoU asset contains the initial amount of the lease liability adjusted for any lease payments made before the commencement date, less any lease incentives received. Moreover, any initial direct costs are included, as well as an estimate of costs to be incurred in dismantling, removing or restoring the underlying asset. The leased asset is depreciated on a straight-line basis over the lease term, or over the useful life of the underlying asset if the ownership is transferred to the Volvo Group at the end of the lease term. The lease expense is recognized as depreciation of the asset within operating income and interest expense within the finance net. Payments made are distributed between interest paid and amortization of the lease liability. Lease contracts with the Volvo Group as the lessee are primarily con- tracts for real estate (such as office buildings, warehouses and dealer premises), company cars and production related assets. For real estate and company car leases, service components are normally a considerable portion of the contracts and are therefore separated. The service compo- nents are recognized as operating expenses and not included in the RoU asset and the lease liability. For other lease contracts, both the leased asset and services are included in the RoU asset and the lease liability. If a lease contract includes variable lease payments not dependent on an index or rate, or include a low value asset or has a lease term that is twelve months or less, the lease payments are recognized as operating expenses as they occur
ACCOUNTING POLICY
Installment credits, dealer financing and other receivables within customer-
financing receivables are held as part of a business model whose objective
is of collecting contractual cash flows. The contractual cash flows are
solely payments of principal and interest and are measured at amortized
cost in accordance with the effective interest method. Finance lease con-
tracts are valued at amortized cost.
Read more in Note 14 Leasing, for further information on recognition and classifi-
cation of finance leases.
The Volvo Group is applying the simplified expected credit loss model
for customer-financing receivables, under which the loss allowance is
measured at an amount equal to lifetime expected credit losses. The
allowance is recorded at initial recognition and is reassessed during the
contract period.
Interest income on customer-financing receivables is recognized within
net sales, mainly within Financial Services. Changes to the allowance for
expected credit losses are recognized in other operating income and expense .
ACCOUNTING POLICY Receivables are measured at amortized cost. The Volvo Group is applying the simplified expected credit loss model for accounts receivables, under which the loss allowance is measured at an amount equal to lifetime expected credit losses. The allowance is recorded at initial recognition and is reassessed during the contract period. Changes to the allowance for expected credit losses for accounts receivables are recognized in other operating income and expense. Read more in Note 30 Financial instruments, in section derecognition of financial assets, about receivables subject to discounting activities . ACCOUNTING POLICY Inventories are measured at the lower of cost and net realizable value. If the estimated net realizable value is lower than cost, a write down of invent ories is made. The cost is established by using the first-in, first-out principle (FIFO) and is based on a standard cost method, including costs for all direct manufac- turing expenses and the attributable share of capacity and other manu- facturing-related costs. The standard costs are reviewed regularly and adjustments are made based on current conditions. Manufacturing costs are based on normal capacity utilization which are allocated to inventory while unabsorbed cost due to changes in production volume are recog- nized in the income statement as incurred. Costs for research and develop- ment, selling, administration and financial expenses are not in cluded. Net realizable value is calculated as the selling price less costs attribut- able to the sale.
ACCOUNTING POLICY
Cash and cash equivalents include highly liquid interest-bearing securities
that are considered easily convertible to cash, including market able secu-
rities, with a date of maturity less than three months at the time of invest-
ment. Interest-bearing securities with a date of maturity exceeding three
months at the time of investment are recognized as marketable securities.
Read more in Note 30 Financial instruments, about accounting policies for
financial instruments .
ACCOUNTING POLICY Dividend resolutions are approved at the annual general meeting or, in certain cases, during an extraordinary general meeting. When the deci- sion has been approved, equity is reduced and the dividend is reported as a liability to the shareholders in the balance sheet until the payment has taken place ACCOUNTING POLICY The Volvo Group\u2019s post-employment benefits, such as pensions, health- care and other benefits are mainly settled by means of regular payments to independent authorities or bodies that assume pension obligations and administer pensions through defined contribution plans. For defined con- tribution plans, expenses for premiums are recognized in the income statement as incurred. Part of the post-employment benefits are defined benefit plans where the obligations remain within the Volvo Group and are secured primarily by proprietary pension foundations. The Volvo Group\u2019s largest defined benefit plans relate to subsidiaries in the USA and comprise both pensions and other benefits, such as healthcare. Other large-scale defined benefit plans apply to white collar employees in Sweden (mainly through the ITP pension plan) and employees in Great Britain, Belgium and France. Actuarial calculations are made for all defined benefit plans, subject to materiality, in order to determine the present value of the obligation for benefits vested by its current and former employees. The actuarial calcu- lations are prepared annually and are based upon actuarial assumptions that are determined at the end of the reporting period. Changes in the present value of obligations due to revised actuarial assumptions and experience adjustments constitute remeasurements. Provisions for post-employment benefits in the Volvo Group\u2019s balance sheet correspond to the present value of obligations at year-end, less fair value of plan assets. The fair value of buy-In contracts are set equal to the defined benefit obligations for the specific group of members the contract covers. All changes in the net defined liability (asset) are recognized when they occur. Service cost and net interest expense (income) are recognized in the income statement, while remeasurements such as actuarial gains and losses are rec- ognized in other comprehensive income. Special payroll tax is included in the pension liability for pension plans in Sweden and Belgium. ACCOUNTING POLICY Provisions are recognized in the balance sheet when a legal or construc- tive obligation exists as a result from a past event, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. When these criteria are not met, a con- tingent liability may be recognized. Long-term provisions are mainly expected to be settled within 2 to 3 years. Provisions for product warranty Provisions for product warranty are recognized as cost of sales and include contractual warranty and campaign warranty. Provisions for con- tractual warranty are recognized when the products are sold. Provision for campaigns in connection with specific quality problems are recognized when the campaign is decided. Provisions for extended coverage An extended coverage is a product insurance sold to a customer to cover a product according to specific conditions for an agreed period as an addi- tional insurance to the factory contractual warranty. The provision is intended to cover the risk that the expected cost of providing services under the extended coverage contract exceed the expected revenue. Provisions in insurance operations Volvo Group has a captive insurance company and the provisions in insur- ance operations are related to third party claims addressed to companies within the Volvo Group. The claims reserve also includes a provision for unreported losses based on past experience. The unearned premium reserve is reported within other current liabilities. Provisions for restructuring costs A provision for decided restructuring measures is recognized when a detailed plan for the implementation of the measures is complete and when this plan is communicated to those who are affected. A provision and costs for termination benefits as a result of a voluntary termination program is recognized when the employee accepts the offer. Normally restructuring costs are included in other operating income and expenses. Provisions for residual value risks Residual value risks are the risks that the Volvo Group in the future would have to dispose used vehicles at a loss if the price development of these products is worse than expected when the contracts were entered. The residual value risks pertain to operating lease contracts and sales transac- tions with residual value commitments (buybacks and tradebacks) where the Volvo Group has a residual value commitment. The majority of these contracts are recognized as assets under operating leases or as right of return asset in the balance sheet. The potential residual value risks related to these assets are not recognized as provisions, but are reflected as a reduction of the assets through accelerated depreciation and/or write- downs. Read more in Note 13 Tangible assets about residual value risks. Residual value commitments that are independent from the sales trans- action are not recognized as assets under operating leases or as right of return in the balance sheet, hence the potential residual value risks related to these contracts are recognized as provisions. To the extent the residual value exposure does not meet the definition of a provision, the gross exposure is reported as a contingent liability. Read more in Note 24 Contingent liabilities and financial commitments. Provisions for service contracts Service contracts offer the customer preventive maintenance according to an agreed service plan. The provision is intended to cover the risk that the expected cost of providing services and repairs under the service contract exceeds the expected revenue. Other provisions Other provisions mainly include provisions for legal disputes, provisions for externally issued credit guarantees and other provisions, unless sepa- rately specified. ACCOUNTING POLICY Loans are measured at amortized cost using the effective interest rate method. Read more in Note 30 Financial instruments for accounting policies related to financial instruments. Read more in Note 14 Leasing, for accounting policies related to lease liabilities ACCOUNTING POLICY A contingent liability is recognized for a possible obligation, for which it is not yet confirmed that a present obligation exists that could lead to an outflow of resources. Alternatively, there is a present obligation that does not meet the definitions of a provision or a liability as it is not probable that an outflow of resources will be required to settle the obligation or a suffi- ciently reliable estimate of the amount of the obligation cannot be made. Financial commitments are contractual commitments to a possible expense at a future date and is not reported as liabilities on the balance sheet date. ACCOUNTING POLICY The Volvo Group engages in transactions with some of its related parties, such as associated companies and joint ventures. The transactions arise in the ordinary course of business and are conducted on commercial terms and market prices. They mainly consist of sales of vehicles, parts, equip- ment and services as well as purchases of parts, engines and vehicles for resale. Transactions between AB Volvo and its subsidiaries have been elim- inated in the consolidated financial statements and transactions with the Board of Directors and the Group Executive Board consist of remunera- tions, which are not disclosed in this note. Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Read more in Note 27 Personnel, about remunerations to the Board of Directors and the Group Executive Board. Read more in Corporate Governance Report about Board of Directors and Group Executive Board . ACCOUNTING POLICY Government grants are financial grants from governmental or supra- national bodies that are received in exchange for fulfillment of certain con- ditions by the Volvo Group. The financial grants are recognized in the financial statement when there is a reasonable assurance that the condi- tions will be complied with and that the grants will be received. Government grants related to assets are usually reported as deferred income in the balance sheet. Government grants related to income are reported as deferred income in the balance sheet and recognized in the income statement to match the related costs. If the costs incurred before the grants have been received, but there is an agreement that grants will be received, grants are recognized in the income statement to match the related costs. ACCOUNTING POLICY Incentive programs The Volvo Group has a long-term and a short-term incentive program which are cash-settled. The LTI Program 2023-2025 (as defined below) has a performance period of three-years and includes two performance measures, relative total shareholder return (relative TSR) and return on capital employed (ROCE). The relative TSR includes a fair value component, hence this part of the program is accounted for as a share-based payment program. A liability is recognized and measured at fair value using a Monte Carlo sim- ulation at each reporting date. Changes in the fair value are recognized in the income statement for each period until the liability is settled by a cash payment. To estimate the fair value, the Monte Carlo simulation uses sev- eral inputs where assumptions are made such as vesting period, risk free annual interest rate, expected share price volatility and TSR-price. The LTI Transition Program 2023 (as defined below) has a performance period of one-year and includes two performance measures, operating income and ROCE. The short-term incentive program has a performance period of one- year and includes performance measures which for example may relate to operating income, operating cash flow, ROCE or similar ratios, or sustain- ability targets. Performance measures included in the programs such as ROCE, oper- ating income and operating cash flow or similar ratios are based on best estimate and are accounted for as employee benefits. During the vesting period, the total remuneration expenses for the incentive programs are recognized as an expense in the income statement and as other non-current or current liabilities depending on when in time the liability will be settled. The liability at the end of the vesting period corresponds to the actual payout in cash.
ACCOUNTING POLICY
Cash flow statement
The cash flow statement is prepared in accordance with the indirect
method. The cash flows of foreign group companies are translated at aver-
age rates. Changes in group structure, acquisitions and divestments are
recognized gross and are included in cash flow from investing activities, in
the items acquired operations and divested operations.
Operating cash flow
The operating cash flow is a measure of the amount of cash generated by
the Volvo Group\u2019s regular business operations. The operating cash flow
also includes investments and disposals of intangible and tangible assets,
which are part of the investing activities.
Read more in Note 18 Cash and cash equivalents.
ACCOUNTING POLICY Financial assets and liabilities are recognized on the transaction date accord- ing to the contractual terms of the instrument. Transaction costs are included in the assets\u2019 fair value, except in cases in which the change in value is recog- nized in the income statement. The transaction costs that arise in conjunction with the admission of financial liabilities are amortized over the term of the loan as financial cost. A financial asset is derecognized from the balance sheet when the rights to the cash flows from the asset have expired at maturity or when all significant risks and rewards related to the asset have been transferred to a third party. The fair value of financial assets is determined based on valid market prices, when available. If market prices are unavailable, the fair value is deter- mined for each asset through the use of various measurement techniques. The fair value of financial instruments is classified based on the degree that market values have been utilized when measuring fair value. The majority of financial instruments measured at fair value held by Volvo Group is clas- sified as level 2. 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 is used to calculate the present value of all the estimated future cash flows. For forward exchange contracts the basis is the forward premium based on current spot rate for each currency and future date. The fair value is then discounted based on the forward rates as per the balance sheet date. Holding of shares are classified as level 1 for listed shares and level 3 for non-listed shares. Call options are classified as level 3 and are based on the Black & Scholes option pricing formula. Financial assets and liabilities measured at fair value through the income statement Volvo Group\u2019s financial assets and liabilities held for trading are recog- nized at fair value through the income statement. As presented in table 30:1, these instruments are derivatives, used for hedging interest and currency risks and marketable securities, further presented in note 18 Cash and cash equivalents. Derivatives used for hedging interest rate exposure financing the cus- tomer financing porfolio within Financial Services as well as the debt port- folio in Industrial Operations are included in this category. Unrealized gains and losses from fluctuations in the fair value of the financial instruments are recognized in other financial income and expenses, with the exception of derivatives entered into by Financial Services, which are recognized in operating income. The Volvo Group intends to hold these derivatives to maturity, which is why, over time, the market valuation will have no impact on financial performance or cash flow. Financial instruments used for hedging currency risks arising from future cash flows are also recognized in this category. When hedging future cash flows for specific orders, the classification in the income statement is decided on a case by case basis. In 2023, SEK 16 M (44) have been recognized in operating income and SEK 105 M (1) in finance net. The result from hedging future cash flows in foreign currency from dividends paid to group companies is included in operating income with an amount of SEK 27 M (177). Read more in Note 4 Goals and policies in financial risk management. Financial assets measured at fair value through other comprehensive income In this category the Volvo Group includes holding of shares in listed compa- nies as the shares are not held for trading. Changes in fair value is measured through other comprehensive income and amounted to SEK 15 M (\u201345). Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Financial assets measured at amortized cost Customer-financing receivables are held as part of a business model whose objective is to collect contractual cash flows. The contractual cash flows are solely payments of principal and interest and are valued at amor- tized cost in accordance with the effective interest method. In this cate- gory the Volvo Group also includes accounts receivables and holding of shares in non-listed companies for which a fair value cannot reasonably be determined. The carrying value has been analyzed and compared with an estimated fair value and is a reasonable approximation of the fair value. Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Read more in Note 15 Customer-financing receivables. Read more in Note 16 Receivables. Hedge Accounting is not applied by the Volvo Group . ", "dimensions": { "concept": "ifrs-full:DisclosureOfSummaryOfSignificantAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-943": { "value": "2 Key sources of estimation uncertainty, critical judgments and climate-related risks and opportunities The preparation of the Volvo Group\u2019s financial statements requires the use of estimates and assumptions that may affect the recognized amounts of assets and liabilities at the date of the financial statements. In addition, the recognized amounts of net sales and expenses during the periods pres ented are affected. The Volvo Group is targeting to reach net-zero greenhouse gas emis- sions by 2040. This will enable the Group\u2019s customers to have net-zero rolling fleets by 2050 as it takes approximately ten years to renew a rolling fleet. The path to decarbonization includes a gradual shift into bat- tery-electric vehicles, fuel cell-electric vehicles and vehicles with internal combustion engines running on lower carbon fuels. The transition brings risks such as transitional and physical risks as well as opportunities. The financial impact in relation to the transition occurs gradually and has not had a material effect on the financial statements as of December 31, 2023. In preparing the financial statements, management has made its best judgments of certain amounts included in the financial statements, materi- ality taken into account. Actual results may differ from previously made esti- mates. In accordance with IAS 1, the company is required to disclose the assumptions and other major sources of estimation uncertainties that, if actual results differ, may have a material impact on the financial statements. SOURCES OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS The sources of estimation uncertainty and critical judgments identified by the Volvo Group and which are considered to fulfill these criteria are pre- sented in connection to the items considered to be affected. Table 2:1 discloses where to find these descriptions and climate-related risks and opportunities, if applicable. 2:1 Source of estimation uncertainty and critical judgments Note Climate-related risks and opportunities Sales with residual value commitments and variable sales price 7 Revenue Deferred taxes and uncertainty over income tax treatments and claims 10 Income taxes Impairment of goodwill and other intangible assets 12 Intangible assets Impairment of tangible assets and residual value risks 13 Tangible assets Measurement of lease liabilities and right-of-use assets 14 Leasing Allowance for expected credit losses 15 16 Customer-financing receivables Receivables Write down of inventories 17 Inventories Assumptions when calculating post-employment benefits 20 Provisions for post- employment benefits Provisions for product warranty, other provisions and provisions for legal proceedings 21 Other provisions SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Sales with residual value commitments When the Volvo Group enters into sales transactions of vehicles with resid- ual value commitments (buybacks and tradebacks) the judgment whether control has been transferred from the Volvo Group to the customer and at what point in time revenue shall be recognized is critical. The judgment made is when a significant economic incentive exists or not for the cus- tomer to return the vehicle at the end of the commitment period. The assessment of significant economic incentive is performed at the incep- tion of the contract and the outcome at the end of the commitment period can differ from the initial assessment. Factors that are considered and requires judgment is the assessed fair market value i.e. net realizable value at the end of the residual value commitment period and historical returns. The future mix of vehicles and services is driven by customer demand for products and solutions with lower environmental impact. The gradual shift into battery electric and fuel cell electric products, as well as supply chain and production disturbances imply to some extent uncertainties in the assessment of fair market value. Read more in Note 13 Tangible assets, for a description of residual value risks and the assessment of fair market value. Variable sales price In some sales transactions, the sales price is variable. In assessing the variable sales price the expected value method is used and revenue is rec- ognized when it is highly probable that a reversal will not occur. Both the expected value method and the assessment of highly probable requires judgments to be able to make estimates. The estimates are made at the contract start with continuous assessment at each reporting period . SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Deferred taxes The Volvo Group recognizes deferred tax assets related to tax-loss carry- forwards. The deferred tax assets are recognized based on a thorough assessment in order to ensure that it is probable that sufficient taxable profits will be generated in the coming years that will enable the tax-loss carryforwards to be utilized. The assessment is based on an evaluation of business plans. In addition, the possibility to offset tax assets and tax lia bil- ities and the fact that the major part of the tax-loss carryforwards is related to countries with long or indefinite periods of utilization is considered. If deferred tax assets related to tax-loss carryforwards are not expected to be realized based on current business plans, valuation allowances are recognized. If actual results differ from the business plans, or if business plans for future periods are adjusted, changes in the valuation allowance may be required. Such recognitions and adjustments could have an impact on the financial position and the income for the period. Uncertainty over income tax treatments and claims The Volvo Group regularly evaluates income tax positions to determine if a tax liability or a contingent liability shall be recognized. The judgment is based on several factors, such as changes in facts and circumstances, the progress of the case and experience in similar cases. The actual outcome of income tax positions may deviate from the expected outcome and materi- ally affect future financial statements . SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Impairment of goodwill and other intangible assets When conducting impairment tests of goodwill and other intangible assets, estimates have to be made to determine the recoverable amounts of cash-generating units. The recoverable amount is based upon manage- ment\u2019s projections of future cash flows and are to a varying degree sensitive to changes in assumptions and the business environment. The broadening of the customer offer with focus to switch to more sustainable solutions accel- erates investments in research and development. The magnitude of invest- ments and the assessment of future useful life is uncertain due to technology and infrastructure development, emission regulations, government incen- tives and customer demand. While management believes that estimates of future cash flows and other assumptions made are reasonable, there are uncertainties which could materially affect the valuations . SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Impairment of tangible assets Impairment tests are performed if there is any indication that a tangible asset has been impaired. The impairment tests are based on estimation of the recoverable amount of the asset, or the cash-generating unit to which the asset belongs. To determine the recoverable amount, projections of future cash flows are used, which are based upon internal business plans and forecasts. The ongoing transition of the transport sector towards new technologies with electrified and other lower emission technology vehicles bring uncertainties regarding current and future investments in production facilities as well as estimated useful life. Also, some of the production sites are located in areas with physical climate risks and may in the long run be subject to increased stress from physical weather events. Physical risks bring uncertainties when estimating useful life and indication of impair- ment. While management believes that estimates of future cash flows and other assumptions made are reasonable, there are uncertainties which could materially affect the valuations. Residual value risks Volvo Group is exposed to residual value risks related to assets under operating leases which are the risks that the Volvo Group in the future would have to dispose used vehicles at a loss if the price development of these products is worse than what was expected when the contracts were entered. The assessment of residual value risks is based upon an estimation of the used vehicle\u2019s future net realizable value (fair market value) and a declined value may negatively affect the Volvo Group\u2019s oper- ating income. High inventories in the truck industry and the construction equipment industry and low demand may have a negative impact on the prices of new and used vehicles. The estimated future net realizable value of the vehicles at the end of the contract period is monitored individually on a continuing basis. In monitoring the estimated net realizable value of each vehicle, management considers current price level of the used vehi- cle, supply chain and production disturbances and the transition to elec- trified and other lower emission technology vehicles which imply to some extent uncertainties in the assessment. SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Measurement of lease liabilities and right-of-use assets When entering a lease contract, judgments related to contract scope, lease term and interest rate to be used when discounting future lease pay- ments are made which affect the measurement of the lease liability and the RoU asset. Assessment of contract scope includes judgments whether a leased asset and/or a service component is identified in the contract. In com- bined contracts, the total contract amount is allocated between the leased asset and the service by using a market stand-alone price. When determining the lease term of a contract, judgments are also required. The lease term includes the non-cancellable period. If the Volvo Group is reasonably certain to use an option to extend the lease, or not to use an option to terminate the lease in advance, this is also considered. The contracts contain a range of different conditions. Extension and ter- mination options are mainly related to real estate leases. Thus, all relevant facts and circumstances that create an economic incentive to include optional periods are evaluated. The importance of the underlying asset in the operations and its location, availability of suitable alternatives, signifi- cant leasehold improvements, level of rentals in optional periods com- pared to market rates as well as past practice are examples of factors included in the assessment. Lease terms are negotiated on an individual basis and are reassessed if an option is exercised. Judgments are also required to determine the interest rate when dis- counting future lease payments and whether the interest rate implicit in the lease can be readily determined and thereby used, or if the Volvo Group\u2019s incremental borrowing rate should be used. Read more in Note 15 Customer-financing receivables, about allowance for expected credit losses . SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Allowance for expected credit losses The assessment of allowances for expected credit losses on customer- financing receivables is dependent on estimates including assumptions regarding past dues, repossession rates and quality level of repossessed collateral. A collective assessment is made for customer-financing receivables that are not credit impaired by using a vintage layer analysis. It is based on historical loss experience within a homogenous pool of assets that are collectively assessed. The assets are grouped based on shared risk char- acteristics such as type of customer, geographical area, initial credit risk rating, collateral type and date of initial recognition to evaluate the credit losses collectively. The historical loss experience is used to forecast future losses, adjusted for current and expected conditions in the different mar- kets based on management\u2019s evaluation of macro-level and portfolio-level factors, such as GDP, oil prices, unemployment rates etc. Climate-related risk, such as the transition to electric vehicles, are closely monitored, and reflected in management's evaluation of current and forecasted condi- tions in assessing expected credit losses. Volvo Group has not identified material credit impairment related to transitional and physical climate risks that would require a significant adjustment to the credit reserves. An individual assessment is made for credit impaired customer-financing receivables based on the financial condition of the customers and the value of the underlying collateral and guarantees. The Volvo Group considers a financial asset credit impaired if it meets one or more of the following criteria; when there are indications that the customer is unlikely to pay, such as bankruptcy filing, unauthorized transfer of collateral, at surrender of collateral etc. or, at the latest, when the customer fails to make contractual payment within 90 days of when the receivable falls due. SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Allowance for expected credit losses Accounts receivables are short term by nature and consequently the risk assessment horizon is short. A collective assessment is made on accounts receivables not credit impaired. Historical information regarding credit loss experience is used to forecast future losses, adjusted for current and expected conditions. An individual assessment is made on credit impaired accounts receivables based on the financial condition of the customer. The past years have been affected by uncertainties in the geopolitical environment, high inflationary pressure, increased interest rates in many regions as well as the weakened Chinese construction equipment market which might impact the Volvo Group\u2019s customers\u2019 ability to fulfill their obli- gations and increase the risk for customer default. Based on this the assess- ment process for valuation allowances for expected credit losses for accounts receivables continues to be in focus in order to ensure allowances are in alignment with the current market conditions SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Write-down of inventories The calculation of net realizable value is based on an estimation of a future sales price, which is dependent on several parameters, such as market demand, model changes and development of used products prices. SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Assumptions when calculating post-employment benefits Provisions and costs for post-employment benefits, mainly pensions and health care benefits, are dependent on actuarial assumptions. The actuar- ial assumptions and calculations are made separately for each defined benefit plan. The most significant assumptions are discount rate and infla- tion. Inflation assumptions are generally set as a long term assumption based on an evaluation of external market indicators. A sensitivity analysis is included in graph 20:6 and shows the effect on the defined benefit obligations if significant assumptions are changed. There are also other assumptions made such as salary increases, retirement rates, mortality rates, health care cost trends rates and other factors. The salary increase assumptions reflect the historical trend, the near-term and long-term out- look and assumed inflation. Retirement and mortality rates are based pri- marily on officially available mortality statistics. Healthcare cost trend assumptions are based on historical data as well as the near-term outlook and an assessment of likely long-term trends. The Volvo Group has engaged a global actuary in order to ensure that a professional assess- ment is made and that assumptions are consistently developed across jurisdictions. The actuarial assumptions are reviewed annually by the Volvo Group and modified when deemed appropriate. Actual inflation continued above long term assumptions and previous central bank projections during the year resulting in additional monetary policy tightening globally. Expectations of higher interest rates for longer period have led to a general increase in long term interest rates, while risk assets have experienced a volatile and fragmented performance during the year. Funding levels for the Volvo Group\u2019s funded pensions plans remains strong despite challenging financial conditions SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS The uncertainties about the amount or timing of outflows vary for different kind of provisions. Regarding provisions for product warranty, extended cov- erage, residual value risks and service contracts, the provisions are based on historical statistics and estimated future costs, which is why the provided amount has a high correlation with the outflow of resources. Regarding pro- visions for disputes, like tax and legal disputes, the uncertainty is higher. Provisions for product warranty Warranty provisions are estimated with consideration of historical statis- tics with regard to known changes in warranty claims, warranty periods, the average time-lag between faults occurring until claims are received by the company and anticipated changes in quality indexes. The actual out- come of product warranties may deviate from the expected outcome and materially affect the warranty costs and provisions in future periods. Re funds from suppliers, that decrease the Volvo Group\u2019s warranty costs, are recognized to the extent these are considered to be certain. Other provisions The Volvo Group works actively to ensure compliance with applicable environmental laws and regulations, which are often complex and uncer- tain. If the Volvo Group fails to meet climate related targets or regulatory requirements it could be subject to significant penalties and other sanc- tions which could materially affect the financial statements. Provisions for legal proceedings The Volvo Group regularly reviews the development of significant out- standing legal disputes in which the Volvo Group companies are parties, both regarding civil law and tax disputes, in order to assess the need for provisions and contingent liabilities in the financial statements. Among the factors that the Volvo Group considers in making decisions on provisions and contingent liabilities are the nature of the dispute, the amount claimed, the progress of the case, the opinions of legal and other advisers, experi- ence in similar cases, and any decision of the Volvo Group\u2019s management as to how the Volvo Group intends to handle the dispute. The actual out- come of a legal dispute may deviate from the expected outcome of the dispute. The difference between actual and expected outcome of a dispute might materially affect future financial statements, with an adverse impact upon the Volvo Group\u2019s operating income, financial position and liquidity. Provisions for legal disputes are included within other provisions in table 21:1. Read more in Note 24 Contingent liabilities and financial commitments. ", "dimensions": { "concept": "ifrs-full:DisclosureOfAssetsAndLiabilitiesWithSignificantRiskOfMaterialAdjustmentExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-944": { "value": "2 Key sources of estimation uncertainty, critical judgments and climate-related risks and opportunities The preparation of the Volvo Group\u2019s financial statements requires the use of estimates and assumptions that may affect the recognized amounts of assets and liabilities at the date of the financial statements. In addition, the recognized amounts of net sales and expenses during the periods pres ented are affected. The Volvo Group is targeting to reach net-zero greenhouse gas emis- sions by 2040. This will enable the Group\u2019s customers to have net-zero rolling fleets by 2050 as it takes approximately ten years to renew a rolling fleet. The path to decarbonization includes a gradual shift into bat- tery-electric vehicles, fuel cell-electric vehicles and vehicles with internal combustion engines running on lower carbon fuels. The transition brings risks such as transitional and physical risks as well as opportunities. The financial impact in relation to the transition occurs gradually and has not had a material effect on the financial statements as of December 31, 2023. In preparing the financial statements, management has made its best judgments of certain amounts included in the financial statements, materi- ality taken into account. Actual results may differ from previously made esti- mates. In accordance with IAS 1, the company is required to disclose the assumptions and other major sources of estimation uncertainties that, if actual results differ, may have a material impact on the financial statements. SOURCES OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS The sources of estimation uncertainty and critical judgments identified by the Volvo Group and which are considered to fulfill these criteria are pre- sented in connection to the items considered to be affected. Table 2:1 discloses where to find these descriptions and climate-related risks and opportunities, if applicable. 2:1 Source of estimation uncertainty and critical judgments Note Climate-related risks and opportunities Sales with residual value commitments and variable sales price 7 Revenue Deferred taxes and uncertainty over income tax treatments and claims 10 Income taxes Impairment of goodwill and other intangible assets 12 Intangible assets Impairment of tangible assets and residual value risks 13 Tangible assets Measurement of lease liabilities and right-of-use assets 14 Leasing Allowance for expected credit losses 15 16 Customer-financing receivables Receivables Write down of inventories 17 Inventories Assumptions when calculating post-employment benefits 20 Provisions for post- employment benefits Provisions for product warranty, other provisions and provisions for legal proceedings 21 Other provisions SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Sales with residual value commitments When the Volvo Group enters into sales transactions of vehicles with resid- ual value commitments (buybacks and tradebacks) the judgment whether control has been transferred from the Volvo Group to the customer and at what point in time revenue shall be recognized is critical. The judgment made is when a significant economic incentive exists or not for the cus- tomer to return the vehicle at the end of the commitment period. The assessment of significant economic incentive is performed at the incep- tion of the contract and the outcome at the end of the commitment period can differ from the initial assessment. Factors that are considered and requires judgment is the assessed fair market value i.e. net realizable value at the end of the residual value commitment period and historical returns. The future mix of vehicles and services is driven by customer demand for products and solutions with lower environmental impact. The gradual shift into battery electric and fuel cell electric products, as well as supply chain and production disturbances imply to some extent uncertainties in the assessment of fair market value. Read more in Note 13 Tangible assets, for a description of residual value risks and the assessment of fair market value. Variable sales price In some sales transactions, the sales price is variable. In assessing the variable sales price the expected value method is used and revenue is rec- ognized when it is highly probable that a reversal will not occur. Both the expected value method and the assessment of highly probable requires judgments to be able to make estimates. The estimates are made at the contract start with continuous assessment at each reporting period . SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Deferred taxes The Volvo Group recognizes deferred tax assets related to tax-loss carry- forwards. The deferred tax assets are recognized based on a thorough assessment in order to ensure that it is probable that sufficient taxable profits will be generated in the coming years that will enable the tax-loss carryforwards to be utilized. The assessment is based on an evaluation of business plans. In addition, the possibility to offset tax assets and tax lia bil- ities and the fact that the major part of the tax-loss carryforwards is related to countries with long or indefinite periods of utilization is considered. If deferred tax assets related to tax-loss carryforwards are not expected to be realized based on current business plans, valuation allowances are recognized. If actual results differ from the business plans, or if business plans for future periods are adjusted, changes in the valuation allowance may be required. Such recognitions and adjustments could have an impact on the financial position and the income for the period. Uncertainty over income tax treatments and claims The Volvo Group regularly evaluates income tax positions to determine if a tax liability or a contingent liability shall be recognized. The judgment is based on several factors, such as changes in facts and circumstances, the progress of the case and experience in similar cases. The actual outcome of income tax positions may deviate from the expected outcome and materi- ally affect future financial statements . SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Impairment of goodwill and other intangible assets When conducting impairment tests of goodwill and other intangible assets, estimates have to be made to determine the recoverable amounts of cash-generating units. The recoverable amount is based upon manage- ment\u2019s projections of future cash flows and are to a varying degree sensitive to changes in assumptions and the business environment. The broadening of the customer offer with focus to switch to more sustainable solutions accel- erates investments in research and development. The magnitude of invest- ments and the assessment of future useful life is uncertain due to technology and infrastructure development, emission regulations, government incen- tives and customer demand. While management believes that estimates of future cash flows and other assumptions made are reasonable, there are uncertainties which could materially affect the valuations . SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Impairment of tangible assets Impairment tests are performed if there is any indication that a tangible asset has been impaired. The impairment tests are based on estimation of the recoverable amount of the asset, or the cash-generating unit to which the asset belongs. To determine the recoverable amount, projections of future cash flows are used, which are based upon internal business plans and forecasts. The ongoing transition of the transport sector towards new technologies with electrified and other lower emission technology vehicles bring uncertainties regarding current and future investments in production facilities as well as estimated useful life. Also, some of the production sites are located in areas with physical climate risks and may in the long run be subject to increased stress from physical weather events. Physical risks bring uncertainties when estimating useful life and indication of impair- ment. While management believes that estimates of future cash flows and other assumptions made are reasonable, there are uncertainties which could materially affect the valuations. Residual value risks Volvo Group is exposed to residual value risks related to assets under operating leases which are the risks that the Volvo Group in the future would have to dispose used vehicles at a loss if the price development of these products is worse than what was expected when the contracts were entered. The assessment of residual value risks is based upon an estimation of the used vehicle\u2019s future net realizable value (fair market value) and a declined value may negatively affect the Volvo Group\u2019s oper- ating income. High inventories in the truck industry and the construction equipment industry and low demand may have a negative impact on the prices of new and used vehicles. The estimated future net realizable value of the vehicles at the end of the contract period is monitored individually on a continuing basis. In monitoring the estimated net realizable value of each vehicle, management considers current price level of the used vehi- cle, supply chain and production disturbances and the transition to elec- trified and other lower emission technology vehicles which imply to some extent uncertainties in the assessment. SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Measurement of lease liabilities and right-of-use assets When entering a lease contract, judgments related to contract scope, lease term and interest rate to be used when discounting future lease pay- ments are made which affect the measurement of the lease liability and the RoU asset. Assessment of contract scope includes judgments whether a leased asset and/or a service component is identified in the contract. In com- bined contracts, the total contract amount is allocated between the leased asset and the service by using a market stand-alone price. When determining the lease term of a contract, judgments are also required. The lease term includes the non-cancellable period. If the Volvo Group is reasonably certain to use an option to extend the lease, or not to use an option to terminate the lease in advance, this is also considered. The contracts contain a range of different conditions. Extension and ter- mination options are mainly related to real estate leases. Thus, all relevant facts and circumstances that create an economic incentive to include optional periods are evaluated. The importance of the underlying asset in the operations and its location, availability of suitable alternatives, signifi- cant leasehold improvements, level of rentals in optional periods com- pared to market rates as well as past practice are examples of factors included in the assessment. Lease terms are negotiated on an individual basis and are reassessed if an option is exercised. Judgments are also required to determine the interest rate when dis- counting future lease payments and whether the interest rate implicit in the lease can be readily determined and thereby used, or if the Volvo Group\u2019s incremental borrowing rate should be used. Read more in Note 15 Customer-financing receivables, about allowance for expected credit losses SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Allowance for expected credit losses The assessment of allowances for expected credit losses on customer- financing receivables is dependent on estimates including assumptions regarding past dues, repossession rates and quality level of repossessed collateral. A collective assessment is made for customer-financing receivables that are not credit impaired by using a vintage layer analysis. It is based on historical loss experience within a homogenous pool of assets that are collectively assessed. The assets are grouped based on shared risk char- acteristics such as type of customer, geographical area, initial credit risk rating, collateral type and date of initial recognition to evaluate the credit losses collectively. The historical loss experience is used to forecast future losses, adjusted for current and expected conditions in the different mar- kets based on management\u2019s evaluation of macro-level and portfolio-level factors, such as GDP, oil prices, unemployment rates etc. Climate-related risk, such as the transition to electric vehicles, are closely monitored, and reflected in management's evaluation of current and forecasted condi- tions in assessing expected credit losses. Volvo Group has not identified material credit impairment related to transitional and physical climate risks that would require a significant adjustment to the credit reserves. An individual assessment is made for credit impaired customer-financing receivables based on the financial condition of the customers and the value of the underlying collateral and guarantees. The Volvo Group considers a financial asset credit impaired if it meets one or more of the following criteria; when there are indications that the customer is unlikely to pay, such as bankruptcy filing, unauthorized transfer of collateral, at surrender of collateral etc. or, at the latest, when the customer fails to make contractual payment within 90 days of when the receivable falls due. SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Allowance for expected credit losses Accounts receivables are short term by nature and consequently the risk assessment horizon is short. A collective assessment is made on accounts receivables not credit impaired. Historical information regarding credit loss experience is used to forecast future losses, adjusted for current and expected conditions. An individual assessment is made on credit impaired accounts receivables based on the financial condition of the customer. The past years have been affected by uncertainties in the geopolitical environment, high inflationary pressure, increased interest rates in many regions as well as the weakened Chinese construction equipment market which might impact the Volvo Group\u2019s customers\u2019 ability to fulfill their obli- gations and increase the risk for customer default. Based on this the assess- ment process for valuation allowances for expected credit losses for accounts receivables continues to be in focus in order to ensure allowances are in alignment with the current market conditions . SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Write-down of inventories The calculation of net realizable value is based on an estimation of a future sales price, which is dependent on several parameters, such as market demand, model changes and development of used products prices. SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Assumptions when calculating post-employment benefits Provisions and costs for post-employment benefits, mainly pensions and health care benefits, are dependent on actuarial assumptions. The actuar- ial assumptions and calculations are made separately for each defined benefit plan. The most significant assumptions are discount rate and infla- tion. Inflation assumptions are generally set as a long term assumption based on an evaluation of external market indicators. A sensitivity analysis is included in graph 20:6 and shows the effect on the defined benefit obligations if significant assumptions are changed. There are also other assumptions made such as salary increases, retirement rates, mortality rates, health care cost trends rates and other factors. The salary increase assumptions reflect the historical trend, the near-term and long-term out- look and assumed inflation. Retirement and mortality rates are based pri- marily on officially available mortality statistics. Healthcare cost trend assumptions are based on historical data as well as the near-term outlook and an assessment of likely long-term trends. The Volvo Group has engaged a global actuary in order to ensure that a professional assess- ment is made and that assumptions are consistently developed across jurisdictions. The actuarial assumptions are reviewed annually by the Volvo Group and modified when deemed appropriate. Actual inflation continued above long term assumptions and previous central bank projections during the year resulting in additional monetary policy tightening globally. Expectations of higher interest rates for longer period have led to a general increase in long term interest rates, while risk assets have experienced a volatile and fragmented performance during the year. Funding levels for the Volvo Group\u2019s funded pensions plans remains strong despite challenging financial conditions . SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS The uncertainties about the amount or timing of outflows vary for different kind of provisions. Regarding provisions for product warranty, extended cov- erage, residual value risks and service contracts, the provisions are based on historical statistics and estimated future costs, which is why the provided amount has a high correlation with the outflow of resources. Regarding pro- visions for disputes, like tax and legal disputes, the uncertainty is higher. Provisions for product warranty Warranty provisions are estimated with consideration of historical statis- tics with regard to known changes in warranty claims, warranty periods, the average time-lag between faults occurring until claims are received by the company and anticipated changes in quality indexes. The actual out- come of product warranties may deviate from the expected outcome and materially affect the warranty costs and provisions in future periods. Re funds from suppliers, that decrease the Volvo Group\u2019s warranty costs, are recognized to the extent these are considered to be certain. Other provisions The Volvo Group works actively to ensure compliance with applicable environmental laws and regulations, which are often complex and uncer- tain. If the Volvo Group fails to meet climate related targets or regulatory requirements it could be subject to significant penalties and other sanc- tions which could materially affect the financial statements. Provisions for legal proceedings The Volvo Group regularly reviews the development of significant out- standing legal disputes in which the Volvo Group companies are parties, both regarding civil law and tax disputes, in order to assess the need for provisions and contingent liabilities in the financial statements. Among the factors that the Volvo Group considers in making decisions on provisions and contingent liabilities are the nature of the dispute, the amount claimed, the progress of the case, the opinions of legal and other advisers, experi- ence in similar cases, and any decision of the Volvo Group\u2019s management as to how the Volvo Group intends to handle the dispute. The actual out- come of a legal dispute may deviate from the expected outcome of the dispute. The difference between actual and expected outcome of a dispute might materially affect future financial statements, with an adverse impact upon the Volvo Group\u2019s operating income, financial position and liquidity. Provisions for legal disputes are included within other provisions in table 21:1. Read more in Note 24 Contingent liabilities and financial commitments", "dimensions": { "concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-945": { "value": "The preparation of the Volvo Group\u2019s financial statements requires the use of estimates and assumptions that may affect the recognized amounts of assets and liabilities at the date of the financial statements. In addition, the recognized amounts of net sales and expenses during the periods pres ented are affected. The Volvo Group is targeting to reach net-zero greenhouse gas emis- sions by 2040. This will enable the Group\u2019s customers to have net-zero rolling fleets by 2050 as it takes approximately ten years to renew a rolling fleet. The path to decarbonization includes a gradual shift into bat- tery-electric vehicles, fuel cell-electric vehicles and vehicles with internal combustion engines running on lower carbon fuels. The transition brings risks such as transitional and physical risks as well as opportunities. The financial impact in relation to the transition occurs gradually and has not had a material effect on the financial statements as of December 31, 2023. In preparing the financial statements, management has made its best judgments of certain amounts included in the financial statements, materi- ality taken into account. Actual results may differ from previously made esti- mates. In accordance with IAS 1, the company is required to disclose the assumptions and other major sources of estimation uncertainties that, if actual results differ, may have a material impact on the financial statements. ", "dimensions": { "concept": "ifrs-full:ExplanationOfAssumptionAboutFutureWithSignificantRiskOfResultingInMaterialAdjustments", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-946": { "value": "3 Acquisitions and divestments of operations ACCOUNTING POLICY Acquisitions Companies are consolidated as of the date of acquisition, when the Volvo Group obtains control over the operations. Business combinations are recognized in accordance with the acquisition method. The identifiable assets acquired and the liabilities assumed are measured at their fair values. A surplus amount from the purchase price paid, possible non-controlling interest, and fair value of previously held equity interests at the acquisition date compared to the acquired net assets is recognized as goodwill. All acquisition-related costs are expensed. For acquisitions done in stages, a business combination occurs on the date when control is achieved. As part of obtaining control, the acquired identifiable net assets are measured at their fair values and goodwill is recognized. The previously held equity interest is remeasured to its fair value and any resulting gain or loss compared to the carrying amount is recognized in the income statement. For each business combination, the Volvo Group decides whether the non-controlling interest shall be valued at fair value or at the non-controlling interest\u2019s proportionate share of the net assets of the acquiree. Transactions between the Volvo Group and owners with non-controlling interest are recognized in equity if control of the subsidiary is retained. Divestments Subsidiaries that have been divested are included in the consolidated financial statements until the date of the divestment, when the Volvo Group loses control over the subsidiary. A decrease in ownership interest of a subsidiary without losing control is accounted for as an equity trans- action. Assets and liabilities held for sale and discontinued operations In a global group like the Volvo Group, activities are continuously ongoing regarding the sale of assets or groups of assets at minor values. When the criteria for being classified as assets and liabilities held for sale are fulfilled and the asset or group of assets are of material value, the asset or group of assets, both current and non-current, and the related liabilities are recog- nized on separate lines in the balance sheet. The asset or group of assets are measured at the lower of its carrying amount and fair value after deduc- tions for selling expenses. The balance sheet items and the potential income statement effect resulting from the revaluation to fair value less selling expenses are, if related to Industrial Operations, normally recog- nized in the segment Group functions & Other, otherwise in the Financial Services segment. When the sale is completed the result is distributed to the relevant segments. Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Read more in Note 11 Non-controlling interest. Read more in Note 12 Investments in shares and participations in the parent com- pany, about AB Volvo\u2019s holding of shares in subsidiaries as of December 31, 2023 . Acquisitions during the period The Volvo Group has not made any acquisitions of operations during 2023 and 2022, which solely or jointly had a material impact on the Volvo Group\u2019s financial statements. The total impact on the Volvo Group\u2019s balance sheet and cash flow state- ment in connection with all acquisitions of operations are included in table 3:1. 3:1 Acquisitions 2023 2022 Acquired net assets 126 153 Non-controlling interest \u2013 \u201325 Goodwill 74 146 Purchase price \u2013198 \u2013274 Outstanding purchase price \u2013 9 Advance payment 1 121 \u2013 Effect on Volvo Group cash and cash equivalents \u201377 \u2013265 1 2023 includes an advance payment for the acquisition of a battery business unit from Proterra Inc. and Proterra Operating Company, and a recovered advance pay- ment for the discontinued acquisition of a heavy-duty truck manufacturing operation in China. Divestments during the period In 2023, the Volvo Group divested its Russian entities. The divestment resulted in a negative impact on the operating income of SEK 794 M and a total negative cash flow effect of SEK 2,499 M. In 2022, assets related to Russia amounting to SEK 4,125 M were provisioned for with a negative impact on operating income. The Volvo Group has not made any other divestments of operations during 2023 that have had a material impact on the financial statements. The Volvo Group received SEK 196 M in 2023 related to the earnout for the divestment of UD Trucks to Isuzu Motors in 2021. During 2022, the Volvo Group did not make any divestments which solely or jointly had a impact on the Volvo Group\u2019s financial statements. The Volvo Group received SEK 145 M in 2022 related to the earnout for the divestment of UD Trucks to Isuzu Motors in 2021. The total impact on the Volvo Group\u2019s balance sheet, income statement and cash flow statement in connection with all divestments of operations are specified in table 3:2. 3:2 Divestments 2023 2022 Divested net assets \u20134,448 \u2013 Whereof cash and cash equivalents \u20135,830 \u2013 Cash flow and net financial position 2023 2022 Cash and cash equivalents, received 3,562 153 Loan repayment \u2013 \u2013 Cash and cash equivalents, divested operations \u20135,830 \u2013 Effect on Volvo Group cash and cash equivalents \u20132,268 153 Effect on Volvo Group net financial position \u20131,108 \u2013 Details on divestments 2023 2022 Consideration received or receivable: Cash 3,562 \u2013 Fair value of contingent consideration \u2013 \u2013 Total disposal consideration 3,562 \u2013 Carrying amount of divested net assets \u20134,448 \u2013 Exchange rate changes reversed to income 318 \u2013 Net gain/loss \u2013569 \u2013 Transaction costs related to divestments amounted to: \u201325 \u2013 Assets and liabilities held for sale Assets and liabilities held for sale amounted to net SEK 3,803 M (-) as of December 31, 2023. It relates to the planned divestments of Arquus to John Cockerill Defense, Volvo Construction Equipment\u2019s ABG paver busi- ness to Ammann Group, and property divestments. The write-down of assets to fair value mainly relate to the planned divestments of Arquus and the paver business, and impacted the Volvo Group\u2019s operating income negatively by SEK 880 M and SEK 610 M respectively 2023. As of December 31, 2023, the total exchange rate changes to be recycled amounted to SEK 343 M. 3:3 Assets and liabilities held for sale Dec 31, 2023 Dec 31, 2022 Intangible assets 899 \u2013 Tangible assets 1,202 \u2013 Financial assets 1,858 \u2013 Inventories 3,871 \u2013 Accounts receivable 3,502 \u2013 Other current receivables 2,085 \u2013 Total assets before write-down of assets to fair value 13,417 \u2013 Write-down of assets to fair value \u20131,457 \u2013 B/S Total assets after writedown 11,960 \u2013 Provisions 503 \u2013 Other non-current liabilities 2,891 \u2013 Trade payables 1,279 \u2013 Other current liabilities 3,484 \u2013 B/S Total liabilities 8,157 \u2013 Acquisitions and divestments after the end of the period On February 1, 2024, the Volvo Group completed the previously announced transaction whereby the Volvo Group acquired the net assets related to the battery business from Proterra Inc. and Proterra Operating Company Inc., which includes a development center for battery modules and battery packs in California and an assembly factory in Greer, South Carolina, USA. With this acquisition, Volvo Group will complement the current, and accelerate its future, battery-electric road map. The acquisition was made at a purchase price of USD 210 M before adjust- ment for inventory level at closing. In connection with the acquisition, the Volvo Group made a preliminary purchase price allocation of identified assets and liabilities, which is expected to be finalized within 12 months from the acquisition date. The purchase price largely corresponds to the acquired net assets at fair value, mainly consisting of machinery and equipment (USD 80 M), inventory (USD 120 M), and surplus values related to technology (USD 20 M). Acquisition-related costs amounted to SEK 85 M and was recognized in other operating income and expense. As of February 1, 2024, the acquired operation is recognized in the segment Trucks in the Volvo Group financial statements. The Volvo Group has not made any other acquisitions or divestments after the end of the period that have had a material impact on the financial statements . ", "dimensions": { "concept": "ifrs-full:DisclosureOfBusinessCombinationsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-947": { "value": "3 Acquisitions and divestments of operations ACCOUNTING POLICY Acquisitions Companies are consolidated as of the date of acquisition, when the Volvo Group obtains control over the operations. Business combinations are recognized in accordance with the acquisition method. The identifiable assets acquired and the liabilities assumed are measured at their fair values. A surplus amount from the purchase price paid, possible non-controlling interest, and fair value of previously held equity interests at the acquisition date compared to the acquired net assets is recognized as goodwill. All acquisition-related costs are expensed. For acquisitions done in stages, a business combination occurs on the date when control is achieved. As part of obtaining control, the acquired identifiable net assets are measured at their fair values and goodwill is recognized. The previously held equity interest is remeasured to its fair value and any resulting gain or loss compared to the carrying amount is recognized in the income statement. For each business combination, the Volvo Group decides whether the non-controlling interest shall be valued at fair value or at the non-controlling interest\u2019s proportionate share of the net assets of the acquiree. Transactions between the Volvo Group and owners with non-controlling interest are recognized in equity if control of the subsidiary is retained. Divestments Subsidiaries that have been divested are included in the consolidated financial statements until the date of the divestment, when the Volvo Group loses control over the subsidiary. A decrease in ownership interest of a subsidiary without losing control is accounted for as an equity trans- action. Assets and liabilities held for sale and discontinued operations In a global group like the Volvo Group, activities are continuously ongoing regarding the sale of assets or groups of assets at minor values. When the criteria for being classified as assets and liabilities held for sale are fulfilled and the asset or group of assets are of material value, the asset or group of assets, both current and non-current, and the related liabilities are recog- nized on separate lines in the balance sheet. The asset or group of assets are measured at the lower of its carrying amount and fair value after deduc- tions for selling expenses. The balance sheet items and the potential income statement effect resulting from the revaluation to fair value less selling expenses are, if related to Industrial Operations, normally recog- nized in the segment Group functions & Other, otherwise in the Financial Services segment. When the sale is completed the result is distributed to the relevant segments. Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Read more in Note 11 Non-controlling interest. Read more in Note 12 Investments in shares and participations in the parent com- pany, about AB Volvo\u2019s holding of shares in subsidiaries as of December 31, 2023 . Acquisitions during the period The Volvo Group has not made any acquisitions of operations during 2023 and 2022, which solely or jointly had a material impact on the Volvo Group\u2019s financial statements. The total impact on the Volvo Group\u2019s balance sheet and cash flow state- ment in connection with all acquisitions of operations are included in table 3:1. 3:1 Acquisitions 2023 2022 Acquired net assets 126 153 Non-controlling interest \u2013 \u201325 Goodwill 74 146 Purchase price \u2013198 \u2013274 Outstanding purchase price \u2013 9 Advance payment 1 121 \u2013 Effect on Volvo Group cash and cash equivalents \u201377 \u2013265 1 2023 includes an advance payment for the acquisition of a battery business unit from Proterra Inc. and Proterra Operating Company, and a recovered advance pay- ment for the discontinued acquisition of a heavy-duty truck manufacturing operation in China. Divestments during the period In 2023, the Volvo Group divested its Russian entities. The divestment resulted in a negative impact on the operating income of SEK 794 M and a total negative cash flow effect of SEK 2,499 M. In 2022, assets related to Russia amounting to SEK 4,125 M were provisioned for with a negative impact on operating income. The Volvo Group has not made any other divestments of operations during 2023 that have had a material impact on the financial statements. The Volvo Group received SEK 196 M in 2023 related to the earnout for the divestment of UD Trucks to Isuzu Motors in 2021. During 2022, the Volvo Group did not make any divestments which solely or jointly had a impact on the Volvo Group\u2019s financial statements. The Volvo Group received SEK 145 M in 2022 related to the earnout for the divestment of UD Trucks to Isuzu Motors in 2021. The total impact on the Volvo Group\u2019s balance sheet, income statement and cash flow statement in connection with all divestments of operations are specified in table 3:2. 3:2 Divestments 2023 2022 Divested net assets \u20134,448 \u2013 Whereof cash and cash equivalents \u20135,830 \u2013 Cash flow and net financial position 2023 2022 Cash and cash equivalents, received 3,562 153 Loan repayment \u2013 \u2013 Cash and cash equivalents, divested operations \u20135,830 \u2013 Effect on Volvo Group cash and cash equivalents \u20132,268 153 Effect on Volvo Group net financial position \u20131,108 \u2013 Details on divestments 2023 2022 Consideration received or receivable: Cash 3,562 \u2013 Fair value of contingent consideration \u2013 \u2013 Total disposal consideration 3,562 \u2013 Carrying amount of divested net assets \u20134,448 \u2013 Exchange rate changes reversed to income 318 \u2013 Net gain/loss \u2013569 \u2013 Transaction costs related to divestments amounted to: \u201325 \u2013 Assets and liabilities held for sale Assets and liabilities held for sale amounted to net SEK 3,803 M (-) as of December 31, 2023. It relates to the planned divestments of Arquus to John Cockerill Defense, Volvo Construction Equipment\u2019s ABG paver busi- ness to Ammann Group, and property divestments. The write-down of assets to fair value mainly relate to the planned divestments of Arquus and the paver business, and impacted the Volvo Group\u2019s operating income negatively by SEK 880 M and SEK 610 M respectively 2023. As of December 31, 2023, the total exchange rate changes to be recycled amounted to SEK 343 M. 3:3 Assets and liabilities held for sale Dec 31, 2023 Dec 31, 2022 Intangible assets 899 \u2013 Tangible assets 1,202 \u2013 Financial assets 1,858 \u2013 Inventories 3,871 \u2013 Accounts receivable 3,502 \u2013 Other current receivables 2,085 \u2013 Total assets before write-down of assets to fair value 13,417 \u2013 Write-down of assets to fair value \u20131,457 \u2013 B/S Total assets after writedown 11,960 \u2013 Provisions 503 \u2013 Other non-current liabilities 2,891 \u2013 Trade payables 1,279 \u2013 Other current liabilities 3,484 \u2013 B/S Total liabilities 8,157 \u2013 Acquisitions and divestments after the end of the period On February 1, 2024, the Volvo Group completed the previously announced transaction whereby the Volvo Group acquired the net assets related to the battery business from Proterra Inc. and Proterra Operating Company Inc., which includes a development center for battery modules and battery packs in California and an assembly factory in Greer, South Carolina, USA. With this acquisition, Volvo Group will complement the current, and accelerate its future, battery-electric road map. The acquisition was made at a purchase price of USD 210 M before adjust- ment for inventory level at closing. In connection with the acquisition, the Volvo Group made a preliminary purchase price allocation of identified assets and liabilities, which is expected to be finalized within 12 months from the acquisition date. The purchase price largely corresponds to the acquired net assets at fair value, mainly consisting of machinery and equipment (USD 80 M), inventory (USD 120 M), and surplus values related to technology (USD 20 M). Acquisition-related costs amounted to SEK 85 M and was recognized in other operating income and expense. As of February 1, 2024, the acquired operation is recognized in the segment Trucks in the Volvo Group financial statements. The Volvo Group has not made any other acquisitions or divestments after the end of the period that have had a material impact on the financial statements ", "dimensions": { "concept": "ifrs-full:DisclosureOfNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-948": { "value": "3 Acquisitions and divestments of operations ACCOUNTING POLICY Acquisitions Companies are consolidated as of the date of acquisition, when the Volvo Group obtains control over the operations. Business combinations are recognized in accordance with the acquisition method. The identifiable assets acquired and the liabilities assumed are measured at their fair values. A surplus amount from the purchase price paid, possible non-controlling interest, and fair value of previously held equity interests at the acquisition date compared to the acquired net assets is recognized as goodwill. All acquisition-related costs are expensed. For acquisitions done in stages, a business combination occurs on the date when control is achieved. As part of obtaining control, the acquired identifiable net assets are measured at their fair values and goodwill is recognized. The previously held equity interest is remeasured to its fair value and any resulting gain or loss compared to the carrying amount is recognized in the income statement. For each business combination, the Volvo Group decides whether the non-controlling interest shall be valued at fair value or at the non-controlling interest\u2019s proportionate share of the net assets of the acquiree. Transactions between the Volvo Group and owners with non-controlling interest are recognized in equity if control of the subsidiary is retained. Divestments Subsidiaries that have been divested are included in the consolidated financial statements until the date of the divestment, when the Volvo Group loses control over the subsidiary. A decrease in ownership interest of a subsidiary without losing control is accounted for as an equity trans- action. Assets and liabilities held for sale and discontinued operations In a global group like the Volvo Group, activities are continuously ongoing regarding the sale of assets or groups of assets at minor values. When the criteria for being classified as assets and liabilities held for sale are fulfilled and the asset or group of assets are of material value, the asset or group of assets, both current and non-current, and the related liabilities are recog- nized on separate lines in the balance sheet. The asset or group of assets are measured at the lower of its carrying amount and fair value after deduc- tions for selling expenses. The balance sheet items and the potential income statement effect resulting from the revaluation to fair value less selling expenses are, if related to Industrial Operations, normally recog- nized in the segment Group functions & Other, otherwise in the Financial Services segment. When the sale is completed the result is distributed to the relevant segments. Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Read more in Note 11 Non-controlling interest. Read more in Note 12 Investments in shares and participations in the parent com- pany, about AB Volvo\u2019s holding of shares in subsidiaries as of December 31, 2023 . Acquisitions during the period The Volvo Group has not made any acquisitions of operations during 2023 and 2022, which solely or jointly had a material impact on the Volvo Group\u2019s financial statements. The total impact on the Volvo Group\u2019s balance sheet and cash flow state- ment in connection with all acquisitions of operations are included in table 3:1. 3:1 Acquisitions 2023 2022 Acquired net assets 126 153 Non-controlling interest \u2013 \u201325 Goodwill 74 146 Purchase price \u2013198 \u2013274 Outstanding purchase price \u2013 9 Advance payment 1 121 \u2013 Effect on Volvo Group cash and cash equivalents \u201377 \u2013265 1 2023 includes an advance payment for the acquisition of a battery business unit from Proterra Inc. and Proterra Operating Company, and a recovered advance pay- ment for the discontinued acquisition of a heavy-duty truck manufacturing operation in China. Divestments during the period In 2023, the Volvo Group divested its Russian entities. The divestment resulted in a negative impact on the operating income of SEK 794 M and a total negative cash flow effect of SEK 2,499 M. In 2022, assets related to Russia amounting to SEK 4,125 M were provisioned for with a negative impact on operating income. The Volvo Group has not made any other divestments of operations during 2023 that have had a material impact on the financial statements. The Volvo Group received SEK 196 M in 2023 related to the earnout for the divestment of UD Trucks to Isuzu Motors in 2021. During 2022, the Volvo Group did not make any divestments which solely or jointly had a impact on the Volvo Group\u2019s financial statements. The Volvo Group received SEK 145 M in 2022 related to the earnout for the divestment of UD Trucks to Isuzu Motors in 2021. The total impact on the Volvo Group\u2019s balance sheet, income statement and cash flow statement in connection with all divestments of operations are specified in table 3:2.
3:2
Divestments 2023 2022
Divested net assets \u20134,448 \u2013
Whereof cash and cash equivalents \u20135,830 \u2013
Cash flow and net financial position 2023 2022
Cash and cash equivalents, received 3,562 153
Loan repayment \u2013 \u2013
Cash and cash equivalents, divested
operations \u20135,830 \u2013
Effect on Volvo Group cash and
cash equivalents \u20132,268 153
Effect on Volvo Group
net financial position \u20131,108 \u2013
Details on divestments 2023 2022
Consideration received or receivable:
Cash 3,562 \u2013
Fair value of contingent consideration \u2013 \u2013
Total disposal consideration 3,562 \u2013
Carrying amount of divested net assets \u20134,448 \u2013
Exchange rate changes reversed to income 318 \u2013
Net gain/loss \u2013569 \u2013
Transaction costs related to divestments
amounted to: \u201325 \u2013
Assets and liabilities held for sale
Assets and liabilities held for sale amounted to net SEK 3,803 M (-) as of
December 31, 2023. It relates to the planned divestments of Arquus to
John Cockerill Defense, Volvo Construction Equipment\u2019s ABG paver busi-
ness to Ammann Group, and property divestments. The write-down of
assets to fair value mainly relate to the planned divestments of Arquus and
the paver business, and impacted the Volvo Group\u2019s operating income
negatively by SEK 880 M and SEK 610 M respectively 2023. As of
December 31, 2023, the total exchange rate changes to be recycled
amounted to SEK 343 M.
3:3
Assets and liabilities held for
sale
Dec 31, 2023 Dec 31, 2022
Intangible assets 899 \u2013
Tangible assets 1,202 \u2013
Financial assets 1,858 \u2013
Inventories 3,871 \u2013
Accounts receivable 3,502 \u2013
Other current receivables 2,085 \u2013
Total assets before write-down
of assets to fair value 13,417 \u2013
Write-down of assets to fair
value \u20131,457 \u2013
B/S
Total assets after writedown 11,960 \u2013
Provisions 503 \u2013
Other non-current liabilities 2,891 \u2013
Trade payables 1,279 \u2013
Other current liabilities
3,484 \u2013
B/S
Total liabilities 8,157 \u2013
Acquisitions and divestments after the end of the period
On February 1, 2024, the Volvo Group completed the previously announced
transaction whereby the Volvo Group acquired the net assets related to the
battery business from Proterra Inc. and Proterra Operating Company Inc.,
which includes a development center for battery modules and battery packs
in California and an assembly factory in Greer, South Carolina, USA. With this
acquisition, Volvo Group will complement the current, and accelerate its
future, battery-electric road map.
The acquisition was made at a purchase price of USD 210 M before adjust-
ment for inventory level at closing. In connection with the acquisition, the
Volvo Group made a preliminary purchase price allocation of identified assets
and liabilities, which is expected to be finalized within 12 months from the
acquisition date. The purchase price largely corresponds to the acquired net
assets at fair value, mainly consisting of machinery and equipment (USD 80
M), inventory (USD 120 M), and surplus values related to technology (USD 20
M). Acquisition-related costs amounted to SEK 85 M and was recognized in
other operating income and expense.
As of February 1, 2024, the acquired operation is recognized in the segment
Trucks in the Volvo Group financial statements.
The Volvo Group has not made any other acquisitions or divestments
after the end of the period that have had a material impact on the financial
statements .
", "dimensions": { "concept": "ifrs-full:DisclosureOfDiscontinuedOperationsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-949": { "value": "Acquisitions Companies are consolidated as of the date of acquisition, when the Volvo Group obtains control over the operations. Business combinations are recognized in accordance with the acquisition method. The identifiable assets acquired and the liabilities assumed are measured at their fair values. A surplus amount from the purchase price paid, possible non-controlling interest, and fair value of previously held equity interests at the acquisition date compared to the acquired net assets is recognized as goodwill. All acquisition-related costs are expensed. For acquisitions done in stages, a business combination occurs on the date when control is achieved. As part of obtaining control, the acquired identifiable net assets are measured at their fair values and goodwill is recognized. The previously held equity interest is remeasured to its fair value and any resulting gain or loss compared to the carrying amount is recognized in the income statement. For each business combination, the Volvo Group decides whether the non-controlling interest shall be valued at fair value or at the non-controlling interest\u2019s proportionate share of the net assets of the acquiree. Transactions between the Volvo Group and owners with non-controlling interest are recognized in equity if control of the subsidiary is retained. Divestments Subsidiaries that have been divested are included in the consolidated financial statements until the date of the divestment, when the Volvo Group loses control over the subsidiary. A decrease in ownership interest of a subsidiary without losing control is accounted for as an equity trans- action. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsAndGoodwillExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-950": { "value": "Acquisitions Companies are consolidated as of the date of acquisition, when the Volvo Group obtains control over the operations. Business combinations are recognized in accordance with the acquisition method. The identifiable assets acquired and the liabilities assumed are measured at their fair values. A surplus amount from the purchase price paid, possible non-controlling interest, and fair value of previously held equity interests at the acquisition date compared to the acquired net assets is recognized as goodwill. All acquisition-related costs are expensed. For acquisitions done in stages, a business combination occurs on the date when control is achieved. As part of obtaining control, the acquired identifiable net assets are measured at their fair values and goodwill is recognized. The previously held equity interest is remeasured to its fair value and any resulting gain or loss compared to the carrying amount is recognized in the income statement. For each business combination, the Volvo Group decides whether the non-controlling interest shall be valued at fair value or at the non-controlling interest\u2019s proportionate share of the net assets of the acquiree. Transactions between the Volvo Group and owners with non-controlling interest are recognized in equity if control of the subsidiary is retained. Divestments Subsidiaries that have been divested are included in the consolidated financial statements until the date of the divestment, when the Volvo Group loses control over the subsidiary. A decrease in ownership interest of a subsidiary without losing control is accounted for as an equity trans- action. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-951": { "value": "Assets and liabilities held for sale and discontinued operations In a global group like the Volvo Group, activities are continuously ongoing regarding the sale of assets or groups of assets at minor values. When the criteria for being classified as assets and liabilities held for sale are fulfilled and the asset or group of assets are of material value, the asset or group of assets, both current and non-current, and the related liabilities are recog- nized on separate lines in the balance sheet. The asset or group of assets are measured at the lower of its carrying amount and fair value after deduc- tions for selling expenses. The balance sheet items and the potential income statement effect resulting from the revaluation to fair value less selling expenses are, if related to Industrial Operations, normally recog- nized in the segment Group functions & Other, otherwise in the Financial Services segment. When the sale is completed the result is distributed to the relevant segments. Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Read more in Note 11 Non-controlling interest. Read more in Note 12 Investments in shares and participations in the parent com- pany, about AB Volvo\u2019s holding of shares in subsidiaries as of December 31, 2023 . ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-952": { "value": "Assets and liabilities held for sale and discontinued operations In a global group like the Volvo Group, activities are continuously ongoing regarding the sale of assets or groups of assets at minor values. When the criteria for being classified as assets and liabilities held for sale are fulfilled and the asset or group of assets are of material value, the asset or group of assets, both current and non-current, and the related liabilities are recog- nized on separate lines in the balance sheet. The asset or group of assets are measured at the lower of its carrying amount and fair value after deduc- tions for selling expenses. The balance sheet items and the potential income statement effect resulting from the revaluation to fair value less selling expenses are, if related to Industrial Operations, normally recog- nized in the segment Group functions & Other, otherwise in the Financial Services segment. When the sale is completed the result is distributed to the relevant segments. Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Read more in Note 11 Non-controlling interest. Read more in Note 12 Investments in shares and participations in the parent com- pany, about AB Volvo\u2019s holding of shares in subsidiaries as of December 31, 2023 . ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDiscontinuedOperationsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-953": { "value": "Assets and liabilities held for sale and discontinued operations In a global group like the Volvo Group, activities are continuously ongoing regarding the sale of assets or groups of assets at minor values. When the criteria for being classified as assets and liabilities held for sale are fulfilled and the asset or group of assets are of material value, the asset or group of assets, both current and non-current, and the related liabilities are recog- nized on separate lines in the balance sheet. The asset or group of assets are measured at the lower of its carrying amount and fair value after deduc- tions for selling expenses. The balance sheet items and the potential income statement effect resulting from the revaluation to fair value less selling expenses are, if related to Industrial Operations, normally recog- nized in the segment Group functions & Other, otherwise in the Financial Services segment. When the sale is completed the result is distributed to the relevant segments. Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Read more in Note 11 Non-controlling interest. Read more in Note 12 Investments in shares and participations in the parent com- pany, about AB Volvo\u2019s holding of shares in subsidiaries as of December 31, 2023 ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleAndDiscontinuedOperationsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-954": { "value": "Assets and liabilities held for sale Assets and liabilities held for sale amounted to net SEK 3,803 M (-) as of December 31, 2023. It relates to the planned divestments of Arquus to John Cockerill Defense, Volvo Construction Equipment\u2019s ABG paver busi- ness to Ammann Group, and property divestments. The write-down of assets to fair value mainly relate to the planned divestments of Arquus and the paver business, and impacted the Volvo Group\u2019s operating income negatively by SEK 880 M and SEK 610 M respectively 2023. As of December 31, 2023, the total exchange rate changes to be recycled amounted to SEK 343 M. 3:3 Assets and liabilities held for sale Dec 31, 2023 Dec 31, 2022 Intangible assets 899 \u2013 Tangible assets 1,202 \u2013 Financial assets 1,858 \u2013 Inventories 3,871 \u2013 Accounts receivable 3,502 \u2013 Other current receivables 2,085 \u2013 Total assets before write-down of assets to fair value 13,417 \u2013 Write-down of assets to fair value \u20131,457 \u2013 B/S Total assets after writedown 11,960 \u2013 Provisions 503 \u2013 Other non-current liabilities 2,891 \u2013 Trade payables 1,279 \u2013 Other current liabilities 3,484 \u2013 B/S Total liabilities 8,157 \u2013 ", "dimensions": { "concept": "ifrs-full:DisclosureOfNoncurrentAssetsHeldForSaleAndDiscontinuedOperationsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-955": { "value": "
4
Goals and policies in financial risk management
The Volvo Group\u2019s global operations expose the Group to financial risks in
the form of interest rate risks, currency risks, credit risks, liquidity risks
and other price risks. The board of AB Volvo has adopted a financial risk
policy that regulates how these risks should be controlled and governed
and defines roles and responsibilities within the Volvo Group. The financial
risk policy also establishes principles for how financial activities shall be
carried out, sets mandates and steering principles for the management of
financial risks as well as defines the financial instruments to be used for
mitigating these risks. Key mandates and steering principles are described
in the respective risk section.
The board and audit committee of AB Volvo are informed regularly during
the year about the development of the Volvo Group\u2019s financial risks and other
matters covered within the financial risk policy. The financial risk policy is
reviewed on an annual basis. The Volvo Group manages financial risk as an
integrated element of the business operations where parts of the responsibil-
ity for the finance operation and financial risk management are centralized to
Volvo Group Treasury, the internal bank of the Volvo Group. Their respon-
sibilities include financing of Industrial Operations as well as financing of
the credit portfolio in Financial Services. The Volvo Group\u2019s balance sheet
is pres ented per segment where Volvo Group Treasury is part of the Indus-
trial Operations and the internal lending from Industrial Operations to
Financial Services is presented in the balance sheet as internal funding.
In 2023 the volatility in the financial markets has decreased signifi-
cantly although it\u2019s historically still on an elevated level. Market rates have
increased and long market rates are now on higher levels than for many
years. The Volvo Group has continued to perform financial activities and
managed risk in accordance with the financial risk policy, without any pol-
icy breaches.
Read more in Note 30 Financial instruments, about accounting policies for
financial instruments.
Read more in sections financial management and risks and uncertainties about
financial risk management.
FINANCIAL RISKS
INTEREST RATE RISKS
CASH FLOW RISKS
PRICE RISKS
CURRENCY RISKS
COMMERCIAL CURRENCY
EXPOSURE
FINANCIAL CURRENCY
EXPOSURE
CURRENCY EXPOSURE
OF EQUITY
CREDIT RISKS
COMMERCIAL
CREDIT RISK
FINANCIAL
CREDIT RISK
FINANCIAL
COUNTERPARTY RISK
LIQUIDITY RISKS OTHER PRICE RISKS
COMMODITY RISKS
USD
21.2
BRL
10.1
INTEREST RATE RISKS
INTEREST RATE RISKS
Interest rate risk refers to the risk that changed interest rates will affect the
Volvo Group\u2019s net income and cash flow (cash flow risk) or the fair value of
financial assets and liabilities (price risk). Following the interest rate bench-
mark reform USD LIBOR was replaced by SOFR during 2023. At the point
of cessation the Volvo Group had a number of outstanding interest rate
derivative contracts linked to USD LIBOR which were converted to SOFR
with no material effect in the income statement. Currently no other major
IBOR rates, where the Volvo Group have outstanding contracts, are sched-
uled for cessation.
POLICY
Matching the interest fixing terms of financial assets and liabilities reduces
the exposure. Interest rate swaps are used to change/influence the inter-
est fixing term for the Volvo Group\u2019s financial assets and liabilities. Currency
interest rate swaps enable borrowing in foreign currencies from different
markets without introducing currency risk.
Cash flow risks
The effect of changed interest rate levels on future currency and interest
flows primarily pertains to Financial Services and Industrial Operations\u2019
net financial items. The interest rate risk in Financial Services is managed
with the objective to achieve a match of interest rate fixings on borrowing
and lending, in order to eliminate interest rate risk. The matching degree is
measured excluding equity, which amounted to 8% in Financial Services.
At year-end 2023, the degree of such matching ratio was 101% (100) in
Financial Services which is in accordance with the Group policy.
In addition to the financial assets in Financial Services, the Volvo
Group\u2019s interest-bearing assets at year-end 2023 consisted primarily of
cash and cash equivalents. On December 31, 2023, the average interest
on Industrial Operations financial assets was 4.6% (3.2). The increase
relates to significantly higher underlying interest rates in most regions
during the year.
The Industrial Operations\u2019 results and profitability are closely aligned to
the business cycle. Therefore, in order to minimize the interest rate risk,
outstanding loans had interest terms corresponding to an interest rate
fixing of between one to three months. The average interest rate on Indus-
trial Operations financial liabilities at year end amounted to 5.7% (5.2),
including the Volvo Group\u2019s credit costs, also affected by the increase in
underlying interest rates.
Table 4:1 shows the impact on income after financial items in Industrial
Operations\u2019 net financial position, excluding lease liabilities and post-em-
ployment benefits, if interest rates were to increase by 1 percentage point,
assuming an average interest rate fixed term of three months on the liabil-
ity side.
1
The impact on equity is earnings after tax.
1 The sensitivity analysis on interest rate risk is based on simplified assumptions. It is not
unlikely for market interest rates to change by one percentage point on an annual basis.
However, in reality, these rates often rise or decline at different points in time. The sen-
sitivity analysis also assumes a parallel deferment of the return curve, and that the
interest on assets and liabilities will be equally impacted by changes in market interest
rates. Accordingly, the impact of real interest rate changes may differ from the analysis
presented in table 4:1.
Read more in Note 20 Provisions for post-employment benefits regarding
sensitivity analysis on the defined benefit obligations when changes in the
applied assumptions for discount rate and inflations are made .
The Volvo Group\u2019s net assets in different currencies (SEK bn) = Read more in section currency exposure of equity in this note. 4:1 Risk net financial position Dec 31, 2023 Net financial position excl. post-employ- ment benefits and lease liabilities Impact on income after financial items if interest rate rises 1% (Interest rate risks) Impact on net financial position if SEK appreciates against other currencies 10% (Currency risks) SEK M SEK 49,678 533 \u2013 USD 11,291 102 \u20131,129 EUR 11,031 97 \u20131,103 GBP 5,498 48 \u2013550 CNY 2,635 30 \u2013264 BRL 2,027 22 \u2013203 Other 1,246 18 \u2013125 Total 83,407 850 \u20133,373 Read more in section financial position about the Industrial Operations net financial position. Price risks Exposure to price risk as a result of changed interest rate refers to financial assets and liabilities with a longer interest rate fixing term (fixed interest). All outstanding loans in Industrial Operations are signed with short inter- est rate fixings, therefore the price risk is immaterial. For Financial Services, financial assets and liabilities are matched in order to limit risk. Volvo Group Treasury is allowed to take limited active currency and interest rate positions in relation to the Financial Services portfolio. This responsibility is subject to, and shall be within, applicable market risk limitations. There are several measurements which can be used to define market risk. Volvo Group Treasury is using Value-at-Risk (VaR) as the main tool for mandating market risk (including interest rate risk, currency risk and liquidity risk). Volvo Group Treasury measures VaR over a one day holding period, using a 97.7% confidence level and histor- ical volatility and correlation. The total VaR mandate for Volvo Group Trea- sury is SEK 150 M, and the usage is measured daily. As of December 31, 2023, the VaR usage was SEK 20.6 M (40.8). VaR usage for 2022 was excluding assets related to Russia which were risk measured separately. CNY 15.0 INR 1.9 KRW 3.2 SEK 90.9 EUR 17.3 GBP 4.9 CURRENCY RISKS The balance sheet may be affected by changes in different exchange rates. Currency risks in the Volvo Group\u2019s operations are related to changes in the value of contracted and expected future payment flows (commercial currency exposure), changes in the value of loans and invest- ments (financial currency exposure) and changes in the value of assets and liabilities in foreign subsidiaries (currency exposure of equity). POLICY The aim of the Volvo Group\u2019s currency risk management is to secure cash flow from firm flows through currency hedges pursuant to the established Financial risk policy, and to minimize the exposure of financial items in the Volvo Group\u2019s balance sheet. Below is a presentation on how this work is conducted for commercial and financial currency exposure, and for currency exposure of equity. 4:2 Volvo Group\u2019s outstanding derivatives hedging commercial currency risks December 31, 2023 Nominal amount, millions GBP/SEK Due date 2024 111 Due date 2025 10 Total local currency 121 Average contract rate 13.51 Market value of outstanding derivatives, SEK M 105 Read more in Note 30 Financial instruments, about derivatives used for hedg- ing currency risk arising from future cashflow and the impact in the income state- ment . 4:3 Sensitivity analysis 1 Risk currency exposure 2023 Transaction exposure from operating net flows Impact on operating income if currency rate appreciates against all other currencies by 10% (Currency risks)SEK bn SEK \u201363 \u20136.3 KRW \u20139 \u20130.9 GBP 15 1.5 USD 12 1.2 CAD 10 1.0 The deficit in transaction exposure in SEK is mainly generated from flows in GBP, USD, CAD, AUD and NOK against SEK. Commercial currency exposure Transaction exposure from commercial flows The Volvo Group conducts manufacturing in 18 countries around the globe and more than 95% of net sales are generated in countries other than Sweden. Transaction exposure from commercial flows in foreign currency is generated from internal purchases and sales between manu- facturing entities and market companies and external sales and purchases in foreign currency around the globe. As the predominant parts of the operations in the Volvo Group are situated outside Sweden, the fluctua- tions in currency rates affecting the transaction flows in foreign currency are in many cases not against SEK. Industrial Operations\u2019 transaction exposure from commercial flows for key currencies is presented in graph 4:5. The graph represents the transaction exposure from commercial operating cash flows in foreign currency, expressed as net surpluses or deficits in key currencies. Commercial net flows increased compared to previous year as an effect of improved demand for the Volvo Group\u2019s prod- ucts and services. The deficit in SEK and KRW is mainly an effect of man- ufacturing costs in the plants in Sweden and South Korea, but limited external revenues in those currencies. The surplus in GBP is mainly generated from internal and external sales to Great Britain. The surplus in USD is mainly generated from internal and external sales to entities in USA and emerging markets around the globe. The surplus in CAD is mainly generated from internal and external sales to Canada. The transac- tion exposure in Financial Service is limited as the lending is done in local currency and the currency risk is managed through the matching in lend- ing and borrowing. The hedging of the Volvo Group\u2019s commercial currency exposure is exe- cuted centrally. The Volvo Group\u2019s consolidated currency exposure is the value of forecasted flows in foreign currency. The Volvo Group may hedge the part of the forecasted currency exposure that is considered highly probable to occur, however during 2023 only future cash flows for spe- cific orders, decided on case-by-case basis, has been hedged. The Volvo Group uses forward contracts and currency options to hedge the future payment flows in foreign currency. The hedged amount of firm flows for all periods fall within the framework of the Volvo Group\u2019s financial risk policy. Table 4:2 shows outstanding derivatives for the hedging of commercial currency risks. Translation exposure from the consolidation of operating income in foreign subsidiaries In conjunction with the translation of operating income in foreign subsid- iaries, the Volvo Group\u2019s income is impacted if currency rates change. The Volvo Group does not hedge this risk. Graph 4:7 shows the translation effect in key currencies when consolidating operating income for 2023 in foreign subsidiaries in the Volvo Group. Read more in section currency exposure of equity. Sensitivity analysis for transaction exposure 1 The table 4:3 illustrates the impact on operating income if key currencies for the Volvo Group appreciate by 10% against all other currencies. Hedge accounting is not applied on hedging commercial cash flows in foreign currency, hence the impact on equity equals the impact on operating income. Volvo Group currency review The table and graphs 4:4 to 4:8 show the currency impact on operating income and illustrate the transaction exposure and currency impact on operating income from commercial net flows in foreign currency , transla- tion effect when consolidating operating income in foreign subsidiaries and currency impact on sales in key currencies. Read more about Volvo Group transaction exposure in section commercial currency exposure above. Financial currency exposure Loans and investments in the Volvo Group\u2019s subsidiaries are performed mainly in local currencies through Volvo Group Treasury, which minimizes individual companies\u2019 financial currency exposure. Volvo Group Treasury uses various derivatives to facilitate lending and borrowing in different currencies without increasing the risk for the Volvo Group. The net financial position of the Volvo Group is affected by currency fluctuations since financial assets and liabilities are distributed among the Volvo Group companies that conduct their operations using different currencies. Table 4:1 discloses the impact on income after financial items on Indus- trial Operations net financial position, excl. post-employment benefits and lease libilities, if SEK were to strengthen by 10%. Currency exposure of equity The carrying amount of assets and liabilities in foreign subsidiaries are affected by current exchange rates in conjunction with the translation of assets and liabilities to SEK. To minimize currency exposure of equity, the size of equity in foreign subsidiaries is continuously optimized with respect to commercial and legal conditions and in connection with this activity, payments of major internal dividends in foreign currency can be subject for hedging. Currency hedging of equity may occur in cases where a foreign subsidiary is considered overcapitalized. Net assets in foreign subsidiaries, associated companies and joint ventures amounted at year end 2023 to SEK 90 billion (98). The need to undertake currency hedging relating to investments in associated companies, joint ventures and other companies is assessed on a case-by-case basis. On the map on the previous pages the Volvo Group\u2019s net assets in different currencies (SEK bn) are displayed. Read more in Note 30 Financial instruments, about the Volvo Group\u2019s policy choice on hedge accounting. Information on gain and losses regarding hedging of internal dividends, refer to table 30:3. 1 The sensitivity analysis on currency rate risks is based on simplified assumptions. It is not unlikely for a currency to appreciate by 10% in relation to other currencies. In reality however, all currencies usually do not change in the same direction at any given time, so the actual effect of exchange rate changes may differ from the sensitivity analysis. Please refer to table 4:3 . 4:4 The Volvo Group\u2019s currency review When the Volvo Group communicates the currency impact on operating income, the following factors are included: Currency impact on operating income, Volvo Group, SEK million 2023 2022 Change Net flows in foreign currency 1,093 Realized and unrealized gains and losses on currency hedging contracts \u201316 \u201344 29 Unrealized gains and losses on receivables and liabilities in foreign currency 94 \u2013738 832 Translation effect on operating income in foreign subsidiaries 2,805 Total currency impact on operating income, Volvo Group 4,758 Currency impact on net flows in foreign currency is detailed in graph 4:6 and translation effect on operating income in foreign subsidiaries is detailed in graph 4:7 in key currencies. 4:5 Transaction exposure from commercial net flows in 2023 and 2022 SEK bn Currency flow 2022 Currency flow 2023 SEK \u201363 \u201349 Other 11 11 KRW \u20139 \u20137 EUR 3 1 ZAR 6 5 AUD 8 6 CAD 10 7 USD 12 8 NOK 8 6 GBP 15 12 \u201350 \u201360 \u201340 \u201330 \u201320 \u201310 0 10 20 The graph above represents the transaction exposure from commercial operating net cash flows in foreign currency, expressed as net surpluses or deficits in key currencies. Read more in section commercial currency exposure. 4:6 Currency impact on operating income from net flows in foreign currency 2023 versus 2022 SEK bn Changes in currency rates compared to 2023 (Total SEK 1.1 bn). Other 0.2 ZAR \u20130.4 GBP 0.8 MXN 0.5 DKK 0.2 USD 0.5 KRW \u20130.4 CAD 0.1 NOK \u20130.4 \u20130.4 \u20130.2 0 1.0 0.8 0.6 0.4 0.2 Currency effect on operating income from net flows in foreign currency in Volvo Group is presented in the graph above. 4:7 Translation effect on operating income in 2023 versus 2022 SEK M BRL 828 USD 1,049 EUR 1,091 PLN \u2013114 MXN 101 ZAR \u201359 GBP 59 DKK 26 TRY \u2013282 Other 106 Changes in currency rates compared to 2022 (Total SEK 2,805 M). \u2013300 1,200 300 600 900 0 1,500 Translation effect when consolidating operating income in foreign subsidiaries for Volvo Group is presented in the graph above. 4:8 Currency impact on net sales in 2023 versus 2022 Changes in currency rates compared to 2022 (Total SEK 26,030 M). SEK M 3,000 0 \u20133,000 6,000 9,000 12,000 15,000 BRL 2,656 SGD 257 KRW 231 NOK \u2013555 ZAR \u2013584 Other 2,710 USD 7,318 EUR 12,576 GBP 1,421 Currency effect on net sales from inflows in foreign currency and translation effect when consolidating net sales in foreign subsidiaries for Volvo Group is presented in the graph above . CREDIT RISKS Credit risk is defined as the risk that the Volvo Group does not receive payment for recognized accounts receivables and customer-financing receivables (commercial credit risk), that the Volvo Group\u2019s investments are unrealizable (financial credit risk) and that potential profit is not real- ized due to the counterparty not fulfilling its part of the contract when using derivative instruments (financial counterparty risk). POLICY The objective of the Volvo Group\u2019s credit risk management is to define, measure and monitor the credit exposure in order to minimize the risk of losses deriving from credit to customers and suppliers, financial credit risk, counterparty risk and customer finance activities within Financial Services. Commercial credit risk The Volvo Group\u2019s credit granting is steered by group policies and customer-classification rules. The credit portfolio should contain a distri- bution among different customer categories and industries. The credit risk is managed through active credit monitoring, follow-up routines and, where applicable, product repossession. In addition to this, regular moni- toring ensures that necessary allowances are made for expected credit losses on financial assets. Risk management practices for Financial Ser- vices are presented in note 15 Customer-financing receivables and for Industrial Operations in note 16 Receivables. Moreover, note 15 includes information on gross exposure for customer-financing receivables by past due status while note 16 includes gross exposure for accounts receivables by past due status in relation to allowance for expected credit losses. The customer-financing receivables in the Volvo Group amounted to net SEK 232 billion (194) on December 31, 2023. The credit risk of this portfolio is distributed over a large number of retail customers and dealers. Collateral is provided in the form of the financed products. In the credit granting the Volvo Group strives for a balance between risk exposure and expected return. Syndication of customer-financing receivables is made in order to reduce concentration risk. The Volvo Group\u2019s accounts receivables as of December 31, 2023 amounted to net SEK 43 billion (48). Read more in Note 15 Customer-financing receivables, about the Volvo Group\u2019s concentration of credit risk in Financial Services. Read more in Note 16 Receivables. Financial credit risk The Volvo Group\u2019s financial assets are to a large extent managed by Volvo Group Treasury. All investments must meet the requirements of high liquid ity and low credit risk. According to the Volvo Group\u2019s financial risk policy, this includes using counterparties for investments and derivative transactions with a credit rating better or equivalent to A\u2013 from one of the well-established credit rating institutions or similar. Cash and cash equivalents including marketable securities as of December 31, 2023 amounted to SEK 83 billion (84) and consists primarily of bank account positions. Read more in Note 18 Cash and cash equivalents. Financial counterparty risk The use of derivatives involves a counterparty risk, in that a potential loss may not be possible to offset (in full or in part) against a potential gain if the counterparty fails to fulfill its part of the contract. The Volvo Group is actively working with limits per counterpart in order to reduce the risk for high net amounts towards individual counterparts. To reduce the expos ure further the Volvo Group enters into master netting agreements, so called ISDA agreements, with all counterparts eligible for derivative transactions. The netting agreements provide the possibility for assets and lia bilities to be offset under certain circumstances, such as in the case of the counter- part\u2019s insolvency. A Credit Support Annex (CSA) often accompanies the ISDA agreement. The CSA stipulates the terms and conditions under which the two parties are required to make cash transfers to each other in order to further reduce the exposure from the net open positions. The net- ting agreements have no effect on the financial performance or the finan- cial position of the Volvo Group, since derivative transactions are accounted for on a gross basis. Table 4:9 shows the effect of netting agreements and cash transfers on the Volvo Group\u2019s gross exposure from outstanding interest and currency risk derivatives as of December 31, 2023. Read more in Note 30 Financial instruments, about the Volvo Group\u2019s gross exposure from derivatives per type of instrument. 4:9 The impact from netting agreements and cash transfers on the Volvo Group\u2019s gross exposure from derivatives, Dec 31, 2023 Gross amount Netting agreements Cash transfers Net position Change Interest and currency risk derivatives reported as assets 6,293 \u20133,486 \u20131,773 1,034 84% Interest and currency risk derivatives reported as liabilities 5,779 \u20133,486 \u20132,110 183 97% LIQUIDITY RISKS Liquidity risk is defined as the risk that the Volvo Group would be unable to finance or refinance its assets or fulfill its payment obligations. POLICY The Volvo Group ensures sound financial preparedness by always keeping a certain percentage of its sales in liquid assets, mainly as bank account positions in banks rated at least A- from one of the well-established credit rating institutions or similar. A sound balance between current and non-current debt maturities, as well as non-current committed credit facilities, is intended to secure liquidity preparedness, and thus the Volvo Group\u2019s payment capability. The Volvo Group\u2019s cash and cash equivalents amounted to SEK 83 billion (84) on December 31, 2023. In addition to this, granted but unutilized credit facilities amounted to SEK 53 billion (46). Graph 4:10 discloses expected future cash flows related to financial liabilities. Capital flow refers to expected payments of loans, lease liabilities and derivatives. Expected interest flow refers to the future interest payments on loans, lease liabili- ties and derivatives based on interest rates anticipated by the market. The interest flow is recognized within cash flow from operating activities. The maturity structure of the unutilized credit facilities is disclosed in note 22 Liabilities, in table 22:3. The predominant part of expected future cash flows that will occur in 2024 and 2025 is an effect of the Volvo Group\u2019s normal business cycle, with shorter duration in the portfolio within Finan- cial Services compared to Industrial Operations. Financial Services measure the degree to which the duration of borrow- ing and lending matches. The calculation of the matching degree excludes equity, which amounted to 8% in Financial Services. At year-end 2023, the degree of such matching was 101% (100) for the segment Financial Services, which was in line with the Volvo Group\u2019s policy. Volvo Group Treasury has, for practical as well as business reasons, the mandate to mismatch their portfolio for Financial Services between a matching ratio of 80\u2013120%. At year-end 2023, the matching ratio was 91% (103). Any gains or losses from the mismatch impact the segment Group functions & other within Industrial Operations. A hybrid bond amounting to EUR 1.5 billion was issued by the Volvo Group in 2014. The final tranche of this bond (EUR 0.6 billion) was repaid in March, 2023. Read more in Note 14 Leasing, about the maturity for non-current lease liabilities in table 14:4. Read more in Note 22 Liabilities, about the maturity for non-current loans in table 22:3 4:10 Future cash flow including lease liabilities and derivatives related to non-current and current financial liabilities 1 0 \u201310 \u201320 \u201330 \u201340 \u201350 \u201360 \u201370 \u201380 \u201390 \u2013100 \u2013110 Capital flow Interest flow 2030 or later2029 \u201398.3 \u201360.2 \u201346.0 \u201318.5 \u20137.0 \u20133.5 \u20133.3 SEK bn \u201310.3 \u20135.8 \u20133.5 \u20131.5 \u20130.8 \u20130.3 \u20130.2 2024 2025 2026 2027 2028 1 In addition to derivatives included in graph 4:10 there are also derivatives in the Volvo Group related to financial liabilities recognized as assets, which are expected to give a future capital flow of SEK 2.9 billion (1.7) and a future interest flow of SEK 2.0 billion (2.9). OTHER PRICE RISKS OTHER PRICE RISKS Commodity risks Commodity risk refers to the risk that changed commodity prices may affect the income for the period within the Volvo Group. Procurement of commodities such as steel, precious metals and electricity are made in the Volvo Group on a regular basis where prices are set in the global markets. POLICY Changes in commodity prices are included in the Volvo Group\u2019s product cost calculation. Increased commodity prices are therefore reflected in the sales price of the final products. Purchasing agreements with com- modity suppliers may also be long-term in nature or structured in a way to de crease the volatility in commodity prices.", "dimensions": { "concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-956": { "value": "4 Goals and policies in financial risk management The Volvo Group\u2019s global operations expose the Group to financial risks in the form of interest rate risks, currency risks, credit risks, liquidity risks and other price risks. The board of AB Volvo has adopted a financial risk policy that regulates how these risks should be controlled and governed and defines roles and responsibilities within the Volvo Group. The financial risk policy also establishes principles for how financial activities shall be carried out, sets mandates and steering principles for the management of financial risks as well as defines the financial instruments to be used for mitigating these risks. Key mandates and steering principles are described in the respective risk section. The board and audit committee of AB Volvo are informed regularly during the year about the development of the Volvo Group\u2019s financial risks and other matters covered within the financial risk policy. The financial risk policy is reviewed on an annual basis. The Volvo Group manages financial risk as an integrated element of the business operations where parts of the responsibil- ity for the finance operation and financial risk management are centralized to Volvo Group Treasury, the internal bank of the Volvo Group. Their respon- sibilities include financing of Industrial Operations as well as financing of the credit portfolio in Financial Services. The Volvo Group\u2019s balance sheet is pres ented per segment where Volvo Group Treasury is part of the Indus- trial Operations and the internal lending from Industrial Operations to Financial Services is presented in the balance sheet as internal funding. In 2023 the volatility in the financial markets has decreased signifi- cantly although it\u2019s historically still on an elevated level. Market rates have increased and long market rates are now on higher levels than for many years. The Volvo Group has continued to perform financial activities and managed risk in accordance with the financial risk policy, without any pol- icy breaches. Read more in Note 30 Financial instruments, about accounting policies for financial instruments. Read more in sections financial management and risks and uncertainties about financial risk management. INTEREST RATE RISKS Interest rate risk refers to the risk that changed interest rates will affect the Volvo Group\u2019s net income and cash flow (cash flow risk) or the fair value of financial assets and liabilities (price risk). Following the interest rate bench- mark reform USD LIBOR was replaced by SOFR during 2023. At the point of cessation the Volvo Group had a number of outstanding interest rate derivative contracts linked to USD LIBOR which were converted to SOFR with no material effect in the income statement. Currently no other major IBOR rates, where the Volvo Group have outstanding contracts, are sched- uled for cessation. POLICY Matching the interest fixing terms of financial assets and liabilities reduces the exposure. Interest rate swaps are used to change/influence the inter- est fixing term for the Volvo Group\u2019s financial assets and liabilities. Currency interest rate swaps enable borrowing in foreign currencies from different markets without introducing currency risk. Cash flow risks The effect of changed interest rate levels on future currency and interest flows primarily pertains to Financial Services and Industrial Operations\u2019 net financial items. The interest rate risk in Financial Services is managed with the objective to achieve a match of interest rate fixings on borrowing and lending, in order to eliminate interest rate risk. The matching degree is measured excluding equity, which amounted to 8% in Financial Services. At year-end 2023, the degree of such matching ratio was 101% (100) in Financial Services which is in accordance with the Group policy. In addition to the financial assets in Financial Services, the Volvo Group\u2019s interest-bearing assets at year-end 2023 consisted primarily of cash and cash equivalents. On December 31, 2023, the average interest on Industrial Operations financial assets was 4.6% (3.2). The increase relates to significantly higher underlying interest rates in most regions during the year. The Industrial Operations\u2019 results and profitability are closely aligned to the business cycle. Therefore, in order to minimize the interest rate risk, outstanding loans had interest terms corresponding to an interest rate fixing of between one to three months. The average interest rate on Indus- trial Operations financial liabilities at year end amounted to 5.7% (5.2), including the Volvo Group\u2019s credit costs, also affected by the increase in underlying interest rates. Table 4:1 shows the impact on income after financial items in Industrial Operations\u2019 net financial position, excluding lease liabilities and post-em- ployment benefits, if interest rates were to increase by 1 percentage point, assuming an average interest rate fixed term of three months on the liabil- ity side. 1 The impact on equity is earnings after tax. 1 The sensitivity analysis on interest rate risk is based on simplified assumptions. It is not unlikely for market interest rates to change by one percentage point on an annual basis. However, in reality, these rates often rise or decline at different points in time. The sen- sitivity analysis also assumes a parallel deferment of the return curve, and that the interest on assets and liabilities will be equally impacted by changes in market interest rates. Accordingly, the impact of real interest rate changes may differ from the analysis presented in table 4:1. Read more in Note 20 Provisions for post-employment benefits regarding sensitivity analysis on the defined benefit obligations when changes in the applied assumptions for discount rate and inflations are made . The Volvo Group\u2019s net assets in different currencies (SEK bn) = Read more in section currency exposure of equity in this note. 4:1 Risk net financial position Dec 31, 2023 Net financial position excl. post-employ- ment benefits and lease liabilities Impact on income after financial items if interest rate rises 1% (Interest rate risks) Impact on net financial position if SEK appreciates against other currencies 10% (Currency risks) SEK M SEK 49,678 533 \u2013 USD 11,291 102 \u20131,129 EUR 11,031 97 \u20131,103 GBP 5,498 48 \u2013550 CNY 2,635 30 \u2013264 BRL 2,027 22 \u2013203 Other 1,246 18 \u2013125 Total 83,407 850 \u20133,373 Read more in section financial position about the Industrial Operations net financial position. Price risks Exposure to price risk as a result of changed interest rate refers to financial assets and liabilities with a longer interest rate fixing term (fixed interest). All outstanding loans in Industrial Operations are signed with short inter- est rate fixings, therefore the price risk is immaterial. For Financial Services, financial assets and liabilities are matched in order to limit risk. Volvo Group Treasury is allowed to take limited active currency and interest rate positions in relation to the Financial Services portfolio. This responsibility is subject to, and shall be within, applicable market risk limitations. There are several measurements which can be used to define market risk. Volvo Group Treasury is using Value-at-Risk (VaR) as the main tool for mandating market risk (including interest rate risk, currency risk and liquidity risk). Volvo Group Treasury measures VaR over a one day holding period, using a 97.7% confidence level and histor- ical volatility and correlation. The total VaR mandate for Volvo Group Trea- sury is SEK 150 M, and the usage is measured daily. As of December 31, 2023, the VaR usage was SEK 20.6 M (40.8). VaR usage for 2022 was excluding assets related to Russia which were risk measured separately. CURRENCY RISKS The balance sheet may be affected by changes in different exchange rates. Currency risks in the Volvo Group\u2019s operations are related to changes in the value of contracted and expected future payment flows (commercial currency exposure), changes in the value of loans and invest- ments (financial currency exposure) and changes in the value of assets and liabilities in foreign subsidiaries (currency exposure of equity). POLICY The aim of the Volvo Group\u2019s currency risk management is to secure cash flow from firm flows through currency hedges pursuant to the established Financial risk policy, and to minimize the exposure of financial items in the Volvo Group\u2019s balance sheet. Below is a presentation on how this work is conducted for commercial and financial currency exposure, and for currency exposure of equity. 4:2 Volvo Group\u2019s outstanding derivatives hedging commercial currency risks December 31, 2023 Nominal amount, millions GBP/SEK Due date 2024 111 Due date 2025 10 Total local currency 121 Average contract rate 13.51 Market value of outstanding derivatives, SEK M 105 Read more in Note 30 Financial instruments, about derivatives used for hedg- ing currency risk arising from future cashflow and the impact in the income state- ment . 4:3 Sensitivity analysis 1 Risk currency exposure 2023 Transaction exposure from operating net flows Impact on operating income if currency rate appreciates against all other currencies by 10% (Currency risks)SEK bn SEK \u201363 \u20136.3 KRW \u20139 \u20130.9 GBP 15 1.5 USD 12 1.2 CAD 10 1.0 The deficit in transaction exposure in SEK is mainly generated from flows in GBP, USD, CAD, AUD and NOK against SEK. Commercial currency exposure Transaction exposure from commercial flows The Volvo Group conducts manufacturing in 18 countries around the globe and more than 95% of net sales are generated in countries other than Sweden. Transaction exposure from commercial flows in foreign currency is generated from internal purchases and sales between manu- facturing entities and market companies and external sales and purchases in foreign currency around the globe. As the predominant parts of the operations in the Volvo Group are situated outside Sweden, the fluctua- tions in currency rates affecting the transaction flows in foreign currency are in many cases not against SEK. Industrial Operations\u2019 transaction exposure from commercial flows for key currencies is presented in graph 4:5. The graph represents the transaction exposure from commercial operating cash flows in foreign currency, expressed as net surpluses or deficits in key currencies. Commercial net flows increased compared to previous year as an effect of improved demand for the Volvo Group\u2019s prod- ucts and services. The deficit in SEK and KRW is mainly an effect of man- ufacturing costs in the plants in Sweden and South Korea, but limited external revenues in those currencies. The surplus in GBP is mainly generated from internal and external sales to Great Britain. The surplus in USD is mainly generated from internal and external sales to entities in USA and emerging markets around the globe. The surplus in CAD is mainly generated from internal and external sales to Canada. The transac- tion exposure in Financial Service is limited as the lending is done in local currency and the currency risk is managed through the matching in lend- ing and borrowing. The hedging of the Volvo Group\u2019s commercial currency exposure is exe- cuted centrally. The Volvo Group\u2019s consolidated currency exposure is the value of forecasted flows in foreign currency. The Volvo Group may hedge the part of the forecasted currency exposure that is considered highly probable to occur, however during 2023 only future cash flows for spe- cific orders, decided on case-by-case basis, has been hedged. The Volvo Group uses forward contracts and currency options to hedge the future payment flows in foreign currency. The hedged amount of firm flows for all periods fall within the framework of the Volvo Group\u2019s financial risk policy. Table 4:2 shows outstanding derivatives for the hedging of commercial currency risks. Translation exposure from the consolidation of operating income in foreign subsidiaries In conjunction with the translation of operating income in foreign subsid- iaries, the Volvo Group\u2019s income is impacted if currency rates change. The Volvo Group does not hedge this risk. Graph 4:7 shows the translation effect in key currencies when consolidating operating income for 2023 in foreign subsidiaries in the Volvo Group. Read more in section currency exposure of equity. Sensitivity analysis for transaction exposure 1 The table 4:3 illustrates the impact on operating income if key currencies for the Volvo Group appreciate by 10% against all other currencies. Hedge accounting is not applied on hedging commercial cash flows in foreign currency, hence the impact on equity equals the impact on operating income. Volvo Group currency review The table and graphs 4:4 to 4:8 show the currency impact on operating income and illustrate the transaction exposure and currency impact on operating income from commercial net flows in foreign currency , transla- tion effect when consolidating operating income in foreign subsidiaries and currency impact on sales in key currencies. Read more about Volvo Group transaction exposure in section commercial currency exposure above. Financial currency exposure Loans and investments in the Volvo Group\u2019s subsidiaries are performed mainly in local currencies through Volvo Group Treasury, which minimizes individual companies\u2019 financial currency exposure. Volvo Group Treasury uses various derivatives to facilitate lending and borrowing in different currencies without increasing the risk for the Volvo Group. The net financial position of the Volvo Group is affected by currency fluctuations since financial assets and liabilities are distributed among the Volvo Group companies that conduct their operations using different currencies. Table 4:1 discloses the impact on income after financial items on Indus- trial Operations net financial position, excl. post-employment benefits and lease libilities, if SEK were to strengthen by 10%. Currency exposure of equity The carrying amount of assets and liabilities in foreign subsidiaries are affected by current exchange rates in conjunction with the translation of assets and liabilities to SEK. To minimize currency exposure of equity, the size of equity in foreign subsidiaries is continuously optimized with respect to commercial and legal conditions and in connection with this activity, payments of major internal dividends in foreign currency can be subject for hedging. Currency hedging of equity may occur in cases where a foreign subsidiary is considered overcapitalized. Net assets in foreign subsidiaries, associated companies and joint ventures amounted at year end 2023 to SEK 90 billion (98). The need to undertake currency hedging relating to investments in associated companies, joint ventures and other companies is assessed on a case-by-case basis. On the map on the previous pages the Volvo Group\u2019s net assets in different currencies (SEK bn) are displayed. Read more in Note 30 Financial instruments, about the Volvo Group\u2019s policy choice on hedge accounting. Information on gain and losses regarding hedging of internal dividends, refer to table 30:3. 1 The sensitivity analysis on currency rate risks is based on simplified assumptions. It is not unlikely for a currency to appreciate by 10% in relation to other currencies. In reality however, all currencies usually do not change in the same direction at any given time, so the actual effect of exchange rate changes may differ from the sensitivity analysis. Please refer to table 4:3 . 4:4 The Volvo Group\u2019s currency review When the Volvo Group communicates the currency impact on operating income, the following factors are included: Currency impact on operating income, Volvo Group, SEK million 2023 2022 Change Net flows in foreign currency 1,093 Realized and unrealized gains and losses on currency hedging contracts \u201316 \u201344 29 Unrealized gains and losses on receivables and liabilities in foreign currency 94 \u2013738 832 Translation effect on operating income in foreign subsidiaries 2,805 Total currency impact on operating income, Volvo Group 4,758 Currency impact on net flows in foreign currency is detailed in graph 4:6 and translation effect on operating income in foreign subsidiaries is detailed in graph 4:7 in key currencies. 4:5 Transaction exposure from commercial net flows in 2023 and 2022 SEK bn Currency flow 2022 Currency flow 2023 SEK \u201363 \u201349 Other 11 11 KRW \u20139 \u20137 EUR 3 1 ZAR 6 5 AUD 8 6 CAD 10 7 USD 12 8 NOK 8 6 GBP 15 12 \u201350 \u201360 \u201340 \u201330 \u201320 \u201310 0 10 20 The graph above represents the transaction exposure from commercial operating net cash flows in foreign currency, expressed as net surpluses or deficits in key currencies. Read more in section commercial currency exposure. 4:6 Currency impact on operating income from net flows in foreign currency 2023 versus 2022 SEK bn Changes in currency rates compared to 2023 (Total SEK 1.1 bn). Other 0.2 ZAR \u20130.4 GBP 0.8 MXN 0.5 DKK 0.2 USD 0.5 KRW \u20130.4 CAD 0.1 NOK \u20130.4 \u20130.4 \u20130.2 0 1.0 0.8 0.6 0.4 0.2 Currency effect on operating income from net flows in foreign currency in Volvo Group is presented in the graph above. 4:7 Translation effect on operating income in 2023 versus 2022 SEK M BRL 828 USD 1,049 EUR 1,091 PLN \u2013114 MXN 101 ZAR \u201359 GBP 59 DKK 26 TRY \u2013282 Other 106 Changes in currency rates compared to 2022 (Total SEK 2,805 M). \u2013300 1,200 300 600 900 0 1,500 Translation effect when consolidating operating income in foreign subsidiaries for Volvo Group is presented in the graph above. 4:8 Currency impact on net sales in 2023 versus 2022 Changes in currency rates compared to 2022 (Total SEK 26,030 M). SEK M 3,000 0 \u20133,000 6,000 9,000 12,000 15,000 BRL 2,656 SGD 257 KRW 231 NOK \u2013555 ZAR \u2013584 Other 2,710 USD 7,318 EUR 12,576 GBP 1,421 Currency effect on net sales from inflows in foreign currency and translation effect when consolidating net sales in foreign subsidiaries for Volvo Group is presented in the graph above . CREDIT RISKS Credit risk is defined as the risk that the Volvo Group does not receive payment for recognized accounts receivables and customer-financing receivables (commercial credit risk), that the Volvo Group\u2019s investments are unrealizable (financial credit risk) and that potential profit is not real- ized due to the counterparty not fulfilling its part of the contract when using derivative instruments (financial counterparty risk). POLICY The objective of the Volvo Group\u2019s credit risk management is to define, measure and monitor the credit exposure in order to minimize the risk of losses deriving from credit to customers and suppliers, financial credit risk, counterparty risk and customer finance activities within Financial Services. Commercial credit risk The Volvo Group\u2019s credit granting is steered by group policies and customer-classification rules. The credit portfolio should contain a distri- bution among different customer categories and industries. The credit risk is managed through active credit monitoring, follow-up routines and, where applicable, product repossession. In addition to this, regular moni- toring ensures that necessary allowances are made for expected credit losses on financial assets. Risk management practices for Financial Ser- vices are presented in note 15 Customer-financing receivables and for Industrial Operations in note 16 Receivables. Moreover, note 15 includes information on gross exposure for customer-financing receivables by past due status while note 16 includes gross exposure for accounts receivables by past due status in relation to allowance for expected credit losses. The customer-financing receivables in the Volvo Group amounted to net SEK 232 billion (194) on December 31, 2023. The credit risk of this portfolio is distributed over a large number of retail customers and dealers. Collateral is provided in the form of the financed products. In the credit granting the Volvo Group strives for a balance between risk exposure and expected return. Syndication of customer-financing receivables is made in order to reduce concentration risk. The Volvo Group\u2019s accounts receivables as of December 31, 2023 amounted to net SEK 43 billion (48). Read more in Note 15 Customer-financing receivables, about the Volvo Group\u2019s concentration of credit risk in Financial Services. Read more in Note 16 Receivables. Financial credit risk The Volvo Group\u2019s financial assets are to a large extent managed by Volvo Group Treasury. All investments must meet the requirements of high liquid ity and low credit risk. According to the Volvo Group\u2019s financial risk policy, this includes using counterparties for investments and derivative transactions with a credit rating better or equivalent to A\u2013 from one of the well-established credit rating institutions or similar. Cash and cash equivalents including marketable securities as of December 31, 2023 amounted to SEK 83 billion (84) and consists primarily of bank account positions. Read more in Note 18 Cash and cash equivalents. Financial counterparty risk The use of derivatives involves a counterparty risk, in that a potential loss may not be possible to offset (in full or in part) against a potential gain if the counterparty fails to fulfill its part of the contract. The Volvo Group is actively working with limits per counterpart in order to reduce the risk for high net amounts towards individual counterparts. To reduce the expos ure further the Volvo Group enters into master netting agreements, so called ISDA agreements, with all counterparts eligible for derivative transactions. The netting agreements provide the possibility for assets and lia bilities to be offset under certain circumstances, such as in the case of the counter- part\u2019s insolvency. A Credit Support Annex (CSA) often accompanies the ISDA agreement. The CSA stipulates the terms and conditions under which the two parties are required to make cash transfers to each other in order to further reduce the exposure from the net open positions. The net- ting agreements have no effect on the financial performance or the finan- cial position of the Volvo Group, since derivative transactions are accounted for on a gross basis. Table 4:9 shows the effect of netting agreements and cash transfers on the Volvo Group\u2019s gross exposure from outstanding interest and currency risk derivatives as of December 31, 2023. Read more in Note 30 Financial instruments, about the Volvo Group\u2019s gross exposure from derivatives per type of instrument. 4:9 The impact from netting agreements and cash transfers on the Volvo Group\u2019s gross exposure from derivatives, Dec 31, 2023 Gross amount Netting agreements Cash transfers Net position Change Interest and currency risk derivatives reported as assets 6,293 \u20133,486 \u20131,773 1,034 84% Interest and currency risk derivatives reported as liabilities 5,779 \u20133,486 \u20132,110 183 97% LIQUIDITY RISKS Liquidity risk is defined as the risk that the Volvo Group would be unable to finance or refinance its assets or fulfill its payment obligations. POLICY The Volvo Group ensures sound financial preparedness by always keeping a certain percentage of its sales in liquid assets, mainly as bank account positions in banks rated at least A- from one of the well-established credit rating institutions or similar. A sound balance between current and non-current debt maturities, as well as non-current committed credit facilities, is intended to secure liquidity preparedness, and thus the Volvo Group\u2019s payment capability. The Volvo Group\u2019s cash and cash equivalents amounted to SEK 83 billion (84) on December 31, 2023. In addition to this, granted but unutilized credit facilities amounted to SEK 53 billion (46). Graph 4:10 discloses expected future cash flows related to financial liabilities. Capital flow refers to expected payments of loans, lease liabilities and derivatives. Expected interest flow refers to the future interest payments on loans, lease liabili- ties and derivatives based on interest rates anticipated by the market. The interest flow is recognized within cash flow from operating activities. The maturity structure of the unutilized credit facilities is disclosed in note 22 Liabilities, in table 22:3. The predominant part of expected future cash flows that will occur in 2024 and 2025 is an effect of the Volvo Group\u2019s normal business cycle, with shorter duration in the portfolio within Finan- cial Services compared to Industrial Operations. Financial Services measure the degree to which the duration of borrow- ing and lending matches. The calculation of the matching degree excludes equity, which amounted to 8% in Financial Services. At year-end 2023, the degree of such matching was 101% (100) for the segment Financial Services, which was in line with the Volvo Group\u2019s policy. Volvo Group Treasury has, for practical as well as business reasons, the mandate to mismatch their portfolio for Financial Services between a matching ratio of 80\u2013120%. At year-end 2023, the matching ratio was 91% (103). Any gains or losses from the mismatch impact the segment Group functions & other within Industrial Operations. A hybrid bond amounting to EUR 1.5 billion was issued by the Volvo Group in 2014. The final tranche of this bond (EUR 0.6 billion) was repaid in March, 2023. Read more in Note 14 Leasing, about the maturity for non-current lease liabilities in table 14:4. Read more in Note 22 Liabilities, about the maturity for non-current loans in table 22:3 4:10 Future cash flow including lease liabilities and derivatives related to non-current and current financial liabilities 1 0 \u201310 \u201320 \u201330 \u201340 \u201350 \u201360 \u201370 \u201380 \u201390 \u2013100 \u2013110 Capital flow Interest flow 2030 or later2029 \u201398.3 \u201360.2 \u201346.0 \u201318.5 \u20137.0 \u20133.5 \u20133.3 SEK bn \u201310.3 \u20135.8 \u20133.5 \u20131.5 \u20130.8 \u20130.3 \u20130.2 2024 2025 2026 2027 2028 1 In addition to derivatives included in graph 4:10 there are also derivatives in the Volvo Group related to financial liabilities recognized as assets, which are expected to give a future capital flow of SEK 2.9 billion (1.7) and a future interest flow of SEK 2.0 billion (2.9). OTHER PRICE RISKS Commodity risks Commodity risk refers to the risk that changed commodity prices may affect the income for the period within the Volvo Group. Procurement of commodities such as steel, precious metals and electricity are made in the Volvo Group on a regular basis where prices are set in the global markets. POLICY Changes in commodity prices are included in the Volvo Group\u2019s product cost calculation. Increased commodity prices are therefore reflected in the sales price of the final products. Purchasing agreements with com- modity suppliers may also be long-term in nature or structured in a way to de crease the volatility in commodity prices.", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialRiskManagementExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-957": { "value": "4 Goals and policies in financial risk management The Volvo Group\u2019s global operations expose the Group to financial risks in the form of interest rate risks, currency risks, credit risks, liquidity risks and other price risks. The board of AB Volvo has adopted a financial risk policy that regulates how these risks should be controlled and governed and defines roles and responsibilities within the Volvo Group. The financial risk policy also establishes principles for how financial activities shall be carried out, sets mandates and steering principles for the management of financial risks as well as defines the financial instruments to be used for mitigating these risks. Key mandates and steering principles are described in the respective risk section. The board and audit committee of AB Volvo are informed regularly during the year about the development of the Volvo Group\u2019s financial risks and other matters covered within the financial risk policy. The financial risk policy is reviewed on an annual basis. The Volvo Group manages financial risk as an integrated element of the business operations where parts of the responsibil- ity for the finance operation and financial risk management are centralized to Volvo Group Treasury, the internal bank of the Volvo Group. Their respon- sibilities include financing of Industrial Operations as well as financing of the credit portfolio in Financial Services. The Volvo Group\u2019s balance sheet is pres ented per segment where Volvo Group Treasury is part of the Indus- trial Operations and the internal lending from Industrial Operations to Financial Services is presented in the balance sheet as internal funding. In 2023 the volatility in the financial markets has decreased signifi- cantly although it\u2019s historically still on an elevated level. Market rates have increased and long market rates are now on higher levels than for many years. The Volvo Group has continued to perform financial activities and managed risk in accordance with the financial risk policy, without any pol- icy breaches. Read more in Note 30 Financial instruments, about accounting policies for financial instruments. Read more in sections financial management and risks and uncertainties about financial risk management. FINANCIAL RISKS INTEREST RATE RISKS CASH FLOW RISKS PRICE RISKS CURRENCY RISKS COMMERCIAL CURRENCY EXPOSURE FINANCIAL CURRENCY EXPOSURE CURRENCY EXPOSURE OF EQUITY CREDIT RISKS COMMERCIAL CREDIT RISK FINANCIAL CREDIT RISK FINANCIAL COUNTERPARTY RISK LIQUIDITY RISKS OTHER PRICE RISKS COMMODITY RISKS USD 21.2 BRL 10.1 INTEREST RATE RISKS INTEREST RATE RISKS Interest rate risk refers to the risk that changed interest rates will affect the Volvo Group\u2019s net income and cash flow (cash flow risk) or the fair value of financial assets and liabilities (price risk). Following the interest rate bench- mark reform USD LIBOR was replaced by SOFR during 2023. At the point of cessation the Volvo Group had a number of outstanding interest rate derivative contracts linked to USD LIBOR which were converted to SOFR with no material effect in the income statement. Currently no other major IBOR rates, where the Volvo Group have outstanding contracts, are sched- uled for cessation. POLICY Matching the interest fixing terms of financial assets and liabilities reduces the exposure. Interest rate swaps are used to change/influence the inter- est fixing term for the Volvo Group\u2019s financial assets and liabilities. Currency interest rate swaps enable borrowing in foreign currencies from different markets without introducing currency risk. Cash flow risks The effect of changed interest rate levels on future currency and interest flows primarily pertains to Financial Services and Industrial Operations\u2019 net financial items. The interest rate risk in Financial Services is managed with the objective to achieve a match of interest rate fixings on borrowing and lending, in order to eliminate interest rate risk. The matching degree is measured excluding equity, which amounted to 8% in Financial Services. At year-end 2023, the degree of such matching ratio was 101% (100) in Financial Services which is in accordance with the Group policy. In addition to the financial assets in Financial Services, the Volvo Group\u2019s interest-bearing assets at year-end 2023 consisted primarily of cash and cash equivalents. On December 31, 2023, the average interest on Industrial Operations financial assets was 4.6% (3.2). The increase relates to significantly higher underlying interest rates in most regions during the year. The Industrial Operations\u2019 results and profitability are closely aligned to the business cycle. Therefore, in order to minimize the interest rate risk, outstanding loans had interest terms corresponding to an interest rate fixing of between one to three months. The average interest rate on Indus- trial Operations financial liabilities at year end amounted to 5.7% (5.2), including the Volvo Group\u2019s credit costs, also affected by the increase in underlying interest rates. Table 4:1 shows the impact on income after financial items in Industrial Operations\u2019 net financial position, excluding lease liabilities and post-em- ployment benefits, if interest rates were to increase by 1 percentage point, assuming an average interest rate fixed term of three months on the liabil- ity side. 1 The impact on equity is earnings after tax. 1 The sensitivity analysis on interest rate risk is based on simplified assumptions. It is not unlikely for market interest rates to change by one percentage point on an annual basis. However, in reality, these rates often rise or decline at different points in time. The sen- sitivity analysis also assumes a parallel deferment of the return curve, and that the interest on assets and liabilities will be equally impacted by changes in market interest rates. Accordingly, the impact of real interest rate changes may differ from the analysis presented in table 4:1. Read more in Note 20 Provisions for post-employment benefits regarding sensitivity analysis on the defined benefit obligations when changes in the applied assumptions for discount rate and inflations are made . The Volvo Group\u2019s net assets in different currencies (SEK bn) = Read more in section currency exposure of equity in this note. 4:1 Risk net financial position Dec 31, 2023 Net financial position excl. post-employ- ment benefits and lease liabilities Impact on income after financial items if interest rate rises 1% (Interest rate risks) Impact on net financial position if SEK appreciates against other currencies 10% (Currency risks) SEK M SEK 49,678 533 \u2013 USD 11,291 102 \u20131,129 EUR 11,031 97 \u20131,103 GBP 5,498 48 \u2013550 CNY 2,635 30 \u2013264 BRL 2,027 22 \u2013203 Other 1,246 18 \u2013125 Total 83,407 850 \u20133,373 Read more in section financial position about the Industrial Operations net financial position. Price risks Exposure to price risk as a result of changed interest rate refers to financial assets and liabilities with a longer interest rate fixing term (fixed interest). All outstanding loans in Industrial Operations are signed with short inter- est rate fixings, therefore the price risk is immaterial. For Financial Services, financial assets and liabilities are matched in order to limit risk. Volvo Group Treasury is allowed to take limited active currency and interest rate positions in relation to the Financial Services portfolio. This responsibility is subject to, and shall be within, applicable market risk limitations. There are several measurements which can be used to define market risk. Volvo Group Treasury is using Value-at-Risk (VaR) as the main tool for mandating market risk (including interest rate risk, currency risk and liquidity risk). Volvo Group Treasury measures VaR over a one day holding period, using a 97.7% confidence level and histor- ical volatility and correlation. The total VaR mandate for Volvo Group Trea- sury is SEK 150 M, and the usage is measured daily. As of December 31, 2023, the VaR usage was SEK 20.6 M (40.8). VaR usage for 2022 was excluding assets related to Russia which were risk measured separately. CNY 15.0 INR 1.9 KRW 3.2 SEK 90.9 EUR 17.3 GBP 4.9 CURRENCY RISKS The balance sheet may be affected by changes in different exchange rates. Currency risks in the Volvo Group\u2019s operations are related to changes in the value of contracted and expected future payment flows (commercial currency exposure), changes in the value of loans and invest- ments (financial currency exposure) and changes in the value of assets and liabilities in foreign subsidiaries (currency exposure of equity). POLICY The aim of the Volvo Group\u2019s currency risk management is to secure cash flow from firm flows through currency hedges pursuant to the established Financial risk policy, and to minimize the exposure of financial items in the Volvo Group\u2019s balance sheet. Below is a presentation on how this work is conducted for commercial and financial currency exposure, and for currency exposure of equity. 4:2 Volvo Group\u2019s outstanding derivatives hedging commercial currency risks December 31, 2023 Nominal amount, millions GBP/SEK Due date 2024 111 Due date 2025 10 Total local currency 121 Average contract rate 13.51 Market value of outstanding derivatives, SEK M 105 Read more in Note 30 Financial instruments, about derivatives used for hedg- ing currency risk arising from future cashflow and the impact in the income state- ment 4:3 Sensitivity analysis 1 Risk currency exposure 2023 Transaction exposure from operating net flows Impact on operating income if currency rate appreciates against all other currencies by 10% (Currency risks)SEK bn SEK \u201363 \u20136.3 KRW \u20139 \u20130.9 GBP 15 1.5 USD 12 1.2 CAD 10 1.0 The deficit in transaction exposure in SEK is mainly generated from flows in GBP, USD, CAD, AUD and NOK against SEK. Commercial currency exposure Transaction exposure from commercial flows The Volvo Group conducts manufacturing in 18 countries around the globe and more than 95% of net sales are generated in countries other than Sweden. Transaction exposure from commercial flows in foreign currency is generated from internal purchases and sales between manu- facturing entities and market companies and external sales and purchases in foreign currency around the globe. As the predominant parts of the operations in the Volvo Group are situated outside Sweden, the fluctua- tions in currency rates affecting the transaction flows in foreign currency are in many cases not against SEK. Industrial Operations\u2019 transaction exposure from commercial flows for key currencies is presented in graph 4:5. The graph represents the transaction exposure from commercial operating cash flows in foreign currency, expressed as net surpluses or deficits in key currencies. Commercial net flows increased compared to previous year as an effect of improved demand for the Volvo Group\u2019s prod- ucts and services. The deficit in SEK and KRW is mainly an effect of man- ufacturing costs in the plants in Sweden and South Korea, but limited external revenues in those currencies. The surplus in GBP is mainly generated from internal and external sales to Great Britain. The surplus in USD is mainly generated from internal and external sales to entities in USA and emerging markets around the globe. The surplus in CAD is mainly generated from internal and external sales to Canada. The transac- tion exposure in Financial Service is limited as the lending is done in local currency and the currency risk is managed through the matching in lend- ing and borrowing. The hedging of the Volvo Group\u2019s commercial currency exposure is exe- cuted centrally. The Volvo Group\u2019s consolidated currency exposure is the value of forecasted flows in foreign currency. The Volvo Group may hedge the part of the forecasted currency exposure that is considered highly probable to occur, however during 2023 only future cash flows for spe- cific orders, decided on case-by-case basis, has been hedged. The Volvo Group uses forward contracts and currency options to hedge the future payment flows in foreign currency. The hedged amount of firm flows for all periods fall within the framework of the Volvo Group\u2019s financial risk policy. Table 4:2 shows outstanding derivatives for the hedging of commercial currency risks. Translation exposure from the consolidation of operating income in foreign subsidiaries In conjunction with the translation of operating income in foreign subsid- iaries, the Volvo Group\u2019s income is impacted if currency rates change. The Volvo Group does not hedge this risk. Graph 4:7 shows the translation effect in key currencies when consolidating operating income for 2023 in foreign subsidiaries in the Volvo Group. Read more in section currency exposure of equity. Sensitivity analysis for transaction exposure 1 The table 4:3 illustrates the impact on operating income if key currencies for the Volvo Group appreciate by 10% against all other currencies. Hedge accounting is not applied on hedging commercial cash flows in foreign currency, hence the impact on equity equals the impact on operating income. Volvo Group currency review The table and graphs 4:4 to 4:8 show the currency impact on operating income and illustrate the transaction exposure and currency impact on operating income from commercial net flows in foreign currency , transla- tion effect when consolidating operating income in foreign subsidiaries and currency impact on sales in key currencies. Read more about Volvo Group transaction exposure in section commercial currency exposure above. Financial currency exposure Loans and investments in the Volvo Group\u2019s subsidiaries are performed mainly in local currencies through Volvo Group Treasury, which minimizes individual companies\u2019 financial currency exposure. Volvo Group Treasury uses various derivatives to facilitate lending and borrowing in different currencies without increasing the risk for the Volvo Group. The net financial position of the Volvo Group is affected by currency fluctuations since financial assets and liabilities are distributed among the Volvo Group companies that conduct their operations using different currencies. Table 4:1 discloses the impact on income after financial items on Indus- trial Operations net financial position, excl. post-employment benefits and lease libilities, if SEK were to strengthen by 10%. Currency exposure of equity The carrying amount of assets and liabilities in foreign subsidiaries are affected by current exchange rates in conjunction with the translation of assets and liabilities to SEK. To minimize currency exposure of equity, the size of equity in foreign subsidiaries is continuously optimized with respect to commercial and legal conditions and in connection with this activity, payments of major internal dividends in foreign currency can be subject for hedging. Currency hedging of equity may occur in cases where a foreign subsidiary is considered overcapitalized. Net assets in foreign subsidiaries, associated companies and joint ventures amounted at year end 2023 to SEK 90 billion (98). The need to undertake currency hedging relating to investments in associated companies, joint ventures and other companies is assessed on a case-by-case basis. On the map on the previous pages the Volvo Group\u2019s net assets in different currencies (SEK bn) are displayed. Read more in Note 30 Financial instruments, about the Volvo Group\u2019s policy choice on hedge accounting. Information on gain and losses regarding hedging of internal dividends, refer to table 30:3. 1 The sensitivity analysis on currency rate risks is based on simplified assumptions. It is not unlikely for a currency to appreciate by 10% in relation to other currencies. In reality however, all currencies usually do not change in the same direction at any given time, so the actual effect of exchange rate changes may differ from the sensitivity analysis. Please refer to table 4:3 4:4 The Volvo Group\u2019s currency review When the Volvo Group communicates the currency impact on operating income, the following factors are included: Currency impact on operating income, Volvo Group, SEK million 2023 2022 Change Net flows in foreign currency 1,093 Realized and unrealized gains and losses on currency hedging contracts \u201316 \u201344 29 Unrealized gains and losses on receivables and liabilities in foreign currency 94 \u2013738 832 Translation effect on operating income in foreign subsidiaries 2,805 Total currency impact on operating income, Volvo Group 4,758 Currency impact on net flows in foreign currency is detailed in graph 4:6 and translation effect on operating income in foreign subsidiaries is detailed in graph 4:7 in key currencies. 4:5 Transaction exposure from commercial net flows in 2023 and 2022 SEK bn Currency flow 2022 Currency flow 2023 SEK \u201363 \u201349 Other 11 11 KRW \u20139 \u20137 EUR 3 1 ZAR 6 5 AUD 8 6 CAD 10 7 USD 12 8 NOK 8 6 GBP 15 12 \u201350 \u201360 \u201340 \u201330 \u201320 \u201310 0 10 20 The graph above represents the transaction exposure from commercial operating net cash flows in foreign currency, expressed as net surpluses or deficits in key currencies. Read more in section commercial currency exposure. 4:6 Currency impact on operating income from net flows in foreign currency 2023 versus 2022 SEK bn Changes in currency rates compared to 2023 (Total SEK 1.1 bn). Other 0.2 ZAR \u20130.4 GBP 0.8 MXN 0.5 DKK 0.2 USD 0.5 KRW \u20130.4 CAD 0.1 NOK \u20130.4 \u20130.4 \u20130.2 0 1.0 0.8 0.6 0.4 0.2 Currency effect on operating income from net flows in foreign currency in Volvo Group is presented in the graph above. 4:7 Translation effect on operating income in 2023 versus 2022 SEK M BRL 828 USD 1,049 EUR 1,091 PLN \u2013114 MXN 101 ZAR \u201359 GBP 59 DKK 26 TRY \u2013282 Other 106 Changes in currency rates compared to 2022 (Total SEK 2,805 M). \u2013300 1,200 300 600 900 0 1,500 Translation effect when consolidating operating income in foreign subsidiaries for Volvo Group is presented in the graph above. 4:8 Currency impact on net sales in 2023 versus 2022 Changes in currency rates compared to 2022 (Total SEK 26,030 M). SEK M 3,000 0 \u20133,000 6,000 9,000 12,000 15,000 BRL 2,656 SGD 257 KRW 231 NOK \u2013555 ZAR \u2013584 Other 2,710 USD 7,318 EUR 12,576 GBP 1,421 Currency effect on net sales from inflows in foreign currency and translation effect when consolidating net sales in foreign subsidiaries for Volvo Group is presented in the graph above CREDIT RISKS Credit risk is defined as the risk that the Volvo Group does not receive payment for recognized accounts receivables and customer-financing receivables (commercial credit risk), that the Volvo Group\u2019s investments are unrealizable (financial credit risk) and that potential profit is not real- ized due to the counterparty not fulfilling its part of the contract when using derivative instruments (financial counterparty risk). POLICY The objective of the Volvo Group\u2019s credit risk management is to define, measure and monitor the credit exposure in order to minimize the risk of losses deriving from credit to customers and suppliers, financial credit risk, counterparty risk and customer finance activities within Financial Services. Commercial credit risk The Volvo Group\u2019s credit granting is steered by group policies and customer-classification rules. The credit portfolio should contain a distri- bution among different customer categories and industries. The credit risk is managed through active credit monitoring, follow-up routines and, where applicable, product repossession. In addition to this, regular moni- toring ensures that necessary allowances are made for expected credit losses on financial assets. Risk management practices for Financial Ser- vices are presented in note 15 Customer-financing receivables and for Industrial Operations in note 16 Receivables. Moreover, note 15 includes information on gross exposure for customer-financing receivables by past due status while note 16 includes gross exposure for accounts receivables by past due status in relation to allowance for expected credit losses. The customer-financing receivables in the Volvo Group amounted to net SEK 232 billion (194) on December 31, 2023. The credit risk of this portfolio is distributed over a large number of retail customers and dealers. Collateral is provided in the form of the financed products. In the credit granting the Volvo Group strives for a balance between risk exposure and expected return. Syndication of customer-financing receivables is made in order to reduce concentration risk. The Volvo Group\u2019s accounts receivables as of December 31, 2023 amounted to net SEK 43 billion (48). Read more in Note 15 Customer-financing receivables, about the Volvo Group\u2019s concentration of credit risk in Financial Services. Read more in Note 16 Receivables. Financial credit risk The Volvo Group\u2019s financial assets are to a large extent managed by Volvo Group Treasury. All investments must meet the requirements of high liquid ity and low credit risk. According to the Volvo Group\u2019s financial risk policy, this includes using counterparties for investments and derivative transactions with a credit rating better or equivalent to A\u2013 from one of the well-established credit rating institutions or similar. Cash and cash equivalents including marketable securities as of December 31, 2023 amounted to SEK 83 billion (84) and consists primarily of bank account positions. Read more in Note 18 Cash and cash equivalents. Financial counterparty risk The use of derivatives involves a counterparty risk, in that a potential loss may not be possible to offset (in full or in part) against a potential gain if the counterparty fails to fulfill its part of the contract. The Volvo Group is actively working with limits per counterpart in order to reduce the risk for high net amounts towards individual counterparts. To reduce the expos ure further the Volvo Group enters into master netting agreements, so called ISDA agreements, with all counterparts eligible for derivative transactions. The netting agreements provide the possibility for assets and lia bilities to be offset under certain circumstances, such as in the case of the counter- part\u2019s insolvency. A Credit Support Annex (CSA) often accompanies the ISDA agreement. The CSA stipulates the terms and conditions under which the two parties are required to make cash transfers to each other in order to further reduce the exposure from the net open positions. The net- ting agreements have no effect on the financial performance or the finan- cial position of the Volvo Group, since derivative transactions are accounted for on a gross basis. Table 4:9 shows the effect of netting agreements and cash transfers on the Volvo Group\u2019s gross exposure from outstanding interest and currency risk derivatives as of December 31, 2023. Read more in Note 30 Financial instruments, about the Volvo Group\u2019s gross exposure from derivatives per type of instrument. 4:9 The impact from netting agreements and cash transfers on the Volvo Group\u2019s gross exposure from derivatives, Dec 31, 2023 Gross amount Netting agreements Cash transfers Net position Change Interest and currency risk derivatives reported as assets 6,293 \u20133,486 \u20131,773 1,034 84% Interest and currency risk derivatives reported as liabilities 5,779 \u20133,486 \u20132,110 183 97% LIQUIDITY RISKS Liquidity risk is defined as the risk that the Volvo Group would be unable to finance or refinance its assets or fulfill its payment obligations. POLICY The Volvo Group ensures sound financial preparedness by always keeping a certain percentage of its sales in liquid assets, mainly as bank account positions in banks rated at least A- from one of the well-established credit rating institutions or similar. A sound balance between current and non-current debt maturities, as well as non-current committed credit facilities, is intended to secure liquidity preparedness, and thus the Volvo Group\u2019s payment capability. The Volvo Group\u2019s cash and cash equivalents amounted to SEK 83 billion (84) on December 31, 2023. In addition to this, granted but unutilized credit facilities amounted to SEK 53 billion (46). Graph 4:10 discloses expected future cash flows related to financial liabilities. Capital flow refers to expected payments of loans, lease liabilities and derivatives. Expected interest flow refers to the future interest payments on loans, lease liabili- ties and derivatives based on interest rates anticipated by the market. The interest flow is recognized within cash flow from operating activities. The maturity structure of the unutilized credit facilities is disclosed in note 22 Liabilities, in table 22:3. The predominant part of expected future cash flows that will occur in 2024 and 2025 is an effect of the Volvo Group\u2019s normal business cycle, with shorter duration in the portfolio within Finan- cial Services compared to Industrial Operations. Financial Services measure the degree to which the duration of borrow- ing and lending matches. The calculation of the matching degree excludes equity, which amounted to 8% in Financial Services. At year-end 2023, the degree of such matching was 101% (100) for the segment Financial Services, which was in line with the Volvo Group\u2019s policy. Volvo Group Treasury has, for practical as well as business reasons, the mandate to mismatch their portfolio for Financial Services between a matching ratio of 80\u2013120%. At year-end 2023, the matching ratio was 91% (103). Any gains or losses from the mismatch impact the segment Group functions & other within Industrial Operations. A hybrid bond amounting to EUR 1.5 billion was issued by the Volvo Group in 2014. The final tranche of this bond (EUR 0.6 billion) was repaid in March, 2023. Read more in Note 14 Leasing, about the maturity for non-current lease liabilities in table 14:4. Read more in Note 22 Liabilities, about the maturity for non-current loans in table 22:3 4:10 Future cash flow including lease liabilities and derivatives related to non-current and current financial liabilities 1 0 \u201310 \u201320 \u201330 \u201340 \u201350 \u201360 \u201370 \u201380 \u201390 \u2013100 \u2013110 Capital flow Interest flow 2030 or later2029 \u201398.3 \u201360.2 \u201346.0 \u201318.5 \u20137.0 \u20133.5 \u20133.3 SEK bn \u201310.3 \u20135.8 \u20133.5 \u20131.5 \u20130.8 \u20130.3 \u20130.2 2024 2025 2026 2027 2028 1 In addition to derivatives included in graph 4:10 there are also derivatives in the Volvo Group related to financial liabilities recognized as assets, which are expected to give a future capital flow of SEK 2.9 billion (1.7) and a future interest flow of SEK 2.0 billion (2.9). OTHER PRICE RISKS OTHER PRICE RISKS Commodity risks Commodity risk refers to the risk that changed commodity prices may affect the income for the period within the Volvo Group. Procurement of commodities such as steel, precious metals and electricity are made in the Volvo Group on a regular basis where prices are set in the global markets. POLICY Changes in commodity prices are included in the Volvo Group\u2019s product cost calculation. Increased commodity prices are therefore reflected in the sales price of the final products. Purchasing agreements with com- modity suppliers may also be long-term in nature or structured in a way to de crease the volatility in commodity prices.", "dimensions": { "concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-958": { "value": "4 Goals and policies in financial risk management The Volvo Group\u2019s global operations expose the Group to financial risks in the form of interest rate risks, currency risks, credit risks, liquidity risks and other price risks. The board of AB Volvo has adopted a financial risk policy that regulates how these risks should be controlled and governed and defines roles and responsibilities within the Volvo Group. The financial risk policy also establishes principles for how financial activities shall be carried out, sets mandates and steering principles for the management of financial risks as well as defines the financial instruments to be used for mitigating these risks. Key mandates and steering principles are described in the respective risk section. The board and audit committee of AB Volvo are informed regularly during the year about the development of the Volvo Group\u2019s financial risks and other matters covered within the financial risk policy. The financial risk policy is reviewed on an annual basis. The Volvo Group manages financial risk as an integrated element of the business operations where parts of the responsibil- ity for the finance operation and financial risk management are centralized to Volvo Group Treasury, the internal bank of the Volvo Group. Their respon- sibilities include financing of Industrial Operations as well as financing of the credit portfolio in Financial Services. The Volvo Group\u2019s balance sheet is pres ented per segment where Volvo Group Treasury is part of the Indus- trial Operations and the internal lending from Industrial Operations to Financial Services is presented in the balance sheet as internal funding. In 2023 the volatility in the financial markets has decreased signifi- cantly although it\u2019s historically still on an elevated level. Market rates have increased and long market rates are now on higher levels than for many years. The Volvo Group has continued to perform financial activities and managed risk in accordance with the financial risk policy, without any pol- icy breaches. Read more in Note 30 Financial instruments, about accounting policies for financial instruments. Read more in sections financial management and risks and uncertainties about financial risk management. FINANCIAL RISKS INTEREST RATE RISKS CASH FLOW RISKS PRICE RISKS CURRENCY RISKS COMMERCIAL CURRENCY EXPOSURE FINANCIAL CURRENCY EXPOSURE CURRENCY EXPOSURE OF EQUITY CREDIT RISKS COMMERCIAL CREDIT RISK FINANCIAL CREDIT RISK FINANCIAL COUNTERPARTY RISK LIQUIDITY RISKS OTHER PRICE RISKS COMMODITY RISKS USD 21.2 BRL 10.1 INTEREST RATE RISKS INTEREST RATE RISKS Interest rate risk refers to the risk that changed interest rates will affect the Volvo Group\u2019s net income and cash flow (cash flow risk) or the fair value of financial assets and liabilities (price risk). Following the interest rate bench- mark reform USD LIBOR was replaced by SOFR during 2023. At the point of cessation the Volvo Group had a number of outstanding interest rate derivative contracts linked to USD LIBOR which were converted to SOFR with no material effect in the income statement. Currently no other major IBOR rates, where the Volvo Group have outstanding contracts, are sched- uled for cessation. POLICY Matching the interest fixing terms of financial assets and liabilities reduces the exposure. Interest rate swaps are used to change/influence the inter- est fixing term for the Volvo Group\u2019s financial assets and liabilities. Currency interest rate swaps enable borrowing in foreign currencies from different markets without introducing currency risk. Cash flow risks The effect of changed interest rate levels on future currency and interest flows primarily pertains to Financial Services and Industrial Operations\u2019 net financial items. The interest rate risk in Financial Services is managed with the objective to achieve a match of interest rate fixings on borrowing and lending, in order to eliminate interest rate risk. The matching degree is measured excluding equity, which amounted to 8% in Financial Services. At year-end 2023, the degree of such matching ratio was 101% (100) in Financial Services which is in accordance with the Group policy. In addition to the financial assets in Financial Services, the Volvo Group\u2019s interest-bearing assets at year-end 2023 consisted primarily of cash and cash equivalents. On December 31, 2023, the average interest on Industrial Operations financial assets was 4.6% (3.2). The increase relates to significantly higher underlying interest rates in most regions during the year. The Industrial Operations\u2019 results and profitability are closely aligned to the business cycle. Therefore, in order to minimize the interest rate risk, outstanding loans had interest terms corresponding to an interest rate fixing of between one to three months. The average interest rate on Indus- trial Operations financial liabilities at year end amounted to 5.7% (5.2), including the Volvo Group\u2019s credit costs, also affected by the increase in underlying interest rates. Table 4:1 shows the impact on income after financial items in Industrial Operations\u2019 net financial position, excluding lease liabilities and post-em- ployment benefits, if interest rates were to increase by 1 percentage point, assuming an average interest rate fixed term of three months on the liabil- ity side. 1 The impact on equity is earnings after tax. 1 The sensitivity analysis on interest rate risk is based on simplified assumptions. It is not unlikely for market interest rates to change by one percentage point on an annual basis. However, in reality, these rates often rise or decline at different points in time. The sen- sitivity analysis also assumes a parallel deferment of the return curve, and that the interest on assets and liabilities will be equally impacted by changes in market interest rates. Accordingly, the impact of real interest rate changes may differ from the analysis presented in table 4:1. Read more in Note 20 Provisions for post-employment benefits regarding sensitivity analysis on the defined benefit obligations when changes in the applied assumptions for discount rate and inflations are made The Volvo Group\u2019s net assets in different currencies (SEK bn) = Read more in section currency exposure of equity in this note. 4:1 Risk net financial position Dec 31, 2023 Net financial position excl. post-employ- ment benefits and lease liabilities Impact on income after financial items if interest rate rises 1% (Interest rate risks) Impact on net financial position if SEK appreciates against other currencies 10% (Currency risks) SEK M SEK 49,678 533 \u2013 USD 11,291 102 \u20131,129 EUR 11,031 97 \u20131,103 GBP 5,498 48 \u2013550 CNY 2,635 30 \u2013264 BRL 2,027 22 \u2013203 Other 1,246 18 \u2013125 Total 83,407 850 \u20133,373 Read more in section financial position about the Industrial Operations net financial position. Price risks Exposure to price risk as a result of changed interest rate refers to financial assets and liabilities with a longer interest rate fixing term (fixed interest). All outstanding loans in Industrial Operations are signed with short inter- est rate fixings, therefore the price risk is immaterial. For Financial Services, financial assets and liabilities are matched in order to limit risk. Volvo Group Treasury is allowed to take limited active currency and interest rate positions in relation to the Financial Services portfolio. This responsibility is subject to, and shall be within, applicable market risk limitations. There are several measurements which can be used to define market risk. Volvo Group Treasury is using Value-at-Risk (VaR) as the main tool for mandating market risk (including interest rate risk, currency risk and liquidity risk). Volvo Group Treasury measures VaR over a one day holding period, using a 97.7% confidence level and histor- ical volatility and correlation. The total VaR mandate for Volvo Group Trea- sury is SEK 150 M, and the usage is measured daily. As of December 31, 2023, the VaR usage was SEK 20.6 M (40.8). VaR usage for 2022 was excluding assets related to Russia which were risk measured separately. CNY 15.0 INR 1.9 KRW 3.2 SEK 90.9 EUR 17.3 GBP 4.9 CURRENCY RISKS The balance sheet may be affected by changes in different exchange rates. Currency risks in the Volvo Group\u2019s operations are related to changes in the value of contracted and expected future payment flows (commercial currency exposure), changes in the value of loans and invest- ments (financial currency exposure) and changes in the value of assets and liabilities in foreign subsidiaries (currency exposure of equity). POLICY The aim of the Volvo Group\u2019s currency risk management is to secure cash flow from firm flows through currency hedges pursuant to the established Financial risk policy, and to minimize the exposure of financial items in the Volvo Group\u2019s balance sheet. Below is a presentation on how this work is conducted for commercial and financial currency exposure, and for currency exposure of equity. 4:2 Volvo Group\u2019s outstanding derivatives hedging commercial currency risks December 31, 2023 Nominal amount, millions GBP/SEK Due date 2024 111 Due date 2025 10 Total local currency 121 Average contract rate 13.51 Market value of outstanding derivatives, SEK M 105 Read more in Note 30 Financial instruments, about derivatives used for hedg- ing currency risk arising from future cashflow and the impact in the income state- ment 4:3 Sensitivity analysis 1 Risk currency exposure 2023 Transaction exposure from operating net flows Impact on operating income if currency rate appreciates against all other currencies by 10% (Currency risks)SEK bn SEK \u201363 \u20136.3 KRW \u20139 \u20130.9 GBP 15 1.5 USD 12 1.2 CAD 10 1.0 The deficit in transaction exposure in SEK is mainly generated from flows in GBP, USD, CAD, AUD and NOK against SEK. Commercial currency exposure Transaction exposure from commercial flows The Volvo Group conducts manufacturing in 18 countries around the globe and more than 95% of net sales are generated in countries other than Sweden. Transaction exposure from commercial flows in foreign currency is generated from internal purchases and sales between manu- facturing entities and market companies and external sales and purchases in foreign currency around the globe. As the predominant parts of the operations in the Volvo Group are situated outside Sweden, the fluctua- tions in currency rates affecting the transaction flows in foreign currency are in many cases not against SEK. Industrial Operations\u2019 transaction exposure from commercial flows for key currencies is presented in graph 4:5. The graph represents the transaction exposure from commercial operating cash flows in foreign currency, expressed as net surpluses or deficits in key currencies. Commercial net flows increased compared to previous year as an effect of improved demand for the Volvo Group\u2019s prod- ucts and services. The deficit in SEK and KRW is mainly an effect of man- ufacturing costs in the plants in Sweden and South Korea, but limited external revenues in those currencies. The surplus in GBP is mainly generated from internal and external sales to Great Britain. The surplus in USD is mainly generated from internal and external sales to entities in USA and emerging markets around the globe. The surplus in CAD is mainly generated from internal and external sales to Canada. The transac- tion exposure in Financial Service is limited as the lending is done in local currency and the currency risk is managed through the matching in lend- ing and borrowing. The hedging of the Volvo Group\u2019s commercial currency exposure is exe- cuted centrally. The Volvo Group\u2019s consolidated currency exposure is the value of forecasted flows in foreign currency. The Volvo Group may hedge the part of the forecasted currency exposure that is considered highly probable to occur, however during 2023 only future cash flows for spe- cific orders, decided on case-by-case basis, has been hedged. The Volvo Group uses forward contracts and currency options to hedge the future payment flows in foreign currency. The hedged amount of firm flows for all periods fall within the framework of the Volvo Group\u2019s financial risk policy. Table 4:2 shows outstanding derivatives for the hedging of commercial currency risks. Translation exposure from the consolidation of operating income in foreign subsidiaries In conjunction with the translation of operating income in foreign subsid- iaries, the Volvo Group\u2019s income is impacted if currency rates change. The Volvo Group does not hedge this risk. Graph 4:7 shows the translation effect in key currencies when consolidating operating income for 2023 in foreign subsidiaries in the Volvo Group. Read more in section currency exposure of equity. Sensitivity analysis for transaction exposure 1 The table 4:3 illustrates the impact on operating income if key currencies for the Volvo Group appreciate by 10% against all other currencies. Hedge accounting is not applied on hedging commercial cash flows in foreign currency, hence the impact on equity equals the impact on operating income. Volvo Group currency review The table and graphs 4:4 to 4:8 show the currency impact on operating income and illustrate the transaction exposure and currency impact on operating income from commercial net flows in foreign currency , transla- tion effect when consolidating operating income in foreign subsidiaries and currency impact on sales in key currencies. Read more about Volvo Group transaction exposure in section commercial currency exposure above. Financial currency exposure Loans and investments in the Volvo Group\u2019s subsidiaries are performed mainly in local currencies through Volvo Group Treasury, which minimizes individual companies\u2019 financial currency exposure. Volvo Group Treasury uses various derivatives to facilitate lending and borrowing in different currencies without increasing the risk for the Volvo Group. The net financial position of the Volvo Group is affected by currency fluctuations since financial assets and liabilities are distributed among the Volvo Group companies that conduct their operations using different currencies. Table 4:1 discloses the impact on income after financial items on Indus- trial Operations net financial position, excl. post-employment benefits and lease libilities, if SEK were to strengthen by 10%. Currency exposure of equity The carrying amount of assets and liabilities in foreign subsidiaries are affected by current exchange rates in conjunction with the translation of assets and liabilities to SEK. To minimize currency exposure of equity, the size of equity in foreign subsidiaries is continuously optimized with respect to commercial and legal conditions and in connection with this activity, payments of major internal dividends in foreign currency can be subject for hedging. Currency hedging of equity may occur in cases where a foreign subsidiary is considered overcapitalized. Net assets in foreign subsidiaries, associated companies and joint ventures amounted at year end 2023 to SEK 90 billion (98). The need to undertake currency hedging relating to investments in associated companies, joint ventures and other companies is assessed on a case-by-case basis. On the map on the previous pages the Volvo Group\u2019s net assets in different currencies (SEK bn) are displayed. Read more in Note 30 Financial instruments, about the Volvo Group\u2019s policy choice on hedge accounting. Information on gain and losses regarding hedging of internal dividends, refer to table 30:3. 1 The sensitivity analysis on currency rate risks is based on simplified assumptions. It is not unlikely for a currency to appreciate by 10% in relation to other currencies. In reality however, all currencies usually do not change in the same direction at any given time, so the actual effect of exchange rate changes may differ from the sensitivity analysis. Please refer to table 4:3 . 4:4 The Volvo Group\u2019s currency review When the Volvo Group communicates the currency impact on operating income, the following factors are included: Currency impact on operating income, Volvo Group, SEK million 2023 2022 Change Net flows in foreign currency 1,093 Realized and unrealized gains and losses on currency hedging contracts \u201316 \u201344 29 Unrealized gains and losses on receivables and liabilities in foreign currency 94 \u2013738 832 Translation effect on operating income in foreign subsidiaries 2,805 Total currency impact on operating income, Volvo Group 4,758 Currency impact on net flows in foreign currency is detailed in graph 4:6 and translation effect on operating income in foreign subsidiaries is detailed in graph 4:7 in key currencies. 4:5 Transaction exposure from commercial net flows in 2023 and 2022 SEK bn Currency flow 2022 Currency flow 2023 SEK \u201363 \u201349 Other 11 11 KRW \u20139 \u20137 EUR 3 1 ZAR 6 5 AUD 8 6 CAD 10 7 USD 12 8 NOK 8 6 GBP 15 12 \u201350 \u201360 \u201340 \u201330 \u201320 \u201310 0 10 20 The graph above represents the transaction exposure from commercial operating net cash flows in foreign currency, expressed as net surpluses or deficits in key currencies. Read more in section commercial currency exposure. 4:6 Currency impact on operating income from net flows in foreign currency 2023 versus 2022 SEK bn Changes in currency rates compared to 2023 (Total SEK 1.1 bn). Other 0.2 ZAR \u20130.4 GBP 0.8 MXN 0.5 DKK 0.2 USD 0.5 KRW \u20130.4 CAD 0.1 NOK \u20130.4 \u20130.4 \u20130.2 0 1.0 0.8 0.6 0.4 0.2 Currency effect on operating income from net flows in foreign currency in Volvo Group is presented in the graph above. 4:7 Translation effect on operating income in 2023 versus 2022 SEK M BRL 828 USD 1,049 EUR 1,091 PLN \u2013114 MXN 101 ZAR \u201359 GBP 59 DKK 26 TRY \u2013282 Other 106 Changes in currency rates compared to 2022 (Total SEK 2,805 M). \u2013300 1,200 300 600 900 0 1,500 Translation effect when consolidating operating income in foreign subsidiaries for Volvo Group is presented in the graph above. 4:8 Currency impact on net sales in 2023 versus 2022 Changes in currency rates compared to 2022 (Total SEK 26,030 M). SEK M 3,000 0 \u20133,000 6,000 9,000 12,000 15,000 BRL 2,656 SGD 257 KRW 231 NOK \u2013555 ZAR \u2013584 Other 2,710 USD 7,318 EUR 12,576 GBP 1,421 Currency effect on net sales from inflows in foreign currency and translation effect when consolidating net sales in foreign subsidiaries for Volvo Group is presented in the graph above CREDIT RISKS Credit risk is defined as the risk that the Volvo Group does not receive payment for recognized accounts receivables and customer-financing receivables (commercial credit risk), that the Volvo Group\u2019s investments are unrealizable (financial credit risk) and that potential profit is not real- ized due to the counterparty not fulfilling its part of the contract when using derivative instruments (financial counterparty risk). POLICY The objective of the Volvo Group\u2019s credit risk management is to define, measure and monitor the credit exposure in order to minimize the risk of losses deriving from credit to customers and suppliers, financial credit risk, counterparty risk and customer finance activities within Financial Services. Commercial credit risk The Volvo Group\u2019s credit granting is steered by group policies and customer-classification rules. The credit portfolio should contain a distri- bution among different customer categories and industries. The credit risk is managed through active credit monitoring, follow-up routines and, where applicable, product repossession. In addition to this, regular moni- toring ensures that necessary allowances are made for expected credit losses on financial assets. Risk management practices for Financial Ser- vices are presented in note 15 Customer-financing receivables and for Industrial Operations in note 16 Receivables. Moreover, note 15 includes information on gross exposure for customer-financing receivables by past due status while note 16 includes gross exposure for accounts receivables by past due status in relation to allowance for expected credit losses. The customer-financing receivables in the Volvo Group amounted to net SEK 232 billion (194) on December 31, 2023. The credit risk of this portfolio is distributed over a large number of retail customers and dealers. Collateral is provided in the form of the financed products. In the credit granting the Volvo Group strives for a balance between risk exposure and expected return. Syndication of customer-financing receivables is made in order to reduce concentration risk. The Volvo Group\u2019s accounts receivables as of December 31, 2023 amounted to net SEK 43 billion (48). Read more in Note 15 Customer-financing receivables, about the Volvo Group\u2019s concentration of credit risk in Financial Services. Read more in Note 16 Receivables. Financial credit risk The Volvo Group\u2019s financial assets are to a large extent managed by Volvo Group Treasury. All investments must meet the requirements of high liquid ity and low credit risk. According to the Volvo Group\u2019s financial risk policy, this includes using counterparties for investments and derivative transactions with a credit rating better or equivalent to A\u2013 from one of the well-established credit rating institutions or similar. Cash and cash equivalents including marketable securities as of December 31, 2023 amounted to SEK 83 billion (84) and consists primarily of bank account positions. Read more in Note 18 Cash and cash equivalents. Financial counterparty risk The use of derivatives involves a counterparty risk, in that a potential loss may not be possible to offset (in full or in part) against a potential gain if the counterparty fails to fulfill its part of the contract. The Volvo Group is actively working with limits per counterpart in order to reduce the risk for high net amounts towards individual counterparts. To reduce the expos ure further the Volvo Group enters into master netting agreements, so called ISDA agreements, with all counterparts eligible for derivative transactions. The netting agreements provide the possibility for assets and lia bilities to be offset under certain circumstances, such as in the case of the counter- part\u2019s insolvency. A Credit Support Annex (CSA) often accompanies the ISDA agreement. The CSA stipulates the terms and conditions under which the two parties are required to make cash transfers to each other in order to further reduce the exposure from the net open positions. The net- ting agreements have no effect on the financial performance or the finan- cial position of the Volvo Group, since derivative transactions are accounted for on a gross basis. Table 4:9 shows the effect of netting agreements and cash transfers on the Volvo Group\u2019s gross exposure from outstanding interest and currency risk derivatives as of December 31, 2023. Read more in Note 30 Financial instruments, about the Volvo Group\u2019s gross exposure from derivatives per type of instrument. 4:9 The impact from netting agreements and cash transfers on the Volvo Group\u2019s gross exposure from derivatives, Dec 31, 2023 Gross amount Netting agreements Cash transfers Net position Change Interest and currency risk derivatives reported as assets 6,293 \u20133,486 \u20131,773 1,034 84% Interest and currency risk derivatives reported as liabilities 5,779 \u20133,486 \u20132,110 183 97% LIQUIDITY RISKS Liquidity risk is defined as the risk that the Volvo Group would be unable to finance or refinance its assets or fulfill its payment obligations. POLICY The Volvo Group ensures sound financial preparedness by always keeping a certain percentage of its sales in liquid assets, mainly as bank account positions in banks rated at least A- from one of the well-established credit rating institutions or similar. A sound balance between current and non-current debt maturities, as well as non-current committed credit facilities, is intended to secure liquidity preparedness, and thus the Volvo Group\u2019s payment capability. The Volvo Group\u2019s cash and cash equivalents amounted to SEK 83 billion (84) on December 31, 2023. In addition to this, granted but unutilized credit facilities amounted to SEK 53 billion (46). Graph 4:10 discloses expected future cash flows related to financial liabilities. Capital flow refers to expected payments of loans, lease liabilities and derivatives. Expected interest flow refers to the future interest payments on loans, lease liabili- ties and derivatives based on interest rates anticipated by the market. The interest flow is recognized within cash flow from operating activities. The maturity structure of the unutilized credit facilities is disclosed in note 22 Liabilities, in table 22:3. The predominant part of expected future cash flows that will occur in 2024 and 2025 is an effect of the Volvo Group\u2019s normal business cycle, with shorter duration in the portfolio within Finan- cial Services compared to Industrial Operations. Financial Services measure the degree to which the duration of borrow- ing and lending matches. The calculation of the matching degree excludes equity, which amounted to 8% in Financial Services. At year-end 2023, the degree of such matching was 101% (100) for the segment Financial Services, which was in line with the Volvo Group\u2019s policy. Volvo Group Treasury has, for practical as well as business reasons, the mandate to mismatch their portfolio for Financial Services between a matching ratio of 80\u2013120%. At year-end 2023, the matching ratio was 91% (103). Any gains or losses from the mismatch impact the segment Group functions & other within Industrial Operations. A hybrid bond amounting to EUR 1.5 billion was issued by the Volvo Group in 2014. The final tranche of this bond (EUR 0.6 billion) was repaid in March, 2023. Read more in Note 14 Leasing, about the maturity for non-current lease liabilities in table 14:4. Read more in Note 22 Liabilities, about the maturity for non-current loans in table 22:3 4:10 Future cash flow including lease liabilities and derivatives related to non-current and current financial liabilities 1 0 \u201310 \u201320 \u201330 \u201340 \u201350 \u201360 \u201370 \u201380 \u201390 \u2013100 \u2013110 Capital flow Interest flow 2030 or later2029 \u201398.3 \u201360.2 \u201346.0 \u201318.5 \u20137.0 \u20133.5 \u20133.3 SEK bn \u201310.3 \u20135.8 \u20133.5 \u20131.5 \u20130.8 \u20130.3 \u20130.2 2024 2025 2026 2027 2028 1 In addition to derivatives included in graph 4:10 there are also derivatives in the Volvo Group related to financial liabilities recognized as assets, which are expected to give a future capital flow of SEK 2.9 billion (1.7) and a future interest flow of SEK 2.0 billion (2.9). OTHER PRICE RISKS OTHER PRICE RISKS Commodity risks Commodity risk refers to the risk that changed commodity prices may affect the income for the period within the Volvo Group. Procurement of commodities such as steel, precious metals and electricity are made in the Volvo Group on a regular basis where prices are set in the global markets. POLICY Changes in commodity prices are included in the Volvo Group\u2019s product cost calculation. Increased commodity prices are therefore reflected in the sales price of the final products. Purchasing agreements with com- modity suppliers may also be long-term in nature or structured in a way to de crease the volatility in commodity prices.", "dimensions": { "concept": "ifrs-full:DisclosureOfEffectOfChangesInForeignExchangeRatesExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-959": { "value": "4 Goals and policies in financial risk management The Volvo Group\u2019s global operations expose the Group to financial risks in the form of interest rate risks, currency risks, credit risks, liquidity risks and other price risks. The board of AB Volvo has adopted a financial risk policy that regulates how these risks should be controlled and governed and defines roles and responsibilities within the Volvo Group. The financial risk policy also establishes principles for how financial activities shall be carried out, sets mandates and steering principles for the management of financial risks as well as defines the financial instruments to be used for mitigating these risks. Key mandates and steering principles are described in the respective risk section. The board and audit committee of AB Volvo are informed regularly during the year about the development of the Volvo Group\u2019s financial risks and other matters covered within the financial risk policy. The financial risk policy is reviewed on an annual basis. The Volvo Group manages financial risk as an integrated element of the business operations where parts of the responsibil- ity for the finance operation and financial risk management are centralized to Volvo Group Treasury, the internal bank of the Volvo Group. Their respon- sibilities include financing of Industrial Operations as well as financing of the credit portfolio in Financial Services. The Volvo Group\u2019s balance sheet is pres ented per segment where Volvo Group Treasury is part of the Indus- trial Operations and the internal lending from Industrial Operations to Financial Services is presented in the balance sheet as internal funding. In 2023 the volatility in the financial markets has decreased signifi- cantly although it\u2019s historically still on an elevated level. Market rates have increased and long market rates are now on higher levels than for many years. The Volvo Group has continued to perform financial activities and managed risk in accordance with the financial risk policy, without any pol- icy breaches. Read more in Note 30 Financial instruments, about accounting policies for financial instruments. Read more in sections financial management and risks and uncertainties about financial risk management. FINANCIAL RISKS INTEREST RATE RISKS CASH FLOW RISKS PRICE RISKS CURRENCY RISKS COMMERCIAL CURRENCY EXPOSURE FINANCIAL CURRENCY EXPOSURE CURRENCY EXPOSURE OF EQUITY CREDIT RISKS COMMERCIAL CREDIT RISK FINANCIAL CREDIT RISK FINANCIAL COUNTERPARTY RISK LIQUIDITY RISKS OTHER PRICE RISKS COMMODITY RISKS USD 21.2 BRL 10.1 INTEREST RATE RISKS INTEREST RATE RISKS Interest rate risk refers to the risk that changed interest rates will affect the Volvo Group\u2019s net income and cash flow (cash flow risk) or the fair value of financial assets and liabilities (price risk). Following the interest rate bench- mark reform USD LIBOR was replaced by SOFR during 2023. At the point of cessation the Volvo Group had a number of outstanding interest rate derivative contracts linked to USD LIBOR which were converted to SOFR with no material effect in the income statement. Currently no other major IBOR rates, where the Volvo Group have outstanding contracts, are sched- uled for cessation. POLICY Matching the interest fixing terms of financial assets and liabilities reduces the exposure. Interest rate swaps are used to change/influence the inter- est fixing term for the Volvo Group\u2019s financial assets and liabilities. Currency interest rate swaps enable borrowing in foreign currencies from different markets without introducing currency risk. Cash flow risks The effect of changed interest rate levels on future currency and interest flows primarily pertains to Financial Services and Industrial Operations\u2019 net financial items. The interest rate risk in Financial Services is managed with the objective to achieve a match of interest rate fixings on borrowing and lending, in order to eliminate interest rate risk. The matching degree is measured excluding equity, which amounted to 8% in Financial Services. At year-end 2023, the degree of such matching ratio was 101% (100) in Financial Services which is in accordance with the Group policy. In addition to the financial assets in Financial Services, the Volvo Group\u2019s interest-bearing assets at year-end 2023 consisted primarily of cash and cash equivalents. On December 31, 2023, the average interest on Industrial Operations financial assets was 4.6% (3.2). The increase relates to significantly higher underlying interest rates in most regions during the year. The Industrial Operations\u2019 results and profitability are closely aligned to the business cycle. Therefore, in order to minimize the interest rate risk, outstanding loans had interest terms corresponding to an interest rate fixing of between one to three months. The average interest rate on Indus- trial Operations financial liabilities at year end amounted to 5.7% (5.2), including the Volvo Group\u2019s credit costs, also affected by the increase in underlying interest rates. Table 4:1 shows the impact on income after financial items in Industrial Operations\u2019 net financial position, excluding lease liabilities and post-em- ployment benefits, if interest rates were to increase by 1 percentage point, assuming an average interest rate fixed term of three months on the liabil- ity side. 1 The impact on equity is earnings after tax. 1 The sensitivity analysis on interest rate risk is based on simplified assumptions. It is not unlikely for market interest rates to change by one percentage point on an annual basis. However, in reality, these rates often rise or decline at different points in time. The sen- sitivity analysis also assumes a parallel deferment of the return curve, and that the interest on assets and liabilities will be equally impacted by changes in market interest rates. Accordingly, the impact of real interest rate changes may differ from the analysis presented in table 4:1. Read more in Note 20 Provisions for post-employment benefits regarding sensitivity analysis on the defined benefit obligations when changes in the applied assumptions for discount rate and inflations are made The Volvo Group\u2019s net assets in different currencies (SEK bn) = Read more in section currency exposure of equity in this note. 4:1 Risk net financial position Dec 31, 2023 Net financial position excl. post-employ- ment benefits and lease liabilities Impact on income after financial items if interest rate rises 1% (Interest rate risks) Impact on net financial position if SEK appreciates against other currencies 10% (Currency risks) SEK M SEK 49,678 533 \u2013 USD 11,291 102 \u20131,129 EUR 11,031 97 \u20131,103 GBP 5,498 48 \u2013550 CNY 2,635 30 \u2013264 BRL 2,027 22 \u2013203 Other 1,246 18 \u2013125 Total 83,407 850 \u20133,373 Read more in section financial position about the Industrial Operations net financial position. Price risks Exposure to price risk as a result of changed interest rate refers to financial assets and liabilities with a longer interest rate fixing term (fixed interest). All outstanding loans in Industrial Operations are signed with short inter- est rate fixings, therefore the price risk is immaterial. For Financial Services, financial assets and liabilities are matched in order to limit risk. Volvo Group Treasury is allowed to take limited active currency and interest rate positions in relation to the Financial Services portfolio. This responsibility is subject to, and shall be within, applicable market risk limitations. There are several measurements which can be used to define market risk. Volvo Group Treasury is using Value-at-Risk (VaR) as the main tool for mandating market risk (including interest rate risk, currency risk and liquidity risk). Volvo Group Treasury measures VaR over a one day holding period, using a 97.7% confidence level and histor- ical volatility and correlation. The total VaR mandate for Volvo Group Trea- sury is SEK 150 M, and the usage is measured daily. As of December 31, 2023, the VaR usage was SEK 20.6 M (40.8). VaR usage for 2022 was excluding assets related to Russia which were risk measured separately. CNY 15.0 INR 1.9 KRW 3.2 SEK 90.9 EUR 17.3 GBP 4.9 CURRENCY RISKS The balance sheet may be affected by changes in different exchange rates. Currency risks in the Volvo Group\u2019s operations are related to changes in the value of contracted and expected future payment flows (commercial currency exposure), changes in the value of loans and invest- ments (financial currency exposure) and changes in the value of assets and liabilities in foreign subsidiaries (currency exposure of equity). POLICY The aim of the Volvo Group\u2019s currency risk management is to secure cash flow from firm flows through currency hedges pursuant to the established Financial risk policy, and to minimize the exposure of financial items in the Volvo Group\u2019s balance sheet. Below is a presentation on how this work is conducted for commercial and financial currency exposure, and for currency exposure of equity. 4:2 Volvo Group\u2019s outstanding derivatives hedging commercial currency risks December 31, 2023 Nominal amount, millions GBP/SEK Due date 2024 111 Due date 2025 10 Total local currency 121 Average contract rate 13.51 Market value of outstanding derivatives, SEK M 105 Read more in Note 30 Financial instruments, about derivatives used for hedg- ing currency risk arising from future cashflow and the impact in the income state- ment . 4:3 Sensitivity analysis 1 Risk currency exposure 2023 Transaction exposure from operating net flows Impact on operating income if currency rate appreciates against all other currencies by 10% (Currency risks)SEK bn SEK \u201363 \u20136.3 KRW \u20139 \u20130.9 GBP 15 1.5 USD 12 1.2 CAD 10 1.0 The deficit in transaction exposure in SEK is mainly generated from flows in GBP, USD, CAD, AUD and NOK against SEK. Commercial currency exposure Transaction exposure from commercial flows The Volvo Group conducts manufacturing in 18 countries around the globe and more than 95% of net sales are generated in countries other than Sweden. Transaction exposure from commercial flows in foreign currency is generated from internal purchases and sales between manu- facturing entities and market companies and external sales and purchases in foreign currency around the globe. As the predominant parts of the operations in the Volvo Group are situated outside Sweden, the fluctua- tions in currency rates affecting the transaction flows in foreign currency are in many cases not against SEK. Industrial Operations\u2019 transaction exposure from commercial flows for key currencies is presented in graph 4:5. The graph represents the transaction exposure from commercial operating cash flows in foreign currency, expressed as net surpluses or deficits in key currencies. Commercial net flows increased compared to previous year as an effect of improved demand for the Volvo Group\u2019s prod- ucts and services. The deficit in SEK and KRW is mainly an effect of man- ufacturing costs in the plants in Sweden and South Korea, but limited external revenues in those currencies. The surplus in GBP is mainly generated from internal and external sales to Great Britain. The surplus in USD is mainly generated from internal and external sales to entities in USA and emerging markets around the globe. The surplus in CAD is mainly generated from internal and external sales to Canada. The transac- tion exposure in Financial Service is limited as the lending is done in local currency and the currency risk is managed through the matching in lend- ing and borrowing. The hedging of the Volvo Group\u2019s commercial currency exposure is exe- cuted centrally. The Volvo Group\u2019s consolidated currency exposure is the value of forecasted flows in foreign currency. The Volvo Group may hedge the part of the forecasted currency exposure that is considered highly probable to occur, however during 2023 only future cash flows for spe- cific orders, decided on case-by-case basis, has been hedged. The Volvo Group uses forward contracts and currency options to hedge the future payment flows in foreign currency. The hedged amount of firm flows for all periods fall within the framework of the Volvo Group\u2019s financial risk policy. Table 4:2 shows outstanding derivatives for the hedging of commercial currency risks. Translation exposure from the consolidation of operating income in foreign subsidiaries In conjunction with the translation of operating income in foreign subsid- iaries, the Volvo Group\u2019s income is impacted if currency rates change. The Volvo Group does not hedge this risk. Graph 4:7 shows the translation effect in key currencies when consolidating operating income for 2023 in foreign subsidiaries in the Volvo Group. Read more in section currency exposure of equity. Sensitivity analysis for transaction exposure 1 The table 4:3 illustrates the impact on operating income if key currencies for the Volvo Group appreciate by 10% against all other currencies. Hedge accounting is not applied on hedging commercial cash flows in foreign currency, hence the impact on equity equals the impact on operating income. Volvo Group currency review The table and graphs 4:4 to 4:8 show the currency impact on operating income and illustrate the transaction exposure and currency impact on operating income from commercial net flows in foreign currency , transla- tion effect when consolidating operating income in foreign subsidiaries and currency impact on sales in key currencies. Read more about Volvo Group transaction exposure in section commercial currency exposure above. Financial currency exposure Loans and investments in the Volvo Group\u2019s subsidiaries are performed mainly in local currencies through Volvo Group Treasury, which minimizes individual companies\u2019 financial currency exposure. Volvo Group Treasury uses various derivatives to facilitate lending and borrowing in different currencies without increasing the risk for the Volvo Group. The net financial position of the Volvo Group is affected by currency fluctuations since financial assets and liabilities are distributed among the Volvo Group companies that conduct their operations using different currencies. Table 4:1 discloses the impact on income after financial items on Indus- trial Operations net financial position, excl. post-employment benefits and lease libilities, if SEK were to strengthen by 10%. Currency exposure of equity The carrying amount of assets and liabilities in foreign subsidiaries are affected by current exchange rates in conjunction with the translation of assets and liabilities to SEK. To minimize currency exposure of equity, the size of equity in foreign subsidiaries is continuously optimized with respect to commercial and legal conditions and in connection with this activity, payments of major internal dividends in foreign currency can be subject for hedging. Currency hedging of equity may occur in cases where a foreign subsidiary is considered overcapitalized. Net assets in foreign subsidiaries, associated companies and joint ventures amounted at year end 2023 to SEK 90 billion (98). The need to undertake currency hedging relating to investments in associated companies, joint ventures and other companies is assessed on a case-by-case basis. On the map on the previous pages the Volvo Group\u2019s net assets in different currencies (SEK bn) are displayed. Read more in Note 30 Financial instruments, about the Volvo Group\u2019s policy choice on hedge accounting. Information on gain and losses regarding hedging of internal dividends, refer to table 30:3. 1 The sensitivity analysis on currency rate risks is based on simplified assumptions. It is not unlikely for a currency to appreciate by 10% in relation to other currencies. In reality however, all currencies usually do not change in the same direction at any given time, so the actual effect of exchange rate changes may differ from the sensitivity analysis. Please refer to table 4:3 4:4 The Volvo Group\u2019s currency review When the Volvo Group communicates the currency impact on operating income, the following factors are included: Currency impact on operating income, Volvo Group, SEK million 2023 2022 Change Net flows in foreign currency 1,093 Realized and unrealized gains and losses on currency hedging contracts \u201316 \u201344 29 Unrealized gains and losses on receivables and liabilities in foreign currency 94 \u2013738 832 Translation effect on operating income in foreign subsidiaries 2,805 Total currency impact on operating income, Volvo Group 4,758 Currency impact on net flows in foreign currency is detailed in graph 4:6 and translation effect on operating income in foreign subsidiaries is detailed in graph 4:7 in key currencies. 4:5 Transaction exposure from commercial net flows in 2023 and 2022 SEK bn Currency flow 2022 Currency flow 2023 SEK \u201363 \u201349 Other 11 11 KRW \u20139 \u20137 EUR 3 1 ZAR 6 5 AUD 8 6 CAD 10 7 USD 12 8 NOK 8 6 GBP 15 12 \u201350 \u201360 \u201340 \u201330 \u201320 \u201310 0 10 20 The graph above represents the transaction exposure from commercial operating net cash flows in foreign currency, expressed as net surpluses or deficits in key currencies. Read more in section commercial currency exposure. 4:6 Currency impact on operating income from net flows in foreign currency 2023 versus 2022 SEK bn Changes in currency rates compared to 2023 (Total SEK 1.1 bn). Other 0.2 ZAR \u20130.4 GBP 0.8 MXN 0.5 DKK 0.2 USD 0.5 KRW \u20130.4 CAD 0.1 NOK \u20130.4 \u20130.4 \u20130.2 0 1.0 0.8 0.6 0.4 0.2 Currency effect on operating income from net flows in foreign currency in Volvo Group is presented in the graph above. 4:7 Translation effect on operating income in 2023 versus 2022 SEK M BRL 828 USD 1,049 EUR 1,091 PLN \u2013114 MXN 101 ZAR \u201359 GBP 59 DKK 26 TRY \u2013282 Other 106 Changes in currency rates compared to 2022 (Total SEK 2,805 M). \u2013300 1,200 300 600 900 0 1,500 Translation effect when consolidating operating income in foreign subsidiaries for Volvo Group is presented in the graph above. 4:8 Currency impact on net sales in 2023 versus 2022 Changes in currency rates compared to 2022 (Total SEK 26,030 M). SEK M 3,000 0 \u20133,000 6,000 9,000 12,000 15,000 BRL 2,656 SGD 257 KRW 231 NOK \u2013555 ZAR \u2013584 Other 2,710 USD 7,318 EUR 12,576 GBP 1,421 Currency effect on net sales from inflows in foreign currency and translation effect when consolidating net sales in foreign subsidiaries for Volvo Group is presented in the graph above CREDIT RISKS Credit risk is defined as the risk that the Volvo Group does not receive payment for recognized accounts receivables and customer-financing receivables (commercial credit risk), that the Volvo Group\u2019s investments are unrealizable (financial credit risk) and that potential profit is not real- ized due to the counterparty not fulfilling its part of the contract when using derivative instruments (financial counterparty risk). POLICY The objective of the Volvo Group\u2019s credit risk management is to define, measure and monitor the credit exposure in order to minimize the risk of losses deriving from credit to customers and suppliers, financial credit risk, counterparty risk and customer finance activities within Financial Services. Commercial credit risk The Volvo Group\u2019s credit granting is steered by group policies and customer-classification rules. The credit portfolio should contain a distri- bution among different customer categories and industries. The credit risk is managed through active credit monitoring, follow-up routines and, where applicable, product repossession. In addition to this, regular moni- toring ensures that necessary allowances are made for expected credit losses on financial assets. Risk management practices for Financial Ser- vices are presented in note 15 Customer-financing receivables and for Industrial Operations in note 16 Receivables. Moreover, note 15 includes information on gross exposure for customer-financing receivables by past due status while note 16 includes gross exposure for accounts receivables by past due status in relation to allowance for expected credit losses. The customer-financing receivables in the Volvo Group amounted to net SEK 232 billion (194) on December 31, 2023. The credit risk of this portfolio is distributed over a large number of retail customers and dealers. Collateral is provided in the form of the financed products. In the credit granting the Volvo Group strives for a balance between risk exposure and expected return. Syndication of customer-financing receivables is made in order to reduce concentration risk. The Volvo Group\u2019s accounts receivables as of December 31, 2023 amounted to net SEK 43 billion (48). Read more in Note 15 Customer-financing receivables, about the Volvo Group\u2019s concentration of credit risk in Financial Services. Read more in Note 16 Receivables. Financial credit risk The Volvo Group\u2019s financial assets are to a large extent managed by Volvo Group Treasury. All investments must meet the requirements of high liquid ity and low credit risk. According to the Volvo Group\u2019s financial risk policy, this includes using counterparties for investments and derivative transactions with a credit rating better or equivalent to A\u2013 from one of the well-established credit rating institutions or similar. Cash and cash equivalents including marketable securities as of December 31, 2023 amounted to SEK 83 billion (84) and consists primarily of bank account positions. Read more in Note 18 Cash and cash equivalents. Financial counterparty risk The use of derivatives involves a counterparty risk, in that a potential loss may not be possible to offset (in full or in part) against a potential gain if the counterparty fails to fulfill its part of the contract. The Volvo Group is actively working with limits per counterpart in order to reduce the risk for high net amounts towards individual counterparts. To reduce the expos ure further the Volvo Group enters into master netting agreements, so called ISDA agreements, with all counterparts eligible for derivative transactions. The netting agreements provide the possibility for assets and lia bilities to be offset under certain circumstances, such as in the case of the counter- part\u2019s insolvency. A Credit Support Annex (CSA) often accompanies the ISDA agreement. The CSA stipulates the terms and conditions under which the two parties are required to make cash transfers to each other in order to further reduce the exposure from the net open positions. The net- ting agreements have no effect on the financial performance or the finan- cial position of the Volvo Group, since derivative transactions are accounted for on a gross basis. Table 4:9 shows the effect of netting agreements and cash transfers on the Volvo Group\u2019s gross exposure from outstanding interest and currency risk derivatives as of December 31, 2023. Read more in Note 30 Financial instruments, about the Volvo Group\u2019s gross exposure from derivatives per type of instrument. 4:9 The impact from netting agreements and cash transfers on the Volvo Group\u2019s gross exposure from derivatives, Dec 31, 2023 Gross amount Netting agreements Cash transfers Net position Change Interest and currency risk derivatives reported as assets 6,293 \u20133,486 \u20131,773 1,034 84% Interest and currency risk derivatives reported as liabilities 5,779 \u20133,486 \u20132,110 183 97% LIQUIDITY RISKS Liquidity risk is defined as the risk that the Volvo Group would be unable to finance or refinance its assets or fulfill its payment obligations. POLICY The Volvo Group ensures sound financial preparedness by always keeping a certain percentage of its sales in liquid assets, mainly as bank account positions in banks rated at least A- from one of the well-established credit rating institutions or similar. A sound balance between current and non-current debt maturities, as well as non-current committed credit facilities, is intended to secure liquidity preparedness, and thus the Volvo Group\u2019s payment capability. The Volvo Group\u2019s cash and cash equivalents amounted to SEK 83 billion (84) on December 31, 2023. In addition to this, granted but unutilized credit facilities amounted to SEK 53 billion (46). Graph 4:10 discloses expected future cash flows related to financial liabilities. Capital flow refers to expected payments of loans, lease liabilities and derivatives. Expected interest flow refers to the future interest payments on loans, lease liabili- ties and derivatives based on interest rates anticipated by the market. The interest flow is recognized within cash flow from operating activities. The maturity structure of the unutilized credit facilities is disclosed in note 22 Liabilities, in table 22:3. The predominant part of expected future cash flows that will occur in 2024 and 2025 is an effect of the Volvo Group\u2019s normal business cycle, with shorter duration in the portfolio within Finan- cial Services compared to Industrial Operations. Financial Services measure the degree to which the duration of borrow- ing and lending matches. The calculation of the matching degree excludes equity, which amounted to 8% in Financial Services. At year-end 2023, the degree of such matching was 101% (100) for the segment Financial Services, which was in line with the Volvo Group\u2019s policy. Volvo Group Treasury has, for practical as well as business reasons, the mandate to mismatch their portfolio for Financial Services between a matching ratio of 80\u2013120%. At year-end 2023, the matching ratio was 91% (103). Any gains or losses from the mismatch impact the segment Group functions & other within Industrial Operations. A hybrid bond amounting to EUR 1.5 billion was issued by the Volvo Group in 2014. The final tranche of this bond (EUR 0.6 billion) was repaid in March, 2023. Read more in Note 14 Leasing, about the maturity for non-current lease liabilities in table 14:4. Read more in Note 22 Liabilities, about the maturity for non-current loans in table 22:3 4:10 Future cash flow including lease liabilities and derivatives related to non-current and current financial liabilities 1 0 \u201310 \u201320 \u201330 \u201340 \u201350 \u201360 \u201370 \u201380 \u201390 \u2013100 \u2013110 Capital flow Interest flow 2030 or later2029 \u201398.3 \u201360.2 \u201346.0 \u201318.5 \u20137.0 \u20133.5 \u20133.3 SEK bn \u201310.3 \u20135.8 \u20133.5 \u20131.5 \u20130.8 \u20130.3 \u20130.2 2024 2025 2026 2027 2028 1 In addition to derivatives included in graph 4:10 there are also derivatives in the Volvo Group related to financial liabilities recognized as assets, which are expected to give a future capital flow of SEK 2.9 billion (1.7) and a future interest flow of SEK 2.0 billion (2.9). OTHER PRICE RISKS OTHER PRICE RISKS Commodity risks Commodity risk refers to the risk that changed commodity prices may affect the income for the period within the Volvo Group. Procurement of commodities such as steel, precious metals and electricity are made in the Volvo Group on a regular basis where prices are set in the global markets. POLICY Changes in commodity prices are included in the Volvo Group\u2019s product cost calculation. Increased commodity prices are therefore reflected in the sales price of the final products. Purchasing agreements with com- modity suppliers may also be long-term in nature or structured in a way to de crease the volatility in commodity prices.", "dimensions": { "concept": "ifrs-full:DisclosureOfCreditRiskExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-960": { "value": "5 Investments in joint ventures, associated companies and other shares and participations ACCOUNTING POLICY Joint ventures Joint ventures are companies in which the Volvo Group has joint control together with one or more external parties. Investments in joint ventures are recognized by applying equity method accounting. The Volvo Group\u2019s most material holdings in joint ventures are VE Commercial Vehicles, Ltd., (VECV) and cellcentric GmbH & Co. KG (cellcentric). Both investments are joint ventures since common agreement is needed for important matters related to the governance in the joint ventures. The investment in VECV aims at strengthening the Volvo Group\u2019s position in the market in India. cellcentric will develop, produce, and commercialize fuel-cell systems for use in heavy-duty trucks as the primary focus. Both investments are included in the Trucks segment. Associated companies Associated companies are companies in which the Volvo Group has a sig- nificant influence. A strong indication of such influence is when the Group\u2019s holding is more than 20% but less than 50% of the voting rights. Investments in associated companies are recognized by applying equity method accounting. The ownership in the Chinese automotive manufac- turer Dongfeng Commercial Vehicles Co., Ltd (DFCV) is classified as an associated company and is included in the Trucks segment. During 2023, the Volvo Group divested its shares in the associated companies Wire- lessCar Sweden AB and Imatech Marin & Industri AB. Equity method The Volvo Group\u2019s share of the companies\u2019 income/loss recognized according to the equity method is included in the Volvo Group\u2019s income statement as income/loss from investments in joint ventures and associ- ated companies. Where appropriate, the income has been reduced by depreciation of surplus values and the effect of applying different account- ing policies has been considered. Income from companies recognized in accordance with the equity method is included in operating income since the Volvo Group\u2019s investments are business related in nature. Dividends from joint ventures and associated companies are not included in the con- solidated income. The carrying amount of investments in joint ventures and associated companies are affected by the Volvo Group\u2019s share of the companies' net income, less depreciation of surplus values and dividends received. Investments in joint ventures and associated companies are also affected by the Volvo Group\u2019s share of the companies' other comprehen- sive income and by the exchange rate changes from translating the compa- nies\u2019 equity in the consolidation of the Volvo Group. When applying the equity method, losses recognized by joint ventures or associates could indicate impairment and additional impairment losses might be recognized. For instance, a significant or prolonged decline in the fair value of the shares is an indication of impairment. However, invest- ments accounted for in accordance with the equity method cannot amount to a negative carrying value. The Volvo Group\u2019s share of losses is therefore not adjusted for, if the holding is of a negative amount. Addi- tional losses are provided for to the extent that the Volvo Group has incurred legal or constructive obligations to make payments on behalf of the joint venture or the associated company . Other shares and participations Other shares and participations recognize holding of shares in which the Volvo Group does not hold a significant influence. This generally means the Volvo Group\u2019s holding of shares corresponds to less than 20% of the voting rights. Listed shares are recognized at fair value through other comprehensive income since the shares are not held for trading. For unlisted shares and participations, a fair value cannot be reasonably mea- sured, hence these are measured at amortized cost. Earned or paid inter- est attributable to these assets is recognized in the income statement as part of net financial items, in accordance with the effective interest method. Dividends received attributable to these assets are recognized as income from other investments within operating income. Read more in Note 30 Financial instruments, regarding classification and valuation of financial instruments . Joint ventures The Volvo Group\u2019s investments in joint ventures are listed below. 5:1 Investments in joint ventures Dec 31, 2023 Percentage holding Dec 31, 2023 Carrying value Dec 31, 2022 Percentage holding Dec 31, 2022 Carrying value cellcentric 50.0 7,786 50.0 7,622 VE Commercial Vehicles, Ltd., (VECV) 45.6 3,131 45.6 2,860 Other holdings in joint ventures\u00b9 483 179 Investments in joint ventures 11,400 10,661 1 Other holdings in joint ventures include investments in World of Volvo AB, Force R\u00e9seau and Milence. The following tables present summarized financial information for the Volvo Group\u2019s joint ventures: 5:2 Summarized income statements 2023 2022 VECV cellcentric Other joint ventures Total VECV cellcentric Other joint ventures Total Net sales 27,737 204 617 28,558 21,900 119 653 22,671 Operating income 1 1,581 \u20131,121 \u2013280 180 640 \u20131,164 \u201349 \u2013573 Interest income and similar credits 230 \u2013 \u2013 230 99 \u2013 \u2013 99 Interest expense and similar charges \u201361 \u2013 \u201359 \u2013120 \u201329 \u2013 \u201312 \u201341 Other financial income and expenses 7 \u20133 \u2013 4 \u20131 \u20137 \u2013 \u20138 Income taxes \u2013614 \u2013 \u2013 \u2013614 \u2013251 \u2013 4 \u2013247 Income for the period 2 1,143 \u20131,124 \u2013339 \u2013319 458 \u20131,172 \u201356 \u2013770 Other comprehensive income 3 \u20133 \u20135 \u2013 \u20138 \u20136 7 \u2013 1 Total comprehensive income 1,141 \u20131,129 \u2013339 \u2013327 452 \u20131,164 \u201356 \u2013768 1 Depreciation and amortization of SEK 1,325 M (1,205) are included within operating income. 2 Income for the period in joint ventures includes depreciation of surplus values. 3 Including the Volvo Group\u2019s share of other comprehensive income related to joint ventures. Exchange rate changes from translating joint ventures\u2019 equity in the Volvo Group are excluded. 5:3 Summarized balance sheets Dec 31, 2023 Dec 31, 2022 VECV cellcentric Other joint ventures Total VECV cellcentric Other joint ventures Total Non-current assets 6,172 15,114 1,688 22,975 5,871 14,571 1,077 21,519 Marketable securities, cash and cash equivalents 2,908 675 \u2013 3,583 2,236 883 \u2013 3,119 Other current assets 8,976 737 1,206 10,920 7,419 561 271 8,250 Total assets 18,057 16,527 2,894 37,477 15,526 16,014 1,347 32,888 Equity 1 6,868 15,537 1,313 23,719 6,272 15,210 361 21,844 Non-current financial liabilities 705 287 1,391 2,383 133 317 801 1,251 Other non-current liabilities 390 64 22 476 512 57 8 577 Current financial liabilities 7,181 11 \u2013 7,191 6,192 7 \u2013 6,199 Other current liabilities 2,913 627 168 3,709 2,417 423 177 3,017 Total equity and liabilities 18,057 16,527 2,894 37,477 15,526 16,014 1,347 32,888 1 Including exchange rate changes from translating joint ventures\u2019 equity in the Volvo Group. As of December 31, 2023, the net financial position (excluding post-employment benefits) for the joint ventures amounted to SEK 2,664 M (1,833), and Volvo Group\u2019s share of contingent liabilities in its joint ventures amounted to SEK 105 M (110). Dividends received during 2023 from VECV amounted to SEK 100 M (44). Associated companies The Volvo Group\u2019s investments in associated companies are listed below. 5:4 Investments in associated companies Dec 31, 2023 Percentage holding Dec 31, 2023 Carrying value Dec 31, 2022 Percentage holding Dec 31, 2022 Carrying value Dongfeng Commercial Vehicles Co., Ltd (DFCV) 45.0 7,256 45.0 9,929 Other holdings in associated companies 1 501 992 Investments in associated companies 7,757 10,922 1 Other holdings in associated companies mainly relates to the investment in Blue Chip Jet II HB. The following tables present summarized financial information for the Volvo Group\u2019s associated companies: 5:5 Summarized income statements 2023 2022 DFCV Other associated companies Total DFCV Other associated companies Total Net sales 40,847 4,364 45,211 33,211 3,892 37,103 Operating income \u20133,993 86 \u20133,907 \u20132,998 78 \u20132,920 Income for the period 1 \u20134,723 13 \u20134,710 \u20131,952 57 \u20131,895 Other comprehensive income 2 \u20131 \u2013 \u20131 \u20135 \u2013 \u20135 Total comprehensive income \u20134,724 13 \u20134,711 \u20131,957 57 \u20131,900 1 Income for the period in associated companies includes depreciation/amortization of surplus values and internal transactions. 2 Including the Volvo Group\u2019s share of other comprehensive income related to associated companies. Exchange rate changes from translating the associated companies\u2019 equity in the Volvo Group are excluded. 5:6 Summarized balance sheets Dec 31, 2023 Dec 31, 2022 DFCV Other associated companies Total DFCV Other associated companies Total Non-current assets 18,364 1,261 19,625 21,474 1,327 22,801 Current assets 37,182 1,627 38,809 30,651 1,743 32,394 Total assets 55,546 2,887 58,434 52,124 3,070 55,195 Equity\u00b9 15,367 904 16,271 20,957 1,390 22,348 Non-current liabilities 3,575 616 4,191 4,701 545 5,245 Current liabilities 36,604 1,368 37,972 26,467 1,135 27,602 Total equity and liabilities 55,546 2,887 58,434 52,124 3,070 55,195 1 Including the exchange rate changes from translating associated companies\u2019 equity in the Volvo Group. During 2023 no dividend was received from DFCV (\u2013) . 5:7 Income/loss from investments in joint ventures and associated companies 2023 2022 Income/loss joint ventures VECV 525 212 cellcentric \u2013575 \u2013572 Other companies \u2013124 \u201315 Subtotal \u2013174 \u2013374 Income/loss associated companies DFCV 1 \u20132,240 \u2013969 Other companies 46 10 Subtotal \u20132,194 \u2013959 Revaluation, write-down and gain on divestment of shares Other companies 2 \u2013200 \u2013 Subtotal \u2013200 \u2013 I/S Income/loss from investments in joint ventures and associated companies 3 \u20132,568 \u20131,333 1 Income/loss from DFCV includes an internal profit elimination of net SEK 36 M (37) and an adjustment to Volvo Group Accounting policies of SEK \u2013130 M (\u201399). 2 During 2023, the Volvo Group divested the remaining shares of WirelessCar Sweden AB and Imatech Marin & Industri AB, with a write-down and a loss of SEK 132 M and SEK 68 M respectively. 3 Includes the Volvo Group\u2019s share of depreciation of surplus values of SEK 36 M (37) in associated companies . Other shares and participations The carrying amount of the Volvo Group\u2019s holding of shares and partici- pations in other companies is disclosed in the table below. Read more in Note 30 Financial Instruments, regarding classification and valuation of financial instruments. 5:8 Holding of shares in listed and non-listed companies Dec 31, 2023 Carrying value Dec 31, 2022 Carrying value Holdings in listed companies 1 22 6 Holdings in non-listed companies 859 599 B/S Other shares and participations 881 605 1 Changes in fair value is measured through other comprehensive income and amounted to SEK 15 M (\u201345). ", "dimensions": { "concept": "ifrs-full:DisclosureOfInvestmentsAccountedForUsingEquityMethodExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-961": { "value": "5 Investments in joint ventures, associated companies and other shares and participations ACCOUNTING POLICY Joint ventures Joint ventures are companies in which the Volvo Group has joint control together with one or more external parties. Investments in joint ventures are recognized by applying equity method accounting. The Volvo Group\u2019s most material holdings in joint ventures are VE Commercial Vehicles, Ltd., (VECV) and cellcentric GmbH & Co. KG (cellcentric). Both investments are joint ventures since common agreement is needed for important matters related to the governance in the joint ventures. The investment in VECV aims at strengthening the Volvo Group\u2019s position in the market in India. cellcentric will develop, produce, and commercialize fuel-cell systems for use in heavy-duty trucks as the primary focus. Both investments are included in the Trucks segment. Associated companies Associated companies are companies in which the Volvo Group has a sig- nificant influence. A strong indication of such influence is when the Group\u2019s holding is more than 20% but less than 50% of the voting rights. Investments in associated companies are recognized by applying equity method accounting. The ownership in the Chinese automotive manufac- turer Dongfeng Commercial Vehicles Co., Ltd (DFCV) is classified as an associated company and is included in the Trucks segment. During 2023, the Volvo Group divested its shares in the associated companies Wire- lessCar Sweden AB and Imatech Marin & Industri AB. Equity method The Volvo Group\u2019s share of the companies\u2019 income/loss recognized according to the equity method is included in the Volvo Group\u2019s income statement as income/loss from investments in joint ventures and associ- ated companies. Where appropriate, the income has been reduced by depreciation of surplus values and the effect of applying different account- ing policies has been considered. Income from companies recognized in accordance with the equity method is included in operating income since the Volvo Group\u2019s investments are business related in nature. Dividends from joint ventures and associated companies are not included in the con- solidated income. The carrying amount of investments in joint ventures and associated companies are affected by the Volvo Group\u2019s share of the companies' net income, less depreciation of surplus values and dividends received. Investments in joint ventures and associated companies are also affected by the Volvo Group\u2019s share of the companies' other comprehen- sive income and by the exchange rate changes from translating the compa- nies\u2019 equity in the consolidation of the Volvo Group. When applying the equity method, losses recognized by joint ventures or associates could indicate impairment and additional impairment losses might be recognized. For instance, a significant or prolonged decline in the fair value of the shares is an indication of impairment. However, invest- ments accounted for in accordance with the equity method cannot amount to a negative carrying value. The Volvo Group\u2019s share of losses is therefore not adjusted for, if the holding is of a negative amount. Addi- tional losses are provided for to the extent that the Volvo Group has incurred legal or constructive obligations to make payments on behalf of the joint venture or the associated company . Other shares and participations Other shares and participations recognize holding of shares in which the Volvo Group does not hold a significant influence. This generally means the Volvo Group\u2019s holding of shares corresponds to less than 20% of the voting rights. Listed shares are recognized at fair value through other comprehensive income since the shares are not held for trading. For unlisted shares and participations, a fair value cannot be reasonably mea- sured, hence these are measured at amortized cost. Earned or paid inter- est attributable to these assets is recognized in the income statement as part of net financial items, in accordance with the effective interest method. Dividends received attributable to these assets are recognized as income from other investments within operating income. Read more in Note 30 Financial instruments, regarding classification and valuation of financial instruments . Joint ventures The Volvo Group\u2019s investments in joint ventures are listed below. 5:1 Investments in joint ventures Dec 31, 2023 Percentage holding Dec 31, 2023 Carrying value Dec 31, 2022 Percentage holding Dec 31, 2022 Carrying value cellcentric 50.0 7,786 50.0 7,622 VE Commercial Vehicles, Ltd., (VECV) 45.6 3,131 45.6 2,860 Other holdings in joint ventures\u00b9 483 179 Investments in joint ventures 11,400 10,661 1 Other holdings in joint ventures include investments in World of Volvo AB, Force R\u00e9seau and Milence. The following tables present summarized financial information for the Volvo Group\u2019s joint ventures: 5:2 Summarized income statements 2023 2022 VECV cellcentric Other joint ventures Total VECV cellcentric Other joint ventures Total Net sales 27,737 204 617 28,558 21,900 119 653 22,671 Operating income 1 1,581 \u20131,121 \u2013280 180 640 \u20131,164 \u201349 \u2013573 Interest income and similar credits 230 \u2013 \u2013 230 99 \u2013 \u2013 99 Interest expense and similar charges \u201361 \u2013 \u201359 \u2013120 \u201329 \u2013 \u201312 \u201341 Other financial income and expenses 7 \u20133 \u2013 4 \u20131 \u20137 \u2013 \u20138 Income taxes \u2013614 \u2013 \u2013 \u2013614 \u2013251 \u2013 4 \u2013247 Income for the period 2 1,143 \u20131,124 \u2013339 \u2013319 458 \u20131,172 \u201356 \u2013770 Other comprehensive income 3 \u20133 \u20135 \u2013 \u20138 \u20136 7 \u2013 1 Total comprehensive income 1,141 \u20131,129 \u2013339 \u2013327 452 \u20131,164 \u201356 \u2013768 1 Depreciation and amortization of SEK 1,325 M (1,205) are included within operating income. 2 Income for the period in joint ventures includes depreciation of surplus values. 3 Including the Volvo Group\u2019s share of other comprehensive income related to joint ventures. Exchange rate changes from translating joint ventures\u2019 equity in the Volvo Group are excluded. 5:3 Summarized balance sheets Dec 31, 2023 Dec 31, 2022 VECV cellcentric Other joint ventures Total VECV cellcentric Other joint ventures Total Non-current assets 6,172 15,114 1,688 22,975 5,871 14,571 1,077 21,519 Marketable securities, cash and cash equivalents 2,908 675 \u2013 3,583 2,236 883 \u2013 3,119 Other current assets 8,976 737 1,206 10,920 7,419 561 271 8,250 Total assets 18,057 16,527 2,894 37,477 15,526 16,014 1,347 32,888 Equity 1 6,868 15,537 1,313 23,719 6,272 15,210 361 21,844 Non-current financial liabilities 705 287 1,391 2,383 133 317 801 1,251 Other non-current liabilities 390 64 22 476 512 57 8 577 Current financial liabilities 7,181 11 \u2013 7,191 6,192 7 \u2013 6,199 Other current liabilities 2,913 627 168 3,709 2,417 423 177 3,017 Total equity and liabilities 18,057 16,527 2,894 37,477 15,526 16,014 1,347 32,888 1 Including exchange rate changes from translating joint ventures\u2019 equity in the Volvo Group. As of December 31, 2023, the net financial position (excluding post-employment benefits) for the joint ventures amounted to SEK 2,664 M (1,833), and Volvo Group\u2019s share of contingent liabilities in its joint ventures amounted to SEK 105 M (110). Dividends received during 2023 from VECV amounted to SEK 100 M (44). Associated companies The Volvo Group\u2019s investments in associated companies are listed below. 5:4 Investments in associated companies Dec 31, 2023 Percentage holding Dec 31, 2023 Carrying value Dec 31, 2022 Percentage holding Dec 31, 2022 Carrying value Dongfeng Commercial Vehicles Co., Ltd (DFCV) 45.0 7,256 45.0 9,929 Other holdings in associated companies 1 501 992 Investments in associated companies 7,757 10,922 1 Other holdings in associated companies mainly relates to the investment in Blue Chip Jet II HB. The following tables present summarized financial information for the Volvo Group\u2019s associated companies: 5:5 Summarized income statements 2023 2022 DFCV Other associated companies Total DFCV Other associated companies Total Net sales 40,847 4,364 45,211 33,211 3,892 37,103 Operating income \u20133,993 86 \u20133,907 \u20132,998 78 \u20132,920 Income for the period 1 \u20134,723 13 \u20134,710 \u20131,952 57 \u20131,895 Other comprehensive income 2 \u20131 \u2013 \u20131 \u20135 \u2013 \u20135 Total comprehensive income \u20134,724 13 \u20134,711 \u20131,957 57 \u20131,900 1 Income for the period in associated companies includes depreciation/amortization of surplus values and internal transactions. 2 Including the Volvo Group\u2019s share of other comprehensive income related to associated companies. Exchange rate changes from translating the associated companies\u2019 equity in the Volvo Group are excluded. 5:6 Summarized balance sheets Dec 31, 2023 Dec 31, 2022 DFCV Other associated companies Total DFCV Other associated companies Total Non-current assets 18,364 1,261 19,625 21,474 1,327 22,801 Current assets 37,182 1,627 38,809 30,651 1,743 32,394 Total assets 55,546 2,887 58,434 52,124 3,070 55,195 Equity\u00b9 15,367 904 16,271 20,957 1,390 22,348 Non-current liabilities 3,575 616 4,191 4,701 545 5,245 Current liabilities 36,604 1,368 37,972 26,467 1,135 27,602 Total equity and liabilities 55,546 2,887 58,434 52,124 3,070 55,195 1 Including the exchange rate changes from translating associated companies\u2019 equity in the Volvo Group. During 2023 no dividend was received from DFCV (\u2013) 5:7 Income/loss from investments in joint ventures and associated companies 2023 2022 Income/loss joint ventures VECV 525 212 cellcentric \u2013575 \u2013572 Other companies \u2013124 \u201315 Subtotal \u2013174 \u2013374 Income/loss associated companies DFCV 1 \u20132,240 \u2013969 Other companies 46 10 Subtotal \u20132,194 \u2013959 Revaluation, write-down and gain on divestment of shares Other companies 2 \u2013200 \u2013 Subtotal \u2013200 \u2013 I/S Income/loss from investments in joint ventures and associated companies 3 \u20132,568 \u20131,333 1 Income/loss from DFCV includes an internal profit elimination of net SEK 36 M (37) and an adjustment to Volvo Group Accounting policies of SEK \u2013130 M (\u201399). 2 During 2023, the Volvo Group divested the remaining shares of WirelessCar Sweden AB and Imatech Marin & Industri AB, with a write-down and a loss of SEK 132 M and SEK 68 M respectively. 3 Includes the Volvo Group\u2019s share of depreciation of surplus values of SEK 36 M (37) in associated companies . Other shares and participations The carrying amount of the Volvo Group\u2019s holding of shares and partici- pations in other companies is disclosed in the table below. Read more in Note 30 Financial Instruments, regarding classification and valuation of financial instruments. 5:8 Holding of shares in listed and non-listed companies Dec 31, 2023 Carrying value Dec 31, 2022 Carrying value Holdings in listed companies 1 22 6 Holdings in non-listed companies 859 599 B/S Other shares and participations 881 605 1 Changes in fair value is measured through other comprehensive income and amounted to SEK 15 M (\u201345). ", "dimensions": { "concept": "ifrs-full:DisclosureOfInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethodExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-964": { "value": "
Joint ventures
Joint ventures are companies in which the Volvo Group has joint control
together with one or more external parties. Investments in joint ventures
are recognized by applying equity method accounting. The Volvo Group\u2019s
most material holdings in joint ventures are VE Commercial Vehicles, Ltd.,
(VECV) and cellcentric GmbH & Co. KG (cellcentric). Both investments
are joint ventures since common agreement is needed for important
matters related to the governance in the joint ventures. The investment in
VECV aims at strengthening the Volvo Group\u2019s position in the market in
India. cellcentric will develop, produce, and commercialize fuel-cell
systems for use in heavy-duty trucks as the primary focus. Both
investments are included in the Trucks segment.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsInJointVentures", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-965": { "value": "Joint ventures Joint ventures are companies in which the Volvo Group has joint control together with one or more external parties. Investments in joint ventures are recognized by applying equity method accounting. The Volvo Group\u2019s most material holdings in joint ventures are VE Commercial Vehicles, Ltd., (VECV) and cellcentric GmbH & Co. KG (cellcentric). Both investments are joint ventures since common agreement is needed for important matters related to the governance in the joint ventures. The investment in VECV aims at strengthening the Volvo Group\u2019s position in the market in India. cellcentric will develop, produce, and commercialize fuel-cell systems for use in heavy-duty trucks as the primary focus. Both investments are included in the Trucks segment. Associated companies Associated companies are companies in which the Volvo Group has a sig- nificant influence. A strong indication of such influence is when the Group\u2019s holding is more than 20% but less than 50% of the voting rights. Investments in associated companies are recognized by applying equity method accounting. The ownership in the Chinese automotive manufac- turer Dongfeng Commercial Vehicles Co., Ltd (DFCV) is classified as an associated company and is included in the Trucks segment. During 2023, the Volvo Group divested its shares in the associated companies Wire- lessCar Sweden AB and Imatech Marin & Industri AB. Equity method The Volvo Group\u2019s share of the companies\u2019 income/loss recognized according to the equity method is included in the Volvo Group\u2019s income statement as income/loss from investments in joint ventures and associ- ated companies. Where appropriate, the income has been reduced by depreciation of surplus values and the effect of applying different account- ing policies has been considered. Income from companies recognized in accordance with the equity method is included in operating income since the Volvo Group\u2019s investments are business related in nature. Dividends from joint ventures and associated companies are not included in the con- solidated income. The carrying amount of investments in joint ventures and associated companies are affected by the Volvo Group\u2019s share of the companies' net income, less depreciation of surplus values and dividends received. Investments in joint ventures and associated companies are also affected by the Volvo Group\u2019s share of the companies' other comprehen- sive income and by the exchange rate changes from translating the compa- nies\u2019 equity in the consolidation of the Volvo Group. When applying the equity method, losses recognized by joint ventures or associates could indicate impairment and additional impairment losses might be recognized. For instance, a significant or prolonged decline in the fair value of the shares is an indication of impairment. However, invest- ments accounted for in accordance with the equity method cannot amount to a negative carrying value. The Volvo Group\u2019s share of losses is therefore not adjusted for, if the holding is of a negative amount. Addi- tional losses are provided for to the extent that the Volvo Group has incurred legal or constructive obligations to make payments on behalf of the joint venture or the associated company ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociatesAndJointVenturesExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-966": { "value": "
Associated companies
Associated companies are companies in which the Volvo Group has a sig-
nificant influence. A strong indication of such influence is when the
Group\u2019s holding is more than 20% but less than 50% of the voting rights.
Investments in associated companies are recognized by applying equity
method accounting. The ownership in the Chinese automotive manufac-
turer Dongfeng Commercial Vehicles Co., Ltd (DFCV) is classified as an
associated company and is included in the Trucks segment. During 2023,
the Volvo Group divested its shares in the associated companies Wire-
lessCar Sweden AB and Imatech Marin & Industri AB.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociates", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-967": { "value": "Other shares and participations Other shares and participations recognize holding of shares in which the Volvo Group does not hold a significant influence. This generally means the Volvo Group\u2019s holding of shares corresponds to less than 20% of the voting rights. Listed shares are recognized at fair value through other comprehensive income since the shares are not held for trading. For unlisted shares and participations, a fair value cannot be reasonably mea- sured, hence these are measured at amortized cost. Earned or paid inter- est attributable to these assets is recognized in the income statement as part of net financial items, in accordance with the effective interest method. Dividends received attributable to these assets are recognized as income from other investments within operating income. Read more in Note 30 Financial instruments, regarding classification and valuation of financial instruments . ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethodExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-968": { "value": "Joint ventures The Volvo Group\u2019s investments in joint ventures are listed below. 5:1 Investments in joint ventures Dec 31, 2023 Percentage holding Dec 31, 2023 Carrying value Dec 31, 2022 Percentage holding Dec 31, 2022 Carrying value cellcentric 50.0 7,786 50.0 7,622 VE Commercial Vehicles, Ltd., (VECV) 45.6 3,131 45.6 2,860 Other holdings in joint ventures\u00b9 483 179 Investments in joint ventures 11,400 10,661 1 Other holdings in joint ventures include investments in World of Volvo AB, Force R\u00e9seau and Milence. The following tables present summarized financial information for the Volvo Group\u2019s joint ventures: 5:2 Summarized income statements 2023 2022 VECV cellcentric Other joint ventures Total VECV cellcentric Other joint ventures Total Net sales 27,737 204 617 28,558 21,900 119 653 22,671 Operating income 1 1,581 \u20131,121 \u2013280 180 640 \u20131,164 \u201349 \u2013573 Interest income and similar credits 230 \u2013 \u2013 230 99 \u2013 \u2013 99 Interest expense and similar charges \u201361 \u2013 \u201359 \u2013120 \u201329 \u2013 \u201312 \u201341 Other financial income and expenses 7 \u20133 \u2013 4 \u20131 \u20137 \u2013 \u20138 Income taxes \u2013614 \u2013 \u2013 \u2013614 \u2013251 \u2013 4 \u2013247 Income for the period 2 1,143 \u20131,124 \u2013339 \u2013319 458 \u20131,172 \u201356 \u2013770 Other comprehensive income 3 \u20133 \u20135 \u2013 \u20138 \u20136 7 \u2013 1 Total comprehensive income 1,141 \u20131,129 \u2013339 \u2013327 452 \u20131,164 \u201356 \u2013768 1 Depreciation and amortization of SEK 1,325 M (1,205) are included within operating income. 2 Income for the period in joint ventures includes depreciation of surplus values. 3 Including the Volvo Group\u2019s share of other comprehensive income related to joint ventures. Exchange rate changes from translating joint ventures\u2019 equity in the Volvo Group are excluded. 5:3 Summarized balance sheets Dec 31, 2023 Dec 31, 2022 VECV cellcentric Other joint ventures Total VECV cellcentric Other joint ventures Total Non-current assets 6,172 15,114 1,688 22,975 5,871 14,571 1,077 21,519 Marketable securities, cash and cash equivalents 2,908 675 \u2013 3,583 2,236 883 \u2013 3,119 Other current assets 8,976 737 1,206 10,920 7,419 561 271 8,250 Total assets 18,057 16,527 2,894 37,477 15,526 16,014 1,347 32,888 Equity 1 6,868 15,537 1,313 23,719 6,272 15,210 361 21,844 Non-current financial liabilities 705 287 1,391 2,383 133 317 801 1,251 Other non-current liabilities 390 64 22 476 512 57 8 577 Current financial liabilities 7,181 11 \u2013 7,191 6,192 7 \u2013 6,199 Other current liabilities 2,913 627 168 3,709 2,417 423 177 3,017 Total equity and liabilities 18,057 16,527 2,894 37,477 15,526 16,014 1,347 32,888 1 Including exchange rate changes from translating joint ventures\u2019 equity in the Volvo Group. As of December 31, 2023, the net financial position (excluding post-employment benefits) for the joint ventures amounted to SEK 2,664 M (1,833), and Volvo Group\u2019s share of contingent liabilities in its joint ventures amounted to SEK 105 M (110). Dividends received during 2023 from VECV amounted to SEK 100 M (44). 5:7 Income/loss from investments in joint ventures and associated companies 2023 2022 Income/loss joint ventures VECV 525 212 cellcentric \u2013575 \u2013572 Other companies \u2013124 \u201315 Subtotal \u2013174 \u2013374 Income/loss associated companies DFCV 1 \u20132,240 \u2013969 Other companies 46 10 Subtotal \u20132,194 \u2013959 Revaluation, write-down and gain on divestment of shares Other companies 2 \u2013200 \u2013 Subtotal \u2013200 \u2013 I/S Income/loss from investments in joint ventures and associated companies 3 \u20132,568 \u20131,333 1 Income/loss from DFCV includes an internal profit elimination of net SEK 36 M (37) and an adjustment to Volvo Group Accounting policies of SEK \u2013130 M (\u201399). 2 During 2023, the Volvo Group divested the remaining shares of WirelessCar Sweden AB and Imatech Marin & Industri AB, with a write-down and a loss of SEK 132 M and SEK 68 M respectively. 3 Includes the Volvo Group\u2019s share of depreciation of surplus values of SEK 36 M (37) in associated companies ", "dimensions": { "concept": "ifrs-full:DisclosureOfJointVenturesExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-969": { "value": "
Associated companies
The Volvo Group\u2019s investments in associated companies are listed below.
5:4
Investments in associated companies Dec 31, 2023
Percentage holding
Dec 31, 2023
Carrying value
Dec 31, 2022
Percentage holding
Dec 31, 2022
Carrying value
Dongfeng Commercial Vehicles Co., Ltd (DFCV) 45.0 7,256 45.0 9,929
Other holdings in associated companies
1
501 992
Investments in associated companies 7,757 10,922
1 Other holdings in associated companies mainly relates to the investment in Blue Chip Jet II HB.
The following tables present summarized financial information for the Volvo Group\u2019s associated companies:
5:5
Summarized income statements 2023 2022
DFCV
Other associated
companies Total DFCV
Other associated
companies Total
Net sales 40,847 4,364 45,211 33,211 3,892 37,103
Operating income \u20133,993 86 \u20133,907 \u20132,998 78 \u20132,920
Income for the period
1
\u20134,723 13 \u20134,710 \u20131,952 57 \u20131,895
Other comprehensive income
2
\u20131 \u2013 \u20131 \u20135 \u2013 \u20135
Total comprehensive income \u20134,724 13 \u20134,711 \u20131,957 57 \u20131,900
1 Income for the period in associated companies includes depreciation/amortization of surplus values and internal transactions.
2 Including the Volvo Group\u2019s share of other comprehensive income related to associated companies. Exchange rate changes from translating the associated companies\u2019
equity in the Volvo Group are excluded.
5:6
Summarized balance sheets Dec 31, 2023 Dec 31, 2022
DFCV
Other associated
companies Total DFCV
Other associated
companies Total
Non-current assets 18,364 1,261 19,625 21,474 1,327 22,801
Current assets 37,182 1,627 38,809 30,651 1,743 32,394
Total assets 55,546 2,887 58,434 52,124 3,070 55,195
Equity\u00b9 15,367 904 16,271 20,957 1,390 22,348
Non-current liabilities 3,575 616 4,191 4,701 545 5,245
Current liabilities 36,604 1,368 37,972 26,467 1,135 27,602
Total equity and liabilities 55,546 2,887 58,434 52,124 3,070 55,195
1 Including the exchange rate changes from translating associated companies\u2019 equity in the Volvo Group.
During 2023 no dividend was received from DFCV (\u2013) .
5:7 Income/loss from investments in joint ventures and associated companies 2023 2022 Income/loss joint ventures VECV 525 212 cellcentric \u2013575 \u2013572 Other companies \u2013124 \u201315 Subtotal \u2013174 \u2013374 Income/loss associated companies DFCV 1 \u20132,240 \u2013969 Other companies 46 10 Subtotal \u20132,194 \u2013959 Revaluation, write-down and gain on divestment of shares Other companies 2 \u2013200 \u2013 Subtotal \u2013200 \u2013 I/S Income/loss from investments in joint ventures and associated companies 3 \u20132,568 \u20131,333 1 Income/loss from DFCV includes an internal profit elimination of net SEK 36 M (37) and an adjustment to Volvo Group Accounting policies of SEK \u2013130 M (\u201399). 2 During 2023, the Volvo Group divested the remaining shares of WirelessCar Sweden AB and Imatech Marin & Industri AB, with a write-down and a loss of SEK 132 M and SEK 68 M respectively. 3 Includes the Volvo Group\u2019s share of depreciation of surplus values of SEK 36 M (37) in associated companies ", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInAssociatesExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-970": { "value": "Other shares and participations The carrying amount of the Volvo Group\u2019s holding of shares and partici- pations in other companies is disclosed in the table below. Read more in Note 30 Financial Instruments, regarding classification and valuation of financial instruments. 5:8 Holding of shares in listed and non-listed companies Dec 31, 2023 Carrying value Dec 31, 2022 Carrying value Holdings in listed companies 1 22 6 Holdings in non-listed companies 859 599 B/S Other shares and participations 881 605 1 Changes in fair value is measured through other comprehensive income and amounted to SEK 15 M (\u201345). ", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestsInOtherEntitiesExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-971": { "value": "6 Segment reporting ACCOUNTING POLICY Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief oper- ating decision maker, identified as the Group Executive Board, makes strategic decisions and is responsible for allocating resources and assess- ing financial performance of the operating segments. The Volvo Group comprises of ten business areas: Volvo Trucks, Mack Trucks, Renault Trucks, Volvo Autonomous Solutions, Volvo Energy, Volvo Construction Equipment, Volvo Buses, Volvo Penta, Arquus and Volvo Financial Services. Each business area is seen as a separate segment, except for the truck business areas, Volvo Autonomous Solutions and Volvo Energy which are included in the segment Trucks. This segment also comprises the associ- ated companies and joint ventures Dongfeng Commercial Vehicles, VE Commercial Vehicles, cellcentric and Milence. The truck segment has shared operations for product development, purchasing and manufacturing which are highly integrated, and strategic allocation of resources is done to the total segment. The segment Group functions & Other includes Arquus, Nova Bus and common business support functions such as Volvo Group Digital & IT and Volvo Group Real Estate. The costs of these business support functions are shared between the different business areas based on utilization according to principles set by the Volvo Group. 6:1 2023 Trucks Con- struction Equipment Buses Volvo Penta Group functions & Other incl. eliminations Industrial Operations Financial Services Elimina- tions Volvo Group Net sales, external customers 368,701 104,245 21,116 20,023 15,102 529,188 23,576 \u2013 552,764 Net sales, internal 4,347 736 1,307 983 \u20133,292 4,081 437 \u20134,518 \u2013 I/S Net sales 373,048 104,981 22,423 21,006 11,811 533,269 24,012 \u20134,518 552,764 Expenses \u2013321,792 \u201388,599 \u201322,810 \u201317,731 \u201316,706 \u2013467,639 \u201320,293 4,520 \u2013483,413 I/S Income from investments in joint ventures and associated companies \u20132,363 \u2013 7 \u201346 \u2013167 \u20132,568 \u2013 \u2013 \u20132,568 I/S Operating income 48,893 16,383 \u2013380 3,230 \u20135,062 63,063 3,719 2 66,784 I/S Interest income and similar credits 3,207 1 \u2013518 2,690 I/S Interest expense and similar charges \u20131,685 \u2013 518 \u20131,167 I/S Other financial income and expense \u20131,581 \u2013 \u2013 \u20131,581 I/S Income after financial items 63,005 3,720 2 66,726 Other segment information Depreciation, amortization and impairment \u201315,180 \u20132,162 \u2013699 \u2013599 2,467 \u201316,173 \u20135,054 \u2013 \u201321,227 Restructuring costs \u201346 31 \u20131,300 \u2013 \u20131,328 \u20132,643 \u2013 \u2013 \u20132,643 Gains/losses from divestments \u2013558 \u2013607 \u2013 \u2013 \u2013898 \u20132,063 \u2013136 \u2013 \u20132,199 Additions to in-/tangible assets 28,450 4,125 534 1,061 \u20135,950 28,219 10,460 \u2013 38,680 B/S Investments in joint ventures and associated companies 18,716 \u2013 93 1 347 19,158 \u2013 \u2013 19,158 B/S Assets held for sale \u2013 357 \u2013 \u2013 11,603 11,960 \u2013 \u2013 11,960 B/S Liabilities held for sale \u2013 \u2013218 \u2013 \u2013 \u20137,939 \u20138,157 \u2013 \u2013 \u20138,157 6:2 2022 Trucks Con- struction Equipment Buses Volvo Penta Group functions & Other incl. eliminations Industrial Operations Financial Services Elimina- tions Volvo Group Net sales, external customers 307,344 99,786 17,387 17,108 14,888 456,513 16,966 \u2013 473,479 Net sales, internal 3,192 475 1,196 994 \u20132,667 3,190 389 \u20133,579 \u2013 I/S Net sales 310,536 100,261 18,583 18,102 12,221 459,703 17,355 \u20133,579 473,479 Expenses \u2013277,235 \u201387,354 \u201318,235 \u201315,584 \u201315,100 \u2013413,507 \u201316,508 3,581 \u2013426,433 I/S Income from investments in joint ventures and associated companies \u20131,325 \u2013 5 8 \u201321 \u20131,333 \u2013 \u2013 \u20131,333 I/S Operating income 31,976 12,907 353 2,527 \u20132,900 44,862 848 2 45,712 I/S Interest income and similar credits 1,315 \u2013 \u2013307 1,008 I/S Interest expense and similar charges \u20131,512 \u2013 307 \u20131,205 I/S Other financial income and expense \u2013437 \u2013 \u2013 \u2013437 I/S Income after financial items 44,228 848 2 45,077 Other segment information Depreciation, amortization and impairment \u201314,914 \u20132,119 \u2013687 \u2013549 2,341 \u201315,928 \u20134,802 \u2013 \u201320,729 Restructuring costs 33 49 \u20136 1 \u2013 77 \u2013 \u2013 77 Gains/losses from divestments \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 Additions to in-/tangible assets 25,577 3,317 979 900 \u20133,808 26,965 9,229 \u2013 36,195 B/S Investments in joint ventures and associated companies 20,599 \u2013 100 46 837 21,583 \u2013 \u2013 21,583 B/S Assets held for sale \u2013 \u2013 \u2013 \u2013 B/S Liabilities held for sale \u2013 \u2013 \u2013 \u2013 6:3 Reporting by geographical region Net sales\u00b9 Non-current assets 2 2023 2022 2023 2022 Europe 236,613 191,165 88,083 83,351 of which Sweden 13,896 12,793 31,941 26,899 of which France 46,061 36,252 14,262 14,435 of which the UK 28,091 23,641 6,485 7,281 North America 164,825 137,154 27,403 27,472 of which USA 137,856 115,499 25,474 25,371 South America 49,165 51,734 3,996 2,780 of which Brazil 35,986 37,196 3,464 2,226 Asia 66,105 64,392 5,474 5,729 of which China 14,487 22,429 1,987 2,381 Africa and Oceania 36,056 29,033 3,054 3,256 I/S B/S Total 552,764 473,479 128,010 122,589 1 The reporting of net sales by geographical region is based on where the delivery of the goods or services took place. 2 Non-current assets include tangible and intangible assets excluding goodwill. ", "dimensions": { "concept": "ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-972": { "value": "ACCOUNTING POLICY Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief oper- ating decision maker, identified as the Group Executive Board, makes strategic decisions and is responsible for allocating resources and assess- ing financial performance of the operating segments. The Volvo Group comprises of ten business areas: Volvo Trucks, Mack Trucks, Renault Trucks, Volvo Autonomous Solutions, Volvo Energy, Volvo Construction Equipment, Volvo Buses, Volvo Penta, Arquus and Volvo Financial Services. Each business area is seen as a separate segment, except for the truck business areas, Volvo Autonomous Solutions and Volvo Energy which are included in the segment Trucks. This segment also comprises the associ- ated companies and joint ventures Dongfeng Commercial Vehicles, VE Commercial Vehicles, cellcentric and Milence. The truck segment has shared operations for product development, purchasing and manufacturing which are highly integrated, and strategic allocation of resources is done to the total segment. The segment Group functions & Other includes Arquus, Nova Bus and common business support functions such as Volvo Group Digital & IT and Volvo Group Real Estate. The costs of these business support functions are shared between the different business areas based on utilization according to principles set by the Volvo Group. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSegmentReportingExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-973": { "value": "7 Revenue ACCOUNTING POLICY The recognized net sales in Industrial Operations pertain to revenues from sales of vehicles and services. Revenue from vehicles and services are recognized when control has been transferred from Volvo Group to the customer. Control refers to the customers\u2019 ability to use vehicles or ser- vices in its operations and to obtain the associated cash flow related to the use. Vehicles and services are sold separately or as a combined offer. In combined offers where the vehicle and services are separable from each other and the customer can benefit from the vehicle and the service independently, the transaction price is allocated between vehicles and services based on stand-alone selling price according to price lists. The recognized net sales in Financial Services pertain to interest income related to finance leases and installment credits as well as income from operating lease contracts. Interest income is recognized during the underlying contract period and income from operating leasing is recog- nized over the leasing period. Vehicles Vehicles include sales of new trucks, buses, machines and engines as well as sales of used trucks, buses, machines, trailers, superstructures and spe- cial vehicles. A contractual warranty is included as part of the sales. The customer can pay for the vehicle at the point of sale or defer the payment by entering into agreements such as installment credits and finance lease. Read more in Note 21 Other provisions, about product warranty. Revenue is recognized at a specific point in time, when control of the vehi- cle has been transferred to the customer, normally when the vehicle has been delivered to the customer. The value of rebates, returns and variable sales price have been considered as part of the revenue recognition. If the sale of the vehicle is combined with a residual value commitment (buybacks and tradebacks) the criterion of transferring control is based on if the customer has a significant economic incentive to exercise the option to return the vehicle or not. A significant economic incentive exists if the repurchase price is higher than the assessed fair market value i.e. net real- izable value at the end of the residual value commitment period, or if the historical returns indicate that it is probable that the customer will return the vehicle at the end of the commitment period. Thus, the control has not been transferred and the sales transaction is recognized as an operating lease transaction. The revenue and expense are recognized over the resid- ual value commitment period in the income statement. Assets under operating leases, a residual value liability, and a deferred lease income are recognized in the balance sheet. The asset is depreciated over the com- mitment period and the deferred lease income is recognized as revenue over the same period. The residual value liability amount remains unchanged until the end of the commitment period. If the vehicle is returned at the end of the commitment period, the residual value liability is paid to the customer and the vehicle is reclassified from assets under operating lease to inventory. Read more in Note 14 Leasing, about lease income on assets under operating lease. Read more in Sustainability notes and section EU Taxonomy regulation disclosures about taxonomy eligible turnover. If the customer is not considered to have a significant economic incentive to return the vehicle, the sales transaction is recognized in accordance with the right of return model. Revenue corresponding to the sales amount less the buyback amount is recognized at the initial sale, as well as a pro- portionate share of cost of goods sold. The remaining revenue is recog- nized as a refund liability and the remaining cost of goods sold as a right of return asset during the commitment period. If the vehicle is not returned the refund liability is recognized as revenue and the right of return asset is recognized as cost of goods sold at the end of the commitment period. Services Services include sale of spare parts, maintenance services, repairs, extended coverage, connectivity solutions and other aftermarket products. The con- trol of the service has been transferred to the customer when the Volvo Group incurs the associated cost to deliver the service and the customer can benefit from the use of the delivered services. For spare parts, revenue is recognized at one point in time, normally when it is delivered to the cus- tomer. For maintenance services, connectivity solutions and other after- market products, revenue is recognized over time, i.e. normally during the contract period. When payment for maintenance contracts is received in advance, the payment is recognized as a contract liability. Services also include sales in Financial Services related to finance lease, installment credits and operating leases. During 2023, revenue from Financial Services amounted to SEK 24,012 M (17,355). Read more in Note 6 Segment reporting regarding net sales by segment and geographical region. Read more in Note 14 Leasing, about lease income on assets under operating lease and finance income on customer-financing receivables . SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Sales with residual value commitments When the Volvo Group enters into sales transactions of vehicles with resid- ual value commitments (buybacks and tradebacks) the judgment whether control has been transferred from the Volvo Group to the customer and at what point in time revenue shall be recognized is critical. The judgment made is when a significant economic incentive exists or not for the cus- tomer to return the vehicle at the end of the commitment period. The assessment of significant economic incentive is performed at the incep- tion of the contract and the outcome at the end of the commitment period can differ from the initial assessment. Factors that are considered and requires judgment is the assessed fair market value i.e. net realizable value at the end of the residual value commitment period and historical returns. The future mix of vehicles and services is driven by customer demand for products and solutions with lower environmental impact. The gradual shift into battery electric and fuel cell electric products, as well as supply chain and production disturbances imply to some extent uncertainties in the assessment of fair market value. Read more in Note 13 Tangible assets, for a description of residual value risks and the assessment of fair market value. Variable sales price In some sales transactions, the sales price is variable. In assessing the variable sales price the expected value method is used and revenue is rec- ognized when it is highly probable that a reversal will not occur. Both the expected value method and the assessment of highly probable requires judgments to be able to make estimates. The estimates are made at the contract start with continuous assessment at each reporting period . 7:1 Disaggregation of revenue Trucks Construction Equipment Buses Volvo Penta Group func tions & Other incl. eliminations Industrial Operations Financial Services Elimina- tions Volvo Group 2023 Net sales per geographical region Europe 175,203 34,228 7,007 10,787 4,955 232,180 8,727 \u20134,294 236,613 North America 107,975 29,590 9,200 4,070 6,280 157,115 7,775 \u201366 164,825 South America 36,897 4,101 2,207 783 \u2013144 43,844 5,374 \u201354 49,165 Asia 30,617 28,150 1,601 3,950 760 65,078 1,027 \u2013 66,105 Africa and Oceania 22,356 8,912 2,408 1,417 \u201340 35,052 1,108 \u2013104 36,056 I/S Net sales 373,048 104,981 22,423 21,006 11,811 533,269 24,012 \u20134,518 552,764 Net sales per product group Vehicles 300,516 89,009 17,007 15,507 7,767 429,805 \u2013 \u20134,505 425,301 Services 72,532 15,973 5,416 5,499 4,044 103,464 24,012 \u201314 127,463 I/S Net sales 373,048 104,981 22,423 21,006 11,811 533,269 24,012 \u20134,518 552,764 Timing of revenue recognition Revenue of vehicles and services recognized at the point of delivery 350,696 101,845 21,503 20,971 7,909 502,924 \u2013 \u20131,116 501,808 Revenue of vehicles and services recognized over contract period 22,352 3,136 920 35 3,902 30,345 24,012 \u20133,402 50,955 I/S Net sales 373,048 104,981 22,423 21,006 11,811 533,269 24,012 \u20134,518 552,764 7:2 Disaggregation of revenue Trucks Construction Equipment Buses Volvo Penta Group func tions & Other incl. eliminations Industrial Operations Financial Services Elimina- tions Volvo Group 2022 Net sales per geographical region Europe 137,177 30,194 6,034 9,417 4,893 187,715 6,705 \u20133,255 191,165 North America 92,582 22,294 6,521 3,695 6,540 131,632 5,752 \u2013229 137,154 South America 38,254 6,491 3,154 635 \u2013133 48,400 3,338 \u20135 51,734 Asia 23,988 34,228 1,372 3,302 714 63,604 788 \u2013 64,392 Africa and Oceania 18,535 7,054 1,502 1,054 207 28,352 772 \u201390 29,033 I/S Net sales 310,536 100,261 18,583 18,102 12,221 459,703 17,355 \u20133,579 473,479 Net sales per product group Vehicles 245,681 85,465 14,185 13,221 8,682 367,234 \u2013 \u20133,575 363,659 Services 64,855 14,796 4,398 4,881 3,539 92,469 17,355 \u20134 109,820 I/S Net sales 310,536 100,261 18,583 18,102 12,221 459,703 17,355 \u20133,579 473,479 Timing of revenue recognition Revenue of vehicles and services recognized at the point of delivery 291,639 97,555 17,826 18,102 9,522 434,644 \u2013 \u2013839 433,805 Revenue of vehicles and services recognized over contract period 18,897 2,706 757 \u2013 2,699 25,059 17,355 \u20132,740 39,674 I/S Net sales 310,536 100,261 18,583 18,102 12,221 459,703 17,355 \u20133,579 473,479 7:3 Contract and right of return assets Dec 31, 2023 Of which due within 12 months Of which due after 12 months Dec 31, 2022 Dec 31, 2021 Contract assets 1 14 \u2013 14 3,800 3,779 Right of return assets 1,535 184 1,351 1,857 1,889 Parts return assets 154 104 49 201 167 Total 1,702 288 1,414 5,858 5,835 1 Current and non-current contract assets of SEK 3,721 M (\u2013) have been reclassified to assets held for sale. Read more in Note 3 Acquisitions and divestment of operations.
Contract assets are recognized within other receivables and include reve-
nue that has been recognized but not yet invoiced for work performed.
Right of return assets and parts return assets represents the product cost for the assets that might be returned to the Volvo Group. 7:4 Contract and refund liabilities Dec 31, 2023 Of which due within 12 months Of which due after 12 months Dec 31, 2022 Dec 31, 2021 Contract liabilities Deferred service revenue 24,916 4,557 20,359 21,939 18,155 Advances from customers 3,623 3,611 12 8,985 7,435 Other deferred income 1,460 1,383 76 2,237 1,928 Accrued expenses for dealer bonuses and rebates 6,952 6,940 12 5,789 5,009 Refund liabilities 2,054 518 1,536 2,483 2,435 Total 39,006 17,010 21,995 41,433 34,962 Contract liabilities are recognized within other liabilities and include advance payments received from customers, e.g. advance payments for service contracts and extended coverage, for which revenue is recognized when the service is provided. Refund liabilities related to the right to return products are included with an amount that is expected to be paid to the customer if the vehicle or spare part is returned. In service contracts, the revenue expected to be recognized over the remaining term of the con- tract for services not yet delivered amounted to SEK 34,262 M (28,187) as of December 31, 2023. Approximately 34% are expected to be recog- nized as revenue during 2024 and the remaining 66% as revenue during 2025\u20132027. The change in contract and refund liabilities are mainly due to decreased advances from customer. During 2023, revenue has been recognized with SEK 26,023 M (19,745) that was included in the contract liabilities at the beginning of the period . ", "dimensions": { "concept": "ifrs-full:DisclosureOfRevenueExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-974": { "value": "7 Revenue ACCOUNTING POLICY The recognized net sales in Industrial Operations pertain to revenues from sales of vehicles and services. Revenue from vehicles and services are recognized when control has been transferred from Volvo Group to the customer. Control refers to the customers\u2019 ability to use vehicles or ser- vices in its operations and to obtain the associated cash flow related to the use. Vehicles and services are sold separately or as a combined offer. In combined offers where the vehicle and services are separable from each other and the customer can benefit from the vehicle and the service independently, the transaction price is allocated between vehicles and services based on stand-alone selling price according to price lists. The recognized net sales in Financial Services pertain to interest income related to finance leases and installment credits as well as income from operating lease contracts. Interest income is recognized during the underlying contract period and income from operating leasing is recog- nized over the leasing period. Vehicles Vehicles include sales of new trucks, buses, machines and engines as well as sales of used trucks, buses, machines, trailers, superstructures and spe- cial vehicles. A contractual warranty is included as part of the sales. The customer can pay for the vehicle at the point of sale or defer the payment by entering into agreements such as installment credits and finance lease. Read more in Note 21 Other provisions, about product warranty. Revenue is recognized at a specific point in time, when control of the vehi- cle has been transferred to the customer, normally when the vehicle has been delivered to the customer. The value of rebates, returns and variable sales price have been considered as part of the revenue recognition. If the sale of the vehicle is combined with a residual value commitment (buybacks and tradebacks) the criterion of transferring control is based on if the customer has a significant economic incentive to exercise the option to return the vehicle or not. A significant economic incentive exists if the repurchase price is higher than the assessed fair market value i.e. net real- izable value at the end of the residual value commitment period, or if the historical returns indicate that it is probable that the customer will return the vehicle at the end of the commitment period. Thus, the control has not been transferred and the sales transaction is recognized as an operating lease transaction. The revenue and expense are recognized over the resid- ual value commitment period in the income statement. Assets under operating leases, a residual value liability, and a deferred lease income are recognized in the balance sheet. The asset is depreciated over the com- mitment period and the deferred lease income is recognized as revenue over the same period. The residual value liability amount remains unchanged until the end of the commitment period. If the vehicle is returned at the end of the commitment period, the residual value liability is paid to the customer and the vehicle is reclassified from assets under operating lease to inventory. Read more in Note 14 Leasing, about lease income on assets under operating lease. Read more in Sustainability notes and section EU Taxonomy regulation disclosures about taxonomy eligible turnover. If the customer is not considered to have a significant economic incentive to return the vehicle, the sales transaction is recognized in accordance with the right of return model. Revenue corresponding to the sales amount less the buyback amount is recognized at the initial sale, as well as a pro- portionate share of cost of goods sold. The remaining revenue is recog- nized as a refund liability and the remaining cost of goods sold as a right of return asset during the commitment period. If the vehicle is not returned the refund liability is recognized as revenue and the right of return asset is recognized as cost of goods sold at the end of the commitment period. Services Services include sale of spare parts, maintenance services, repairs, extended coverage, connectivity solutions and other aftermarket products. The con- trol of the service has been transferred to the customer when the Volvo Group incurs the associated cost to deliver the service and the customer can benefit from the use of the delivered services. For spare parts, revenue is recognized at one point in time, normally when it is delivered to the cus- tomer. For maintenance services, connectivity solutions and other after- market products, revenue is recognized over time, i.e. normally during the contract period. When payment for maintenance contracts is received in advance, the payment is recognized as a contract liability. Services also include sales in Financial Services related to finance lease, installment credits and operating leases. During 2023, revenue from Financial Services amounted to SEK 24,012 M (17,355). Read more in Note 6 Segment reporting regarding net sales by segment and geographical region. Read more in Note 14 Leasing, about lease income on assets under operating lease and finance income on customer-financing receivables . SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Sales with residual value commitments When the Volvo Group enters into sales transactions of vehicles with resid- ual value commitments (buybacks and tradebacks) the judgment whether control has been transferred from the Volvo Group to the customer and at what point in time revenue shall be recognized is critical. The judgment made is when a significant economic incentive exists or not for the cus- tomer to return the vehicle at the end of the commitment period. The assessment of significant economic incentive is performed at the incep- tion of the contract and the outcome at the end of the commitment period can differ from the initial assessment. Factors that are considered and requires judgment is the assessed fair market value i.e. net realizable value at the end of the residual value commitment period and historical returns. The future mix of vehicles and services is driven by customer demand for products and solutions with lower environmental impact. The gradual shift into battery electric and fuel cell electric products, as well as supply chain and production disturbances imply to some extent uncertainties in the assessment of fair market value. Read more in Note 13 Tangible assets, for a description of residual value risks and the assessment of fair market value. Variable sales price In some sales transactions, the sales price is variable. In assessing the variable sales price the expected value method is used and revenue is rec- ognized when it is highly probable that a reversal will not occur. Both the expected value method and the assessment of highly probable requires judgments to be able to make estimates. The estimates are made at the contract start with continuous assessment at each reporting period . 7:1 Disaggregation of revenue Trucks Construction Equipment Buses Volvo Penta Group func tions & Other incl. eliminations Industrial Operations Financial Services Elimina- tions Volvo Group 2023 Net sales per geographical region Europe 175,203 34,228 7,007 10,787 4,955 232,180 8,727 \u20134,294 236,613 North America 107,975 29,590 9,200 4,070 6,280 157,115 7,775 \u201366 164,825 South America 36,897 4,101 2,207 783 \u2013144 43,844 5,374 \u201354 49,165 Asia 30,617 28,150 1,601 3,950 760 65,078 1,027 \u2013 66,105 Africa and Oceania 22,356 8,912 2,408 1,417 \u201340 35,052 1,108 \u2013104 36,056 I/S Net sales 373,048 104,981 22,423 21,006 11,811 533,269 24,012 \u20134,518 552,764 Net sales per product group Vehicles 300,516 89,009 17,007 15,507 7,767 429,805 \u2013 \u20134,505 425,301 Services 72,532 15,973 5,416 5,499 4,044 103,464 24,012 \u201314 127,463 I/S Net sales 373,048 104,981 22,423 21,006 11,811 533,269 24,012 \u20134,518 552,764 Timing of revenue recognition Revenue of vehicles and services recognized at the point of delivery 350,696 101,845 21,503 20,971 7,909 502,924 \u2013 \u20131,116 501,808 Revenue of vehicles and services recognized over contract period 22,352 3,136 920 35 3,902 30,345 24,012 \u20133,402 50,955 I/S Net sales 373,048 104,981 22,423 21,006 11,811 533,269 24,012 \u20134,518 552,764 7:2 Disaggregation of revenue Trucks Construction Equipment Buses Volvo Penta Group func tions & Other incl. eliminations Industrial Operations Financial Services Elimina- tions Volvo Group 2022 Net sales per geographical region Europe 137,177 30,194 6,034 9,417 4,893 187,715 6,705 \u20133,255 191,165 North America 92,582 22,294 6,521 3,695 6,540 131,632 5,752 \u2013229 137,154 South America 38,254 6,491 3,154 635 \u2013133 48,400 3,338 \u20135 51,734 Asia 23,988 34,228 1,372 3,302 714 63,604 788 \u2013 64,392 Africa and Oceania 18,535 7,054 1,502 1,054 207 28,352 772 \u201390 29,033 I/S Net sales 310,536 100,261 18,583 18,102 12,221 459,703 17,355 \u20133,579 473,479 Net sales per product group Vehicles 245,681 85,465 14,185 13,221 8,682 367,234 \u2013 \u20133,575 363,659 Services 64,855 14,796 4,398 4,881 3,539 92,469 17,355 \u20134 109,820 I/S Net sales 310,536 100,261 18,583 18,102 12,221 459,703 17,355 \u20133,579 473,479 Timing of revenue recognition Revenue of vehicles and services recognized at the point of delivery 291,639 97,555 17,826 18,102 9,522 434,644 \u2013 \u2013839 433,805 Revenue of vehicles and services recognized over contract period 18,897 2,706 757 \u2013 2,699 25,059 17,355 \u20132,740 39,674 I/S Net sales 310,536 100,261 18,583 18,102 12,221 459,703 17,355 \u20133,579 473,479 7:3 Contract and right of return assets Dec 31, 2023 Of which due within 12 months Of which due after 12 months Dec 31, 2022 Dec 31, 2021 Contract assets 1 14 \u2013 14 3,800 3,779 Right of return assets 1,535 184 1,351 1,857 1,889 Parts return assets 154 104 49 201 167 Total 1,702 288 1,414 5,858 5,835 1 Current and non-current contract assets of SEK 3,721 M (\u2013) have been reclassified to assets held for sale. Read more in Note 3 Acquisitions and divestment of operations. Contract assets are recognized within other receivables and include reve- nue that has been recognized but not yet invoiced for work performed. Right of return assets and parts return assets represents the product cost for the assets that might be returned to the Volvo Group. 7:4 Contract and refund liabilities Dec 31, 2023 Of which due within 12 months Of which due after 12 months Dec 31, 2022 Dec 31, 2021 Contract liabilities Deferred service revenue 24,916 4,557 20,359 21,939 18,155 Advances from customers 3,623 3,611 12 8,985 7,435 Other deferred income 1,460 1,383 76 2,237 1,928 Accrued expenses for dealer bonuses and rebates 6,952 6,940 12 5,789 5,009 Refund liabilities 2,054 518 1,536 2,483 2,435 Total 39,006 17,010 21,995 41,433 34,962 Contract liabilities are recognized within other liabilities and include advance payments received from customers, e.g. advance payments for service contracts and extended coverage, for which revenue is recognized when the service is provided. Refund liabilities related to the right to return products are included with an amount that is expected to be paid to the customer if the vehicle or spare part is returned. In service contracts, the revenue expected to be recognized over the remaining term of the con- tract for services not yet delivered amounted to SEK 34,262 M (28,187) as of December 31, 2023. Approximately 34% are expected to be recog- nized as revenue during 2024 and the remaining 66% as revenue during 2025\u20132027. The change in contract and refund liabilities are mainly due to decreased advances from customer. During 2023, revenue has been recognized with SEK 26,023 M (19,745) that was included in the contract liabilities at the beginning of the period . ", "dimensions": { "concept": "ifrs-full:DisclosureOfRevenueFromContractsWithCustomersExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-975": { "value": "7 Revenue ACCOUNTING POLICY The recognized net sales in Industrial Operations pertain to revenues from sales of vehicles and services. Revenue from vehicles and services are recognized when control has been transferred from Volvo Group to the customer. Control refers to the customers\u2019 ability to use vehicles or ser- vices in its operations and to obtain the associated cash flow related to the use. Vehicles and services are sold separately or as a combined offer. In combined offers where the vehicle and services are separable from each other and the customer can benefit from the vehicle and the service independently, the transaction price is allocated between vehicles and services based on stand-alone selling price according to price lists. The recognized net sales in Financial Services pertain to interest income related to finance leases and installment credits as well as income from operating lease contracts. Interest income is recognized during the underlying contract period and income from operating leasing is recog- nized over the leasing period. Vehicles Vehicles include sales of new trucks, buses, machines and engines as well as sales of used trucks, buses, machines, trailers, superstructures and spe- cial vehicles. A contractual warranty is included as part of the sales. The customer can pay for the vehicle at the point of sale or defer the payment by entering into agreements such as installment credits and finance lease. Read more in Note 21 Other provisions, about product warranty. Revenue is recognized at a specific point in time, when control of the vehi- cle has been transferred to the customer, normally when the vehicle has been delivered to the customer. The value of rebates, returns and variable sales price have been considered as part of the revenue recognition. If the sale of the vehicle is combined with a residual value commitment (buybacks and tradebacks) the criterion of transferring control is based on if the customer has a significant economic incentive to exercise the option to return the vehicle or not. A significant economic incentive exists if the repurchase price is higher than the assessed fair market value i.e. net real- izable value at the end of the residual value commitment period, or if the historical returns indicate that it is probable that the customer will return the vehicle at the end of the commitment period. Thus, the control has not been transferred and the sales transaction is recognized as an operating lease transaction. The revenue and expense are recognized over the resid- ual value commitment period in the income statement. Assets under operating leases, a residual value liability, and a deferred lease income are recognized in the balance sheet. The asset is depreciated over the com- mitment period and the deferred lease income is recognized as revenue over the same period. The residual value liability amount remains unchanged until the end of the commitment period. If the vehicle is returned at the end of the commitment period, the residual value liability is paid to the customer and the vehicle is reclassified from assets under operating lease to inventory. Read more in Note 14 Leasing, about lease income on assets under operating lease. Read more in Sustainability notes and section EU Taxonomy regulation disclosures about taxonomy eligible turnover. If the customer is not considered to have a significant economic incentive to return the vehicle, the sales transaction is recognized in accordance with the right of return model. Revenue corresponding to the sales amount less the buyback amount is recognized at the initial sale, as well as a pro- portionate share of cost of goods sold. The remaining revenue is recog- nized as a refund liability and the remaining cost of goods sold as a right of return asset during the commitment period. If the vehicle is not returned the refund liability is recognized as revenue and the right of return asset is recognized as cost of goods sold at the end of the commitment period. Services Services include sale of spare parts, maintenance services, repairs, extended coverage, connectivity solutions and other aftermarket products. The con- trol of the service has been transferred to the customer when the Volvo Group incurs the associated cost to deliver the service and the customer can benefit from the use of the delivered services. For spare parts, revenue is recognized at one point in time, normally when it is delivered to the cus- tomer. For maintenance services, connectivity solutions and other after- market products, revenue is recognized over time, i.e. normally during the contract period. When payment for maintenance contracts is received in advance, the payment is recognized as a contract liability. Services also include sales in Financial Services related to finance lease, installment credits and operating leases. During 2023, revenue from Financial Services amounted to SEK 24,012 M (17,355). Read more in Note 6 Segment reporting regarding net sales by segment and geographical region. Read more in Note 14 Leasing, about lease income on assets under operating lease and finance income on customer-financing receivables . SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Sales with residual value commitments When the Volvo Group enters into sales transactions of vehicles with resid- ual value commitments (buybacks and tradebacks) the judgment whether control has been transferred from the Volvo Group to the customer and at what point in time revenue shall be recognized is critical. The judgment made is when a significant economic incentive exists or not for the cus- tomer to return the vehicle at the end of the commitment period. The assessment of significant economic incentive is performed at the incep- tion of the contract and the outcome at the end of the commitment period can differ from the initial assessment. Factors that are considered and requires judgment is the assessed fair market value i.e. net realizable value at the end of the residual value commitment period and historical returns. The future mix of vehicles and services is driven by customer demand for products and solutions with lower environmental impact. The gradual shift into battery electric and fuel cell electric products, as well as supply chain and production disturbances imply to some extent uncertainties in the assessment of fair market value. Read more in Note 13 Tangible assets, for a description of residual value risks and the assessment of fair market value. Variable sales price In some sales transactions, the sales price is variable. In assessing the variable sales price the expected value method is used and revenue is rec- ognized when it is highly probable that a reversal will not occur. Both the expected value method and the assessment of highly probable requires judgments to be able to make estimates. The estimates are made at the contract start with continuous assessment at each reporting period 7:1 Disaggregation of revenue Trucks Construction Equipment Buses Volvo Penta Group func tions & Other incl. eliminations Industrial Operations Financial Services Elimina- tions Volvo Group 2023 Net sales per geographical region Europe 175,203 34,228 7,007 10,787 4,955 232,180 8,727 \u20134,294 236,613 North America 107,975 29,590 9,200 4,070 6,280 157,115 7,775 \u201366 164,825 South America 36,897 4,101 2,207 783 \u2013144 43,844 5,374 \u201354 49,165 Asia 30,617 28,150 1,601 3,950 760 65,078 1,027 \u2013 66,105 Africa and Oceania 22,356 8,912 2,408 1,417 \u201340 35,052 1,108 \u2013104 36,056 I/S Net sales 373,048 104,981 22,423 21,006 11,811 533,269 24,012 \u20134,518 552,764 Net sales per product group Vehicles 300,516 89,009 17,007 15,507 7,767 429,805 \u2013 \u20134,505 425,301 Services 72,532 15,973 5,416 5,499 4,044 103,464 24,012 \u201314 127,463 I/S Net sales 373,048 104,981 22,423 21,006 11,811 533,269 24,012 \u20134,518 552,764 Timing of revenue recognition Revenue of vehicles and services recognized at the point of delivery 350,696 101,845 21,503 20,971 7,909 502,924 \u2013 \u20131,116 501,808 Revenue of vehicles and services recognized over contract period 22,352 3,136 920 35 3,902 30,345 24,012 \u20133,402 50,955 I/S Net sales 373,048 104,981 22,423 21,006 11,811 533,269 24,012 \u20134,518 552,764 7:2 Disaggregation of revenue Trucks Construction Equipment Buses Volvo Penta Group func tions & Other incl. eliminations Industrial Operations Financial Services Elimina- tions Volvo Group 2022 Net sales per geographical region Europe 137,177 30,194 6,034 9,417 4,893 187,715 6,705 \u20133,255 191,165 North America 92,582 22,294 6,521 3,695 6,540 131,632 5,752 \u2013229 137,154 South America 38,254 6,491 3,154 635 \u2013133 48,400 3,338 \u20135 51,734 Asia 23,988 34,228 1,372 3,302 714 63,604 788 \u2013 64,392 Africa and Oceania 18,535 7,054 1,502 1,054 207 28,352 772 \u201390 29,033 I/S Net sales 310,536 100,261 18,583 18,102 12,221 459,703 17,355 \u20133,579 473,479 Net sales per product group Vehicles 245,681 85,465 14,185 13,221 8,682 367,234 \u2013 \u20133,575 363,659 Services 64,855 14,796 4,398 4,881 3,539 92,469 17,355 \u20134 109,820 I/S Net sales 310,536 100,261 18,583 18,102 12,221 459,703 17,355 \u20133,579 473,479 Timing of revenue recognition Revenue of vehicles and services recognized at the point of delivery 291,639 97,555 17,826 18,102 9,522 434,644 \u2013 \u2013839 433,805 Revenue of vehicles and services recognized over contract period 18,897 2,706 757 \u2013 2,699 25,059 17,355 \u20132,740 39,674 I/S Net sales 310,536 100,261 18,583 18,102 12,221 459,703 17,355 \u20133,579 473,479 7:3 Contract and right of return assets Dec 31, 2023 Of which due within 12 months Of which due after 12 months Dec 31, 2022 Dec 31, 2021 Contract assets 1 14 \u2013 14 3,800 3,779 Right of return assets 1,535 184 1,351 1,857 1,889 Parts return assets 154 104 49 201 167 Total 1,702 288 1,414 5,858 5,835 1 Current and non-current contract assets of SEK 3,721 M (\u2013) have been reclassified to assets held for sale. Read more in Note 3 Acquisitions and divestment of operations. Contract assets are recognized within other receivables and include reve- nue that has been recognized but not yet invoiced for work performed. Right of return assets and parts return assets represents the product cost for the assets that might be returned to the Volvo Group. 7:4 Contract and refund liabilities Dec 31, 2023 Of which due within 12 months Of which due after 12 months Dec 31, 2022 Dec 31, 2021 Contract liabilities Deferred service revenue 24,916 4,557 20,359 21,939 18,155 Advances from customers 3,623 3,611 12 8,985 7,435 Other deferred income 1,460 1,383 76 2,237 1,928 Accrued expenses for dealer bonuses and rebates 6,952 6,940 12 5,789 5,009 Refund liabilities 2,054 518 1,536 2,483 2,435 Total 39,006 17,010 21,995 41,433 34,962 Contract liabilities are recognized within other liabilities and include advance payments received from customers, e.g. advance payments for service contracts and extended coverage, for which revenue is recognized when the service is provided. Refund liabilities related to the right to return products are included with an amount that is expected to be paid to the customer if the vehicle or spare part is returned. In service contracts, the revenue expected to be recognized over the remaining term of the con- tract for services not yet delivered amounted to SEK 34,262 M (28,187) as of December 31, 2023. Approximately 34% are expected to be recog- nized as revenue during 2024 and the remaining 66% as revenue during 2025\u20132027. The change in contract and refund liabilities are mainly due to decreased advances from customer. During 2023, revenue has been recognized with SEK 26,023 M (19,745) that was included in the contract liabilities at the beginning of the period ", "dimensions": { "concept": "ifrs-full:DisclosureOfRepurchaseAndReverseRepurchaseAgreementsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-976": { "value": "7 Revenue ACCOUNTING POLICY The recognized net sales in Industrial Operations pertain to revenues from sales of vehicles and services. Revenue from vehicles and services are recognized when control has been transferred from Volvo Group to the customer. Control refers to the customers\u2019 ability to use vehicles or ser- vices in its operations and to obtain the associated cash flow related to the use. Vehicles and services are sold separately or as a combined offer. In combined offers where the vehicle and services are separable from each other and the customer can benefit from the vehicle and the service independently, the transaction price is allocated between vehicles and services based on stand-alone selling price according to price lists. The recognized net sales in Financial Services pertain to interest income related to finance leases and installment credits as well as income from operating lease contracts. Interest income is recognized during the underlying contract period and income from operating leasing is recog- nized over the leasing period. Vehicles Vehicles include sales of new trucks, buses, machines and engines as well as sales of used trucks, buses, machines, trailers, superstructures and spe- cial vehicles. A contractual warranty is included as part of the sales. The customer can pay for the vehicle at the point of sale or defer the payment by entering into agreements such as installment credits and finance lease. Read more in Note 21 Other provisions, about product warranty. Revenue is recognized at a specific point in time, when control of the vehi- cle has been transferred to the customer, normally when the vehicle has been delivered to the customer. The value of rebates, returns and variable sales price have been considered as part of the revenue recognition. If the sale of the vehicle is combined with a residual value commitment (buybacks and tradebacks) the criterion of transferring control is based on if the customer has a significant economic incentive to exercise the option to return the vehicle or not. A significant economic incentive exists if the repurchase price is higher than the assessed fair market value i.e. net real- izable value at the end of the residual value commitment period, or if the historical returns indicate that it is probable that the customer will return the vehicle at the end of the commitment period. Thus, the control has not been transferred and the sales transaction is recognized as an operating lease transaction. The revenue and expense are recognized over the resid- ual value commitment period in the income statement. Assets under operating leases, a residual value liability, and a deferred lease income are recognized in the balance sheet. The asset is depreciated over the com- mitment period and the deferred lease income is recognized as revenue over the same period. The residual value liability amount remains unchanged until the end of the commitment period. If the vehicle is returned at the end of the commitment period, the residual value liability is paid to the customer and the vehicle is reclassified from assets under operating lease to inventory. Read more in Note 14 Leasing, about lease income on assets under operating lease. Read more in Sustainability notes and section EU Taxonomy regulation disclosures about taxonomy eligible turnover. If the customer is not considered to have a significant economic incentive to return the vehicle, the sales transaction is recognized in accordance with the right of return model. Revenue corresponding to the sales amount less the buyback amount is recognized at the initial sale, as well as a pro- portionate share of cost of goods sold. The remaining revenue is recog- nized as a refund liability and the remaining cost of goods sold as a right of return asset during the commitment period. If the vehicle is not returned the refund liability is recognized as revenue and the right of return asset is recognized as cost of goods sold at the end of the commitment period. Services Services include sale of spare parts, maintenance services, repairs, extended coverage, connectivity solutions and other aftermarket products. The con- trol of the service has been transferred to the customer when the Volvo Group incurs the associated cost to deliver the service and the customer can benefit from the use of the delivered services. For spare parts, revenue is recognized at one point in time, normally when it is delivered to the cus- tomer. For maintenance services, connectivity solutions and other after- market products, revenue is recognized over time, i.e. normally during the contract period. When payment for maintenance contracts is received in advance, the payment is recognized as a contract liability. Services also include sales in Financial Services related to finance lease, installment credits and operating leases. During 2023, revenue from Financial Services amounted to SEK 24,012 M (17,355). Read more in Note 6 Segment reporting regarding net sales by segment and geographical region. Read more in Note 14 Leasing, about lease income on assets under operating lease and finance income on customer-financing receivables . SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Sales with residual value commitments When the Volvo Group enters into sales transactions of vehicles with resid- ual value commitments (buybacks and tradebacks) the judgment whether control has been transferred from the Volvo Group to the customer and at what point in time revenue shall be recognized is critical. The judgment made is when a significant economic incentive exists or not for the cus- tomer to return the vehicle at the end of the commitment period. The assessment of significant economic incentive is performed at the incep- tion of the contract and the outcome at the end of the commitment period can differ from the initial assessment. Factors that are considered and requires judgment is the assessed fair market value i.e. net realizable value at the end of the residual value commitment period and historical returns. The future mix of vehicles and services is driven by customer demand for products and solutions with lower environmental impact. The gradual shift into battery electric and fuel cell electric products, as well as supply chain and production disturbances imply to some extent uncertainties in the assessment of fair market value. Read more in Note 13 Tangible assets, for a description of residual value risks and the assessment of fair market value. Variable sales price In some sales transactions, the sales price is variable. In assessing the variable sales price the expected value method is used and revenue is rec- ognized when it is highly probable that a reversal will not occur. Both the expected value method and the assessment of highly probable requires judgments to be able to make estimates. The estimates are made at the contract start with continuous assessment at each reporting period 7:1 Disaggregation of revenue Trucks Construction Equipment Buses Volvo Penta Group func tions & Other incl. eliminations Industrial Operations Financial Services Elimina- tions Volvo Group 2023 Net sales per geographical region Europe 175,203 34,228 7,007 10,787 4,955 232,180 8,727 \u20134,294 236,613 North America 107,975 29,590 9,200 4,070 6,280 157,115 7,775 \u201366 164,825 South America 36,897 4,101 2,207 783 \u2013144 43,844 5,374 \u201354 49,165 Asia 30,617 28,150 1,601 3,950 760 65,078 1,027 \u2013 66,105 Africa and Oceania 22,356 8,912 2,408 1,417 \u201340 35,052 1,108 \u2013104 36,056 I/S Net sales 373,048 104,981 22,423 21,006 11,811 533,269 24,012 \u20134,518 552,764 Net sales per product group Vehicles 300,516 89,009 17,007 15,507 7,767 429,805 \u2013 \u20134,505 425,301 Services 72,532 15,973 5,416 5,499 4,044 103,464 24,012 \u201314 127,463 I/S Net sales 373,048 104,981 22,423 21,006 11,811 533,269 24,012 \u20134,518 552,764 Timing of revenue recognition Revenue of vehicles and services recognized at the point of delivery 350,696 101,845 21,503 20,971 7,909 502,924 \u2013 \u20131,116 501,808 Revenue of vehicles and services recognized over contract period 22,352 3,136 920 35 3,902 30,345 24,012 \u20133,402 50,955 I/S Net sales 373,048 104,981 22,423 21,006 11,811 533,269 24,012 \u20134,518 552,764 7:2 Disaggregation of revenue Trucks Construction Equipment Buses Volvo Penta Group func tions & Other incl. eliminations Industrial Operations Financial Services Elimina- tions Volvo Group 2022 Net sales per geographical region Europe 137,177 30,194 6,034 9,417 4,893 187,715 6,705 \u20133,255 191,165 North America 92,582 22,294 6,521 3,695 6,540 131,632 5,752 \u2013229 137,154 South America 38,254 6,491 3,154 635 \u2013133 48,400 3,338 \u20135 51,734 Asia 23,988 34,228 1,372 3,302 714 63,604 788 \u2013 64,392 Africa and Oceania 18,535 7,054 1,502 1,054 207 28,352 772 \u201390 29,033 I/S Net sales 310,536 100,261 18,583 18,102 12,221 459,703 17,355 \u20133,579 473,479 Net sales per product group Vehicles 245,681 85,465 14,185 13,221 8,682 367,234 \u2013 \u20133,575 363,659 Services 64,855 14,796 4,398 4,881 3,539 92,469 17,355 \u20134 109,820 I/S Net sales 310,536 100,261 18,583 18,102 12,221 459,703 17,355 \u20133,579 473,479 Timing of revenue recognition Revenue of vehicles and services recognized at the point of delivery 291,639 97,555 17,826 18,102 9,522 434,644 \u2013 \u2013839 433,805 Revenue of vehicles and services recognized over contract period 18,897 2,706 757 \u2013 2,699 25,059 17,355 \u20132,740 39,674 I/S Net sales 310,536 100,261 18,583 18,102 12,221 459,703 17,355 \u20133,579 473,479 7:3 Contract and right of return assets Dec 31, 2023 Of which due within 12 months Of which due after 12 months Dec 31, 2022 Dec 31, 2021 Contract assets 1 14 \u2013 14 3,800 3,779 Right of return assets 1,535 184 1,351 1,857 1,889 Parts return assets 154 104 49 201 167 Total 1,702 288 1,414 5,858 5,835 1 Current and non-current contract assets of SEK 3,721 M (\u2013) have been reclassified to assets held for sale. Read more in Note 3 Acquisitions and divestment of operations. Contract assets are recognized within other receivables and include reve- nue that has been recognized but not yet invoiced for work performed. Right of return assets and parts return assets represents the product cost for the assets that might be returned to the Volvo Group. 7:4 Contract and refund liabilities Dec 31, 2023 Of which due within 12 months Of which due after 12 months Dec 31, 2022 Dec 31, 2021 Contract liabilities Deferred service revenue 24,916 4,557 20,359 21,939 18,155 Advances from customers 3,623 3,611 12 8,985 7,435 Other deferred income 1,460 1,383 76 2,237 1,928 Accrued expenses for dealer bonuses and rebates 6,952 6,940 12 5,789 5,009 Refund liabilities 2,054 518 1,536 2,483 2,435 Total 39,006 17,010 21,995 41,433 34,962 Contract liabilities are recognized within other liabilities and include advance payments received from customers, e.g. advance payments for service contracts and extended coverage, for which revenue is recognized when the service is provided. Refund liabilities related to the right to return products are included with an amount that is expected to be paid to the customer if the vehicle or spare part is returned. In service contracts, the revenue expected to be recognized over the remaining term of the con- tract for services not yet delivered amounted to SEK 34,262 M (28,187) as of December 31, 2023. Approximately 34% are expected to be recog- nized as revenue during 2024 and the remaining 66% as revenue during 2025\u20132027. The change in contract and refund liabilities are mainly due to decreased advances from customer. During 2023, revenue has been recognized with SEK 26,023 M (19,745) that was included in the contract liabilities at the beginning of the period
22
Liabilities
ACCOUNTING POLICY
Loans are measured at amortized cost using the effective interest rate
method.
Read more in Note 30 Financial instruments for accounting policies related to
financial instruments.
Read more in Note 14 Leasing, for accounting policies related to lease liabilities .
Bond loans and other loans
The Volvo Group\u2019s non-current and current loans are disclosed in tables
22:1 and 22:2 below, with the issued bond loans listed by currency. Loans
in the Volvo Group\u2019s subsidiaries are mainly denominated in local curren-
cies through Volvo Group Treasury which minimizes the currency exposure
in the individual companies. Volvo Group Treasury uses various derivatives
to facilitate lending and borrowing in different currencies without increas-
ing the risk for the Volvo Group.
22:1
Non-current bond
loans and other loans
Currency
Weighted
average
interest rate
Dec 31,
2023, %
Dec 31,
2023
Dec 31,
2022
Bond loans
EUR 2.65 67,219 78,319
SEK 4.55 21,440 18,054
GBP 5.47 7,614 3,125
USD 2.72 698 730
NOK \u2013 1,691
HKD \u2013 969
B/S
Bond loans
1
96,970 102,887
Other loans
Other loans
1
33,983 26,699
Lease liabilities 5,314 4,806
Revaluation of outstanding
derivatives to SEK
2
2,236 4,179
B/S
Other loans 41,532 35,684
1 Non-current loans of SEK 1,900 M (1,093) were secured by assets pledged.
Read more in Note 23 Assets pledged
2
Read more in Note 30 Financial instruments, table 30:1 regarding
non-current part of outstanding interest and currency risk derivatives.
22:2
Current bond loans
and other loans
Currency
Weighted
average
interest rate
Dec 31,
2023, %
Dec 31,
2023
Dec 31,
2022
Bond loans
EUR 2.61 38,137 21,762
SEK 3.51 6,011 13,890
NOK 6.09 1,568 1,216
HKD 2.31 925 \u2013
JPY \u2013 926
B/S
Bond loans
1
46,641 37,794
Other loans
Other loans
1
48,731 31,084
Lease liabilities 1,877 1,777
Revaluation of outstanding
derivatives to SEK
2
1,040 1,722
B/S
Other loans 51,648 34,583
1 Current loans of SEK 4,694 M (1,994) were secured by assets pledged.
Read more in Note 23 Assets pledged.
2
Read more in Note 30 Financial instruments, table 30:1 regarding
current part of outstanding interest and currency risk derivatives.
.
22:3
Maturity
Year
Bond loans and
other loans
Not utilized
non-current credit
facilities
2025 60,224 7,553
2026 46,043 23,108
2027 18,466 \u2013
2028 6,975 22,108
2029 3,534 \u2013
2030 or later 3,260 \u2013
Total 138,502 52,770
Read more in Note 14 Leasing, table 14:4 for maturities
of non-current lease liabilities.
A total of SEK 142,108 M (133,905) in bond loans and SEK 76,020 M
(51,770) in other loans in tables 22:1 and 22:2 were borrowed to finance
the credit portfolio in Financial services. The interest rate risk in Financial
Services is managed with the objective to achieve a match of interest rate
fixings on borrowing and lending, in order to eliminate interest rate risk.
The average interest rate on Industrial Operations financial liabilities at
year end amounted to 5.7% (5.2), including the Volvo Group\u2019s credit costs.
Read more in Note 4 Goals and policies in financial risk management on how
the funding for Industrial operations and Financial Services respectively is man-
aged and presented in the Volvo Group\u2019s balance sheet.
A hybrid bond amounting to EUR 1.5 billion was issued in the Volvo Group
in 2014. The final tranche of this bond (EUR 0.6 billion) was repaid in March,
2023 without any impact on the net financial position of the Volvo Group.
The predominant part of loans that mature in 2025 is an effect of the
Volvo Group\u2019s normal business cycle, with shorter duration in the Finan-
cial Services portfolio compared to Industrial Operations.
Granted but not utilized credit facilities consist of stand-by facilities for
loans. A fee is charged for granted credit facilities and recognized in the
income statement within other financial income and expenses.
Read more in Note 9 Other financial income and expenses .
Other liabilities
22:4
Non-current other liabilities Dec 31,
2023
Dec 31,
2022
Deferred leasing income
1
6,251 6,928
Residual value liabilities
1
7,408 9,747
Deferred service revenue
1
20,359 17,493
Refund liabilities
1
1,536 1,700
Advances from customers
1, 2
12 3,093
interest and currency risk derivatives
3
2,100 3,011
Other liabilities 3,876 3,577
B/S
Other liabilities 41,542 45,549
1 Read more in Note 7 Revenue regarding contract and refund liabilities, and
sales with residual value commitments.
2 Non-current advances from customers of SEK 2,605 M (
\u2013) have been reclassi-
fied to liabilities held for sale. Read more in Note 3 Acquisitions and divest-
ments of shares and operations.
3
Read more in Note 30 Financial instruments, table 30:1 regarding non-cur-
rent part of interest and currency risk derivatives.
22:5
Current other liabilities Dec 31,
2023
Dec 31,
2022
Trade payables
1
82,987 90,177
Tax liabilities 5,087 6,907
Advances from customers
1, 2
3,611 5,892
Wages, salaries and withholding taxes 16,939 14,805
VAT liabilities 6,167 5,717
Accrued expenses for dealer
bonuses and rebates
2
6,940 5,767
Other accrued expenses 14,917 15,071
Deferred leasing income
2
3,739 3,852
Deferred service revenue
2
4,557 4,446
Other deferred income
2
1,383 1,829
Residual value liabilities
2
4,545 4,559
Refund liabilities
2
519 783
Other financial liabilities 249 330
Interest and currency risk derivatives
3
404 64
Other liabilities 6,248 6,403
Other liabilities 158,292 166,601
1 Trade payables of SEK 1,279 M (\u2013) and current advances from customers of SEK
1,974 M (
\u2013) have been reclassified to liabilities held for sale. Read more in Note
3 Acquisitions and divestments of shares and operations.
2
Read more in Note 7 Revenue, regarding contract and refund liabilities, and
sales with residual value commitments.
3
Read more in Note 30 Financial instruments, table 30:1 regarding current
part of interest and currency risk derivatives.
Non interest-bearing current liabilities, including liabilities held for sale,
amounted to SEK 166,052 M (166,601), or 63% (70) of the Volvo
Group\u2019s total current liabilities .
", "dimensions": { "concept": "ifrs-full:DisclosureOfDeferredIncomeExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-977": { "value": "ACCOUNTING POLICY The recognized net sales in Industrial Operations pertain to revenues from sales of vehicles and services. Revenue from vehicles and services are recognized when control has been transferred from Volvo Group to the customer. Control refers to the customers\u2019 ability to use vehicles or ser- vices in its operations and to obtain the associated cash flow related to the use. Vehicles and services are sold separately or as a combined offer. In combined offers where the vehicle and services are separable from each other and the customer can benefit from the vehicle and the service independently, the transaction price is allocated between vehicles and services based on stand-alone selling price according to price lists. The recognized net sales in Financial Services pertain to interest income related to finance leases and installment credits as well as income from operating lease contracts. Interest income is recognized during the underlying contract period and income from operating leasing is recog- nized over the leasing period. Vehicles Vehicles include sales of new trucks, buses, machines and engines as well as sales of used trucks, buses, machines, trailers, superstructures and spe- cial vehicles. A contractual warranty is included as part of the sales. The customer can pay for the vehicle at the point of sale or defer the payment by entering into agreements such as installment credits and finance lease. Read more in Note 21 Other provisions, about product warranty. Revenue is recognized at a specific point in time, when control of the vehi- cle has been transferred to the customer, normally when the vehicle has been delivered to the customer. The value of rebates, returns and variable sales price have been considered as part of the revenue recognition. If the sale of the vehicle is combined with a residual value commitment (buybacks and tradebacks) the criterion of transferring control is based on if the customer has a significant economic incentive to exercise the option to return the vehicle or not. A significant economic incentive exists if the repurchase price is higher than the assessed fair market value i.e. net real- izable value at the end of the residual value commitment period, or if the historical returns indicate that it is probable that the customer will return the vehicle at the end of the commitment period. Thus, the control has not been transferred and the sales transaction is recognized as an operating lease transaction. The revenue and expense are recognized over the resid- ual value commitment period in the income statement. Assets under operating leases, a residual value liability, and a deferred lease income are recognized in the balance sheet. The asset is depreciated over the com- mitment period and the deferred lease income is recognized as revenue over the same period. The residual value liability amount remains unchanged until the end of the commitment period. If the vehicle is returned at the end of the commitment period, the residual value liability is paid to the customer and the vehicle is reclassified from assets under operating lease to inventory. Read more in Note 14 Leasing, about lease income on assets under operating lease. Read more in Sustainability notes and section EU Taxonomy regulation disclosures about taxonomy eligible turnover. If the customer is not considered to have a significant economic incentive to return the vehicle, the sales transaction is recognized in accordance with the right of return model. Revenue corresponding to the sales amount less the buyback amount is recognized at the initial sale, as well as a pro- portionate share of cost of goods sold. The remaining revenue is recog- nized as a refund liability and the remaining cost of goods sold as a right of return asset during the commitment period. If the vehicle is not returned the refund liability is recognized as revenue and the right of return asset is recognized as cost of goods sold at the end of the commitment period. Services Services include sale of spare parts, maintenance services, repairs, extended coverage, connectivity solutions and other aftermarket products. The con- trol of the service has been transferred to the customer when the Volvo Group incurs the associated cost to deliver the service and the customer can benefit from the use of the delivered services. For spare parts, revenue is recognized at one point in time, normally when it is delivered to the cus- tomer. For maintenance services, connectivity solutions and other after- market products, revenue is recognized over time, i.e. normally during the contract period. When payment for maintenance contracts is received in advance, the payment is recognized as a contract liability. Services also include sales in Financial Services related to finance lease, installment credits and operating leases. During 2023, revenue from Financial Services amounted to SEK 24,012 M (17,355). Read more in Note 6 Segment reporting regarding net sales by segment and geographical region. Read more in Note 14 Leasing, about lease income on assets under operating lease and finance income on customer-financing receivables . ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRepurchaseAndReverseRepurchaseAgreementsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-978": { "value": "ACCOUNTING POLICY The recognized net sales in Industrial Operations pertain to revenues from sales of vehicles and services. Revenue from vehicles and services are recognized when control has been transferred from Volvo Group to the customer. Control refers to the customers\u2019 ability to use vehicles or ser- vices in its operations and to obtain the associated cash flow related to the use. Vehicles and services are sold separately or as a combined offer. In combined offers where the vehicle and services are separable from each other and the customer can benefit from the vehicle and the service independently, the transaction price is allocated between vehicles and services based on stand-alone selling price according to price lists. The recognized net sales in Financial Services pertain to interest income related to finance leases and installment credits as well as income from operating lease contracts. Interest income is recognized during the underlying contract period and income from operating leasing is recog- nized over the leasing period. Vehicles Vehicles include sales of new trucks, buses, machines and engines as well as sales of used trucks, buses, machines, trailers, superstructures and spe- cial vehicles. A contractual warranty is included as part of the sales. The customer can pay for the vehicle at the point of sale or defer the payment by entering into agreements such as installment credits and finance lease. Read more in Note 21 Other provisions, about product warranty. Revenue is recognized at a specific point in time, when control of the vehi- cle has been transferred to the customer, normally when the vehicle has been delivered to the customer. The value of rebates, returns and variable sales price have been considered as part of the revenue recognition. If the sale of the vehicle is combined with a residual value commitment (buybacks and tradebacks) the criterion of transferring control is based on if the customer has a significant economic incentive to exercise the option to return the vehicle or not. A significant economic incentive exists if the repurchase price is higher than the assessed fair market value i.e. net real- izable value at the end of the residual value commitment period, or if the historical returns indicate that it is probable that the customer will return the vehicle at the end of the commitment period. Thus, the control has not been transferred and the sales transaction is recognized as an operating lease transaction. The revenue and expense are recognized over the resid- ual value commitment period in the income statement. Assets under operating leases, a residual value liability, and a deferred lease income are recognized in the balance sheet. The asset is depreciated over the com- mitment period and the deferred lease income is recognized as revenue over the same period. The residual value liability amount remains unchanged until the end of the commitment period. If the vehicle is returned at the end of the commitment period, the residual value liability is paid to the customer and the vehicle is reclassified from assets under operating lease to inventory. Read more in Note 14 Leasing, about lease income on assets under operating lease. Read more in Sustainability notes and section EU Taxonomy regulation disclosures about taxonomy eligible turnover. If the customer is not considered to have a significant economic incentive to return the vehicle, the sales transaction is recognized in accordance with the right of return model. Revenue corresponding to the sales amount less the buyback amount is recognized at the initial sale, as well as a pro- portionate share of cost of goods sold. The remaining revenue is recog- nized as a refund liability and the remaining cost of goods sold as a right of return asset during the commitment period. If the vehicle is not returned the refund liability is recognized as revenue and the right of return asset is recognized as cost of goods sold at the end of the commitment period. Services Services include sale of spare parts, maintenance services, repairs, extended coverage, connectivity solutions and other aftermarket products. The con- trol of the service has been transferred to the customer when the Volvo Group incurs the associated cost to deliver the service and the customer can benefit from the use of the delivered services. For spare parts, revenue is recognized at one point in time, normally when it is delivered to the cus- tomer. For maintenance services, connectivity solutions and other after- market products, revenue is recognized over time, i.e. normally during the contract period. When payment for maintenance contracts is received in advance, the payment is recognized as a contract liability. Services also include sales in Financial Services related to finance lease, installment credits and operating leases. During 2023, revenue from Financial Services amounted to SEK 24,012 M (17,355). Read more in Note 6 Segment reporting regarding net sales by segment and geographical region. Read more in Note 14 Leasing, about lease income on assets under operating lease and finance income on customer-financing receivables . ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-979": { "value": "ACCOUNTING POLICY The recognized net sales in Industrial Operations pertain to revenues from sales of vehicles and services. Revenue from vehicles and services are recognized when control has been transferred from Volvo Group to the customer. Control refers to the customers\u2019 ability to use vehicles or ser- vices in its operations and to obtain the associated cash flow related to the use. Vehicles and services are sold separately or as a combined offer. In combined offers where the vehicle and services are separable from each other and the customer can benefit from the vehicle and the service independently, the transaction price is allocated between vehicles and services based on stand-alone selling price according to price lists. The recognized net sales in Financial Services pertain to interest income related to finance leases and installment credits as well as income from operating lease contracts. Interest income is recognized during the underlying contract period and income from operating leasing is recog- nized over the leasing period. Vehicles Vehicles include sales of new trucks, buses, machines and engines as well as sales of used trucks, buses, machines, trailers, superstructures and spe- cial vehicles. A contractual warranty is included as part of the sales. The customer can pay for the vehicle at the point of sale or defer the payment by entering into agreements such as installment credits and finance lease. Read more in Note 21 Other provisions, about product warranty. Revenue is recognized at a specific point in time, when control of the vehi- cle has been transferred to the customer, normally when the vehicle has been delivered to the customer. The value of rebates, returns and variable sales price have been considered as part of the revenue recognition. If the sale of the vehicle is combined with a residual value commitment (buybacks and tradebacks) the criterion of transferring control is based on if the customer has a significant economic incentive to exercise the option to return the vehicle or not. A significant economic incentive exists if the repurchase price is higher than the assessed fair market value i.e. net real- izable value at the end of the residual value commitment period, or if the historical returns indicate that it is probable that the customer will return the vehicle at the end of the commitment period. Thus, the control has not been transferred and the sales transaction is recognized as an operating lease transaction. The revenue and expense are recognized over the resid- ual value commitment period in the income statement. Assets under operating leases, a residual value liability, and a deferred lease income are recognized in the balance sheet. The asset is depreciated over the com- mitment period and the deferred lease income is recognized as revenue over the same period. The residual value liability amount remains unchanged until the end of the commitment period. If the vehicle is returned at the end of the commitment period, the residual value liability is paid to the customer and the vehicle is reclassified from assets under operating lease to inventory. Read more in Note 14 Leasing, about lease income on assets under operating lease. Read more in Sustainability notes and section EU Taxonomy regulation disclosures about taxonomy eligible turnover. If the customer is not considered to have a significant economic incentive to return the vehicle, the sales transaction is recognized in accordance with the right of return model. Revenue corresponding to the sales amount less the buyback amount is recognized at the initial sale, as well as a pro- portionate share of cost of goods sold. The remaining revenue is recog- nized as a refund liability and the remaining cost of goods sold as a right of return asset during the commitment period. If the vehicle is not returned the refund liability is recognized as revenue and the right of return asset is recognized as cost of goods sold at the end of the commitment period. Services Services include sale of spare parts, maintenance services, repairs, extended coverage, connectivity solutions and other aftermarket products. The con- trol of the service has been transferred to the customer when the Volvo Group incurs the associated cost to deliver the service and the customer can benefit from the use of the delivered services. For spare parts, revenue is recognized at one point in time, normally when it is delivered to the cus- tomer. For maintenance services, connectivity solutions and other after- market products, revenue is recognized over time, i.e. normally during the contract period. When payment for maintenance contracts is received in advance, the payment is recognized as a contract liability. Services also include sales in Financial Services related to finance lease, installment credits and operating leases. During 2023, revenue from Financial Services amounted to SEK 24,012 M (17,355). Read more in Note 6 Segment reporting regarding net sales by segment and geographical region. Read more in Note 14 Leasing, about lease income on assets under operating lease and finance income on customer-financing receivables ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDiscountsAndRebatesExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-982": { "value": "
8
Other operating income and expenses
8:1
Other operating income and expenses 2023 2022
Gains/losses on divestment
of group companies
1
\u20132,199 \u2013
Change in allowances and write-offs for
doubtful customer-financing receivables
2
\u2013795 \u20133,412
Change in allowances and write-offs for
other doubtful receivables
3
\u2013671 \u2013842
Damages and litigations
4
\u20137,139 \u20132,733
Other income and expenses
5
\u20131,477 \u2013387
I/S
Total \u201312,280 \u20137,374
1 In 2023, the Volvo Group divested its Russian entities. The divestment resulted
in a negative impact on operating income of SEK 794 M. The planned divest-
ments of the ABG paver business and Arquus had a negative impact on operating
income of SEK 1,490 M.
Read more in Note 3 Acquisitions and divestments of operations.
2 In 2022, a provision regarding assets related to Russia was included.
Read more in Note 15 Customer-financing receivables.
3 Read more in Note 16 Receivables.
4 For 2023, costs of SEK 6,000 M are included for claims arising from the Euro-
pean Commission\u2019s 2016 antitrust settlement decision. For 2022, costs for a civil
penalty from the National Highway Traffic Safety Administration in the US was
included.
Read more in Note 21 Other provisions.
5 Includes restructuring charges of SEK 1,300 M in Buses and SEK 1,270 M in
Group Functions & Other, which negatively impacted Volvo Group\u2019s operating
income during 2023.
Read more in Note 21 Other provisions .
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingExpenseExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-983": { "value": "8 Other operating income and expenses 8:1 Other operating income and expenses 2023 2022 Gains/losses on divestment of group companies 1 \u20132,199 \u2013 Change in allowances and write-offs for doubtful customer-financing receivables 2 \u2013795 \u20133,412 Change in allowances and write-offs for other doubtful receivables 3 \u2013671 \u2013842 Damages and litigations 4 \u20137,139 \u20132,733 Other income and expenses 5 \u20131,477 \u2013387 I/S Total \u201312,280 \u20137,374 1 In 2023, the Volvo Group divested its Russian entities. The divestment resulted in a negative impact on operating income of SEK 794 M. The planned divest- ments of the ABG paver business and Arquus had a negative impact on operating income of SEK 1,490 M. Read more in Note 3 Acquisitions and divestments of operations. 2 In 2022, a provision regarding assets related to Russia was included. Read more in Note 15 Customer-financing receivables. 3 Read more in Note 16 Receivables. 4 For 2023, costs of SEK 6,000 M are included for claims arising from the Euro- pean Commission\u2019s 2016 antitrust settlement decision. For 2022, costs for a civil penalty from the National Highway Traffic Safety Administration in the US was included. Read more in Note 21 Other provisions. 5 Includes restructuring charges of SEK 1,300 M in Buses and SEK 1,270 M in Group Functions & Other, which negatively impacted Volvo Group\u2019s operating income during 2023. Read more in Note 21 Other provisions . ", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExpenseExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-984": { "value": "8 Other operating income and expenses 8:1 Other operating income and expenses 2023 2022 Gains/losses on divestment of group companies 1 \u20132,199 \u2013 Change in allowances and write-offs for doubtful customer-financing receivables 2 \u2013795 \u20133,412 Change in allowances and write-offs for other doubtful receivables 3 \u2013671 \u2013842 Damages and litigations 4 \u20137,139 \u20132,733 Other income and expenses 5 \u20131,477 \u2013387 I/S Total \u201312,280 \u20137,374 1 In 2023, the Volvo Group divested its Russian entities. The divestment resulted in a negative impact on operating income of SEK 794 M. The planned divest- ments of the ABG paver business and Arquus had a negative impact on operating income of SEK 1,490 M. Read more in Note 3 Acquisitions and divestments of operations. 2 In 2022, a provision regarding assets related to Russia was included. Read more in Note 15 Customer-financing receivables. 3 Read more in Note 16 Receivables. 4 For 2023, costs of SEK 6,000 M are included for claims arising from the Euro- pean Commission\u2019s 2016 antitrust settlement decision. For 2022, costs for a civil penalty from the National Highway Traffic Safety Administration in the US was included. Read more in Note 21 Other provisions. 5 Includes restructuring charges of SEK 1,300 M in Buses and SEK 1,270 M in Group Functions & Other, which negatively impacted Volvo Group\u2019s operating income during 2023. Read more in Note 21 Other provisions 9 Other financial income and expenses ACCOUNTING POLICY In other financial income and expenses unrealized revaluation on deriva- tives used to hedge interest rate exposure as well as realized result and unrealized revaluation on derivatives used to hedge future cash flow expo- sure in foreign currency are recognized. The derivatives are recognized at fair value through the income statement and no hedge accounting is applied. The unrealized revaluation on derivatives used to hedge interest rate exposure is mainly related to the debt portfolio within Industrial Operations and customer-financing portfolio within Financial Services where fluctuating interest rate levels has a major impact. Read more in Note 1 Accounting policies about receivables and liabilities in foreign currency. Read more in Note 30 Financial instruments regarding the accounting policy and effects on net income and cash flow for financial assets at fair value through the income statement . 9:1 Other financial income and expenses 2023 2022 Unrealized revaluation of derivatives used to hedge interest rate exposure \u2013736 18 Realized result and unrealized revalua- tion on derivatives used to hedge future cash flow exposure in foreign currency 105 1 Financial instruments at fair value through income statement -631 19 Exchange rate gains and losses on financial assets and liabilities \u2013956 \u2013332 Financial income and expenses related to taxes 27 107 Costs for Treasury function, credit facilities, etc. \u201320 \u2013231 I/S Total 1 \u20131,581 \u2013437 1 Other financial income and expenses attributable to financial instruments amounted to SEK \u20131,587 M (\u2013313). The amount is specified in note 30 Financial instruments in table 30:3 . ", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-985": { "value": "8 Other operating income and expenses 8:1 Other operating income and expenses 2023 2022 Gains/losses on divestment of group companies 1 \u20132,199 \u2013 Change in allowances and write-offs for doubtful customer-financing receivables 2 \u2013795 \u20133,412 Change in allowances and write-offs for other doubtful receivables 3 \u2013671 \u2013842 Damages and litigations 4 \u20137,139 \u20132,733 Other income and expenses 5 \u20131,477 \u2013387 I/S Total \u201312,280 \u20137,374 1 In 2023, the Volvo Group divested its Russian entities. The divestment resulted in a negative impact on operating income of SEK 794 M. The planned divest- ments of the ABG paver business and Arquus had a negative impact on operating income of SEK 1,490 M. Read more in Note 3 Acquisitions and divestments of operations. 2 In 2022, a provision regarding assets related to Russia was included. Read more in Note 15 Customer-financing receivables. 3 Read more in Note 16 Receivables. 4 For 2023, costs of SEK 6,000 M are included for claims arising from the Euro- pean Commission\u2019s 2016 antitrust settlement decision. For 2022, costs for a civil penalty from the National Highway Traffic Safety Administration in the US was included. Read more in Note 21 Other provisions. 5 Includes restructuring charges of SEK 1,300 M in Buses and SEK 1,270 M in Group Functions & Other, which negatively impacted Volvo Group\u2019s operating income during 2023. Read more in Note 21 Other provisions ", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-986": { "value": "9 Other financial income and expenses ACCOUNTING POLICY In other financial income and expenses unrealized revaluation on deriva- tives used to hedge interest rate exposure as well as realized result and unrealized revaluation on derivatives used to hedge future cash flow expo- sure in foreign currency are recognized. The derivatives are recognized at fair value through the income statement and no hedge accounting is applied. The unrealized revaluation on derivatives used to hedge interest rate exposure is mainly related to the debt portfolio within Industrial Operations and customer-financing portfolio within Financial Services where fluctuating interest rate levels has a major impact. Read more in Note 1 Accounting policies about receivables and liabilities in foreign currency. Read more in Note 30 Financial instruments regarding the accounting policy and effects on net income and cash flow for financial assets at fair value through the income statement . 9:1 Other financial income and expenses 2023 2022 Unrealized revaluation of derivatives used to hedge interest rate exposure \u2013736 18 Realized result and unrealized revalua- tion on derivatives used to hedge future cash flow exposure in foreign currency 105 1 Financial instruments at fair value through income statement -631 19 Exchange rate gains and losses on financial assets and liabilities \u2013956 \u2013332 Financial income and expenses related to taxes 27 107 Costs for Treasury function, credit facilities, etc. \u201320 \u2013231 I/S Total 1 \u20131,581 \u2013437 1 Other financial income and expenses attributable to financial instruments amounted to SEK \u20131,587 M (\u2013313). The amount is specified in note 30 Financial instruments in table 30:3 . ", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExpenseExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-987": { "value": "9 Other financial income and expenses ACCOUNTING POLICY In other financial income and expenses unrealized revaluation on deriva- tives used to hedge interest rate exposure as well as realized result and unrealized revaluation on derivatives used to hedge future cash flow expo- sure in foreign currency are recognized. The derivatives are recognized at fair value through the income statement and no hedge accounting is applied. The unrealized revaluation on derivatives used to hedge interest rate exposure is mainly related to the debt portfolio within Industrial Operations and customer-financing portfolio within Financial Services where fluctuating interest rate levels has a major impact. Read more in Note 1 Accounting policies about receivables and liabilities in foreign currency. Read more in Note 30 Financial instruments regarding the accounting policy and effects on net income and cash flow for financial assets at fair value through the income statement . 9:1 Other financial income and expenses 2023 2022 Unrealized revaluation of derivatives used to hedge interest rate exposure \u2013736 18 Realized result and unrealized revalua- tion on derivatives used to hedge future cash flow exposure in foreign currency 105 1 Financial instruments at fair value through income statement -631 19 Exchange rate gains and losses on financial assets and liabilities \u2013956 \u2013332 Financial income and expenses related to taxes 27 107 Costs for Treasury function, credit facilities, etc. \u201320 \u2013231 I/S Total 1 \u20131,581 \u2013437 1 Other financial income and expenses attributable to financial instruments amounted to SEK \u20131,587 M (\u2013313). The amount is specified in note 30 Financial instruments in table 30:3 ", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-988": { "value": "9 Other financial income and expenses ACCOUNTING POLICY In other financial income and expenses unrealized revaluation on deriva- tives used to hedge interest rate exposure as well as realized result and unrealized revaluation on derivatives used to hedge future cash flow expo- sure in foreign currency are recognized. The derivatives are recognized at fair value through the income statement and no hedge accounting is applied. The unrealized revaluation on derivatives used to hedge interest rate exposure is mainly related to the debt portfolio within Industrial Operations and customer-financing portfolio within Financial Services where fluctuating interest rate levels has a major impact. Read more in Note 1 Accounting policies about receivables and liabilities in foreign currency. Read more in Note 30 Financial instruments regarding the accounting policy and effects on net income and cash flow for financial assets at fair value through the income statement . 9:1 Other financial income and expenses 2023 2022 Unrealized revaluation of derivatives used to hedge interest rate exposure \u2013736 18 Realized result and unrealized revalua- tion on derivatives used to hedge future cash flow exposure in foreign currency 105 1 Financial instruments at fair value through income statement -631 19 Exchange rate gains and losses on financial assets and liabilities \u2013956 \u2013332 Financial income and expenses related to taxes 27 107 Costs for Treasury function, credit facilities, etc. \u201320 \u2013231 I/S Total 1 \u20131,581 \u2013437 1 Other financial income and expenses attributable to financial instruments amounted to SEK \u20131,587 M (\u2013313). The amount is specified in note 30 Financial instruments in table 30:3 ", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceCostExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-989": { "value": "ACCOUNTING POLICY In other financial income and expenses unrealized revaluation on deriva- tives used to hedge interest rate exposure as well as realized result and unrealized revaluation on derivatives used to hedge future cash flow expo- sure in foreign currency are recognized. The derivatives are recognized at fair value through the income statement and no hedge accounting is applied. The unrealized revaluation on derivatives used to hedge interest rate exposure is mainly related to the debt portfolio within Industrial Operations and customer-financing portfolio within Financial Services where fluctuating interest rate levels has a major impact. Read more in Note 1 Accounting policies about receivables and liabilities in foreign currency. Read more in Note 30 Financial instruments regarding the accounting policy and effects on net income and cash flow for financial assets at fair value through the income statement ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceIncomeAndCostsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-990": { "value": "ACCOUNTING POLICY In other financial income and expenses unrealized revaluation on deriva- tives used to hedge interest rate exposure as well as realized result and unrealized revaluation on derivatives used to hedge future cash flow expo- sure in foreign currency are recognized. The derivatives are recognized at fair value through the income statement and no hedge accounting is applied. The unrealized revaluation on derivatives used to hedge interest rate exposure is mainly related to the debt portfolio within Industrial Operations and customer-financing portfolio within Financial Services where fluctuating interest rate levels has a major impact. Read more in Note 1 Accounting policies about receivables and liabilities in foreign currency. Read more in Note 30 Financial instruments regarding the accounting policy and effects on net income and cash flow for financial assets at fair value through the income statement ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceCostsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-991": { "value": "10 Income taxes ACCOUNTING POLICY Income tax for the period includes current and deferred taxes. Current taxes are calculated on the basis of the tax regulations prevailing in the countries where the group companies have operations. Deferred taxes are recognized on differences that arise between the tax- able value and carrying value of assets and liabilities as well as on tax-loss carryforwards. Deferred tax assets are recognized to the extent it is prob- able that they will be utilized against future taxable profits. Deferred tax liabilities related to temporary differences on investments in subsidiaries, joint ventures and associated companies are recognized in the balance sheet except when the Volvo Group controls the timing of the reversal of the temporary difference related to accumulated undistributed earnings and it is probable that a reversal will not be done in the foresee- able future. Tax laws in Sweden and certain other countries allow companies to defer payment of taxes through allocations to untaxed reserves. In the Volvo Group financial statements, untaxed reserves give rise to temporary differ- ences which are recognized as deferred tax liabilities. Tax liabilities are recognized for income tax charges that are probable as a result of identified tax risks. Hence, when it is probable that the taxation authority or court will not accept an uncertain income tax treatment under tax law, adjustments of the tax liability are made for the estimated out- come. Tax claims for which no adjustment of the tax liability is considered required are generally reported as contingent liabilities. Read more in Note 24 Contingent liabilities and financial commitments . SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Deferred taxes The Volvo Group recognizes deferred tax assets related to tax-loss carry- forwards. The deferred tax assets are recognized based on a thorough assessment in order to ensure that it is probable that sufficient taxable profits will be generated in the coming years that will enable the tax-loss carryforwards to be utilized. The assessment is based on an evaluation of business plans. In addition, the possibility to offset tax assets and tax lia bil- ities and the fact that the major part of the tax-loss carryforwards is related to countries with long or indefinite periods of utilization is considered. If deferred tax assets related to tax-loss carryforwards are not expected to be realized based on current business plans, valuation allowances are recognized. If actual results differ from the business plans, or if business plans for future periods are adjusted, changes in the valuation allowance may be required. Such recognitions and adjustments could have an impact on the financial position and the income for the period. Uncertainty over income tax treatments and claims The Volvo Group regularly evaluates income tax positions to determine if a tax liability or a contingent liability shall be recognized. The judgment is based on several factors, such as changes in facts and circumstances, the progress of the case and experience in similar cases. The actual outcome of income tax positions may deviate from the expected outcome and materi- ally affect future financial statements . The Volvo Group is within the scope of the OECD Pillar Two model rules, an international tax reform which aims to ensure that large multinational groups pay a minimum tax on income arising in each jurisdiction in which they operate. Thus, Volvo Group becomes liable to pay top-up taxes on profits in each jurisdiction where the effective tax rate calculated accord- ing to the GloBE rules is below the minimum tax rate of 15%. Pillar Two legislation has been enacted in Sweden and will start to apply as from financial year 2024. Since the legislation was not applicable on financial year 2023 there is no related current tax exposure. The Volvo Group applies the exception to recognizing and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes, pro- vided in the amendments to IAS 12. Potential exposure arising from the new legislation is not expected to have any material impact on the Volvo Group\u2019s tax expense. 10:1 Distribution of income taxes 2023 2022 Current taxes relating to the period \u201319,294 \u201315,081 Adjustment of current taxes for prior periods 238 12 Deferred taxes originated or reversed during the period 2,209 2,712 Remeasurements of deferred tax assets 53 249 I/S Total income taxes \u201316,794 \u201312,108 The Swedish corporate income tax rate amounted to 20.6% (20.6) in 2023. Table 10:2 explains the major reasons for the difference between the Swedish corporate income tax rate and the Volvo Group\u2019s effective tax rate, based on income after financial items. 10:2 Reconciliation of effective tax rate % 2023 2022 Swedish corporate income tax rate 20.6 20.6 Difference between corporate tax rate in Sweden and other countries 2.9 4.1 Non-taxable income \u20131.6 \u20131.4 Non-deductible expenses 2.3 3.5 Current taxes related to prior years \u20130.4 \u20130.1 Remeasurement of deferred taxes 0.6 \u20130.8 Other differences 0.7 0.9 Effective tax rate for the Volvo Group 25.2 26.8 The effective tax rate for the Volvo Group, as of December 31, 2023, was mainly impacted by the country mix in the Volvo Group's earnings. 10:3 Specification of deferred tax assets and liabilities Dec 31, 2023 Dec 31, 2022 Deferred tax assets: Unused tax-loss carryforwards 1,676 1,208 Other unused tax credits 705 633 Intercompany profit in inventories 1,986 1,473 Write down of inventories 590 574 Valuation allowance for doubtful receivables 1,512 1,618 Provisions for warranties 4,177 3,941 Provisions for residual value risks 512 428 Lease liabilities 1,336 1,300 Provisions for post- employment benefits 3,109 2,415 Provisions for restructuring measures 300 29 Other deductible temporary differences 9,221 8,915 Deferred tax assets before deduction for valuation allowance 25,125 22,533 Valuation allowance \u20131,199 \u2013692 Deferred tax assets after deduction for valuation allowance 23,926 21,841 Netting of deferred tax assets and liabilities \u20137,740 \u20137,652 B/S Deferred tax assets, net 16,186 14,189 Deferred tax liabilities: Accelerated depreciation on property, plant and equipment 2,042 2,148 Accelerated depreciation on leasing assets 2,359 2,362 Right-of-use assets, leased 1,280 1,243 LIFO valuation of inventories 587 552 Capitalized product and software development 2,892 2,557 Untaxed reserves 929 1,693 Other taxable temporary differences 2,377 2,581 Deferred tax liabilities 12,465 13,137 Netting of deferred tax assets and liabilities \u20137,740 \u20137,664 B/S Deferred tax liabilities, net 4,725 5,472 Deferred tax assets and liabilities, net 1 11,461 8,717 1 The deferred tax assets and liabilities are recognized in the balance sheet partially on a net basis, after taking into account offsetting possibilities. Deferred tax assets and liabilities have been measured at the tax rates that are expected to be applied during the period when the asset is realized or the liability is settled, according to the tax rates and tax regulations that have been resolved or enacted at the balance sheet date. The total valuation allowance for deferred tax assets amounted to SEK 1,199 M (692) as of December 31, 2023, whereof SEK 643 M (559) con- sisted of an allowance for a tax credit in Brazil. As of December 31, 2023, the Volvo Group\u2019s gross unused tax-loss carry forwards amounted to SEK 6,398 M (4,638) pertaining to deferred tax assets of SEK 1,676 M (1,208) recognized in the balance sheet. Out of the total deferred tax assets attributable to unused tax-loss carryforwards, SEK 466 M (505) pertained to France and SEK 711 M (338) to Canada. The gross unused tax-loss carryforwards will expire according to table 10:4. 10:4 Due date, unused tax-loss carryforwards, gross Dec 31, 2023 Dec 31, 2022 after 1 year 24 \u2013 after 2 years 52 \u2013 after 3 years \u2013 30 after 4 years 207 14 after 5 years 521 297 after 6 years or more 1 5,594 4,297 Total 6,398 4,638 1 Tax-loss carryforwards with long or indefinite periods of utilization were mainly related to France and Canada. Tax-loss carryforwards with indefinite periods of utilization amounted to SEK 2,740 M (2,904) which corresponded to 43% (63) of the total unused tax-losses carryforward. 10:5 Changes in deferred tax assets and liabilities, net 2023 2022 Deferred tax assets and liabilities, net, opening balance 8,717 6,021 Recognized in income statement 2,262 2,961 Recognized in other comprehensive income: Remeasurements of defined- benefit pension plans 657 \u20131,109 Exchange rate changes \u2013351 1,224 Reclassification to assets and liabilities held for sale 74 \u2013 Reclassifications 103 \u2013380 Deferred tax assets and liabilities, net, December 31 11,461 8,717 The cumulative amount of undistributed earnings in foreign subsidiaries, which the Volvo Group currently intends to indefinitely reinvest outside of Sweden and which no deferred income tax have been accounted for, amounted to SEK 19 billion (28) at year end. Undistributed earnings pertaining to countries where the dividends are not taxable are excluded. Read more in Note 4 Goals and policies in financial risk management, how the Volvo Group handles currency exposure of equity. ", "dimensions": { "concept": "ifrs-full:DisclosureOfIncomeTaxExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-992": { "value": "10 Income taxes ACCOUNTING POLICY Income tax for the period includes current and deferred taxes. Current taxes are calculated on the basis of the tax regulations prevailing in the countries where the group companies have operations. Deferred taxes are recognized on differences that arise between the tax- able value and carrying value of assets and liabilities as well as on tax-loss carryforwards. Deferred tax assets are recognized to the extent it is prob- able that they will be utilized against future taxable profits. Deferred tax liabilities related to temporary differences on investments in subsidiaries, joint ventures and associated companies are recognized in the balance sheet except when the Volvo Group controls the timing of the reversal of the temporary difference related to accumulated undistributed earnings and it is probable that a reversal will not be done in the foresee- able future. Tax laws in Sweden and certain other countries allow companies to defer payment of taxes through allocations to untaxed reserves. In the Volvo Group financial statements, untaxed reserves give rise to temporary differ- ences which are recognized as deferred tax liabilities. Tax liabilities are recognized for income tax charges that are probable as a result of identified tax risks. Hence, when it is probable that the taxation authority or court will not accept an uncertain income tax treatment under tax law, adjustments of the tax liability are made for the estimated out- come. Tax claims for which no adjustment of the tax liability is considered required are generally reported as contingent liabilities. Read more in Note 24 Contingent liabilities and financial commitments . SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Deferred taxes The Volvo Group recognizes deferred tax assets related to tax-loss carry- forwards. The deferred tax assets are recognized based on a thorough assessment in order to ensure that it is probable that sufficient taxable profits will be generated in the coming years that will enable the tax-loss carryforwards to be utilized. The assessment is based on an evaluation of business plans. In addition, the possibility to offset tax assets and tax lia bil- ities and the fact that the major part of the tax-loss carryforwards is related to countries with long or indefinite periods of utilization is considered. If deferred tax assets related to tax-loss carryforwards are not expected to be realized based on current business plans, valuation allowances are recognized. If actual results differ from the business plans, or if business plans for future periods are adjusted, changes in the valuation allowance may be required. Such recognitions and adjustments could have an impact on the financial position and the income for the period. Uncertainty over income tax treatments and claims The Volvo Group regularly evaluates income tax positions to determine if a tax liability or a contingent liability shall be recognized. The judgment is based on several factors, such as changes in facts and circumstances, the progress of the case and experience in similar cases. The actual outcome of income tax positions may deviate from the expected outcome and materi- ally affect future financial statements The Volvo Group is within the scope of the OECD Pillar Two model rules, an international tax reform which aims to ensure that large multinational groups pay a minimum tax on income arising in each jurisdiction in which they operate. Thus, Volvo Group becomes liable to pay top-up taxes on profits in each jurisdiction where the effective tax rate calculated accord- ing to the GloBE rules is below the minimum tax rate of 15%. Pillar Two legislation has been enacted in Sweden and will start to apply as from financial year 2024. Since the legislation was not applicable on financial year 2023 there is no related current tax exposure. The Volvo Group applies the exception to recognizing and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes, pro- vided in the amendments to IAS 12. Potential exposure arising from the new legislation is not expected to have any material impact on the Volvo Group\u2019s tax expense. 10:1 Distribution of income taxes 2023 2022 Current taxes relating to the period \u201319,294 \u201315,081 Adjustment of current taxes for prior periods 238 12 Deferred taxes originated or reversed during the period 2,209 2,712 Remeasurements of deferred tax assets 53 249 I/S Total income taxes \u201316,794 \u201312,108 The Swedish corporate income tax rate amounted to 20.6% (20.6) in 2023. Table 10:2 explains the major reasons for the difference between the Swedish corporate income tax rate and the Volvo Group\u2019s effective tax rate, based on income after financial items. 10:2 Reconciliation of effective tax rate % 2023 2022 Swedish corporate income tax rate 20.6 20.6 Difference between corporate tax rate in Sweden and other countries 2.9 4.1 Non-taxable income \u20131.6 \u20131.4 Non-deductible expenses 2.3 3.5 Current taxes related to prior years \u20130.4 \u20130.1 Remeasurement of deferred taxes 0.6 \u20130.8 Other differences 0.7 0.9 Effective tax rate for the Volvo Group 25.2 26.8 The effective tax rate for the Volvo Group, as of December 31, 2023, was mainly impacted by the country mix in the Volvo Group's earnings. 10:3 Specification of deferred tax assets and liabilities Dec 31, 2023 Dec 31, 2022 Deferred tax assets: Unused tax-loss carryforwards 1,676 1,208 Other unused tax credits 705 633 Intercompany profit in inventories 1,986 1,473 Write down of inventories 590 574 Valuation allowance for doubtful receivables 1,512 1,618 Provisions for warranties 4,177 3,941 Provisions for residual value risks 512 428 Lease liabilities 1,336 1,300 Provisions for post- employment benefits 3,109 2,415 Provisions for restructuring measures 300 29 Other deductible temporary differences 9,221 8,915 Deferred tax assets before deduction for valuation allowance 25,125 22,533 Valuation allowance \u20131,199 \u2013692 Deferred tax assets after deduction for valuation allowance 23,926 21,841 Netting of deferred tax assets and liabilities \u20137,740 \u20137,652 B/S Deferred tax assets, net 16,186 14,189 Deferred tax liabilities: Accelerated depreciation on property, plant and equipment 2,042 2,148 Accelerated depreciation on leasing assets 2,359 2,362 Right-of-use assets, leased 1,280 1,243 LIFO valuation of inventories 587 552 Capitalized product and software development 2,892 2,557 Untaxed reserves 929 1,693 Other taxable temporary differences 2,377 2,581 Deferred tax liabilities 12,465 13,137 Netting of deferred tax assets and liabilities \u20137,740 \u20137,664 B/S Deferred tax liabilities, net 4,725 5,472 Deferred tax assets and liabilities, net 1 11,461 8,717 1 The deferred tax assets and liabilities are recognized in the balance sheet partially on a net basis, after taking into account offsetting possibilities. Deferred tax assets and liabilities have been measured at the tax rates that are expected to be applied during the period when the asset is realized or the liability is settled, according to the tax rates and tax regulations that have been resolved or enacted at the balance sheet date. The total valuation allowance for deferred tax assets amounted to SEK 1,199 M (692) as of December 31, 2023, whereof SEK 643 M (559) con- sisted of an allowance for a tax credit in Brazil. As of December 31, 2023, the Volvo Group\u2019s gross unused tax-loss carry forwards amounted to SEK 6,398 M (4,638) pertaining to deferred tax assets of SEK 1,676 M (1,208) recognized in the balance sheet. Out of the total deferred tax assets attributable to unused tax-loss carryforwards, SEK 466 M (505) pertained to France and SEK 711 M (338) to Canada. The gross unused tax-loss carryforwards will expire according to table 10:4. 10:4 Due date, unused tax-loss carryforwards, gross Dec 31, 2023 Dec 31, 2022 after 1 year 24 \u2013 after 2 years 52 \u2013 after 3 years \u2013 30 after 4 years 207 14 after 5 years 521 297 after 6 years or more 1 5,594 4,297 Total 6,398 4,638 1 Tax-loss carryforwards with long or indefinite periods of utilization were mainly related to France and Canada. Tax-loss carryforwards with indefinite periods of utilization amounted to SEK 2,740 M (2,904) which corresponded to 43% (63) of the total unused tax-losses carryforward. 10:5 Changes in deferred tax assets and liabilities, net 2023 2022 Deferred tax assets and liabilities, net, opening balance 8,717 6,021 Recognized in income statement 2,262 2,961 Recognized in other comprehensive income: Remeasurements of defined- benefit pension plans 657 \u20131,109 Exchange rate changes \u2013351 1,224 Reclassification to assets and liabilities held for sale 74 \u2013 Reclassifications 103 \u2013380 Deferred tax assets and liabilities, net, December 31 11,461 8,717 The cumulative amount of undistributed earnings in foreign subsidiaries, which the Volvo Group currently intends to indefinitely reinvest outside of Sweden and which no deferred income tax have been accounted for, amounted to SEK 19 billion (28) at year end. Undistributed earnings pertaining to countries where the dividends are not taxable are excluded. Read more in Note 4 Goals and policies in financial risk management, how the Volvo Group handles currency exposure of equity. ", "dimensions": { "concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-993": { "value": "ACCOUNTING POLICY Income tax for the period includes current and deferred taxes. Current taxes are calculated on the basis of the tax regulations prevailing in the countries where the group companies have operations. Deferred taxes are recognized on differences that arise between the tax- able value and carrying value of assets and liabilities as well as on tax-loss carryforwards. Deferred tax assets are recognized to the extent it is prob- able that they will be utilized against future taxable profits. Deferred tax liabilities related to temporary differences on investments in subsidiaries, joint ventures and associated companies are recognized in the balance sheet except when the Volvo Group controls the timing of the reversal of the temporary difference related to accumulated undistributed earnings and it is probable that a reversal will not be done in the foresee- able future. Tax laws in Sweden and certain other countries allow companies to defer payment of taxes through allocations to untaxed reserves. In the Volvo Group financial statements, untaxed reserves give rise to temporary differ- ences which are recognized as deferred tax liabilities. Tax liabilities are recognized for income tax charges that are probable as a result of identified tax risks. Hence, when it is probable that the taxation authority or court will not accept an uncertain income tax treatment under tax law, adjustments of the tax liability are made for the estimated out- come. Tax claims for which no adjustment of the tax liability is considered required are generally reported as contingent liabilities. Read more in Note 24 Contingent liabilities and financial commitments . ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-994": { "value": "ACCOUNTING POLICY Income tax for the period includes current and deferred taxes. Current taxes are calculated on the basis of the tax regulations prevailing in the countries where the group companies have operations. Deferred taxes are recognized on differences that arise between the tax- able value and carrying value of assets and liabilities as well as on tax-loss carryforwards. Deferred tax assets are recognized to the extent it is prob- able that they will be utilized against future taxable profits. Deferred tax liabilities related to temporary differences on investments in subsidiaries, joint ventures and associated companies are recognized in the balance sheet except when the Volvo Group controls the timing of the reversal of the temporary difference related to accumulated undistributed earnings and it is probable that a reversal will not be done in the foresee- able future. Tax laws in Sweden and certain other countries allow companies to defer payment of taxes through allocations to untaxed reserves. In the Volvo Group financial statements, untaxed reserves give rise to temporary differ- ences which are recognized as deferred tax liabilities. Tax liabilities are recognized for income tax charges that are probable as a result of identified tax risks. Hence, when it is probable that the taxation authority or court will not accept an uncertain income tax treatment under tax law, adjustments of the tax liability are made for the estimated out- come. Tax claims for which no adjustment of the tax liability is considered required are generally reported as contingent liabilities. Read more in Note 24 Contingent liabilities and financial commitments . ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-995": { "value": "11 Non-controlling interest ACCOUNTING POLICY Owners with a non-controlling interest have a limited ownership of shares and voting rights in a subsidiary, and thereby also limited rights to the sub- sidiary's equity. Non-controlling interest equity is presented separately from equity attributable to owners of AB Volvo. In acquisitions, non-con- trolling interests are valued either at fair value or to a proportionate share of the acquired company\u2019s net assets. Ownership changes in non-controlling interests, not resulting in change of control, are recognized within equity . The Volvo Group has a few non-wholly owned subsidiaries, of which Shan- dong Lingong Construction Machinery Co. (Lingong) in China is the largest company with non-controlling interest. Owners with non- controlling inter- ests hold a 30% shareholding in the company. During 2023, the profit allo- cated to the non-controlling interest in Lingong amounted to SEK 86 M (214). The accumulated amount allocated to the non- controlling interest within equity of Lingong amounts to SEK 2,838 M (3,390). The following tables present summarized financial information for Lingong. 11:1 Summarized income statement 2023 2022 Net sales 11,971 19,838 Operating income 223 731 Income for the period 286 715 Other comprehensive income 1 \u2013628 586 Total comprehensive income for the period 1 \u2013342 1,301 Dividend to non-controlling interest 450 \u2013 11:2 Summarized balance sheet Dec 31, 2023 Dec 31, 2022 Non-current assets 2,242 2,794 Marketable securities, cash and cash equivalents 3,567 4,933 Other current assets 13,567 16,679 Total assets 19,375 24,406 Non-current liabilities 1,398 2,311 Current liabilities 8,518 10,794 Total liabilities 9,916 13,105 Equity attributable to: Owners of AB Volvo 1 6,621 7,910 Non-controlling interest 1 2,838 3,390 1 Includes exchange rate changes from translating equity in foreign subsidiaries in the Volvo Group.", "dimensions": { "concept": "ifrs-full:DisclosureOfNoncontrollingInterestsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-996": { "value": "ACCOUNTING POLICY Owners with a non-controlling interest have a limited ownership of shares and voting rights in a subsidiary, and thereby also limited rights to the sub- sidiary's equity. Non-controlling interest equity is presented separately from equity attributable to owners of AB Volvo. In acquisitions, non-con- trolling interests are valued either at fair value or to a proportionate share of the acquired company\u2019s net assets. Ownership changes in non-controlling interests, not resulting in change of control, are recognized within equity ", "dimensions": { "concept": "ifrs-full:DescriptionOfOtherAccountingPoliciesRelevantToUnderstandingOfFinancialStatements", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-997": { "value": "ACCOUNTING POLICY Volvo Group applies the cost method for recognition of intangible assets, consisting of goodwill, capitalized product and software development and other intangible assets. Read more in Sustainability notes and section EU Taxonomy regulation disclosures about taxonomy eligible capital expenditure. Goodwill Goodwill is recognized as an intangible asset with indefinite useful life. For non-depreciable assets such as goodwill, impairment tests are performed annually, as well as if there are indications of impairments during the year. Goodwill is allocated and tested at the level of cash-generating units which are identified as the Volvo Group\u2019s operating segments. However, in the seg- ment Group Functions & Other three cash-generating units, Nova Bus, Designwerk and Arquus are included. If the carrying amount of the tested cash-generating unit exceeds the calculated recoverable amount, an impair- ment loss is recognized for the difference. The recoverable amount for a cash-generating unit is determined by the value in use, which is based on a discounted cash flow model with a forecast period of five years. The valuation is based on a business plan which is an integral part of the Volvo Group\u2019s finan- cial planning process and represents management\u2019s best estimate of the development of the operations. The ongoing transition of the transport sector towards new technologies and new service-based business models bring business opportunities but also transitional risks for the Volvo Group, which have been integrated into the strategy and business plans. Assumption of 2% (2) long-term market growth beyond the forecast period and the expected development of the operations in relation to this environment is a basis for the valuation. In the model, the Volvo Group is expected to maintain stable capital efficiency over time. Other parameters considered in the calculation are oper- ating income, mix of products and services , the transition towards electrifica- tion and other low-carbon transport solutions, expenses and level of capital expenditures. Macroeconomic risks and opportunites are reflected in the esti- mated future cash flows for each cash-generating unit. The Volvo Group uses a discount rate at 10% (10) before tax for 2023. In 2023, the recoverable amount of Volvo Group\u2019s operations exceeded the carrying amount for all cash-generating units, thus no impairment was recognized. The Volvo Group has also analyzed whether a negative adjust- ment of several percentage points on the used assumptions for discount rate and operating income would result in impairment for goodwill, how- ever none of the cash-generating units would be impaired as a result of this analysis. The operating parameters applied in the valuation are based on management\u2019s strategy and could indicate higher value than historical performance for each cash-generating unit. Furthermore, the Volvo Group is operating in a cyclical industry why performance could vary over time. Headroom differs between the cash-generating units and they are sen- sitive to changes in the assumptions described above to a varying degree. Therefore, the Volvo Group continuously follows the performance of the cash-generating units whose headroom is dependent on the fulfillment of the Volvo Group\u2019s assessments. Instability in the recovery of the market and volatility in interest and currency rates may lead to indications of a need for impairment. The most important factors for the future operations of the Volvo Group are described in the Volvo Group\u2019s operating seg- ments, as well as in the Risk management section. Research and development Expenditures for the development of new products and software are recog- nized as intangible assets if such expenditures, with a high degree of cer- tainty, will result in future economic benefits for the company. Intangible assets are amortized over its estimated useful life. The rules require stringent criteria to be met for these development expenditures to be recognized as assets. For example, it must be possible to prove the technical feasibility of completing the new product or software,
so that it will be available for use or sale, before its development expendi-
ture is recognized as an asset. In normal cases, this means that expendi-
tures are capitalized only during the industrialization phase of a product
development project. Other research and development costs are recog-
nized in the income statement as incurred.
The Volvo Group has developed a process for conducting product and soft-
ware development projects. The product and software development process
has six phases (including waterfall method and to some extent an agile
approach) focused on separate parts of the project. Every phase starts and
ends with a reconciliation point, known as a gate, for which the criteria must
be met for the project\u2019s decision making committee to allow the project to
progress to the next phase. During the industrialization phase, the industrial
system is prepared for serial production and the product is launched.
A substantial part of investments is directed towards zero tailpipe
emissions technology, which is expected to increase over time. As the
transition will take place gradually, the running fleets in the transportation
sector are likely to include different technologies for vehicle and machin-
ery propulsion that can be powered by renewable energy such as bat-
tery-electric, fuel cell-electric or internal combustion engines running on
lower carbon fuels. Existing products is therefore expected to generate
economic benefits during the transition period and be used during its
remaining useful life.
Other intangible assets
Other intangible assets include trademarks, distribution networks, licenses
and other rights. When participating in industrial projects in partnership
with other companies the Volvo Group in certain cases pays an entrance fee
to participate, which is capitalized as an intangible asset .
Amortization and impairment with finite useful life
Intangible assets with finite useful life are amortized on a straight line
basis over their estimated useful life. Amortization is based on the cost of
the assets, adjusted by impairments when applicable and estimated useful
lives. Amortization is recognized in the respective function to which it
belongs, meaning that amortization of product development is part of the
research and development expenses in the income statement. Impair-
ment tests for amortizable assets are performed if there are indications of
impairment. In addition, impairment tests are performed annually for cap-
italized development cost for products and software not yet in use by cal-
culating the recoverable amount. The recoverable amount is the higher of
the fair value less costs of disposal and the value in use. The value in use is
measured as the discounted future cash flows, which the asset is expected
to generate either by itself or from the lowest cash-generating unit to
which the asset belongs. If the recoverable amount is less than the carry-
ing amount, an impairment is recognized and the carrying amount of the
asset is reduced to the recoverable amount .
SOURCE OF ESTIMATION UNCERTAINTY
AND CRITICAL JUDGMENTS
Impairment of goodwill and other intangible assets
When conducting impairment tests of goodwill and other intangible assets,
estimates have to be made to determine the recoverable amounts of
cash-generating units. The recoverable amount is based upon manage-
ment\u2019s projections of future cash flows and are to a varying degree sensitive
to changes in assumptions and the business environment. The broadening of
the customer offer with focus to switch to more sustainable solutions accel-
erates investments in research and development. The magnitude of invest-
ments and the assessment of future useful life is uncertain due to technology
and infrastructure development, emission regulations, government incen-
tives and customer demand. While management believes that estimates of
future cash flows and other assumptions made are reasonable, there are
uncertainties which could materially affect the valuations .
12
Intangible assets
1 2:1 Intangible assets, Dec 31, 2023 Goodwill Product and software development Other intangible assets Total Acquisition cost Opening balance 2023 25,636 54,753 7,872 88,261 Additions \u2013 4,845 433 5,278 Additions through acquired operations 1 74 \u2013 15 89 Disposals 1 , 2 \u2013138 \u201323 \u201324 \u2013185 Exchange rate changes \u2013266 \u201328 \u201369 \u2013362 Reclassifications to assets held for sale 1 \u2013445 \u20131,327 \u2013868 \u20132,641 Reclassifications and other \u2013 28 2 29 Acquisition cost, Dec 31, 2023 24,861 58,248 7,360 90,469 Accumulated amortization and impairment Opening balance 2023 \u2013 \u201341,361 \u20135,356 \u201346,717 Amortization \u2013 \u20132,874 \u2013150 \u20133,024 Impairment \u2013 \u201343 \u201311 \u201353 Disposals 1 \u2013 17 22 39 Exchange rate changes \u2013 25 43 67 Reclassifications to assets held for sale 1 \u2013 996 734 1,730 Reclassifications and other \u2013 \u2013 \u2013 \u2013 Accumulated amortization and impairment, Dec 31, 2023 \u2013 \u201343,240 \u20134,717 \u201347,957 B/S Carrying amount, Dec 31, 2023 24,861 15,008 2,643 42,512 12:2 Intangible assets, Dec 31, 2022 Goodwill Product and software development Other intangible assets Total Acquisition cost Opening balance 2022 23,924 49,723 6,833 80,480 Additions \u2013 4,786 604 5,390 Additions through acquired operations 1 146 7 98 251 Disposals 1 \u2013 \u201334 \u201367 \u2013102 Exchange rate changes 1,567 250 379 2,196 Reclassifications to assets held for sale 1 \u2013 \u2013 \u2013 \u2013 Reclassifications and other \u2013 20 25 45 Acquisition cost, Dec 31, 2022 25,636 54,753 7,872 88,261 Accumulated amortization and impairment Opening balance 2022 \u2013 \u201338,325 \u20135,086 \u201343,411 Amortization \u2013 \u20132,852 \u2013118 \u20132,970 Impairment \u2013 \u2013 \u20131 \u20131 Disposals 1 \u2013 21 67 88 Exchange rate changes \u2013 \u2013204 \u2013218 \u2013422 Reclassifications to assets held for sale 1 \u2013 \u2013 \u2013 \u2013 Reclassifications and other \u2013 \u2013 \u2013 \u2013 Accumulated amortization and impairment, Dec 31, 2022 \u2013 \u201341,361 \u20135,356 \u201346,717 B/S Carrying amount, Dec 31, 2022 25,636 13,393 2,516 41,544 1 Read more in Note 3 Acquisitions and divestments of operations, for a description of acquired and divested operations as well as assets and liabilities held for sale. 2 Nova Bus is exiting bus production in the US market whereof disposal of goodwill amounting to SEK 0.1 billion was part of the restructuring costs. 12:3 Goodwill per cash-generating unit Dec 31,2023 Dec 31, 2022 Trucks 13,203 13,237 Construction Equipment 9,620 9,814 Buses 853 865 Volvo Penta 371 382 Other cash-generating units 1 814 1,337 Total 24,861 25,636 12:4 Estimated useful life Trademarks Max 5 years Distribution networks 10 years Product and software development 3\u20138 years Other intangible assets 3\u20135 years
1 As of December 31, 2023 Arquus has been reclassified to assets held for sale.
Read more in Note 3 Acquisitions and divestments of operations .
", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-998": { "value": "ACCOUNTING POLICY Volvo Group applies the cost method for recognition of intangible assets, consisting of goodwill, capitalized product and software development and other intangible assets. Read more in Sustainability notes and section EU Taxonomy regulation disclosures about taxonomy eligible capital expenditure. Goodwill Goodwill is recognized as an intangible asset with indefinite useful life. For non-depreciable assets such as goodwill, impairment tests are performed annually, as well as if there are indications of impairments during the year. Goodwill is allocated and tested at the level of cash-generating units which are identified as the Volvo Group\u2019s operating segments. However, in the seg- ment Group Functions & Other three cash-generating units, Nova Bus, Designwerk and Arquus are included. If the carrying amount of the tested cash-generating unit exceeds the calculated recoverable amount, an impair- ment loss is recognized for the difference. The recoverable amount for a cash-generating unit is determined by the value in use, which is based on a discounted cash flow model with a forecast period of five years. The valuation is based on a business plan which is an integral part of the Volvo Group\u2019s finan- cial planning process and represents management\u2019s best estimate of the development of the operations. The ongoing transition of the transport sector towards new technologies and new service-based business models bring business opportunities but also transitional risks for the Volvo Group, which have been integrated into the strategy and business plans. Assumption of 2% (2) long-term market growth beyond the forecast period and the expected development of the operations in relation to this environment is a basis for the valuation. In the model, the Volvo Group is expected to maintain stable capital efficiency over time. Other parameters considered in the calculation are oper- ating income, mix of products and services , the transition towards electrifica- tion and other low-carbon transport solutions, expenses and level of capital expenditures. Macroeconomic risks and opportunites are reflected in the esti- mated future cash flows for each cash-generating unit. The Volvo Group uses a discount rate at 10% (10) before tax for 2023. In 2023, the recoverable amount of Volvo Group\u2019s operations exceeded the carrying amount for all cash-generating units, thus no impairment was recognized. The Volvo Group has also analyzed whether a negative adjust- ment of several percentage points on the used assumptions for discount rate and operating income would result in impairment for goodwill, how- ever none of the cash-generating units would be impaired as a result of this analysis. The operating parameters applied in the valuation are based on management\u2019s strategy and could indicate higher value than historical performance for each cash-generating unit. Furthermore, the Volvo Group is operating in a cyclical industry why performance could vary over time. Headroom differs between the cash-generating units and they are sen- sitive to changes in the assumptions described above to a varying degree. Therefore, the Volvo Group continuously follows the performance of the cash-generating units whose headroom is dependent on the fulfillment of the Volvo Group\u2019s assessments. Instability in the recovery of the market and volatility in interest and currency rates may lead to indications of a need for impairment. The most important factors for the future operations of the Volvo Group are described in the Volvo Group\u2019s operating seg- ments, as well as in the Risk management section. Research and development Expenditures for the development of new products and software are recog- nized as intangible assets if such expenditures, with a high degree of cer- tainty, will result in future economic benefits for the company. Intangible assets are amortized over its estimated useful life. The rules require stringent criteria to be met for these development expenditures to be recognized as assets. For example, it must be possible to prove the technical feasibility of completing the new product or software, so that it will be available for use or sale, before its development expendi- ture is recognized as an asset. In normal cases, this means that expendi- tures are capitalized only during the industrialization phase of a product development project. Other research and development costs are recog- nized in the income statement as incurred. The Volvo Group has developed a process for conducting product and soft- ware development projects. The product and software development process has six phases (including waterfall method and to some extent an agile approach) focused on separate parts of the project. Every phase starts and ends with a reconciliation point, known as a gate, for which the criteria must be met for the project\u2019s decision making committee to allow the project to progress to the next phase. During the industrialization phase, the industrial system is prepared for serial production and the product is launched. A substantial part of investments is directed towards zero tailpipe emissions technology, which is expected to increase over time. As the transition will take place gradually, the running fleets in the transportation sector are likely to include different technologies for vehicle and machin- ery propulsion that can be powered by renewable energy such as bat- tery-electric, fuel cell-electric or internal combustion engines running on lower carbon fuels. Existing products is therefore expected to generate economic benefits during the transition period and be used during its remaining useful life. Other intangible assets Other intangible assets include trademarks, distribution networks, licenses and other rights. When participating in industrial projects in partnership with other companies the Volvo Group in certain cases pays an entrance fee to participate, which is capitalized as an intangible asset . Amortization and impairment with finite useful life Intangible assets with finite useful life are amortized on a straight line basis over their estimated useful life. Amortization is based on the cost of the assets, adjusted by impairments when applicable and estimated useful lives. Amortization is recognized in the respective function to which it belongs, meaning that amortization of product development is part of the research and development expenses in the income statement. Impair- ment tests for amortizable assets are performed if there are indications of impairment. In addition, impairment tests are performed annually for cap- italized development cost for products and software not yet in use by cal- culating the recoverable amount. The recoverable amount is the higher of the fair value less costs of disposal and the value in use. The value in use is measured as the discounted future cash flows, which the asset is expected to generate either by itself or from the lowest cash-generating unit to which the asset belongs. If the recoverable amount is less than the carry- ing amount, an impairment is recognized and the carrying amount of the asset is reduced to the recoverable amount . SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Impairment of goodwill and other intangible assets When conducting impairment tests of goodwill and other intangible assets, estimates have to be made to determine the recoverable amounts of cash-generating units. The recoverable amount is based upon manage- ment\u2019s projections of future cash flows and are to a varying degree sensitive to changes in assumptions and the business environment. The broadening of the customer offer with focus to switch to more sustainable solutions accel- erates investments in research and development. The magnitude of invest- ments and the assessment of future useful life is uncertain due to technology and infrastructure development, emission regulations, government incen- tives and customer demand. While management believes that estimates of future cash flows and other assumptions made are reasonable, there are uncertainties which could materially affect the valuations . 2:1 Intangible assets, Dec 31, 2023 Goodwill Product and software development Other intangible assets Total Acquisition cost Opening balance 2023 25,636 54,753 7,872 88,261 Additions \u2013 4,845 433 5,278 Additions through acquired operations 1 74 \u2013 15 89 Disposals 1 , 2 \u2013138 \u201323 \u201324 \u2013185 Exchange rate changes \u2013266 \u201328 \u201369 \u2013362 Reclassifications to assets held for sale 1 \u2013445 \u20131,327 \u2013868 \u20132,641 Reclassifications and other \u2013 28 2 29 Acquisition cost, Dec 31, 2023 24,861 58,248 7,360 90,469 Accumulated amortization and impairment Opening balance 2023 \u2013 \u201341,361 \u20135,356 \u201346,717 Amortization \u2013 \u20132,874 \u2013150 \u20133,024 Impairment \u2013 \u201343 \u201311 \u201353 Disposals 1 \u2013 17 22 39 Exchange rate changes \u2013 25 43 67 Reclassifications to assets held for sale 1 \u2013 996 734 1,730 Reclassifications and other \u2013 \u2013 \u2013 \u2013 Accumulated amortization and impairment, Dec 31, 2023 \u2013 \u201343,240 \u20134,717 \u201347,957 B/S Carrying amount, Dec 31, 2023 24,861 15,008 2,643 42,512 12:2 Intangible assets, Dec 31, 2022 Goodwill Product and software development Other intangible assets Total Acquisition cost Opening balance 2022 23,924 49,723 6,833 80,480 Additions \u2013 4,786 604 5,390 Additions through acquired operations 1 146 7 98 251 Disposals 1 \u2013 \u201334 \u201367 \u2013102 Exchange rate changes 1,567 250 379 2,196 Reclassifications to assets held for sale 1 \u2013 \u2013 \u2013 \u2013 Reclassifications and other \u2013 20 25 45 Acquisition cost, Dec 31, 2022 25,636 54,753 7,872 88,261 Accumulated amortization and impairment Opening balance 2022 \u2013 \u201338,325 \u20135,086 \u201343,411 Amortization \u2013 \u20132,852 \u2013118 \u20132,970 Impairment \u2013 \u2013 \u20131 \u20131 Disposals 1 \u2013 21 67 88 Exchange rate changes \u2013 \u2013204 \u2013218 \u2013422 Reclassifications to assets held for sale 1 \u2013 \u2013 \u2013 \u2013 Reclassifications and other \u2013 \u2013 \u2013 \u2013 Accumulated amortization and impairment, Dec 31, 2022 \u2013 \u201341,361 \u20135,356 \u201346,717 B/S Carrying amount, Dec 31, 2022 25,636 13,393 2,516 41,544 1 Read more in Note 3 Acquisitions and divestments of operations, for a description of acquired and divested operations as well as assets and liabilities held for sale. 2 Nova Bus is exiting bus production in the US market whereof disposal of goodwill amounting to SEK 0.1 billion was part of the restructuring costs. 12:3 Goodwill per cash-generating unit Dec 31,2023 Dec 31, 2022 Trucks 13,203 13,237 Construction Equipment 9,620 9,814 Buses 853 865 Volvo Penta 371 382 Other cash-generating units 1 814 1,337 Total 24,861 25,636 12:4 Estimated useful life Trademarks Max 5 years Distribution networks 10 years Product and software development 3\u20138 years Other intangible assets 3\u20135 years 1 As of December 31, 2023 Arquus has been reclassified to assets held for sale. Read more in Note 3 Acquisitions and divestments of operations .", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-999": { "value": "ACCOUNTING POLICY Volvo Group applies the cost method for recognition of intangible assets, consisting of goodwill, capitalized product and software development and other intangible assets. Read more in Sustainability notes and section EU Taxonomy regulation disclosures about taxonomy eligible capital expenditure. Goodwill Goodwill is recognized as an intangible asset with indefinite useful life. For non-depreciable assets such as goodwill, impairment tests are performed annually, as well as if there are indications of impairments during the year. Goodwill is allocated and tested at the level of cash-generating units which are identified as the Volvo Group\u2019s operating segments. However, in the seg- ment Group Functions & Other three cash-generating units, Nova Bus, Designwerk and Arquus are included. If the carrying amount of the tested cash-generating unit exceeds the calculated recoverable amount, an impair- ment loss is recognized for the difference. The recoverable amount for a cash-generating unit is determined by the value in use, which is based on a discounted cash flow model with a forecast period of five years. The valuation is based on a business plan which is an integral part of the Volvo Group\u2019s finan- cial planning process and represents management\u2019s best estimate of the development of the operations. The ongoing transition of the transport sector towards new technologies and new service-based business models bring business opportunities but also transitional risks for the Volvo Group, which have been integrated into the strategy and business plans. Assumption of 2% (2) long-term market growth beyond the forecast period and the expected development of the operations in relation to this environment is a basis for the valuation. In the model, the Volvo Group is expected to maintain stable capital efficiency over time. Other parameters considered in the calculation are oper- ating income, mix of products and services , the transition towards electrifica- tion and other low-carbon transport solutions, expenses and level of capital expenditures. Macroeconomic risks and opportunites are reflected in the esti- mated future cash flows for each cash-generating unit. The Volvo Group uses a discount rate at 10% (10) before tax for 2023. In 2023, the recoverable amount of Volvo Group\u2019s operations exceeded the carrying amount for all cash-generating units, thus no impairment was recognized. The Volvo Group has also analyzed whether a negative adjust- ment of several percentage points on the used assumptions for discount rate and operating income would result in impairment for goodwill, how- ever none of the cash-generating units would be impaired as a result of this analysis. The operating parameters applied in the valuation are based on management\u2019s strategy and could indicate higher value than historical performance for each cash-generating unit. Furthermore, the Volvo Group is operating in a cyclical industry why performance could vary over time. Headroom differs between the cash-generating units and they are sen- sitive to changes in the assumptions described above to a varying degree. Therefore, the Volvo Group continuously follows the performance of the cash-generating units whose headroom is dependent on the fulfillment of the Volvo Group\u2019s assessments. Instability in the recovery of the market and volatility in interest and currency rates may lead to indications of a need for impairment. The most important factors for the future operations of the Volvo Group are described in the Volvo Group\u2019s operating seg- ments, as well as in the Risk management section. Research and development Expenditures for the development of new products and software are recog- nized as intangible assets if such expenditures, with a high degree of cer- tainty, will result in future economic benefits for the company. Intangible assets are amortized over its estimated useful life. The rules require stringent criteria to be met for these development expenditures to be recognized as assets. For example, it must be possible to prove the technical feasibility of completing the new product or software, so that it will be available for use or sale, before its development expendi- ture is recognized as an asset. In normal cases, this means that expendi- tures are capitalized only during the industrialization phase of a product development project. Other research and development costs are recog- nized in the income statement as incurred. The Volvo Group has developed a process for conducting product and soft- ware development projects. The product and software development process has six phases (including waterfall method and to some extent an agile approach) focused on separate parts of the project. Every phase starts and ends with a reconciliation point, known as a gate, for which the criteria must be met for the project\u2019s decision making committee to allow the project to progress to the next phase. During the industrialization phase, the industrial system is prepared for serial production and the product is launched. A substantial part of investments is directed towards zero tailpipe emissions technology, which is expected to increase over time. As the transition will take place gradually, the running fleets in the transportation sector are likely to include different technologies for vehicle and machin- ery propulsion that can be powered by renewable energy such as bat- tery-electric, fuel cell-electric or internal combustion engines running on lower carbon fuels. Existing products is therefore expected to generate economic benefits during the transition period and be used during its remaining useful life. Other intangible assets Other intangible assets include trademarks, distribution networks, licenses and other rights. When participating in industrial projects in partnership with other companies the Volvo Group in certain cases pays an entrance fee to participate, which is capitalized as an intangible asset . Amortization and impairment with finite useful life Intangible assets with finite useful life are amortized on a straight line basis over their estimated useful life. Amortization is based on the cost of the assets, adjusted by impairments when applicable and estimated useful lives. Amortization is recognized in the respective function to which it belongs, meaning that amortization of product development is part of the research and development expenses in the income statement. Impair- ment tests for amortizable assets are performed if there are indications of impairment. In addition, impairment tests are performed annually for cap- italized development cost for products and software not yet in use by cal- culating the recoverable amount. The recoverable amount is the higher of the fair value less costs of disposal and the value in use. The value in use is measured as the discounted future cash flows, which the asset is expected to generate either by itself or from the lowest cash-generating unit to which the asset belongs. If the recoverable amount is less than the carry- ing amount, an impairment is recognized and the carrying amount of the asset is reduced to the recoverable amount . SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Impairment of goodwill and other intangible assets When conducting impairment tests of goodwill and other intangible assets, estimates have to be made to determine the recoverable amounts of cash-generating units. The recoverable amount is based upon manage- ment\u2019s projections of future cash flows and are to a varying degree sensitive to changes in assumptions and the business environment. The broadening of the customer offer with focus to switch to more sustainable solutions accel- erates investments in research and development. The magnitude of invest- ments and the assessment of future useful life is uncertain due to technology and infrastructure development, emission regulations, government incen- tives and customer demand. While management believes that estimates of future cash flows and other assumptions made are reasonable, there are uncertainties which could materially affect the valuations 1 2:1 Intangible assets, Dec 31, 2023 Goodwill Product and software development Other intangible assets Total Acquisition cost Opening balance 2023 25,636 54,753 7,872 88,261 Additions \u2013 4,845 433 5,278 Additions through acquired operations 1 74 \u2013 15 89 Disposals 1 , 2 \u2013138 \u201323 \u201324 \u2013185 Exchange rate changes \u2013266 \u201328 \u201369 \u2013362 Reclassifications to assets held for sale 1 \u2013445 \u20131,327 \u2013868 \u20132,641 Reclassifications and other \u2013 28 2 29 Acquisition cost, Dec 31, 2023 24,861 58,248 7,360 90,469 Accumulated amortization and impairment Opening balance 2023 \u2013 \u201341,361 \u20135,356 \u201346,717 Amortization \u2013 \u20132,874 \u2013150 \u20133,024 Impairment \u2013 \u201343 \u201311 \u201353 Disposals 1 \u2013 17 22 39 Exchange rate changes \u2013 25 43 67 Reclassifications to assets held for sale 1 \u2013 996 734 1,730 Reclassifications and other \u2013 \u2013 \u2013 \u2013 Accumulated amortization and impairment, Dec 31, 2023 \u2013 \u201343,240 \u20134,717 \u201347,957 B/S Carrying amount, Dec 31, 2023 24,861 15,008 2,643 42,512 12:2 Intangible assets, Dec 31, 2022 Goodwill Product and software development Other intangible assets Total Acquisition cost Opening balance 2022 23,924 49,723 6,833 80,480 Additions \u2013 4,786 604 5,390 Additions through acquired operations 1 146 7 98 251 Disposals 1 \u2013 \u201334 \u201367 \u2013102 Exchange rate changes 1,567 250 379 2,196 Reclassifications to assets held for sale 1 \u2013 \u2013 \u2013 \u2013 Reclassifications and other \u2013 20 25 45 Acquisition cost, Dec 31, 2022 25,636 54,753 7,872 88,261 Accumulated amortization and impairment Opening balance 2022 \u2013 \u201338,325 \u20135,086 \u201343,411 Amortization \u2013 \u20132,852 \u2013118 \u20132,970 Impairment \u2013 \u2013 \u20131 \u20131 Disposals 1 \u2013 21 67 88 Exchange rate changes \u2013 \u2013204 \u2013218 \u2013422 Reclassifications to assets held for sale 1 \u2013 \u2013 \u2013 \u2013 Reclassifications and other \u2013 \u2013 \u2013 \u2013 Accumulated amortization and impairment, Dec 31, 2022 \u2013 \u201341,361 \u20135,356 \u201346,717 B/S Carrying amount, Dec 31, 2022 25,636 13,393 2,516 41,544 1 Read more in Note 3 Acquisitions and divestments of operations, for a description of acquired and divested operations as well as assets and liabilities held for sale. 2 Nova Bus is exiting bus production in the US market whereof disposal of goodwill amounting to SEK 0.1 billion was part of the restructuring costs. 12:3 Goodwill per cash-generating unit Dec 31,2023 Dec 31, 2022 Trucks 13,203 13,237 Construction Equipment 9,620 9,814 Buses 853 865 Volvo Penta 371 382 Other cash-generating units 1 814 1,337 Total 24,861 25,636 12:4 Estimated useful life Trademarks Max 5 years Distribution networks 10 years Product and software development 3\u20138 years Other intangible assets 3\u20135 years 1 As of December 31, 2023 Arquus has been reclassified to assets held for sale. Read more in Note 3 Acquisitions and divestments of operations ACCOUNTING POLICY The Volvo Group applies the cost method for measurement of tangible assets, consisting of property, plant, equipment and investment property as well as assets under operating leases. Buildings include owner-occupied properties and investment proper- ties. Investment properties are properties owned for the purpose of obtaining rental income and appreciation in value. Investment properties are recognized at cost. For disclosure purposes, information regarding the estimated fair value of investment properties is based on an internal dis- counted cash flow projection as relevant observable market inputs for the assets are not available. The required return is based on current property market conditions for comparable properties in comparable locations. Hence, the applied valuation method to measure fair value is classified as level 3 of the fair value hierarchy and there have not been any changes in valuation method during the year. Land includes land and land improve- ments. Machinery and equipment consist of production related assets such as machinery, type-bound tools and other equipment. A substantial part of investments is directed towards zero tailpipe emissions technol- ogy, which is expected to increase over time. However, both electric trucks and trucks with combustion engines can be produced on the same assembly lines, thus limiting the investments needed for this transition in the industrial system. Construction in progress are assets under con- struction and advanced payments. Right-of-use assets relates to lease contracts with the Volvo Group as a lessee. Assets under operating leases are mainly owned by the Volvo Group. These transactions are accounted for as operating lease transactions and consists of contractual operating lease agreements with customers within Financial Services and rental fleet which are assets used in a fleet for rental business within Industrial Operations. Some rental fleet assets are leased by the Volvo Group and later sub-leased to customers as oper- ating leases. Sales with residual value commitments within Industrial Operations are also recognized within assets under operating leases. Read more in Note 7 Revenue, about sales with residual value commitments. Read more in Note 14 Leasing, about right-of-use assets and assets under operating leases. Read more in Sustainability notes and section EU Taxonomy regulation disclosures about taxonomy eligible capital expenditure. Depreciation and impairment Property, plant, equipment and investment property are depreciated over their estimated useful lives. Land is not depreciated. Depreciation is rec- ognized on a straight-line basis based on the cost of the assets, adjusted by residual value when applicable, and estimated useful lives. Right-of- use assets are generally depreciated over the lease term on a straight-line basis. Assets under operating leases are depreciated on a straight-line basis over the contract period. During the contract period, the depreciable amount is adjusted by accelerated depreciation and/or write-downs. The adjustment is recognized through the income statement to correspond to estimated future net realizable value to continuously reflect potential residual value risks at the end of the contract period. The net realizable value is impacted by value of optional equipment, mileage, current condi- tion, expected future price development, change of market conditions, the transition towards electrification and other low-carbon transport solutions, alternative distribution channels, inventory lead-time, repair and reconditioning costs, handling costs, indirect costs associated with the sale of used vehicles and legislative demands. Some of the locations may also be subject to increased risks from physical weather events depending on climate developments. These risks are monitored and are not expected to materially impact the estimated useful life. The deprecia- tion is recog nized in the respective function to which it belongs. Impair- ment tests are performed if there are indications of impairment by calcu- lating a recoverable amount which is the higher of the asset\u2019s fair value less cost of disposal and its value in use. 13:1 Estimated useful life Type-bound tools 3\u20138 years Operating leases, rental fleet 3\u20135 years Sales with residual value commitments 3\u20135 years Machinery and equipment 5\u201320 years Buildings and investment properties 20\u201350 years Land improvements 20 years SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Impairment of tangible assets Impairment tests are performed if there is any indication that a tangible asset has been impaired. The impairment tests are based on estimation of the recoverable amount of the asset, or the cash-generating unit to which the asset belongs. To determine the recoverable amount, projections of future cash flows are used, which are based upon internal business plans and forecasts. The ongoing transition of the transport sector towards new technologies with electrified and other lower emission technology vehicles bring uncertainties regarding current and future investments in production facilities as well as estimated useful life. Also, some of the production sites are located in areas with physical climate risks and may in the long run be subject to increased stress from physical weather events. Physical risks bring uncertainties when estimating useful life and indication of impair- ment. While management believes that estimates of future cash flows and other assumptions made are reasonable, there are uncertainties which could materially affect the valuations. Residual value risks Volvo Group is exposed to residual value risks related to assets under operating leases which are the risks that the Volvo Group in the future would have to dispose used vehicles at a loss if the price development of these products is worse than what was expected when the contracts were entered. The assessment of residual value risks is based upon an estimation of the used vehicle\u2019s future net realizable value (fair market value) and a declined value may negatively affect the Volvo Group\u2019s oper- ating income. High inventories in the truck industry and the construction equipment industry and low demand may have a negative impact on the prices of new and used vehicles. The estimated future net realizable value of the vehicles at the end of the contract period is monitored individually on a continuing basis. In monitoring the estimated net realizable value of each vehicle, management considers current price level of the used vehi- cle, supply chain and production disturbances and the transition to elec- trified and other lower emission technology vehicles which imply to some extent uncertainties in the assessment. Reclassifications Reclassifications of construction in progress and assets under operating lease are presented in the tables 13:2 and 13:3. For construction in progress, reclassifications occurs when the asset is available for use by transferring the assets to the respective category within property, plant and equipment. The transfer is reported within reclassifications and other. For operating leases, rental fleet and sales with residual value commit- ments (buyback and trade backs), reclassifications occur when vehicles are sold or rented out to customers. The vehicle is transferred from inven- tory to assets under operating leases and reported as additions. If the vehicle is returned by the end of the residual value commitment period or the leasing period, the vehicle is transferred back to inventory and reported as disposals. Investment properties The acquisition value of investment properties at year-end amounted to SEK 95 M (93). Reclassifications amounted to SEK 0 M (0). Accumulated depreciation amounted to SEK 43 M (39) at year-end, of which SEK 4 M (3) refers to 2023. The net carrying value amounted to SEK 53 M (54). The estimated fair value of investment properties amounted to SEK 117 M (102) at year-end and 97% (97) of the area available for lease was leased out during the year. Operating income was affected by rental income from investment properties that amounted to SEK 12 M (11) and direct costs that amounted to SEK 6 M (1). 13:2 Tangible assets, Dec 31, 2023 Property, plant, equipment and investment property Assets under operating leases\u00b9 Buildings Land and land improve- ments Machinery and equip- ment Construc- tion in progress Right- of-use assets\u00b9 Operating leases 2 Rental fleet Sales w. residual value commit- ments\u00b3 Total Acquisition cost Opening balance 2023 39,685 7,906 91,455 12,273 13,504 31,740 4,744 27,442 228,749 Additions 961 104 2,420 9,634 1,832 10,267 3,131 4,826 33,176 Additions through acquired operations 4 50 26 16 \u2013 45 \u2013 \u2013 \u2013 137 Disposals 4 \u20131,088 \u201392 \u20133,032 \u20137 \u20131,183 \u201310,576 \u20131,816 \u20136,125 \u201323,918 Exchange rate changes \u2013832 \u2013165 \u20131,390 \u2013281 \u2013330 \u2013617 \u2013116 \u2013326 \u20134,059 Reclassifications to assets held for sale 4 \u20131,253 \u2013232 \u20131,508 \u201317 \u2013391 \u2013 \u2013 \u2013 \u20133,401 Reclassifications and other 2,017 217 3,058 \u20135,345 1,461 30 \u201395 \u20131,105 238 Acquisition costs, Dec 31, 2023 39,539 7,764 91,020 16,257 14,938 30,843 5,848 24,712 230,922 Accumulated depreciation and impairments Opening balance 2023 \u201321,691 \u20131,638 \u201371,224 \u20133 \u20137,105 \u201310,348 \u20131,553 \u20138,506 \u2013122,068 Depreciation \u20131,448 \u2013130 \u20134,600 \u2013 \u20132,363 \u20134,973 \u2013791 \u20133,018 \u201317,323 Impairment \u201310 \u2013 \u201395 \u201358 \u2013 \u20133 \u2013 \u2013662 \u2013827 Disposals 4 1,135 56 2,956 \u2013 1,130 5,591 760 3,131 14,757 Exchange rate changes 474 26 1,082 \u2013 167 175 17 112 2,054 Reclassifications to assets held for sale 4 654 84 1,195 \u2013 254 \u2013 \u2013 \u2013 2,187 Reclassifications and other 52 1 \u20135 \u2013 35 9 17 548 658 Accumulated depreciation and impairments, Dec 31, 2023 \u201320,834 \u20131,602 \u201370,691 \u201361 \u20137,882 \u20139,549 \u20131,549 \u20138,395 \u2013120,562 B/S Carrying amount, Dec 31, 2023 18,706 6,162 20,329 16,196 7,056 21,295 4,299 16,317 110,359 1 Read more in Note 14 Leasing, about right-of-use assets and assets under operating leases. 2 Operating leases mainly consists of contractual operating lease agreements with customers within Financial Services. 3 Read more in Note 7 Revenue, about sales with residual value commitments. 4 Read more in Note 3 Acquisitions and divestments of operations, for a description of acquired and divested operations as well as assets and liabilities held for sale 13:3 Tangible assets, Dec 31, 2022 Property, plant, equipment and investment property Assets under operating leases\u00b9 Buildings Land and land improve- ments Machinery and equip- ment Construc- tion in progress Right- of-use assets\u00b9 Operating leases 2 Rental fleet Sales w. residual value commit- ments\u00b3 Total Acquisition cost Opening balance 2022 34,705 7,107 82,209 8,792 10,965 28,770 4,660 25,095 202,304 Additions 498 103 2,575 8,125 1,475 9,155 2,048 6,521 30,498 Additions through acquired operations 4 \u2013 \u2013 35 11 1 \u2013 8 \u2013 56 Disposals 4 \u2013173 \u201391 \u20131,917 \u201347 \u2013523 \u20139,540 \u20131,779 \u20136,500 \u201320,571 Exchange rate changes 2,880 583 5,150 710 907 2,699 433 2,042 15,403 Reclassifications to assets held for sale 4 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 Reclassifications and other 1,775 205 3,403 \u20135,318 679 657 \u2013626 284 1,059 Acquisition costs, Dec 31, 2022 39,685 7,906 91,455 12,273 13,504 31,740 4,744 27,442 228,749 Accumulated depreciation and impairments Opening balance 2022 \u201318,516 \u20131,406 \u201364,446 \u2013 \u20135,006 \u20139,131 \u20131,568 \u20137,856 \u2013107,930 Depreciation \u20131,333 \u2013112 \u20134,376 \u2013 \u20132,144 \u20134,741 \u2013677 \u20133,039 \u201316,423 Impairment \u2013448 \u201330 \u2013165 \u20133 \u201314 20 \u20134 \u2013691 \u20131,336 Disposals 4 130 21 1,761 \u2013 451 4,588 591 3,510 11,051 Exchange rate changes \u20131,527 \u2013109 \u20134,011 \u2013 \u2013425 \u2013843 \u2013145 \u2013642 \u20137,701 Reclassifications to assets held for sale 4 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 Reclassifications and other 4 \u20132 14 \u2013 34 \u2013241 250 212 271 Accumulated depreciation and impairments, Dec 31, 2022 \u201321,691 \u20131,638 \u201371,224 \u20133 \u20137,105 \u201310,348 \u20131,553 \u20138,506 \u2013122,068 B/S Carrying amount, Dec 31, 2022 17,994 6,268 20,231 12,270 6,399 21,392 3,191 18,936 106,681 1 Read more in Note 14 Leasing, about right-of-use assets and assets under operating leases. 2 Operating leases mainly consists of contractual operating lease agreements with customers within Financial Services. 3 Read more in Note 7 Revenue, about sales with residual value commitments. 4 Read more in Note 3 Acquisitions and divestments of operations, for a description of acquired and divested operations as well as assets and liabilities held for sale ", "dimensions": { "concept": "ifrs-full:DisclosureOfImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1000": { "value": "ACCOUNTING POLICY Volvo Group applies the cost method for recognition of intangible assets, consisting of goodwill, capitalized product and software development and other intangible assets. Read more in Sustainability notes and section EU Taxonomy regulation disclosures about taxonomy eligible capital expenditure. Goodwill Goodwill is recognized as an intangible asset with indefinite useful life. For non-depreciable assets such as goodwill, impairment tests are performed annually, as well as if there are indications of impairments during the year. Goodwill is allocated and tested at the level of cash-generating units which are identified as the Volvo Group\u2019s operating segments. However, in the seg- ment Group Functions & Other three cash-generating units, Nova Bus, Designwerk and Arquus are included. If the carrying amount of the tested cash-generating unit exceeds the calculated recoverable amount, an impair- ment loss is recognized for the difference. The recoverable amount for a cash-generating unit is determined by the value in use, which is based on a discounted cash flow model with a forecast period of five years. The valuation is based on a business plan which is an integral part of the Volvo Group\u2019s finan- cial planning process and represents management\u2019s best estimate of the development of the operations. The ongoing transition of the transport sector towards new technologies and new service-based business models bring business opportunities but also transitional risks for the Volvo Group, which have been integrated into the strategy and business plans. Assumption of 2% (2) long-term market growth beyond the forecast period and the expected development of the operations in relation to this environment is a basis for the valuation. In the model, the Volvo Group is expected to maintain stable capital efficiency over time. Other parameters considered in the calculation are oper- ating income, mix of products and services , the transition towards electrifica- tion and other low-carbon transport solutions, expenses and level of capital expenditures. Macroeconomic risks and opportunites are reflected in the esti- mated future cash flows for each cash-generating unit. The Volvo Group uses a discount rate at 10% (10) before tax for 2023. In 2023, the recoverable amount of Volvo Group\u2019s operations exceeded the carrying amount for all cash-generating units, thus no impairment was recognized. The Volvo Group has also analyzed whether a negative adjust- ment of several percentage points on the used assumptions for discount rate and operating income would result in impairment for goodwill, how- ever none of the cash-generating units would be impaired as a result of this analysis. The operating parameters applied in the valuation are based on management\u2019s strategy and could indicate higher value than historical performance for each cash-generating unit. Furthermore, the Volvo Group is operating in a cyclical industry why performance could vary over time. Headroom differs between the cash-generating units and they are sen- sitive to changes in the assumptions described above to a varying degree. Therefore, the Volvo Group continuously follows the performance of the cash-generating units whose headroom is dependent on the fulfillment of the Volvo Group\u2019s assessments. Instability in the recovery of the market and volatility in interest and currency rates may lead to indications of a need for impairment. The most important factors for the future operations of the Volvo Group are described in the Volvo Group\u2019s operating seg- ments, as well as in the Risk management section. Research and development Expenditures for the development of new products and software are recog- nized as intangible assets if such expenditures, with a high degree of cer- tainty, will result in future economic benefits for the company. Intangible assets are amortized over its estimated useful life. The rules require stringent criteria to be met for these development expenditures to be recognized as assets. For example, it must be possible to prove the technical feasibility of completing the new product or software, so that it will be available for use or sale, before its development expendi- ture is recognized as an asset. In normal cases, this means that expendi- tures are capitalized only during the industrialization phase of a product development project. Other research and development costs are recog- nized in the income statement as incurred. The Volvo Group has developed a process for conducting product and soft- ware development projects. The product and software development process has six phases (including waterfall method and to some extent an agile approach) focused on separate parts of the project. Every phase starts and ends with a reconciliation point, known as a gate, for which the criteria must be met for the project\u2019s decision making committee to allow the project to progress to the next phase. During the industrialization phase, the industrial system is prepared for serial production and the product is launched. A substantial part of investments is directed towards zero tailpipe emissions technology, which is expected to increase over time. As the transition will take place gradually, the running fleets in the transportation sector are likely to include different technologies for vehicle and machin- ery propulsion that can be powered by renewable energy such as bat- tery-electric, fuel cell-electric or internal combustion engines running on lower carbon fuels. Existing products is therefore expected to generate economic benefits during the transition period and be used during its remaining useful life. Other intangible assets Other intangible assets include trademarks, distribution networks, licenses and other rights. When participating in industrial projects in partnership with other companies the Volvo Group in certain cases pays an entrance fee to participate, which is capitalized as an intangible asset . Amortization and impairment with finite useful life Intangible assets with finite useful life are amortized on a straight line basis over their estimated useful life. Amortization is based on the cost of the assets, adjusted by impairments when applicable and estimated useful lives. Amortization is recognized in the respective function to which it belongs, meaning that amortization of product development is part of the research and development expenses in the income statement. Impair- ment tests for amortizable assets are performed if there are indications of impairment. In addition, impairment tests are performed annually for cap- italized development cost for products and software not yet in use by cal- culating the recoverable amount. The recoverable amount is the higher of the fair value less costs of disposal and the value in use. The value in use is measured as the discounted future cash flows, which the asset is expected to generate either by itself or from the lowest cash-generating unit to which the asset belongs. If the recoverable amount is less than the carry- ing amount, an impairment is recognized and the carrying amount of the asset is reduced to the recoverable amount . SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Impairment of goodwill and other intangible assets When conducting impairment tests of goodwill and other intangible assets, estimates have to be made to determine the recoverable amounts of cash-generating units. The recoverable amount is based upon manage- ment\u2019s projections of future cash flows and are to a varying degree sensitive to changes in assumptions and the business environment. The broadening of the customer offer with focus to switch to more sustainable solutions accel- erates investments in research and development. The magnitude of invest- ments and the assessment of future useful life is uncertain due to technology and infrastructure development, emission regulations, government incen- tives and customer demand. While management believes that estimates of future cash flows and other assumptions made are reasonable, there are uncertainties which could materially affect the valuations . 1 2:1 Intangible assets, Dec 31, 2023 Goodwill Product and software development Other intangible assets Total Acquisition cost Opening balance 2023 25,636 54,753 7,872 88,261 Additions \u2013 4,845 433 5,278 Additions through acquired operations 1 74 \u2013 15 89 Disposals 1 , 2 \u2013138 \u201323 \u201324 \u2013185 Exchange rate changes \u2013266 \u201328 \u201369 \u2013362 Reclassifications to assets held for sale 1 \u2013445 \u20131,327 \u2013868 \u20132,641 Reclassifications and other \u2013 28 2 29 Acquisition cost, Dec 31, 2023 24,861 58,248 7,360 90,469 Accumulated amortization and impairment Opening balance 2023 \u2013 \u201341,361 \u20135,356 \u201346,717 Amortization \u2013 \u20132,874 \u2013150 \u20133,024 Impairment \u2013 \u201343 \u201311 \u201353 Disposals 1 \u2013 17 22 39 Exchange rate changes \u2013 25 43 67 Reclassifications to assets held for sale 1 \u2013 996 734 1,730 Reclassifications and other \u2013 \u2013 \u2013 \u2013 Accumulated amortization and impairment, Dec 31, 2023 \u2013 \u201343,240 \u20134,717 \u201347,957 B/S Carrying amount, Dec 31, 2023 24,861 15,008 2,643 42,512 12:2 Intangible assets, Dec 31, 2022 Goodwill Product and software development Other intangible assets Total Acquisition cost Opening balance 2022 23,924 49,723 6,833 80,480 Additions \u2013 4,786 604 5,390 Additions through acquired operations 1 146 7 98 251 Disposals 1 \u2013 \u201334 \u201367 \u2013102 Exchange rate changes 1,567 250 379 2,196 Reclassifications to assets held for sale 1 \u2013 \u2013 \u2013 \u2013 Reclassifications and other \u2013 20 25 45 Acquisition cost, Dec 31, 2022 25,636 54,753 7,872 88,261 Accumulated amortization and impairment Opening balance 2022 \u2013 \u201338,325 \u20135,086 \u201343,411 Amortization \u2013 \u20132,852 \u2013118 \u20132,970 Impairment \u2013 \u2013 \u20131 \u20131 Disposals 1 \u2013 21 67 88 Exchange rate changes \u2013 \u2013204 \u2013218 \u2013422 Reclassifications to assets held for sale 1 \u2013 \u2013 \u2013 \u2013 Reclassifications and other \u2013 \u2013 \u2013 \u2013 Accumulated amortization and impairment, Dec 31, 2022 \u2013 \u201341,361 \u20135,356 \u201346,717 B/S Carrying amount, Dec 31, 2022 25,636 13,393 2,516 41,544 1 Read more in Note 3 Acquisitions and divestments of operations, for a description of acquired and divested operations as well as assets and liabilities held for sale. 2 Nova Bus is exiting bus production in the US market whereof disposal of goodwill amounting to SEK 0.1 billion was part of the restructuring costs. 12:3 Goodwill per cash-generating unit Dec 31,2023 Dec 31, 2022 Trucks 13,203 13,237 Construction Equipment 9,620 9,814 Buses 853 865 Volvo Penta 371 382 Other cash-generating units 1 814 1,337 Total 24,861 25,636 12:4 Estimated useful life Trademarks Max 5 years Distribution networks 10 years Product and software development 3\u20138 years Other intangible assets 3\u20135 years 1 As of December 31, 2023 Arquus has been reclassified to assets held for sale. Read more in Note 3 Acquisitions and divestments of operations ", "dimensions": { "concept": "ifrs-full:DisclosureOfGoodwillExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1001": { "value": "ACCOUNTING POLICY Volvo Group applies the cost method for recognition of intangible assets, consisting of goodwill, capitalized product and software development and other intangible assets. Read more in Sustainability notes and section EU Taxonomy regulation disclosures about taxonomy eligible capital expenditure. Goodwill Goodwill is recognized as an intangible asset with indefinite useful life. For non-depreciable assets such as goodwill, impairment tests are performed annually, as well as if there are indications of impairments during the year. Goodwill is allocated and tested at the level of cash-generating units which are identified as the Volvo Group\u2019s operating segments. However, in the seg- ment Group Functions & Other three cash-generating units, Nova Bus, Designwerk and Arquus are included. If the carrying amount of the tested cash-generating unit exceeds the calculated recoverable amount, an impair- ment loss is recognized for the difference. The recoverable amount for a cash-generating unit is determined by the value in use, which is based on a discounted cash flow model with a forecast period of five years. The valuation is based on a business plan which is an integral part of the Volvo Group\u2019s finan- cial planning process and represents management\u2019s best estimate of the development of the operations. The ongoing transition of the transport sector towards new technologies and new service-based business models bring business opportunities but also transitional risks for the Volvo Group, which have been integrated into the strategy and business plans. Assumption of 2% (2) long-term market growth beyond the forecast period and the expected development of the operations in relation to this environment is a basis for the valuation. In the model, the Volvo Group is expected to maintain stable capital efficiency over time. Other parameters considered in the calculation are oper- ating income, mix of products and services , the transition towards electrifica- tion and other low-carbon transport solutions, expenses and level of capital expenditures. Macroeconomic risks and opportunites are reflected in the esti- mated future cash flows for each cash-generating unit. The Volvo Group uses a discount rate at 10% (10) before tax for 2023. In 2023, the recoverable amount of Volvo Group\u2019s operations exceeded the carrying amount for all cash-generating units, thus no impairment was recognized. The Volvo Group has also analyzed whether a negative adjust- ment of several percentage points on the used assumptions for discount rate and operating income would result in impairment for goodwill, how- ever none of the cash-generating units would be impaired as a result of this analysis. The operating parameters applied in the valuation are based on management\u2019s strategy and could indicate higher value than historical performance for each cash-generating unit. Furthermore, the Volvo Group is operating in a cyclical industry why performance could vary over time. Headroom differs between the cash-generating units and they are sen- sitive to changes in the assumptions described above to a varying degree. Therefore, the Volvo Group continuously follows the performance of the cash-generating units whose headroom is dependent on the fulfillment of the Volvo Group\u2019s assessments. Instability in the recovery of the market and volatility in interest and currency rates may lead to indications of a need for impairment. The most important factors for the future operations of the Volvo Group are described in the Volvo Group\u2019s operating seg- ments, as well as in the Risk management section. Research and development Expenditures for the development of new products and software are recog- nized as intangible assets if such expenditures, with a high degree of cer- tainty, will result in future economic benefits for the company. Intangible assets are amortized over its estimated useful life. The rules require stringent criteria to be met for these development expenditures to be recognized as assets. For example, it must be possible to prove the technical feasibility of completing the new product or software, so that it will be available for use or sale, before its development expendi- ture is recognized as an asset. In normal cases, this means that expendi- tures are capitalized only during the industrialization phase of a product development project. Other research and development costs are recog- nized in the income statement as incurred. The Volvo Group has developed a process for conducting product and soft- ware development projects. The product and software development process has six phases (including waterfall method and to some extent an agile approach) focused on separate parts of the project. Every phase starts and ends with a reconciliation point, known as a gate, for which the criteria must be met for the project\u2019s decision making committee to allow the project to progress to the next phase. During the industrialization phase, the industrial system is prepared for serial production and the product is launched. A substantial part of investments is directed towards zero tailpipe emissions technology, which is expected to increase over time. As the transition will take place gradually, the running fleets in the transportation sector are likely to include different technologies for vehicle and machin- ery propulsion that can be powered by renewable energy such as bat- tery-electric, fuel cell-electric or internal combustion engines running on lower carbon fuels. Existing products is therefore expected to generate economic benefits during the transition period and be used during its remaining useful life. Other intangible assets Other intangible assets include trademarks, distribution networks, licenses and other rights. When participating in industrial projects in partnership with other companies the Volvo Group in certain cases pays an entrance fee to participate, which is capitalized as an intangible asset . Amortization and impairment with finite useful life Intangible assets with finite useful life are amortized on a straight line basis over their estimated useful life. Amortization is based on the cost of the assets, adjusted by impairments when applicable and estimated useful lives. Amortization is recognized in the respective function to which it belongs, meaning that amortization of product development is part of the research and development expenses in the income statement. Impair- ment tests for amortizable assets are performed if there are indications of impairment. In addition, impairment tests are performed annually for cap- italized development cost for products and software not yet in use by cal- culating the recoverable amount. The recoverable amount is the higher of the fair value less costs of disposal and the value in use. The value in use is measured as the discounted future cash flows, which the asset is expected to generate either by itself or from the lowest cash-generating unit to which the asset belongs. If the recoverable amount is less than the carry- ing amount, an impairment is recognized and the carrying amount of the asset is reduced to the recoverable amount . SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Impairment of goodwill and other intangible assets When conducting impairment tests of goodwill and other intangible assets, estimates have to be made to determine the recoverable amounts of cash-generating units. The recoverable amount is based upon manage- ment\u2019s projections of future cash flows and are to a varying degree sensitive to changes in assumptions and the business environment. The broadening of the customer offer with focus to switch to more sustainable solutions accel- erates investments in research and development. The magnitude of invest- ments and the assessment of future useful life is uncertain due to technology and infrastructure development, emission regulations, government incen- tives and customer demand. While management believes that estimates of future cash flows and other assumptions made are reasonable, there are uncertainties which could materially affect the valuations 1 2:1 Intangible assets, Dec 31, 2023 Goodwill Product and software development Other intangible assets Total Acquisition cost Opening balance 2023 25,636 54,753 7,872 88,261 Additions \u2013 4,845 433 5,278 Additions through acquired operations 1 74 \u2013 15 89 Disposals 1 , 2 \u2013138 \u201323 \u201324 \u2013185 Exchange rate changes \u2013266 \u201328 \u201369 \u2013362 Reclassifications to assets held for sale 1 \u2013445 \u20131,327 \u2013868 \u20132,641 Reclassifications and other \u2013 28 2 29 Acquisition cost, Dec 31, 2023 24,861 58,248 7,360 90,469 Accumulated amortization and impairment Opening balance 2023 \u2013 \u201341,361 \u20135,356 \u201346,717 Amortization \u2013 \u20132,874 \u2013150 \u20133,024 Impairment \u2013 \u201343 \u201311 \u201353 Disposals 1 \u2013 17 22 39 Exchange rate changes \u2013 25 43 67 Reclassifications to assets held for sale 1 \u2013 996 734 1,730 Reclassifications and other \u2013 \u2013 \u2013 \u2013 Accumulated amortization and impairment, Dec 31, 2023 \u2013 \u201343,240 \u20134,717 \u201347,957 B/S Carrying amount, Dec 31, 2023 24,861 15,008 2,643 42,512 12:2 Intangible assets, Dec 31, 2022 Goodwill Product and software development Other intangible assets Total Acquisition cost Opening balance 2022 23,924 49,723 6,833 80,480 Additions \u2013 4,786 604 5,390 Additions through acquired operations 1 146 7 98 251 Disposals 1 \u2013 \u201334 \u201367 \u2013102 Exchange rate changes 1,567 250 379 2,196 Reclassifications to assets held for sale 1 \u2013 \u2013 \u2013 \u2013 Reclassifications and other \u2013 20 25 45 Acquisition cost, Dec 31, 2022 25,636 54,753 7,872 88,261 Accumulated amortization and impairment Opening balance 2022 \u2013 \u201338,325 \u20135,086 \u201343,411 Amortization \u2013 \u20132,852 \u2013118 \u20132,970 Impairment \u2013 \u2013 \u20131 \u20131 Disposals 1 \u2013 21 67 88 Exchange rate changes \u2013 \u2013204 \u2013218 \u2013422 Reclassifications to assets held for sale 1 \u2013 \u2013 \u2013 \u2013 Reclassifications and other \u2013 \u2013 \u2013 \u2013 Accumulated amortization and impairment, Dec 31, 2022 \u2013 \u201341,361 \u20135,356 \u201346,717 B/S Carrying amount, Dec 31, 2022 25,636 13,393 2,516 41,544 1 Read more in Note 3 Acquisitions and divestments of operations, for a description of acquired and divested operations as well as assets and liabilities held for sale. 2 Nova Bus is exiting bus production in the US market whereof disposal of goodwill amounting to SEK 0.1 billion was part of the restructuring costs. 12:3 Goodwill per cash-generating unit Dec 31,2023 Dec 31, 2022 Trucks 13,203 13,237 Construction Equipment 9,620 9,814 Buses 853 865 Volvo Penta 371 382 Other cash-generating units 1 814 1,337 Total 24,861 25,636 12:4 Estimated useful life Trademarks Max 5 years Distribution networks 10 years Product and software development 3\u20138 years Other intangible assets 3\u20135 years 1 As of December 31, 2023 Arquus has been reclassified to assets held for sale. Read more in Note 3 Acquisitions and divestments of operations ACCOUNTING POLICY The Volvo Group applies the cost method for measurement of tangible assets, consisting of property, plant, equipment and investment property as well as assets under operating leases. Buildings include owner-occupied properties and investment proper- ties. Investment properties are properties owned for the purpose of obtaining rental income and appreciation in value. Investment properties are recognized at cost. For disclosure purposes, information regarding the estimated fair value of investment properties is based on an internal dis- counted cash flow projection as relevant observable market inputs for the assets are not available. The required return is based on current property market conditions for comparable properties in comparable locations. Hence, the applied valuation method to measure fair value is classified as level 3 of the fair value hierarchy and there have not been any changes in valuation method during the year. Land includes land and land improve- ments. Machinery and equipment consist of production related assets such as machinery, type-bound tools and other equipment. A substantial part of investments is directed towards zero tailpipe emissions technol- ogy, which is expected to increase over time. However, both electric trucks and trucks with combustion engines can be produced on the same assembly lines, thus limiting the investments needed for this transition in the industrial system. Construction in progress are assets under con- struction and advanced payments. Right-of-use assets relates to lease contracts with the Volvo Group as a lessee. Assets under operating leases are mainly owned by the Volvo Group. These transactions are accounted for as operating lease transactions and consists of contractual operating lease agreements with customers within Financial Services and rental fleet which are assets used in a fleet for rental business within Industrial Operations. Some rental fleet assets are leased by the Volvo Group and later sub-leased to customers as oper- ating leases. Sales with residual value commitments within Industrial Operations are also recognized within assets under operating leases. Read more in Note 7 Revenue, about sales with residual value commitments. Read more in Note 14 Leasing, about right-of-use assets and assets under operating leases. Read more in Sustainability notes and section EU Taxonomy regulation disclosures about taxonomy eligible capital expenditure. Depreciation and impairment Property, plant, equipment and investment property are depreciated over their estimated useful lives. Land is not depreciated. Depreciation is rec- ognized on a straight-line basis based on the cost of the assets, adjusted by residual value when applicable, and estimated useful lives. Right-of- use assets are generally depreciated over the lease term on a straight-line basis. Assets under operating leases are depreciated on a straight-line basis over the contract period. During the contract period, the depreciable amount is adjusted by accelerated depreciation and/or write-downs. The adjustment is recognized through the income statement to correspond to estimated future net realizable value to continuously reflect potential residual value risks at the end of the contract period. The net realizable value is impacted by value of optional equipment, mileage, current condi- tion, expected future price development, change of market conditions, the transition towards electrification and other low-carbon transport solutions, alternative distribution channels, inventory lead-time, repair and reconditioning costs, handling costs, indirect costs associated with the sale of used vehicles and legislative demands. Some of the locations may also be subject to increased risks from physical weather events depending on climate developments. These risks are monitored and are not expected to materially impact the estimated useful life. The deprecia- tion is recog nized in the respective function to which it belongs. Impair- ment tests are performed if there are indications of impairment by calcu- lating a recoverable amount which is the higher of the asset\u2019s fair value less cost of disposal and its value in use. 13:1 Estimated useful life Type-bound tools 3\u20138 years Operating leases, rental fleet 3\u20135 years Sales with residual value commitments 3\u20135 years Machinery and equipment 5\u201320 years Buildings and investment properties 20\u201350 years Land improvements 20 years SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Impairment of tangible assets Impairment tests are performed if there is any indication that a tangible asset has been impaired. The impairment tests are based on estimation of the recoverable amount of the asset, or the cash-generating unit to which the asset belongs. To determine the recoverable amount, projections of future cash flows are used, which are based upon internal business plans and forecasts. The ongoing transition of the transport sector towards new technologies with electrified and other lower emission technology vehicles bring uncertainties regarding current and future investments in production facilities as well as estimated useful life. Also, some of the production sites are located in areas with physical climate risks and may in the long run be subject to increased stress from physical weather events. Physical risks bring uncertainties when estimating useful life and indication of impair- ment. While management believes that estimates of future cash flows and other assumptions made are reasonable, there are uncertainties which could materially affect the valuations. Residual value risks Volvo Group is exposed to residual value risks related to assets under operating leases which are the risks that the Volvo Group in the future would have to dispose used vehicles at a loss if the price development of these products is worse than what was expected when the contracts were entered. The assessment of residual value risks is based upon an estimation of the used vehicle\u2019s future net realizable value (fair market value) and a declined value may negatively affect the Volvo Group\u2019s oper- ating income. High inventories in the truck industry and the construction equipment industry and low demand may have a negative impact on the prices of new and used vehicles. The estimated future net realizable value of the vehicles at the end of the contract period is monitored individually on a continuing basis. In monitoring the estimated net realizable value of each vehicle, management considers current price level of the used vehi- cle, supply chain and production disturbances and the transition to elec- trified and other lower emission technology vehicles which imply to some extent uncertainties in the assessment. Reclassifications Reclassifications of construction in progress and assets under operating lease are presented in the tables 13:2 and 13:3. For construction in progress, reclassifications occurs when the asset is available for use by transferring the assets to the respective category within property, plant and equipment. The transfer is reported within reclassifications and other. For operating leases, rental fleet and sales with residual value commit- ments (buyback and trade backs), reclassifications occur when vehicles are sold or rented out to customers. The vehicle is transferred from inven- tory to assets under operating leases and reported as additions. If the vehicle is returned by the end of the residual value commitment period or the leasing period, the vehicle is transferred back to inventory and reported as disposals. Investment properties The acquisition value of investment properties at year-end amounted to SEK 95 M (93). Reclassifications amounted to SEK 0 M (0). Accumulated depreciation amounted to SEK 43 M (39) at year-end, of which SEK 4 M (3) refers to 2023. The net carrying value amounted to SEK 53 M (54). The estimated fair value of investment properties amounted to SEK 117 M (102) at year-end and 97% (97) of the area available for lease was leased out during the year. Operating income was affected by rental income from investment properties that amounted to SEK 12 M (11) and direct costs that amounted to SEK 6 M (1). 13:2 Tangible assets, Dec 31, 2023 Property, plant, equipment and investment property Assets under operating leases\u00b9 Buildings Land and land improve- ments Machinery and equip- ment Construc- tion in progress Right- of-use assets\u00b9 Operating leases 2 Rental fleet Sales w. residual value commit- ments\u00b3 Total Acquisition cost Opening balance 2023 39,685 7,906 91,455 12,273 13,504 31,740 4,744 27,442 228,749 Additions 961 104 2,420 9,634 1,832 10,267 3,131 4,826 33,176 Additions through acquired operations 4 50 26 16 \u2013 45 \u2013 \u2013 \u2013 137 Disposals 4 \u20131,088 \u201392 \u20133,032 \u20137 \u20131,183 \u201310,576 \u20131,816 \u20136,125 \u201323,918 Exchange rate changes \u2013832 \u2013165 \u20131,390 \u2013281 \u2013330 \u2013617 \u2013116 \u2013326 \u20134,059 Reclassifications to assets held for sale 4 \u20131,253 \u2013232 \u20131,508 \u201317 \u2013391 \u2013 \u2013 \u2013 \u20133,401 Reclassifications and other 2,017 217 3,058 \u20135,345 1,461 30 \u201395 \u20131,105 238 Acquisition costs, Dec 31, 2023 39,539 7,764 91,020 16,257 14,938 30,843 5,848 24,712 230,922 Accumulated depreciation and impairments Opening balance 2023 \u201321,691 \u20131,638 \u201371,224 \u20133 \u20137,105 \u201310,348 \u20131,553 \u20138,506 \u2013122,068 Depreciation \u20131,448 \u2013130 \u20134,600 \u2013 \u20132,363 \u20134,973 \u2013791 \u20133,018 \u201317,323 Impairment \u201310 \u2013 \u201395 \u201358 \u2013 \u20133 \u2013 \u2013662 \u2013827 Disposals 4 1,135 56 2,956 \u2013 1,130 5,591 760 3,131 14,757 Exchange rate changes 474 26 1,082 \u2013 167 175 17 112 2,054 Reclassifications to assets held for sale 4 654 84 1,195 \u2013 254 \u2013 \u2013 \u2013 2,187 Reclassifications and other 52 1 \u20135 \u2013 35 9 17 548 658 Accumulated depreciation and impairments, Dec 31, 2023 \u201320,834 \u20131,602 \u201370,691 \u201361 \u20137,882 \u20139,549 \u20131,549 \u20138,395 \u2013120,562 B/S Carrying amount, Dec 31, 2023 18,706 6,162 20,329 16,196 7,056 21,295 4,299 16,317 110,359 1 Read more in Note 14 Leasing, about right-of-use assets and assets under operating leases. 2 Operating leases mainly consists of contractual operating lease agreements with customers within Financial Services. 3 Read more in Note 7 Revenue, about sales with residual value commitments. 4 Read more in Note 3 Acquisitions and divestments of operations, for a description of acquired and divested operations as well as assets and liabilities held for sale .
13:3
Tangible assets, Dec 31, 2022 Property, plant, equipment
and investment property
Assets under operating
leases\u00b9
Buildings
Land and
land
improve-
ments
Machinery
and equip-
ment
Construc-
tion in
progress
Right-
of-use
assets\u00b9
Operating
leases
2
Rental
fleet
Sales w.
residual
value
commit-
ments\u00b3 Total
Acquisition cost
Opening balance 2022 34,705 7,107 82,209 8,792 10,965 28,770 4,660 25,095 202,304
Additions 498 103 2,575 8,125 1,475 9,155 2,048 6,521 30,498
Additions through acquired operations
4
\u2013 \u2013 35 11 1 \u2013 8 \u2013 56
Disposals
4
\u2013173 \u201391 \u20131,917 \u201347 \u2013523 \u20139,540 \u20131,779 \u20136,500 \u201320,571
Exchange rate changes 2,880 583 5,150 710 907 2,699 433 2,042 15,403
Reclassifications to assets held for sale
4
\u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013
Reclassifications and other 1,775 205 3,403 \u20135,318 679 657 \u2013626 284 1,059
Acquisition costs, Dec 31, 2022 39,685 7,906 91,455 12,273 13,504 31,740 4,744 27,442 228,749
Accumulated depreciation
and impairments
Opening balance 2022 \u201318,516 \u20131,406 \u201364,446 \u2013 \u20135,006 \u20139,131 \u20131,568 \u20137,856 \u2013107,930
Depreciation \u20131,333 \u2013112 \u20134,376 \u2013 \u20132,144 \u20134,741 \u2013677 \u20133,039 \u201316,423
Impairment \u2013448 \u201330 \u2013165 \u20133 \u201314 20 \u20134 \u2013691 \u20131,336
Disposals
4
130 21 1,761 \u2013 451 4,588 591 3,510 11,051
Exchange rate changes \u20131,527 \u2013109 \u20134,011 \u2013 \u2013425 \u2013843 \u2013145 \u2013642 \u20137,701
Reclassifications to assets held for sale
4
\u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013
Reclassifications and other 4 \u20132 14 \u2013 34 \u2013241 250 212 271
Accumulated depreciation and
impairments, Dec 31, 2022 \u201321,691 \u20131,638 \u201371,224 \u20133 \u20137,105 \u201310,348 \u20131,553 \u20138,506 \u2013122,068
B/S
Carrying amount, Dec 31, 2022
17,994 6,268 20,231 12,270 6,399 21,392 3,191 18,936 106,681
1 Read more in Note 14 Leasing, about right-of-use assets and assets under operating leases.
2 Operating leases mainly consists of contractual operating lease agreements with customers within Financial Services.
3
Read more in Note 7 Revenue, about sales with residual value commitments.
4
Read more in Note 3 Acquisitions and divestments of operations, for a description of acquired and divested operations as well as assets and liabilities held for sale .
", "dimensions": { "concept": "ifrs-full:DisclosureOfDepreciationAndAmortisationExpenseExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1004": { "value": "
Goodwill
Goodwill is recognized as an intangible asset with indefinite useful life. For
non-depreciable assets such as goodwill, impairment tests are performed
annually, as well as if there are indications of impairments during the year.
Goodwill is allocated and tested at the level of cash-generating units which
are identified as the Volvo Group\u2019s operating segments. However, in the seg-
ment Group Functions & Other three cash-generating units, Nova Bus,
Designwerk and Arquus are included. If the carrying amount of the tested
cash-generating unit exceeds the calculated recoverable amount, an impair-
ment loss is recognized for the difference. The recoverable amount for a
cash-generating unit is determined by the value in use, which is based on a
discounted cash flow model with a forecast period of five years. The valuation
is based on a business plan which is an integral part of the Volvo Group\u2019s finan-
cial planning process and represents management\u2019s best estimate of the
development of the operations. The ongoing transition of the transport sector
towards new technologies and new service-based business models bring
business opportunities but also transitional risks for the Volvo Group, which
have been integrated into the strategy and business plans. Assumption of 2%
(2) long-term market growth beyond the forecast period and the expected
development of the operations in relation to this environment is a basis for the
valuation. In the model, the Volvo Group is expected to maintain stable capital
efficiency over time. Other parameters considered in the calculation are oper-
ating income, mix of products and services , the transition towards electrifica-
tion and other low-carbon transport solutions, expenses and level of capital
expenditures. Macroeconomic risks and opportunites are reflected in the esti-
mated future cash flows for each cash-generating unit. The Volvo Group uses
a discount rate at 10% (10) before tax for 2023.
In 2023, the recoverable amount of Volvo Group\u2019s operations exceeded
the carrying amount for all cash-generating units, thus no impairment was
recognized. The Volvo Group has also analyzed whether a negative adjust-
ment of several percentage points on the used assumptions for discount
rate and operating income would result in impairment for goodwill, how-
ever none of the cash-generating units would be impaired as a result of
this analysis. The operating parameters applied in the valuation are based
on management\u2019s strategy and could indicate higher value than historical
performance for each cash-generating unit. Furthermore, the Volvo Group
is operating in a cyclical industry why performance could vary over time.
Headroom differs between the cash-generating units and they are sen-
sitive to changes in the assumptions described above to a varying degree.
Therefore, the Volvo Group continuously follows the performance of the
cash-generating units whose headroom is dependent on the fulfillment of
the Volvo Group\u2019s assessments. Instability in the recovery of the market
and volatility in interest and currency rates may lead to indications of a
need for impairment. The most important factors for the future operations
of the Volvo Group are described in the Volvo Group\u2019s operating seg-
ments, as well as in the Risk management section.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1005": { "value": "Goodwill Goodwill is recognized as an intangible asset with indefinite useful life. For non-depreciable assets such as goodwill, impairment tests are performed annually, as well as if there are indications of impairments during the year. Goodwill is allocated and tested at the level of cash-generating units which are identified as the Volvo Group\u2019s operating segments. However, in the seg- ment Group Functions & Other three cash-generating units, Nova Bus, Designwerk and Arquus are included. If the carrying amount of the tested cash-generating unit exceeds the calculated recoverable amount, an impair- ment loss is recognized for the difference. The recoverable amount for a cash-generating unit is determined by the value in use, which is based on a discounted cash flow model with a forecast period of five years. The valuation is based on a business plan which is an integral part of the Volvo Group\u2019s finan- cial planning process and represents management\u2019s best estimate of the development of the operations. The ongoing transition of the transport sector towards new technologies and new service-based business models bring business opportunities but also transitional risks for the Volvo Group, which have been integrated into the strategy and business plans. Assumption of 2% (2) long-term market growth beyond the forecast period and the expected development of the operations in relation to this environment is a basis for the valuation. In the model, the Volvo Group is expected to maintain stable capital efficiency over time. Other parameters considered in the calculation are oper- ating income, mix of products and services , the transition towards electrifica- tion and other low-carbon transport solutions, expenses and level of capital expenditures. Macroeconomic risks and opportunites are reflected in the esti- mated future cash flows for each cash-generating unit. The Volvo Group uses a discount rate at 10% (10) before tax for 2023. In 2023, the recoverable amount of Volvo Group\u2019s operations exceeded the carrying amount for all cash-generating units, thus no impairment was recognized. The Volvo Group has also analyzed whether a negative adjust- ment of several percentage points on the used assumptions for discount rate and operating income would result in impairment for goodwill, how- ever none of the cash-generating units would be impaired as a result of this analysis. The operating parameters applied in the valuation are based on management\u2019s strategy and could indicate higher value than historical performance for each cash-generating unit. Furthermore, the Volvo Group is operating in a cyclical industry why performance could vary over time. Headroom differs between the cash-generating units and they are sen- sitive to changes in the assumptions described above to a varying degree. Therefore, the Volvo Group continuously follows the performance of the cash-generating units whose headroom is dependent on the fulfillment of the Volvo Group\u2019s assessments. Instability in the recovery of the market and volatility in interest and currency rates may lead to indications of a need for impairment. The most important factors for the future operations of the Volvo Group are described in the Volvo Group\u2019s operating seg- ments, as well as in the Risk management section. Research and development Expenditures for the development of new products and software are recog- nized as intangible assets if such expenditures, with a high degree of cer- tainty, will result in future economic benefits for the company. Intangible assets are amortized over its estimated useful life. The rules require stringent criteria to be met for these development expenditures to be recognized as assets. For example, it must be possible to prove the technical feasibility of completing the new product or software, so that it will be available for use or sale, before its development expendi- ture is recognized as an asset. In normal cases, this means that expendi- tures are capitalized only during the industrialization phase of a product development project. Other research and development costs are recog- nized in the income statement as incurred. The Volvo Group has developed a process for conducting product and soft- ware development projects. The product and software development process has six phases (including waterfall method and to some extent an agile approach) focused on separate parts of the project. Every phase starts and ends with a reconciliation point, known as a gate, for which the criteria must be met for the project\u2019s decision making committee to allow the project to progress to the next phase. During the industrialization phase, the industrial system is prepared for serial production and the product is launched. A substantial part of investments is directed towards zero tailpipe emissions technology, which is expected to increase over time. As the transition will take place gradually, the running fleets in the transportation sector are likely to include different technologies for vehicle and machin- ery propulsion that can be powered by renewable energy such as bat- tery-electric, fuel cell-electric or internal combustion engines running on lower carbon fuels. Existing products is therefore expected to generate economic benefits during the transition period and be used during its remaining useful life. Other intangible assets Other intangible assets include trademarks, distribution networks, licenses and other rights. When participating in industrial projects in partnership with other companies the Volvo Group in certain cases pays an entrance fee to participate, which is capitalized as an intangible asset ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1006": { "value": "Research and development Expenditures for the development of new products and software are recog- nized as intangible assets if such expenditures, with a high degree of cer- tainty, will result in future economic benefits for the company. Intangible assets are amortized over its estimated useful life. The rules require stringent criteria to be met for these development expenditures to be recognized as assets. For example, it must be possible to prove the technical feasibility of completing the new product or software, so that it will be available for use or sale, before its development expendi- ture is recognized as an asset. In normal cases, this means that expendi- tures are capitalized only during the industrialization phase of a product development project. Other research and development costs are recog- nized in the income statement as incurred. The Volvo Group has developed a process for conducting product and soft- ware development projects. The product and software development process has six phases (including waterfall method and to some extent an agile approach) focused on separate parts of the project. Every phase starts and ends with a reconciliation point, known as a gate, for which the criteria must be met for the project\u2019s decision making committee to allow the project to progress to the next phase. During the industrialization phase, the industrial system is prepared for serial production and the product is launched. A substantial part of investments is directed towards zero tailpipe emissions technology, which is expected to increase over time. As the transition will take place gradually, the running fleets in the transportation sector are likely to include different technologies for vehicle and machin- ery propulsion that can be powered by renewable energy such as bat- tery-electric, fuel cell-electric or internal combustion engines running on lower carbon fuels. Existing products is therefore expected to generate economic benefits during the transition period and be used during its remaining useful life. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForResearchAndDevelopmentExpenseExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1007": { "value": "Other intangible assets Other intangible assets include trademarks, distribution networks, licenses and other rights. When participating in industrial projects in partnership with other companies the Volvo Group in certain cases pays an entrance fee to participate, which is capitalized as an intangible asset ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsOtherThanGoodwillExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1008": { "value": "Amortization and impairment with finite useful life Intangible assets with finite useful life are amortized on a straight line basis over their estimated useful life. Amortization is based on the cost of the assets, adjusted by impairments when applicable and estimated useful lives. Amortization is recognized in the respective function to which it belongs, meaning that amortization of product development is part of the research and development expenses in the income statement. Impair- ment tests for amortizable assets are performed if there are indications of impairment. In addition, impairment tests are performed annually for cap- italized development cost for products and software not yet in use by cal- culating the recoverable amount. The recoverable amount is the higher of the fair value less costs of disposal and the value in use. The value in use is measured as the discounted future cash flows, which the asset is expected to generate either by itself or from the lowest cash-generating unit to which the asset belongs. If the recoverable amount is less than the carry- ing amount, an impairment is recognized and the carrying amount of the asset is reduced to the recoverable amount . Depreciation and impairment Property, plant, equipment and investment property are depreciated over their estimated useful lives. Land is not depreciated. Depreciation is rec- ognized on a straight-line basis based on the cost of the assets, adjusted by residual value when applicable, and estimated useful lives. Right-of- use assets are generally depreciated over the lease term on a straight-line basis. Assets under operating leases are depreciated on a straight-line basis over the contract period. During the contract period, the depreciable amount is adjusted by accelerated depreciation and/or write-downs. The adjustment is recognized through the income statement to correspond to estimated future net realizable value to continuously reflect potential residual value risks at the end of the contract period. The net realizable value is impacted by value of optional equipment, mileage, current condi- tion, expected future price development, change of market conditions, the transition towards electrification and other low-carbon transport solutions, alternative distribution channels, inventory lead-time, repair and reconditioning costs, handling costs, indirect costs associated with the sale of used vehicles and legislative demands. Some of the locations may also be subject to increased risks from physical weather events depending on climate developments. These risks are monitored and are not expected to materially impact the estimated useful life. The deprecia- tion is recog nized in the respective function to which it belongs. Impair- ment tests are performed if there are indications of impairment by calcu- lating a recoverable amount which is the higher of the asset\u2019s fair value less cost of disposal and its value in use. 13:1 Estimated useful life Type-bound tools 3\u20138 years Operating leases, rental fleet 3\u20135 years Sales with residual value commitments 3\u20135 years Machinery and equipment 5\u201320 years Buildings and investment properties 20\u201350 years Land improvements 20 years ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1009": { "value": "Amortization and impairment with finite useful life Intangible assets with finite useful life are amortized on a straight line basis over their estimated useful life. Amortization is based on the cost of the assets, adjusted by impairments when applicable and estimated useful lives. Amortization is recognized in the respective function to which it belongs, meaning that amortization of product development is part of the research and development expenses in the income statement. Impair- ment tests for amortizable assets are performed if there are indications of impairment. In addition, impairment tests are performed annually for cap- italized development cost for products and software not yet in use by cal- culating the recoverable amount. The recoverable amount is the higher of the fair value less costs of disposal and the value in use. The value in use is measured as the discounted future cash flows, which the asset is expected to generate either by itself or from the lowest cash-generating unit to which the asset belongs. If the recoverable amount is less than the carry- ing amount, an impairment is recognized and the carrying amount of the asset is reduced to the recoverable amount Depreciation and impairment Property, plant, equipment and investment property are depreciated over their estimated useful lives. Land is not depreciated. Depreciation is rec- ognized on a straight-line basis based on the cost of the assets, adjusted by residual value when applicable, and estimated useful lives. Right-of- use assets are generally depreciated over the lease term on a straight-line basis. Assets under operating leases are depreciated on a straight-line basis over the contract period. During the contract period, the depreciable amount is adjusted by accelerated depreciation and/or write-downs. The adjustment is recognized through the income statement to correspond to estimated future net realizable value to continuously reflect potential residual value risks at the end of the contract period. The net realizable value is impacted by value of optional equipment, mileage, current condi- tion, expected future price development, change of market conditions, the transition towards electrification and other low-carbon transport solutions, alternative distribution channels, inventory lead-time, repair and reconditioning costs, handling costs, indirect costs associated with the sale of used vehicles and legislative demands. Some of the locations may also be subject to increased risks from physical weather events depending on climate developments. These risks are monitored and are not expected to materially impact the estimated useful life. The deprecia- tion is recog nized in the respective function to which it belongs. Impair- ment tests are performed if there are indications of impairment by calcu- lating a recoverable amount which is the higher of the asset\u2019s fair value less cost of disposal and its value in use. 13:1 Estimated useful life Type-bound tools 3\u20138 years Operating leases, rental fleet 3\u20135 years Sales with residual value commitments 3\u20135 years Machinery and equipment 5\u201320 years Buildings and investment properties 20\u201350 years Land improvements 20 years ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1010": { "value": "Amortization and impairment with finite useful life Intangible assets with finite useful life are amortized on a straight line basis over their estimated useful life. Amortization is based on the cost of the assets, adjusted by impairments when applicable and estimated useful lives. Amortization is recognized in the respective function to which it belongs, meaning that amortization of product development is part of the research and development expenses in the income statement. Impair- ment tests for amortizable assets are performed if there are indications of impairment. In addition, impairment tests are performed annually for cap- italized development cost for products and software not yet in use by cal- culating the recoverable amount. The recoverable amount is the higher of the fair value less costs of disposal and the value in use. The value in use is measured as the discounted future cash flows, which the asset is expected to generate either by itself or from the lowest cash-generating unit to which the asset belongs. If the recoverable amount is less than the carry- ing amount, an impairment is recognized and the carrying amount of the asset is reduced to the recoverable amount Depreciation and impairment Property, plant, equipment and investment property are depreciated over their estimated useful lives. Land is not depreciated. Depreciation is rec- ognized on a straight-line basis based on the cost of the assets, adjusted by residual value when applicable, and estimated useful lives. Right-of- use assets are generally depreciated over the lease term on a straight-line basis. Assets under operating leases are depreciated on a straight-line basis over the contract period. During the contract period, the depreciable amount is adjusted by accelerated depreciation and/or write-downs. The adjustment is recognized through the income statement to correspond to estimated future net realizable value to continuously reflect potential residual value risks at the end of the contract period. The net realizable value is impacted by value of optional equipment, mileage, current condi- tion, expected future price development, change of market conditions, the transition towards electrification and other low-carbon transport solutions, alternative distribution channels, inventory lead-time, repair and reconditioning costs, handling costs, indirect costs associated with the sale of used vehicles and legislative demands. Some of the locations may also be subject to increased risks from physical weather events depending on climate developments. These risks are monitored and are not expected to materially impact the estimated useful life. The deprecia- tion is recog nized in the respective function to which it belongs. Impair- ment tests are performed if there are indications of impairment by calcu- lating a recoverable amount which is the higher of the asset\u2019s fair value less cost of disposal and its value in use. 13:1 Estimated useful life Type-bound tools 3\u20138 years Operating leases, rental fleet 3\u20135 years Sales with residual value commitments 3\u20135 years Machinery and equipment 5\u201320 years Buildings and investment properties 20\u201350 years Land improvements 20 years ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1013": { "value": "ACCOUNTING POLICY The Volvo Group applies the cost method for measurement of tangible assets, consisting of property, plant, equipment and investment property as well as assets under operating leases. Buildings include owner-occupied properties and investment proper- ties. Investment properties are properties owned for the purpose of obtaining rental income and appreciation in value. Investment properties are recognized at cost. For disclosure purposes, information regarding the estimated fair value of investment properties is based on an internal dis- counted cash flow projection as relevant observable market inputs for the assets are not available. The required return is based on current property market conditions for comparable properties in comparable locations. Hence, the applied valuation method to measure fair value is classified as level 3 of the fair value hierarchy and there have not been any changes in valuation method during the year. Land includes land and land improve- ments. Machinery and equipment consist of production related assets such as machinery, type-bound tools and other equipment. A substantial part of investments is directed towards zero tailpipe emissions technol- ogy, which is expected to increase over time. However, both electric trucks and trucks with combustion engines can be produced on the same assembly lines, thus limiting the investments needed for this transition in the industrial system. Construction in progress are assets under con- struction and advanced payments. Right-of-use assets relates to lease contracts with the Volvo Group as a lessee. Assets under operating leases are mainly owned by the Volvo Group. These transactions are accounted for as operating lease transactions and consists of contractual operating lease agreements with customers within Financial Services and rental fleet which are assets used in a fleet for rental business within Industrial Operations. Some rental fleet assets are leased by the Volvo Group and later sub-leased to customers as oper- ating leases. Sales with residual value commitments within Industrial Operations are also recognized within assets under operating leases. Read more in Note 7 Revenue, about sales with residual value commitments. Read more in Note 14 Leasing, about right-of-use assets and assets under operating leases. Read more in Sustainability notes and section EU Taxonomy regulation disclosures about taxonomy eligible capital expenditure. Depreciation and impairment Property, plant, equipment and investment property are depreciated over their estimated useful lives. Land is not depreciated. Depreciation is rec- ognized on a straight-line basis based on the cost of the assets, adjusted by residual value when applicable, and estimated useful lives. Right-of- use assets are generally depreciated over the lease term on a straight-line basis. Assets under operating leases are depreciated on a straight-line basis over the contract period. During the contract period, the depreciable amount is adjusted by accelerated depreciation and/or write-downs. The adjustment is recognized through the income statement to correspond to estimated future net realizable value to continuously reflect potential residual value risks at the end of the contract period. The net realizable value is impacted by value of optional equipment, mileage, current condi- tion, expected future price development, change of market conditions, the transition towards electrification and other low-carbon transport solutions, alternative distribution channels, inventory lead-time, repair and reconditioning costs, handling costs, indirect costs associated with the sale of used vehicles and legislative demands. Some of the locations may also be subject to increased risks from physical weather events depending on climate developments. These risks are monitored and are not expected to materially impact the estimated useful life. The deprecia- tion is recog nized in the respective function to which it belongs. Impair- ment tests are performed if there are indications of impairment by calcu- lating a recoverable amount which is the higher of the asset\u2019s fair value less cost of disposal and its value in use. 13:1 Estimated useful life Type-bound tools 3\u20138 years Operating leases, rental fleet 3\u20135 years Sales with residual value commitments 3\u20135 years Machinery and equipment 5\u201320 years Buildings and investment properties 20\u201350 years Land improvements 20 years SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Impairment of tangible assets Impairment tests are performed if there is any indication that a tangible asset has been impaired. The impairment tests are based on estimation of the recoverable amount of the asset, or the cash-generating unit to which the asset belongs. To determine the recoverable amount, projections of future cash flows are used, which are based upon internal business plans and forecasts. The ongoing transition of the transport sector towards new technologies with electrified and other lower emission technology vehicles bring uncertainties regarding current and future investments in production facilities as well as estimated useful life. Also, some of the production sites are located in areas with physical climate risks and may in the long run be subject to increased stress from physical weather events. Physical risks bring uncertainties when estimating useful life and indication of impair- ment. While management believes that estimates of future cash flows and other assumptions made are reasonable, there are uncertainties which could materially affect the valuations. Residual value risks Volvo Group is exposed to residual value risks related to assets under operating leases which are the risks that the Volvo Group in the future would have to dispose used vehicles at a loss if the price development of these products is worse than what was expected when the contracts were entered. The assessment of residual value risks is based upon an estimation of the used vehicle\u2019s future net realizable value (fair market value) and a declined value may negatively affect the Volvo Group\u2019s oper- ating income. High inventories in the truck industry and the construction equipment industry and low demand may have a negative impact on the prices of new and used vehicles. The estimated future net realizable value of the vehicles at the end of the contract period is monitored individually on a continuing basis. In monitoring the estimated net realizable value of each vehicle, management considers current price level of the used vehi- cle, supply chain and production disturbances and the transition to elec- trified and other lower emission technology vehicles which imply to some extent uncertainties in the assessment. 13 Tangible assets Reclassifications Reclassifications of construction in progress and assets under operating lease are presented in the tables 13:2 and 13:3. For construction in progress, reclassifications occurs when the asset is available for use by transferring the assets to the respective category within property, plant and equipment. The transfer is reported within reclassifications and other. For operating leases, rental fleet and sales with residual value commit- ments (buyback and trade backs), reclassifications occur when vehicles are sold or rented out to customers. The vehicle is transferred from inven- tory to assets under operating leases and reported as additions. If the vehicle is returned by the end of the residual value commitment period or the leasing period, the vehicle is transferred back to inventory and reported as disposals. Investment properties The acquisition value of investment properties at year-end amounted to SEK 95 M (93). Reclassifications amounted to SEK 0 M (0). Accumulated depreciation amounted to SEK 43 M (39) at year-end, of which SEK 4 M (3) refers to 2023. The net carrying value amounted to SEK 53 M (54). The estimated fair value of investment properties amounted to SEK 117 M (102) at year-end and 97% (97) of the area available for lease was leased out during the year. Operating income was affected by rental income from investment properties that amounted to SEK 12 M (11) and direct costs that amounted to SEK 6 M (1). 13:2 Tangible assets, Dec 31, 2023 Property, plant, equipment and investment property Assets under operating leases\u00b9 Buildings Land and land improve- ments Machinery and equip- ment Construc- tion in progress Right- of-use assets\u00b9 Operating leases 2 Rental fleet Sales w. residual value commit- ments\u00b3 Total Acquisition cost Opening balance 2023 39,685 7,906 91,455 12,273 13,504 31,740 4,744 27,442 228,749 Additions 961 104 2,420 9,634 1,832 10,267 3,131 4,826 33,176 Additions through acquired operations 4 50 26 16 \u2013 45 \u2013 \u2013 \u2013 137 Disposals 4 \u20131,088 \u201392 \u20133,032 \u20137 \u20131,183 \u201310,576 \u20131,816 \u20136,125 \u201323,918 Exchange rate changes \u2013832 \u2013165 \u20131,390 \u2013281 \u2013330 \u2013617 \u2013116 \u2013326 \u20134,059 Reclassifications to assets held for sale 4 \u20131,253 \u2013232 \u20131,508 \u201317 \u2013391 \u2013 \u2013 \u2013 \u20133,401 Reclassifications and other 2,017 217 3,058 \u20135,345 1,461 30 \u201395 \u20131,105 238 Acquisition costs, Dec 31, 2023 39,539 7,764 91,020 16,257 14,938 30,843 5,848 24,712 230,922 Accumulated depreciation and impairments Opening balance 2023 \u201321,691 \u20131,638 \u201371,224 \u20133 \u20137,105 \u201310,348 \u20131,553 \u20138,506 \u2013122,068 Depreciation \u20131,448 \u2013130 \u20134,600 \u2013 \u20132,363 \u20134,973 \u2013791 \u20133,018 \u201317,323 Impairment \u201310 \u2013 \u201395 \u201358 \u2013 \u20133 \u2013 \u2013662 \u2013827 Disposals 4 1,135 56 2,956 \u2013 1,130 5,591 760 3,131 14,757 Exchange rate changes 474 26 1,082 \u2013 167 175 17 112 2,054 Reclassifications to assets held for sale 4 654 84 1,195 \u2013 254 \u2013 \u2013 \u2013 2,187 Reclassifications and other 52 1 \u20135 \u2013 35 9 17 548 658 Accumulated depreciation and impairments, Dec 31, 2023 \u201320,834 \u20131,602 \u201370,691 \u201361 \u20137,882 \u20139,549 \u20131,549 \u20138,395 \u2013120,562 B/S Carrying amount, Dec 31, 2023 18,706 6,162 20,329 16,196 7,056 21,295 4,299 16,317 110,359 1 Read more in Note 14 Leasing, about right-of-use assets and assets under operating leases. 2 Operating leases mainly consists of contractual operating lease agreements with customers within Financial Services. 3 Read more in Note 7 Revenue, about sales with residual value commitments. 4 Read more in Note 3 Acquisitions and divestments of operations, for a description of acquired and divested operations as well as assets and liabilities held for sale . 13:3 Tangible assets, Dec 31, 2022 Property, plant, equipment and investment property Assets under operating leases\u00b9 Buildings Land and land improve- ments Machinery and equip- ment Construc- tion in progress Right- of-use assets\u00b9 Operating leases 2 Rental fleet Sales w. residual value commit- ments\u00b3 Total Acquisition cost Opening balance 2022 34,705 7,107 82,209 8,792 10,965 28,770 4,660 25,095 202,304 Additions 498 103 2,575 8,125 1,475 9,155 2,048 6,521 30,498 Additions through acquired operations 4 \u2013 \u2013 35 11 1 \u2013 8 \u2013 56 Disposals 4 \u2013173 \u201391 \u20131,917 \u201347 \u2013523 \u20139,540 \u20131,779 \u20136,500 \u201320,571 Exchange rate changes 2,880 583 5,150 710 907 2,699 433 2,042 15,403 Reclassifications to assets held for sale 4 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 Reclassifications and other 1,775 205 3,403 \u20135,318 679 657 \u2013626 284 1,059 Acquisition costs, Dec 31, 2022 39,685 7,906 91,455 12,273 13,504 31,740 4,744 27,442 228,749 Accumulated depreciation and impairments Opening balance 2022 \u201318,516 \u20131,406 \u201364,446 \u2013 \u20135,006 \u20139,131 \u20131,568 \u20137,856 \u2013107,930 Depreciation \u20131,333 \u2013112 \u20134,376 \u2013 \u20132,144 \u20134,741 \u2013677 \u20133,039 \u201316,423 Impairment \u2013448 \u201330 \u2013165 \u20133 \u201314 20 \u20134 \u2013691 \u20131,336 Disposals 4 130 21 1,761 \u2013 451 4,588 591 3,510 11,051 Exchange rate changes \u20131,527 \u2013109 \u20134,011 \u2013 \u2013425 \u2013843 \u2013145 \u2013642 \u20137,701 Reclassifications to assets held for sale 4 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 Reclassifications and other 4 \u20132 14 \u2013 34 \u2013241 250 212 271 Accumulated depreciation and impairments, Dec 31, 2022 \u201321,691 \u20131,638 \u201371,224 \u20133 \u20137,105 \u201310,348 \u20131,553 \u20138,506 \u2013122,068 B/S Carrying amount, Dec 31, 2022 17,994 6,268 20,231 12,270 6,399 21,392 3,191 18,936 106,681 1 Read more in Note 14 Leasing, about right-of-use assets and assets under operating leases. 2 Operating leases mainly consists of contractual operating lease agreements with customers within Financial Services. 3 Read more in Note 7 Revenue, about sales with residual value commitments. 4 Read more in Note 3 Acquisitions and divestments of operations, for a description of acquired and divested operations as well as assets and liabilities held for sale . ", "dimensions": { "concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1014": { "value": "ACCOUNTING POLICY The Volvo Group applies the cost method for measurement of tangible assets, consisting of property, plant, equipment and investment property as well as assets under operating leases. Buildings include owner-occupied properties and investment proper- ties. Investment properties are properties owned for the purpose of obtaining rental income and appreciation in value. Investment properties are recognized at cost. For disclosure purposes, information regarding the estimated fair value of investment properties is based on an internal dis- counted cash flow projection as relevant observable market inputs for the assets are not available. The required return is based on current property market conditions for comparable properties in comparable locations. Hence, the applied valuation method to measure fair value is classified as level 3 of the fair value hierarchy and there have not been any changes in valuation method during the year. Land includes land and land improve- ments. Machinery and equipment consist of production related assets such as machinery, type-bound tools and other equipment. A substantial part of investments is directed towards zero tailpipe emissions technol- ogy, which is expected to increase over time. However, both electric trucks and trucks with combustion engines can be produced on the same assembly lines, thus limiting the investments needed for this transition in the industrial system. Construction in progress are assets under con- struction and advanced payments. Right-of-use assets relates to lease contracts with the Volvo Group as a lessee. Assets under operating leases are mainly owned by the Volvo Group. These transactions are accounted for as operating lease transactions and consists of contractual operating lease agreements with customers within Financial Services and rental fleet which are assets used in a fleet for rental business within Industrial Operations. Some rental fleet assets are leased by the Volvo Group and later sub-leased to customers as oper- ating leases. Sales with residual value commitments within Industrial Operations are also recognized within assets under operating leases. Read more in Note 7 Revenue, about sales with residual value commitments. Read more in Note 14 Leasing, about right-of-use assets and assets under operating leases. Read more in Sustainability notes and section EU Taxonomy regulation disclosures about taxonomy eligible capital expenditure. Depreciation and impairment Property, plant, equipment and investment property are depreciated over their estimated useful lives. Land is not depreciated. Depreciation is rec- ognized on a straight-line basis based on the cost of the assets, adjusted by residual value when applicable, and estimated useful lives. Right-of- use assets are generally depreciated over the lease term on a straight-line basis. Assets under operating leases are depreciated on a straight-line basis over the contract period. During the contract period, the depreciable amount is adjusted by accelerated depreciation and/or write-downs. The adjustment is recognized through the income statement to correspond to estimated future net realizable value to continuously reflect potential residual value risks at the end of the contract period. The net realizable value is impacted by value of optional equipment, mileage, current condi- tion, expected future price development, change of market conditions, the transition towards electrification and other low-carbon transport solutions, alternative distribution channels, inventory lead-time, repair and reconditioning costs, handling costs, indirect costs associated with the sale of used vehicles and legislative demands. Some of the locations may also be subject to increased risks from physical weather events depending on climate developments. These risks are monitored and are not expected to materially impact the estimated useful life. The deprecia- tion is recog nized in the respective function to which it belongs. Impair- ment tests are performed if there are indications of impairment by calcu- lating a recoverable amount which is the higher of the asset\u2019s fair value less cost of disposal and its value in use. 13:1 Estimated useful life Type-bound tools 3\u20138 years Operating leases, rental fleet 3\u20135 years Sales with residual value commitments 3\u20135 years Machinery and equipment 5\u201320 years Buildings and investment properties 20\u201350 years Land improvements 20 years Reclassifications Reclassifications of construction in progress and assets under operating lease are presented in the tables 13:2 and 13:3. For construction in progress, reclassifications occurs when the asset is available for use by transferring the assets to the respective category within property, plant and equipment. The transfer is reported within reclassifications and other. For operating leases, rental fleet and sales with residual value commit- ments (buyback and trade backs), reclassifications occur when vehicles are sold or rented out to customers. The vehicle is transferred from inven- tory to assets under operating leases and reported as additions. If the vehicle is returned by the end of the residual value commitment period or the leasing period, the vehicle is transferred back to inventory and reported as disposals. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForConstructionInProgressExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1015": { "value": "ACCOUNTING POLICY The Volvo Group applies the cost method for measurement of tangible assets, consisting of property, plant, equipment and investment property as well as assets under operating leases. Buildings include owner-occupied properties and investment proper- ties. Investment properties are properties owned for the purpose of obtaining rental income and appreciation in value. Investment properties are recognized at cost. For disclosure purposes, information regarding the estimated fair value of investment properties is based on an internal dis- counted cash flow projection as relevant observable market inputs for the assets are not available. The required return is based on current property market conditions for comparable properties in comparable locations. Hence, the applied valuation method to measure fair value is classified as level 3 of the fair value hierarchy and there have not been any changes in valuation method during the year. Land includes land and land improve- ments. Machinery and equipment consist of production related assets such as machinery, type-bound tools and other equipment. A substantial part of investments is directed towards zero tailpipe emissions technol- ogy, which is expected to increase over time. However, both electric trucks and trucks with combustion engines can be produced on the same assembly lines, thus limiting the investments needed for this transition in the industrial system. Construction in progress are assets under con- struction and advanced payments. Right-of-use assets relates to lease contracts with the Volvo Group as a lessee. Assets under operating leases are mainly owned by the Volvo Group. These transactions are accounted for as operating lease transactions and consists of contractual operating lease agreements with customers within Financial Services and rental fleet which are assets used in a fleet for rental business within Industrial Operations. Some rental fleet assets are leased by the Volvo Group and later sub-leased to customers as oper- ating leases. Sales with residual value commitments within Industrial Operations are also recognized within assets under operating leases. Read more in Note 7 Revenue, about sales with residual value commitments. Read more in Note 14 Leasing, about right-of-use assets and assets under operating leases. Read more in Sustainability notes and section EU Taxonomy regulation disclosures about taxonomy eligible capital expenditure. Depreciation and impairment Property, plant, equipment and investment property are depreciated over their estimated useful lives. Land is not depreciated. Depreciation is rec- ognized on a straight-line basis based on the cost of the assets, adjusted by residual value when applicable, and estimated useful lives. Right-of- use assets are generally depreciated over the lease term on a straight-line basis. Assets under operating leases are depreciated on a straight-line basis over the contract period. During the contract period, the depreciable amount is adjusted by accelerated depreciation and/or write-downs. The adjustment is recognized through the income statement to correspond to estimated future net realizable value to continuously reflect potential residual value risks at the end of the contract period. The net realizable value is impacted by value of optional equipment, mileage, current condi- tion, expected future price development, change of market conditions, the transition towards electrification and other low-carbon transport solutions, alternative distribution channels, inventory lead-time, repair and reconditioning costs, handling costs, indirect costs associated with the sale of used vehicles and legislative demands. Some of the locations may also be subject to increased risks from physical weather events depending on climate developments. These risks are monitored and are not expected to materially impact the estimated useful life. The deprecia- tion is recog nized in the respective function to which it belongs. Impair- ment tests are performed if there are indications of impairment by calcu- lating a recoverable amount which is the higher of the asset\u2019s fair value less cost of disposal and its value in use. 13:1 Estimated useful life Type-bound tools 3\u20138 years Operating leases, rental fleet 3\u20135 years Sales with residual value commitments 3\u20135 years Machinery and equipment 5\u201320 years Buildings and investment properties 20\u201350 years Land improvements 20 years ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentPropertyExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1016": { "value": "ACCOUNTING POLICY The Volvo Group applies the cost method for measurement of tangible assets, consisting of property, plant, equipment and investment property as well as assets under operating leases. Buildings include owner-occupied properties and investment proper- ties. Investment properties are properties owned for the purpose of obtaining rental income and appreciation in value. Investment properties are recognized at cost. For disclosure purposes, information regarding the estimated fair value of investment properties is based on an internal dis- counted cash flow projection as relevant observable market inputs for the assets are not available. The required return is based on current property market conditions for comparable properties in comparable locations. Hence, the applied valuation method to measure fair value is classified as level 3 of the fair value hierarchy and there have not been any changes in valuation method during the year. Land includes land and land improve- ments. Machinery and equipment consist of production related assets such as machinery, type-bound tools and other equipment. A substantial part of investments is directed towards zero tailpipe emissions technol- ogy, which is expected to increase over time. However, both electric trucks and trucks with combustion engines can be produced on the same assembly lines, thus limiting the investments needed for this transition in the industrial system. Construction in progress are assets under con- struction and advanced payments. Right-of-use assets relates to lease contracts with the Volvo Group as a lessee. Assets under operating leases are mainly owned by the Volvo Group. These transactions are accounted for as operating lease transactions and consists of contractual operating lease agreements with customers within Financial Services and rental fleet which are assets used in a fleet for rental business within Industrial Operations. Some rental fleet assets are leased by the Volvo Group and later sub-leased to customers as oper- ating leases. Sales with residual value commitments within Industrial Operations are also recognized within assets under operating leases. Read more in Note 7 Revenue, about sales with residual value commitments. Read more in Note 14 Leasing, about right-of-use assets and assets under operating leases. Read more in Sustainability notes and section EU Taxonomy regulation disclosures about taxonomy eligible capital expenditure. Depreciation and impairment Property, plant, equipment and investment property are depreciated over their estimated useful lives. Land is not depreciated. Depreciation is rec- ognized on a straight-line basis based on the cost of the assets, adjusted by residual value when applicable, and estimated useful lives. Right-of- use assets are generally depreciated over the lease term on a straight-line basis. Assets under operating leases are depreciated on a straight-line basis over the contract period. During the contract period, the depreciable amount is adjusted by accelerated depreciation and/or write-downs. The adjustment is recognized through the income statement to correspond to estimated future net realizable value to continuously reflect potential residual value risks at the end of the contract period. The net realizable value is impacted by value of optional equipment, mileage, current condi- tion, expected future price development, change of market conditions, the transition towards electrification and other low-carbon transport solutions, alternative distribution channels, inventory lead-time, repair and reconditioning costs, handling costs, indirect costs associated with the sale of used vehicles and legislative demands. Some of the locations may also be subject to increased risks from physical weather events depending on climate developments. These risks are monitored and are not expected to materially impact the estimated useful life. The deprecia- tion is recog nized in the respective function to which it belongs. Impair- ment tests are performed if there are indications of impairment by calcu- lating a recoverable amount which is the higher of the asset\u2019s fair value less cost of disposal and its value in use. 13:1 Estimated useful life Type-bound tools 3\u20138 years Operating leases, rental fleet 3\u20135 years Sales with residual value commitments 3\u20135 years Machinery and equipment 5\u201320 years Buildings and investment properties 20\u201350 years Land improvements 20 years ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1017": { "value": "Investment properties The acquisition value of investment properties at year-end amounted to SEK 95 M (93). Reclassifications amounted to SEK 0 M (0). Accumulated depreciation amounted to SEK 43 M (39) at year-end, of which SEK 4 M (3) refers to 2023. The net carrying value amounted to SEK 53 M (54). The estimated fair value of investment properties amounted to SEK 117 M (102) at year-end and 97% (97) of the area available for lease was leased out during the year. Operating income was affected by rental income from investment properties that amounted to SEK 12 M (11) and direct costs that amounted to SEK 6 M (1). ", "dimensions": { "concept": "ifrs-full:DisclosureOfInvestmentPropertyExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1018": { "value": "ACCOUNTING POLICY Volvo Group as the lessor Leasing contracts are defined in two categories, operating and finance leases, depending on the contracts\u2019 financial implications. Operating leases are offered from Financial Services (contractual oper- ating leases) and from Industrial Operations (rental fleet agreements). Sales with residual value commitments (buybacks and tradebacks) are also accounted for as operating lease transactions when the customer has a significant economic incentive to exercise the option to return the vehicle and the control therefore has not been transferred to the customer. Oper- ating lease agreements are recognized as tangible assets in assets under operating leases and are valued at cost less accumulated depreciation and impairment, if needed. The cost of an asset comprises the acquisition value and any initial direct costs related to the contract. Depreciation of the asset is recognized on a straight-line basis over the contract period. During the period the depreciable amount is adjusted through the income statement by depreciations or write-downs to correspond to the estimated future realizable value and reflect residual value risks at the end of the contract period. Lease income is equally distributed over the contract period and recognized within net sales. Read more in Note 7 Revenue, about sales with residual value commitments. Read more in Note 13 Tangible assets, about residual value risks related to assets under operating lease. Finance leases are offered from Financial Services. As Industrial Oper- ations manufacture the vehicles which are leased from Financial Services to the customers, the Volvo Group is acting as a manufacturer lessor. Hence, a finance lease asset gives rise to a selling profit which is recognized within Industrial Operations. Finance lease contracts are mainly recognized as non-current and current customer-financing receiv- ables within Financial Services. The asset is measured at an amount equal to the net investment in the finance lease contract corresponding to the gross investment (future minimum lease payments and unguaranteed residual value) discounted with the rate in the finance lease contract and reduced by unearned finance income and allowance for expected credit losses. Assessment of allowance for expected credit losses is reflected in the valuation of customer-financing receivables and recorded at initial recognition and reassessed during the contract period. Lease income is recognized as interest income within net sales in Financial Services. Vari- able lease payments not dependent on an index or rate are recognized as income as they occur. Payments received from finance lease contracts are distributed between interest income and amortization of the receivable. Read more in Note 15 Customer-financing receivables, about finance leases. Volvo Group as the lessee Lease contracts are recognized as right-of-use (RoU) assets as well as interest-bearing lease liabilities in the balance sheet. Lease liabilities are recognized within other loans and are measured by the present value of future lease payments. The lease payments are discounted by using a rate reflecting what the Volvo Group would have to pay to borrow funds to acquire a similar asset, with similar collateral and similar term. RoU assets are presented as tangible assets and are valued at cost less accumulated depreciation and impairment, if needed. The cost of an RoU asset contains the initial amount of the lease liability adjusted for any lease payments made before the commencement date, less any lease incentives received. Moreover, any initial direct costs are included, as well as an estimate of costs to be incurred in dismantling, removing or restoring the underlying asset. The leased asset is depreciated on a straight-line basis over the lease term, or over the useful life of the underlying asset if the ownership is transferred to the Volvo Group at the end of the lease term. The lease expense is recognized as depreciation of the asset within operating income and interest expense within the finance net. Payments made are distributed between interest paid and amortization of the lease liability. Lease contracts with the Volvo Group as the lessee are primarily con- tracts for real estate (such as office buildings, warehouses and dealer premises), company cars and production related assets. For real estate and company car leases, service components are normally a considerable portion of the contracts and are therefore separated. The service compo- nents are recognized as operating expenses and not included in the RoU asset and the lease liability. For other lease contracts, both the leased asset and services are included in the RoU asset and the lease liability. If a lease contract includes variable lease payments not dependent on an index or rate, or include a low value asset or has a lease term that is twelve months or less, the lease payments are recognized as operating expenses as they occur . ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1019": { "value": "ACCOUNTING POLICY Volvo Group as the lessor Leasing contracts are defined in two categories, operating and finance leases, depending on the contracts\u2019 financial implications. Operating leases are offered from Financial Services (contractual oper- ating leases) and from Industrial Operations (rental fleet agreements). Sales with residual value commitments (buybacks and tradebacks) are also accounted for as operating lease transactions when the customer has a significant economic incentive to exercise the option to return the vehicle and the control therefore has not been transferred to the customer. Oper- ating lease agreements are recognized as tangible assets in assets under operating leases and are valued at cost less accumulated depreciation and impairment, if needed. The cost of an asset comprises the acquisition value and any initial direct costs related to the contract. Depreciation of the asset is recognized on a straight-line basis over the contract period. During the period the depreciable amount is adjusted through the income statement by depreciations or write-downs to correspond to the estimated future realizable value and reflect residual value risks at the end of the contract period. Lease income is equally distributed over the contract period and recognized within net sales. Read more in Note 7 Revenue, about sales with residual value commitments. Read more in Note 13 Tangible assets, about residual value risks related to assets under operating lease. Finance leases are offered from Financial Services. As Industrial Oper- ations manufacture the vehicles which are leased from Financial Services to the customers, the Volvo Group is acting as a manufacturer lessor. Hence, a finance lease asset gives rise to a selling profit which is recognized within Industrial Operations. Finance lease contracts are mainly recognized as non-current and current customer-financing receiv- ables within Financial Services. The asset is measured at an amount equal to the net investment in the finance lease contract corresponding to the gross investment (future minimum lease payments and unguaranteed residual value) discounted with the rate in the finance lease contract and reduced by unearned finance income and allowance for expected credit losses. Assessment of allowance for expected credit losses is reflected in the valuation of customer-financing receivables and recorded at initial recognition and reassessed during the contract period. Lease income is recognized as interest income within net sales in Financial Services. Vari- able lease payments not dependent on an index or rate are recognized as income as they occur. Payments received from finance lease contracts are distributed between interest income and amortization of the receivable. Read more in Note 15 Customer-financing receivables, about finance leases. Volvo Group as the lessee Lease contracts are recognized as right-of-use (RoU) assets as well as interest-bearing lease liabilities in the balance sheet. Lease liabilities are recognized within other loans and are measured by the present value of future lease payments. The lease payments are discounted by using a rate reflecting what the Volvo Group would have to pay to borrow funds to acquire a similar asset, with similar collateral and similar term. RoU assets are presented as tangible assets and are valued at cost less accumulated depreciation and impairment, if needed. The cost of an RoU asset contains the initial amount of the lease liability adjusted for any lease payments made before the commencement date, less any lease incentives received. Moreover, any initial direct costs are included, as well as an estimate of costs to be incurred in dismantling, removing or restoring the underlying asset. The leased asset is depreciated on a straight-line basis over the lease term, or over the useful life of the underlying asset if the ownership is transferred to the Volvo Group at the end of the lease term. The lease expense is recognized as depreciation of the asset within operating income and interest expense within the finance net. Payments made are distributed between interest paid and amortization of the lease liability. Lease contracts with the Volvo Group as the lessee are primarily con- tracts for real estate (such as office buildings, warehouses and dealer premises), company cars and production related assets. For real estate and company car leases, service components are normally a considerable portion of the contracts and are therefore separated. The service compo- nents are recognized as operating expenses and not included in the RoU asset and the lease liability. For other lease contracts, both the leased asset and services are included in the RoU asset and the lease liability. If a lease contract includes variable lease payments not dependent on an index or rate, or include a low value asset or has a lease term that is twelve months or less, the lease payments are recognized as operating expenses as they occur . SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Measurement of lease liabilities and right-of-use assets When entering a lease contract, judgments related to contract scope, lease term and interest rate to be used when discounting future lease pay- ments are made which affect the measurement of the lease liability and the RoU asset. Assessment of contract scope includes judgments whether a leased asset and/or a service component is identified in the contract. In com- bined contracts, the total contract amount is allocated between the leased asset and the service by using a market stand-alone price. When determining the lease term of a contract, judgments are also required. The lease term includes the non-cancellable period. If the Volvo Group is reasonably certain to use an option to extend the lease, or not to use an option to terminate the lease in advance, this is also considered. The contracts contain a range of different conditions. Extension and ter- mination options are mainly related to real estate leases. Thus, all relevant facts and circumstances that create an economic incentive to include optional periods are evaluated. The importance of the underlying asset in the operations and its location, availability of suitable alternatives, signifi- cant leasehold improvements, level of rentals in optional periods com- pared to market rates as well as past practice are examples of factors included in the assessment. Lease terms are negotiated on an individual basis and are reassessed if an option is exercised. Judgments are also required to determine the interest rate when dis- counting future lease payments and whether the interest rate implicit in the lease can be readily determined and thereby used, or if the Volvo Group\u2019s incremental borrowing rate should be used. Read more in Note 15 Customer-financing receivables, about allowance for expected credit losses . 14 Leasing Volvo Group as the lessor 14:1 Lease income Dec 31, 2023 Dec 31, 2022 Finance leases Interest income on customer- financing receivables 3,842 2,766 Total 3,842 2,766 Operating leases Lease income on assets under operating lease 12,771 11,317 Total 12,771 11,317 During 2023, the profit from sale of vehicles subject to finance leases amounted to SEK 8,713 M (6,280) and was recognized within Industrial Operations. As of December 31, 2023, future lease income from non-cancellable finance and operating leases (minimum lease fees excluding sales with residual value commitments) amounted to SEK 96,596 M (89,441). Read more in Note 15 Customer-financing receivables about finance leases. 14:2 Maturity analysis of lease payments receivable Finance leases Operating leases 2024 24,883 8,350 2025 19,424 6,074 2026 14,678 3,882 2027 9,414 2,139 2028 4,342 1,155 2029 or later 1,865 391 Total undiscounted lease payments 74,605 21,991 Unguaranteed residual value 1,417 Unearned interest income \u20137,500 Allowance for expected credit losses \u20131,491 Customer-financing receivables (current and non-current) 67,030 Volvo Group as the lessee 14:3 Lease liabilities Dec 31, 2023 Dec 31, 2022 Non-current lease liabilities 5,314 4,806 Current lease liabilities 1,877 1,777 Total lease liabilities 7,191 6,583 14:4 Non-current lease liabilities maturities, SEK M 2030 or later 2025 2026 2027 2028 2029 1,047 1,665 1,111 744 442 304 During 2023, total cash outflow related to leases amounted to SEK 3,454 M (3,162), with a distribution of SEK 1,085 M (888) within operating cash flow and SEK 2,369 M (2,274) within financing activities. 14:5 Right-of-use assets, Dec 31, 2023 Buildings Land and land improvements Machinery and equipment Company cars Asset under operating lease and rental fleet 1 Total Acquisition cost Opening balance 2023 9,929 711 1,307 1,557 434 13,938 Additions to right-of-use assets 2 1,268 \u201332 \u201312 209 \u201310 1,424 Acquisition cost, Dec 31, 2023 11,197 679 1,295 1,766 424 15,362 Accumulated depreciation and impairments Opening balance 2023 \u20135,134 \u2013162 \u2013739 \u20131,070 \u2013182 \u20137,287 Depreciation and impairment \u20131,644 \u201337 \u2013249 \u2013432 \u201386 \u20132,449 Other changes 875 33 201 477 96 1,682 Accumulated depreciation and impairments, Dec 31, 2023 \u20135,904 \u2013167 \u2013787 \u20131,024 \u2013172 \u20138,054 Carrying amount, Dec 31, 2023 5,294 513 508 742 252 7,308 Right-of-use assets, Dec 31, 2022 Buildings Land and land improvements Machinery and equipment Company cars Asset under operating lease and rental fleet 1 Total Acquisition cost Opening balance 2022 8,048 674 967 1,276 423 11,388 Additions to right-of-use assets 2 1,881 37 340 281 11 2,550 Acquisition cost, Dec 31, 2022 9,929 711 1,307 1,557 434 13,938 Accumulated depreciation and impairments Opening balance 2022 \u20133,550 \u2013125 \u2013510 \u2013821 \u2013157 \u20135,163 Depreciation and impairment \u20131,494 \u201339 \u2013232 \u2013393 \u201363 \u20132,221 Other changes \u201390 2 3 144 38 97 Accumulated depreciation and impairments, Dec 31, 2022 \u20135,134 \u2013162 \u2013739 \u20131,070 \u2013182 \u20137,287 Carrying amount, Dec 31, 2022 4,795 549 568 487 252 6,651 1 Refers to assets leased by the Volvo Group which are later sub-leased to customers as operating lease. 2 Additions to RoU assets mainly relate to new lease contracts signed. 14:6 Recognized in the income statement 2023 2022 Interest expense on lease liabilities within Financial Services \u20134 \u20133 Depreciation and impairment of right-of-use assets \u20132,449 \u20132,221 Short term lease expense \u2013670 \u2013528 Low value asset expense \u201335 \u201366 Variable lease expense \u201353 \u201341 Income from sub-leasing right-of-use assets 157 168 Gains or losses arising from sale and leaseback transactions \u2013 \u2013 Gains or losses on right-of-use assets 9 \u20132 Recognized in operating income \u20133,045 \u20132,693 Interest expense on lease liabilities within Industrial Operations \u2013335 \u2013252 Recognized in net financial items \u2013335 \u2013252 ", "dimensions": { "concept": "ifrs-full:DisclosureOfLeasesExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1020": { "value": "ACCOUNTING POLICY Installment credits, dealer financing and other receivables within customer- financing receivables are held as part of a business model whose objective is of collecting contractual cash flows. The contractual cash flows are solely payments of principal and interest and are measured at amortized cost in accordance with the effective interest method. Finance lease con- tracts are valued at amortized cost. Read more in Note 14 Leasing, for further information on recognition and classifi- cation of finance leases. The Volvo Group is applying the simplified expected credit loss model for customer-financing receivables, under which the loss allowance is measured at an amount equal to lifetime expected credit losses. The allowance is recorded at initial recognition and is reassessed during the contract period. Interest income on customer-financing receivables is recognized within net sales, mainly within Financial Services. Changes to the allowance for expected credit losses are recognized in other operating income and expense . ACCOUNTING POLICY Receivables are measured at amortized cost. The Volvo Group is applying the simplified expected credit loss model for accounts receivables, under which the loss allowance is measured at an amount equal to lifetime expected credit losses. The allowance is recorded at initial recognition and is reassessed during the contract period. Changes to the allowance for expected credit losses for accounts receivables are recognized in other operating income and expense. Read more in Note 30 Financial instruments, in section derecognition of financial assets, about receivables subject to discounting activities . ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForLoansAndReceivablesExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1021": { "value": "ACCOUNTING POLICY Installment credits, dealer financing and other receivables within customer- financing receivables are held as part of a business model whose objective is of collecting contractual cash flows. The contractual cash flows are solely payments of principal and interest and are measured at amortized cost in accordance with the effective interest method. Finance lease con- tracts are valued at amortized cost. Read more in Note 14 Leasing, for further information on recognition and classifi- cation of finance leases. The Volvo Group is applying the simplified expected credit loss model for customer-financing receivables, under which the loss allowance is measured at an amount equal to lifetime expected credit losses. The allowance is recorded at initial recognition and is reassessed during the contract period. Interest income on customer-financing receivables is recognized within net sales, mainly within Financial Services. Changes to the allowance for expected credit losses are recognized in other operating income and expense ACCOUNTING POLICY Receivables are measured at amortized cost. The Volvo Group is applying the simplified expected credit loss model for accounts receivables, under which the loss allowance is measured at an amount equal to lifetime expected credit losses. The allowance is recorded at initial recognition and is reassessed during the contract period. Changes to the allowance for expected credit losses for accounts receivables are recognized in other operating income and expense. Read more in Note 30 Financial instruments, in section derecognition of financial assets, about receivables subject to discounting activities ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfFinancialAssetsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1022": { "value": "ACCOUNTING POLICY Installment credits, dealer financing and other receivables within customer- financing receivables are held as part of a business model whose objective is of collecting contractual cash flows. The contractual cash flows are solely payments of principal and interest and are measured at amortized cost in accordance with the effective interest method. Finance lease con- tracts are valued at amortized cost. Read more in Note 14 Leasing, for further information on recognition and classifi- cation of finance leases. The Volvo Group is applying the simplified expected credit loss model for customer-financing receivables, under which the loss allowance is measured at an amount equal to lifetime expected credit losses. The allowance is recorded at initial recognition and is reassessed during the contract period. Interest income on customer-financing receivables is recognized within net sales, mainly within Financial Services. Changes to the allowance for expected credit losses are recognized in other operating income and expense . SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Allowance for expected credit losses The assessment of allowances for expected credit losses on customer- financing receivables is dependent on estimates including assumptions regarding past dues, repossession rates and quality level of repossessed collateral. A collective assessment is made for customer-financing receivables that are not credit impaired by using a vintage layer analysis. It is based on historical loss experience within a homogenous pool of assets that are collectively assessed. The assets are grouped based on shared risk char- acteristics such as type of customer, geographical area, initial credit risk rating, collateral type and date of initial recognition to evaluate the credit losses collectively. The historical loss experience is used to forecast future losses, adjusted for current and expected conditions in the different mar- kets based on management\u2019s evaluation of macro-level and portfolio-level factors, such as GDP, oil prices, unemployment rates etc. Climate-related risk, such as the transition to electric vehicles, are closely monitored, and reflected in management's evaluation of current and forecasted condi- tions in assessing expected credit losses. Volvo Group has not identified material credit impairment related to transitional and physical climate risks that would require a significant adjustment to the credit reserves. An individual assessment is made for credit impaired customer-financing receivables based on the financial condition of the customers and the value of the underlying collateral and guarantees. The Volvo Group considers a financial asset credit impaired if it meets one or more of the following criteria; when there are indications that the customer is unlikely to pay, such as bankruptcy filing, unauthorized transfer of collateral, at surrender of collateral etc. or, at the latest, when the customer fails to make contractual payment within 90 days of when the receivable falls due. 15 Customer-financing receivables Risk management practices Other than the dealer financing, customer-financing receivables extend over several years, but normally the customers make monthly payments throughout the term to reduce the outstanding exposure. The customer- financing receivables are secured by the financed commercial vehicles and equipment. However, in the case of customer default, the value of the repossessed commercial vehicles and equipment may not necessarily cover the outstanding financed amount. In order to mitigate this risk, Financial Services has strong portfolio management processes based on prudent credit approval, active monitoring of individual loan performance, utilization of in-house and external collections, portfolio segmentation analysis, and on-going monitoring of the economic, political and industry conditions in each market. In addition, other credit enhancements such as down payments, personal guarantees, credit insurance, liens on other property owned by the borrower etc. may be required at the time of origi- nation or when there are signs of impairment. When customer- financing receivables exceed 90 days of overdue collateral repossession is initiated, although there may be circumstances where repossession is initiated earlier. When the collateral is repossessed, the net realizable value is established, and the vehicle is transferred to inventory and becomes part of the Volvo Group\u2019s normal business activity of selling used vehicles and equipment and the expected loss on the customer-financing receivable is written off. If repossession has not occurred on customer-financing receivables exceeding 180 days of overdue the expected loss on the receivable is written off. Financial Services continues to engage in enforcement activity on all customer financing- receivables written off during the year to attempt to recover the contractual amount not previously received from the customer. Read more in Note 4 Goals and policies in financial risk management, for a description of credit risks, interest risks and currency risks. As of December 31, 2023, the total allowances for impairment in Financial Services amounted to 1.37% (3.00) of the total credit portfolio in the segment. The total allowances for impairment excluding Russia and Belarus amounted to 1.37% (1.60). This reserve ratio is used as an import- ant measure for Financial Services and includes operating leases and inventory. Allowances for expected credit losses for customer- financing receivables has decreased since the beginning of the year from SEK 6,930 M to SEK 3,635 M primarily due to the divestment of the Russian entities. Excluding the divestment, higher volume in the credit portfolio increased expected credit losses, which was partly offset by a mix in the portfolio and decreased volumes in low performing markets. Read more in Note 3 Acquisitions and divestments of operations, for further information on the divestment. During 2023, customers continued to perform well and were able to make payments on time in most markets. However, the uncertainties in the geopolitical and macroeconomic environment including the effects of higher inflation and higher interest rates are continuing to impact our cus- tomers\u2019 ability to manage their obligations. Read more in Note 30 Financial instruments, for information on the gain or loss recognized in the operating income arising from derecognition of customer-financing receivables in table 30:3 15:6 Customer-financing receivables, gross exposure Dec 31, 2023 Dec 31, 2022 Not due 1\u201330 days 31\u201390 days >90 days Total Not due 1\u201330 days 31\u201390 days >90 days Total Customer-financing receivables, gross 216,311 14,483 3,715 1,329 235,838 186,755 10,090 2,999 1,014 200,858 Whereof not credit impaired 215,128 13,975 2,847 314 232,265 185,958 9,767 2,455 326 198,506 Whereof credit impaired 1,183 508 868 1,015 3,574 797 323 544 688 2,352 15:1 Non-current customer- financing receivables Dec 31, 2023 Dec 31, 2022 Installment credits 74,934 64,600 Finance leases 44,289 38,122 Other receivables 2,415 2,342 B/S Non-current customer- financing receivables 121,638 105,064 The weighted average interest rate for non-current customer-financing receivables amounted to 6.99% (5.90) as of December 31, 2023. 15:2 Non-current customer- financing receivables maturities, SEK M 4,811 46,506 35,613 23,162 11,546 2024 2025 2026 2027 2028 or later 15:3 Current customer- financing receivables Dec 31, 2023 Dec 31, 2022 Installment credits 40,814 35,677 Finance leases 22,741 21,278 Dealer financing 43,659 28,863 Other receivables 3,350 3,046 B/S Current customer- financing receivables 110,565 88,864 The weighted average interest rate for current customer-financing receivables amounted to 6.36% (5.88) as of December 31, 2023. 15:4 Credit risk in customer- financing receivables Dec 31, 2023 Dec 31, 2022 Customer-financing receivables gross 235,838 200,858 Allowance for expected credit losses for customer-financing receivables \u20133,635 \u20136,930 Whereof allowance for credit impaired \u2013587 \u2013573 Whereof allowance for not credit impaired \u20133,048 \u20136,357 Customer-financing receivables, net of allowance 232,203 193,928 15:5 Change of allowance for expected credit losses for customer- financing receivables 2023 2022 Not credit impaired Credit impaired Not credit impaired Credit impaired Opening balance 6,357 573 2,691 617 New allowance charged to income 775 189 3,574 103 Reversal of allowance charged to income \u201381 \u201387 \u2013115 \u201380 Utilization of allowance related to actual losses \u2013 \u2013779 \u2013 \u2013125 Movements between not credit impaired/credit impaired 1 \u2013727 727 24 \u201324 Exchange rate changes \u2013121 \u201310 327 82 Syndication transactions and other \u201392 \u2013 \u2013144 \u2013 Divestment of the Russian entities \u20133,064 \u201326 \u2013 \u2013 Allowance for expected credit losses for customer- financing receivables, Dec 31 3,048 587 6,357 573 1 When a receivable becomes credit impaired a transfer of allowance is made to allowance for credit impaired receivables . ACCOUNTING POLICY Receivables are measured at amortized cost. The Volvo Group is applying the simplified expected credit loss model for accounts receivables, under which the loss allowance is measured at an amount equal to lifetime expected credit losses. The allowance is recorded at initial recognition and is reassessed during the contract period. Changes to the allowance for expected credit losses for accounts receivables are recognized in other operating income and expense. Read more in Note 30 Financial instruments, in section derecognition of financial assets, about receivables subject to discounting activities . Table 15:6 represents the gross credit exposure on customer-financing receivables within the Volvo Group per age interval. The lifetime expected credit loss allowance for customer-financing receivables not credit impaired amounted to SEK 3,048 M (6,357) and allowance for customer- financing receivables credit impaired amounted to SEK 587 M (573), included in tables 15:4 and 15:5. The remaining exposure was secured by liens on the financed commercial vehicles and equipment and, in certain circumstances, other credit enhancements such as personal guarantees, credit insurance, liens on other property owned by the borrower etc. Col- laterals taken in possession that meet the criteria for recognition in the balance sheet amounted to SEK 397 M (202) as of December 31, 2023. Concentration of credit risk Customer concentration The ten largest customers within Financial Services account for 6.8% (6.5) of the total asset portfolio. The rest of the portfolio is attributable to a large number of customers and the credit risk is therefore spread across many customers. During 2023 SEK 8.8 billion (12.2) of customer financ- ing receivables were syndicated in order to reduce concentration risks . SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Allowance for expected credit losses Accounts receivables are short term by nature and consequently the risk assessment horizon is short. A collective assessment is made on accounts receivables not credit impaired. Historical information regarding credit loss experience is used to forecast future losses, adjusted for current and expected conditions. An individual assessment is made on credit impaired accounts receivables based on the financial condition of the customer. The past years have been affected by uncertainties in the geopolitical environment, high inflationary pressure, increased interest rates in many regions as well as the weakened Chinese construction equipment market which might impact the Volvo Group\u2019s customers\u2019 ability to fulfill their obli- gations and increase the risk for customer default. Based on this the assess- ment process for valuation allowances for expected credit losses for accounts receivables continues to be in focus in order to ensure allowances are in alignment with the current market conditions . Concentration by geographical market Graph 15:7 discloses the concentration of Financial Services portfolio divided into geographical markets. Read more in Note 4 Goals and policies in financial risk management, about credit risks. Read more in the Board of Directors\u2019 report about Financial Services\u2019 development during the year. 15:7 Geographic market, percentage of customer-financing portfolio (% 16:4 Age analysis of accounts receivables Dec 31, 2023 Dec 31, 2022 Not Due 1\u201330 31\u201390 >90 Total Not Due 1\u201330 31\u201390 >90 Total Accounts receivables, gross 39,758 1,630 1,046 2,554 44,988 43,023 2,279 2,086 2,334 49,721 Allowance for expected credit losses on accounts receivables \u2013355 \u201363 \u201368 \u20131,292 \u20131,778 \u2013678 \u201365 \u201354 \u2013704 \u20131,501 B/S Accounts receivables, net 39,403 1,567 978 1,262 43,210 42,345 2,214 2,032 1,630 48,220 Risk management practices Credit risks are managed through active credit monitoring and follow-up routines in accordance with the Volvo Group Credit management direc- tive. This directive includes different steps to perform when an invoice is not paid at due date. When an increased credit risk is verified, for example through a bankruptcy, or when an allowance has been unchanged for two years and it can be demonstrated that all required steps have been per- formed, the allowance is reversed and the accounts receivables are writ- ten off. Apart from certain exceptions the Volvo Group continues to engage in enforcement activity even after a write-off in order to recover the contractual amount not previously received. Due to the prevailing business model in the construction equipment industry in China, with longer payment terms to customers, a substantial part of the Volvo Groups accounts receivable is related to customers in this market. The weakened Chinese construction equipment market is currently impacting customers\u2019 and dealers\u2019 profitability negatively. This might affect their ability to honor their obligations to the Volvo Group and may consequently have a material adverse effect on the Volvo Group\u2019s financial result and position. Renegotiated receivables are on a slightly lower level than last year, with a substantial part of the exposure related to renegotiated receivables within Construction Equipment in China. Renegotiated receivables con- tinue to be closely monitored for on-going payment performance and signs of impairment. As of December 31, 2023, the total allowance for expected credit losses for accounts receivables amounted to 3.95% (3.02) of total accounts receivables. The increase in allowances is primarily due to the weaker con- struction equipment market in China this year compared to last year. Read more in Note 4 Goals and policies in financial risk management, regarding credit risk. 16:1 Non-current receivables Dec 31, 2023 Dec 31, 2022 Other interest-bearing receivables 1 902 676 Interest and currency risk derivatives 2 4,833 4,991 Contract and right of return assets 3 1,414 4,036 Other receivables 2,773 3,122 Non-current receivables 9,923 12,825 1 The amount is the non-current part of other interest-bearing receivables in note 30 Financial instruments, table 30:1. 2 The amount is the non-current part of interest and currency risk derivatives in note 30 Financial instruments, table 30:1. 3 Non-current contract and right of return assets of SEK 1,678 M ( \u2013) have been reclassified to assets held for sale. Read more in Note 3 Acquisitions and divestments of shares and operations and Read more in Note 7 Revenue, about contract and right of return assets. 16:2 Current receivables Dec 31, 2023 Dec 31, 2022 Other interest-bearing receivables 1 2,331 5,062 Tax assets 2,223 2,059 Accounts receivables 2 43,210 48,220 Prepaid expenses and accrued income 3,837 3,624 VAT receivables 5,777 5,917 Interest and currency risk derivatives 3 1,460 760 Contract and right of return assets 2, 4 288 1,822 Other receivables 9,444 7,852 Current receivables, after deduction of allowance for expected credit losses on receivable s 68,570 75,316 1 The amount is the current part of other interest-bearing receivables in note 30 Financial instruments, table 30:1. 2 Accounts receivables of SEK 3,502 M ( \u2013) and current contract and right of return assets of SEK 2,043 M (\u2013) have been reclassified to assets held for sale. Read more in Note 3 Acquisitions and divestments of shares and operations. 3 The amount is the current part of interest and currency risk derivatives in note 30 Financial instruments, table 30:1. 4 Read more in Note 7 Revenue, about contract and right of return assets. 16:3 Change of allowance for expected credit losses for accounts receivables 2023 2022 Opening balance 1,501 846 New allowance charged to income 564 991 Reversal of allowance charged to income \u2013422 \u2013162 Utilization of allowance related to actual losses \u201361 \u201394 Exchange rate changes \u201373 53 Reclassifications, etc. 1 270 \u2013133 Allowance for expected credit losses for accounts receivables, Dec 31 1,778 1,501 1 Whereof reclassification from other non-current receivables of SEK 288 M (\u2013127 ) . ", "dimensions": { "concept": "ifrs-full:DisclosureOfAllowanceForCreditLossesExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1023": { "value": "ACCOUNTING POLICY Receivables are measured at amortized cost. The Volvo Group is applying the simplified expected credit loss model for accounts receivables, under which the loss allowance is measured at an amount equal to lifetime expected credit losses. The allowance is recorded at initial recognition and is reassessed during the contract period. Changes to the allowance for expected credit losses for accounts receivables are recognized in other operating income and expense. Read more in Note 30 Financial instruments, in section derecognition of financial assets, about receivables subject to discounting activities . SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Allowance for expected credit losses Accounts receivables are short term by nature and consequently the risk assessment horizon is short. A collective assessment is made on accounts receivables not credit impaired. Historical information regarding credit loss experience is used to forecast future losses, adjusted for current and expected conditions. An individual assessment is made on credit impaired accounts receivables based on the financial condition of the customer. The past years have been affected by uncertainties in the geopolitical environment, high inflationary pressure, increased interest rates in many regions as well as the weakened Chinese construction equipment market which might impact the Volvo Group\u2019s customers\u2019 ability to fulfill their obli- gations and increase the risk for customer default. Based on this the assess- ment process for valuation allowances for expected credit losses for accounts receivables continues to be in focus in order to ensure allowances are in alignment with the current market conditions . 16:4 Age analysis of accounts receivables Dec 31, 2023 Dec 31, 2022 Not Due 1\u201330 31\u201390 >90 Total Not Due 1\u201330 31\u201390 >90 Total Accounts receivables, gross 39,758 1,630 1,046 2,554 44,988 43,023 2,279 2,086 2,334 49,721 Allowance for expected credit losses on accounts receivables \u2013355 \u201363 \u201368 \u20131,292 \u20131,778 \u2013678 \u201365 \u201354 \u2013704 \u20131,501 B/S Accounts receivables, net 39,403 1,567 978 1,262 43,210 42,345 2,214 2,032 1,630 48,220 Risk management practices Credit risks are managed through active credit monitoring and follow-up routines in accordance with the Volvo Group Credit management direc- tive. This directive includes different steps to perform when an invoice is not paid at due date. When an increased credit risk is verified, for example through a bankruptcy, or when an allowance has been unchanged for two years and it can be demonstrated that all required steps have been per- formed, the allowance is reversed and the accounts receivables are writ- ten off. Apart from certain exceptions the Volvo Group continues to engage in enforcement activity even after a write-off in order to recover the contractual amount not previously received. Due to the prevailing business model in the construction equipment industry in China, with longer payment terms to customers, a substantial part of the Volvo Groups accounts receivable is related to customers in this market. The weakened Chinese construction equipment market is currently impacting customers\u2019 and dealers\u2019 profitability negatively. This might affect their ability to honor their obligations to the Volvo Group and may consequently have a material adverse effect on the Volvo Group\u2019s financial result and position. Renegotiated receivables are on a slightly lower level than last year, with a substantial part of the exposure related to renegotiated receivables within Construction Equipment in China. Renegotiated receivables con- tinue to be closely monitored for on-going payment performance and signs of impairment. As of December 31, 2023, the total allowance for expected credit losses for accounts receivables amounted to 3.95% (3.02) of total accounts receivables. The increase in allowances is primarily due to the weaker con- struction equipment market in China this year compared to last year. Read more in Note 4 Goals and policies in financial risk management, regarding credit risk. 16:1 Non-current receivables Dec 31, 2023 Dec 31, 2022 Other interest-bearing receivables 1 902 676 Interest and currency risk derivatives 2 4,833 4,991 Contract and right of return assets 3 1,414 4,036 Other receivables 2,773 3,122 Non-current receivables 9,923 12,825 1 The amount is the non-current part of other interest-bearing receivables in note 30 Financial instruments, table 30:1. 2 The amount is the non-current part of interest and currency risk derivatives in note 30 Financial instruments, table 30:1. 3 Non-current contract and right of return assets of SEK 1,678 M ( \u2013) have been reclassified to assets held for sale. Read more in Note 3 Acquisitions and divestments of shares and operations and Read more in Note 7 Revenue, about contract and right of return assets. 16:2 Current receivables Dec 31, 2023 Dec 31, 2022 Other interest-bearing receivables 1 2,331 5,062 Tax assets 2,223 2,059 Accounts receivables 2 43,210 48,220 Prepaid expenses and accrued income 3,837 3,624 VAT receivables 5,777 5,917 Interest and currency risk derivatives 3 1,460 760 Contract and right of return assets 2, 4 288 1,822 Other receivables 9,444 7,852 Current receivables, after deduction of allowance for expected credit losses on receivable s 68,570 75,316 1 The amount is the current part of other interest-bearing receivables in note 30 Financial instruments, table 30:1. 2 Accounts receivables of SEK 3,502 M ( \u2013) and current contract and right of return assets of SEK 2,043 M (\u2013) have been reclassified to assets held for sale. Read more in Note 3 Acquisitions and divestments of shares and operations. 3 The amount is the current part of interest and currency risk derivatives in note 30 Financial instruments, table 30:1. 4 Read more in Note 7 Revenue, about contract and right of return assets. 16:3 Change of allowance for expected credit losses for accounts receivables 2023 2022 Opening balance 1,501 846 New allowance charged to income 564 991 Reversal of allowance charged to income \u2013422 \u2013162 Utilization of allowance related to actual losses \u201361 \u201394 Exchange rate changes \u201373 53 Reclassifications, etc. 1 270 \u2013133 Allowance for expected credit losses for accounts receivables, Dec 31 1,778 1,501 1 Whereof reclassification from other non-current receivables of SEK 288 M (\u2013127 ) . ", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1024": { "value": "ACCOUNTING POLICY Receivables are measured at amortized cost. The Volvo Group is applying the simplified expected credit loss model for accounts receivables, under which the loss allowance is measured at an amount equal to lifetime expected credit losses. The allowance is recorded at initial recognition and is reassessed during the contract period. Changes to the allowance for expected credit losses for accounts receivables are recognized in other operating income and expense. Read more in Note 30 Financial instruments, in section derecognition of financial assets, about receivables subject to discounting activities ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1025": { "value": "ACCOUNTING POLICY Receivables are measured at amortized cost. The Volvo Group is applying the simplified expected credit loss model for accounts receivables, under which the loss allowance is measured at an amount equal to lifetime expected credit losses. The allowance is recorded at initial recognition and is reassessed during the contract period. Changes to the allowance for expected credit losses for accounts receivables are recognized in other operating income and expense. Read more in Note 30 Financial instruments, in section derecognition of financial assets, about receivables subject to discounting activities . SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Allowance for expected credit losses Accounts receivables are short term by nature and consequently the risk assessment horizon is short. A collective assessment is made on accounts receivables not credit impaired. Historical information regarding credit loss experience is used to forecast future losses, adjusted for current and expected conditions. An individual assessment is made on credit impaired accounts receivables based on the financial condition of the customer. The past years have been affected by uncertainties in the geopolitical environment, high inflationary pressure, increased interest rates in many regions as well as the weakened Chinese construction equipment market which might impact the Volvo Group\u2019s customers\u2019 ability to fulfill their obli- gations and increase the risk for customer default. Based on this the assess- ment process for valuation allowances for expected credit losses for accounts receivables continues to be in focus in order to ensure allowances are in alignment with the current market conditions 16:4 Age analysis of accounts receivables Dec 31, 2023 Dec 31, 2022 Not Due 1\u201330 31\u201390 >90 Total Not Due 1\u201330 31\u201390 >90 Total Accounts receivables, gross 39,758 1,630 1,046 2,554 44,988 43,023 2,279 2,086 2,334 49,721 Allowance for expected credit losses on accounts receivables \u2013355 \u201363 \u201368 \u20131,292 \u20131,778 \u2013678 \u201365 \u201354 \u2013704 \u20131,501 B/S Accounts receivables, net 39,403 1,567 978 1,262 43,210 42,345 2,214 2,032 1,630 48,220 Risk management practices Credit risks are managed through active credit monitoring and follow-up routines in accordance with the Volvo Group Credit management direc- tive. This directive includes different steps to perform when an invoice is not paid at due date. When an increased credit risk is verified, for example through a bankruptcy, or when an allowance has been unchanged for two years and it can be demonstrated that all required steps have been per- formed, the allowance is reversed and the accounts receivables are writ- ten off. Apart from certain exceptions the Volvo Group continues to engage in enforcement activity even after a write-off in order to recover the contractual amount not previously received. Due to the prevailing business model in the construction equipment industry in China, with longer payment terms to customers, a substantial part of the Volvo Groups accounts receivable is related to customers in this market. The weakened Chinese construction equipment market is currently impacting customers\u2019 and dealers\u2019 profitability negatively. This might affect their ability to honor their obligations to the Volvo Group and may consequently have a material adverse effect on the Volvo Group\u2019s financial result and position. Renegotiated receivables are on a slightly lower level than last year, with a substantial part of the exposure related to renegotiated receivables within Construction Equipment in China. Renegotiated receivables con- tinue to be closely monitored for on-going payment performance and signs of impairment. As of December 31, 2023, the total allowance for expected credit losses for accounts receivables amounted to 3.95% (3.02) of total accounts receivables. The increase in allowances is primarily due to the weaker con- struction equipment market in China this year compared to last year. Read more in Note 4 Goals and policies in financial risk management, regarding credit risk. 16:1 Non-current receivables Dec 31, 2023 Dec 31, 2022 Other interest-bearing receivables 1 902 676 Interest and currency risk derivatives 2 4,833 4,991 Contract and right of return assets 3 1,414 4,036 Other receivables 2,773 3,122 Non-current receivables 9,923 12,825 1 The amount is the non-current part of other interest-bearing receivables in note 30 Financial instruments, table 30:1. 2 The amount is the non-current part of interest and currency risk derivatives in note 30 Financial instruments, table 30:1. 3 Non-current contract and right of return assets of SEK 1,678 M ( \u2013) have been reclassified to assets held for sale. Read more in Note 3 Acquisitions and divestments of shares and operations and Read more in Note 7 Revenue, about contract and right of return assets. 16:2 Current receivables Dec 31, 2023 Dec 31, 2022 Other interest-bearing receivables 1 2,331 5,062 Tax assets 2,223 2,059 Accounts receivables 2 43,210 48,220 Prepaid expenses and accrued income 3,837 3,624 VAT receivables 5,777 5,917 Interest and currency risk derivatives 3 1,460 760 Contract and right of return assets 2, 4 288 1,822 Other receivables 9,444 7,852 Current receivables, after deduction of allowance for expected credit losses on receivable s 68,570 75,316 1 The amount is the current part of other interest-bearing receivables in note 30 Financial instruments, table 30:1. 2 Accounts receivables of SEK 3,502 M ( \u2013) and current contract and right of return assets of SEK 2,043 M (\u2013) have been reclassified to assets held for sale. Read more in Note 3 Acquisitions and divestments of shares and operations. 3 The amount is the current part of interest and currency risk derivatives in note 30 Financial instruments, table 30:1. 4 Read more in Note 7 Revenue, about contract and right of return assets. 16:3 Change of allowance for expected credit losses for accounts receivables 2023 2022 Opening balance 1,501 846 New allowance charged to income 564 991 Reversal of allowance charged to income \u2013422 \u2013162 Utilization of allowance related to actual losses \u201361 \u201394 Exchange rate changes \u201373 53 Reclassifications, etc. 1 270 \u2013133 Allowance for expected credit losses for accounts receivables, Dec 31 1,778 1,501 1 Whereof reclassification from other non-current receivables of SEK 288 M (\u2013127 ) 22 Liabilities ACCOUNTING POLICY Loans are measured at amortized cost using the effective interest rate method. Read more in Note 30 Financial instruments for accounting policies related to financial instruments. Read more in Note 14 Leasing, for accounting policies related to lease liabilities . Bond loans and other loans The Volvo Group\u2019s non-current and current loans are disclosed in tables 22:1 and 22:2 below, with the issued bond loans listed by currency. Loans in the Volvo Group\u2019s subsidiaries are mainly denominated in local curren- cies through Volvo Group Treasury which minimizes the currency exposure in the individual companies. Volvo Group Treasury uses various derivatives to facilitate lending and borrowing in different currencies without increas- ing the risk for the Volvo Group. 22:1 Non-current bond loans and other loans Currency Weighted average interest rate Dec 31, 2023, % Dec 31, 2023 Dec 31, 2022 Bond loans EUR 2.65 67,219 78,319 SEK 4.55 21,440 18,054 GBP 5.47 7,614 3,125 USD 2.72 698 730 NOK \u2013 1,691 HKD \u2013 969 B/S Bond loans 1 96,970 102,887 Other loans Other loans 1 33,983 26,699 Lease liabilities 5,314 4,806 Revaluation of outstanding derivatives to SEK 2 2,236 4,179 B/S Other loans 41,532 35,684 1 Non-current loans of SEK 1,900 M (1,093) were secured by assets pledged. Read more in Note 23 Assets pledged 2 Read more in Note 30 Financial instruments, table 30:1 regarding non-current part of outstanding interest and currency risk derivatives. 22:2 Current bond loans and other loans Currency Weighted average interest rate Dec 31, 2023, % Dec 31, 2023 Dec 31, 2022 Bond loans EUR 2.61 38,137 21,762 SEK 3.51 6,011 13,890 NOK 6.09 1,568 1,216 HKD 2.31 925 \u2013 JPY \u2013 926 B/S Bond loans 1 46,641 37,794 Other loans Other loans 1 48,731 31,084 Lease liabilities 1,877 1,777 Revaluation of outstanding derivatives to SEK 2 1,040 1,722 B/S Other loans 51,648 34,583 1 Current loans of SEK 4,694 M (1,994) were secured by assets pledged. Read more in Note 23 Assets pledged. 2 Read more in Note 30 Financial instruments, table 30:1 regarding current part of outstanding interest and currency risk derivatives. . 22:3 Maturity Year Bond loans and other loans Not utilized non-current credit facilities 2025 60,224 7,553 2026 46,043 23,108 2027 18,466 \u2013 2028 6,975 22,108 2029 3,534 \u2013 2030 or later 3,260 \u2013 Total 138,502 52,770 Read more in Note 14 Leasing, table 14:4 for maturities of non-current lease liabilities. A total of SEK 142,108 M (133,905) in bond loans and SEK 76,020 M (51,770) in other loans in tables 22:1 and 22:2 were borrowed to finance the credit portfolio in Financial services. The interest rate risk in Financial Services is managed with the objective to achieve a match of interest rate fixings on borrowing and lending, in order to eliminate interest rate risk. The average interest rate on Industrial Operations financial liabilities at year end amounted to 5.7% (5.2), including the Volvo Group\u2019s credit costs. Read more in Note 4 Goals and policies in financial risk management on how the funding for Industrial operations and Financial Services respectively is man- aged and presented in the Volvo Group\u2019s balance sheet. A hybrid bond amounting to EUR 1.5 billion was issued in the Volvo Group in 2014. The final tranche of this bond (EUR 0.6 billion) was repaid in March, 2023 without any impact on the net financial position of the Volvo Group. The predominant part of loans that mature in 2025 is an effect of the Volvo Group\u2019s normal business cycle, with shorter duration in the Finan- cial Services portfolio compared to Industrial Operations. Granted but not utilized credit facilities consist of stand-by facilities for loans. A fee is charged for granted credit facilities and recognized in the income statement within other financial income and expenses. Read more in Note 9 Other financial income and expenses Other liabilities 22:4 Non-current other liabilities Dec 31, 2023 Dec 31, 2022 Deferred leasing income 1 6,251 6,928 Residual value liabilities 1 7,408 9,747 Deferred service revenue 1 20,359 17,493 Refund liabilities 1 1,536 1,700 Advances from customers 1, 2 12 3,093 interest and currency risk derivatives 3 2,100 3,011 Other liabilities 3,876 3,577 B/S Other liabilities 41,542 45,549 1 Read more in Note 7 Revenue regarding contract and refund liabilities, and sales with residual value commitments. 2 Non-current advances from customers of SEK 2,605 M ( \u2013) have been reclassi- fied to liabilities held for sale. Read more in Note 3 Acquisitions and divest- ments of shares and operations. 3 Read more in Note 30 Financial instruments, table 30:1 regarding non-cur- rent part of interest and currency risk derivatives. 22:5 Current other liabilities Dec 31, 2023 Dec 31, 2022 Trade payables 1 82,987 90,177 Tax liabilities 5,087 6,907 Advances from customers 1, 2 3,611 5,892 Wages, salaries and withholding taxes 16,939 14,805 VAT liabilities 6,167 5,717 Accrued expenses for dealer bonuses and rebates 2 6,940 5,767 Other accrued expenses 14,917 15,071 Deferred leasing income 2 3,739 3,852 Deferred service revenue 2 4,557 4,446 Other deferred income 2 1,383 1,829 Residual value liabilities 2 4,545 4,559 Refund liabilities 2 519 783 Other financial liabilities 249 330 Interest and currency risk derivatives 3 404 64 Other liabilities 6,248 6,403 Other liabilities 158,292 166,601 1 Trade payables of SEK 1,279 M (\u2013) and current advances from customers of SEK 1,974 M (\u2013) have been reclassified to liabilities held for sale. Read more in Note 3 Acquisitions and divestments of shares and operations. 2 Read more in Note 7 Revenue, regarding contract and refund liabilities, and sales with residual value commitments. 3 Read more in Note 30 Financial instruments, table 30:1 regarding current part of interest and currency risk derivatives. Non interest-bearing current liabilities, including liabilities held for sale, amounted to SEK 166,052 M (166,601), or 63% (70) of the Volvo Group\u2019s total current liabilities ", "dimensions": { "concept": "ifrs-full:DisclosureOfTaxReceivablesAndPayablesExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1026": { "value": "ACCOUNTING POLICY Receivables are measured at amortized cost. The Volvo Group is applying the simplified expected credit loss model for accounts receivables, under which the loss allowance is measured at an amount equal to lifetime expected credit losses. The allowance is recorded at initial recognition and is reassessed during the contract period. Changes to the allowance for expected credit losses for accounts receivables are recognized in other operating income and expense. Read more in Note 30 Financial instruments, in section derecognition of financial assets, about receivables subject to discounting activities SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Allowance for expected credit losses Accounts receivables are short term by nature and consequently the risk assessment horizon is short. A collective assessment is made on accounts receivables not credit impaired. Historical information regarding credit loss experience is used to forecast future losses, adjusted for current and expected conditions. An individual assessment is made on credit impaired accounts receivables based on the financial condition of the customer. The past years have been affected by uncertainties in the geopolitical environment, high inflationary pressure, increased interest rates in many regions as well as the weakened Chinese construction equipment market which might impact the Volvo Group\u2019s customers\u2019 ability to fulfill their obli- gations and increase the risk for customer default. Based on this the assess- ment process for valuation allowances for expected credit losses for accounts receivables continues to be in focus in order to ensure allowances are in alignment with the current market conditions 16:4 Age analysis of accounts receivables Dec 31, 2023 Dec 31, 2022 Not Due 1\u201330 31\u201390 >90 Total Not Due 1\u201330 31\u201390 >90 Total Accounts receivables, gross 39,758 1,630 1,046 2,554 44,988 43,023 2,279 2,086 2,334 49,721 Allowance for expected credit losses on accounts receivables \u2013355 \u201363 \u201368 \u20131,292 \u20131,778 \u2013678 \u201365 \u201354 \u2013704 \u20131,501 B/S Accounts receivables, net 39,403 1,567 978 1,262 43,210 42,345 2,214 2,032 1,630 48,220 Risk management practices Credit risks are managed through active credit monitoring and follow-up routines in accordance with the Volvo Group Credit management direc- tive. This directive includes different steps to perform when an invoice is not paid at due date. When an increased credit risk is verified, for example through a bankruptcy, or when an allowance has been unchanged for two years and it can be demonstrated that all required steps have been per- formed, the allowance is reversed and the accounts receivables are writ- ten off. Apart from certain exceptions the Volvo Group continues to engage in enforcement activity even after a write-off in order to recover the contractual amount not previously received. Due to the prevailing business model in the construction equipment industry in China, with longer payment terms to customers, a substantial part of the Volvo Groups accounts receivable is related to customers in this market. The weakened Chinese construction equipment market is currently impacting customers\u2019 and dealers\u2019 profitability negatively. This might affect their ability to honor their obligations to the Volvo Group and may consequently have a material adverse effect on the Volvo Group\u2019s financial result and position. Renegotiated receivables are on a slightly lower level than last year, with a substantial part of the exposure related to renegotiated receivables within Construction Equipment in China. Renegotiated receivables con- tinue to be closely monitored for on-going payment performance and signs of impairment. As of December 31, 2023, the total allowance for expected credit losses for accounts receivables amounted to 3.95% (3.02) of total accounts receivables. The increase in allowances is primarily due to the weaker con- struction equipment market in China this year compared to last year. Read more in Note 4 Goals and policies in financial risk management, regarding credit risk. 16:1 Non-current receivables Dec 31, 2023 Dec 31, 2022 Other interest-bearing receivables 1 902 676 Interest and currency risk derivatives 2 4,833 4,991 Contract and right of return assets 3 1,414 4,036 Other receivables 2,773 3,122 Non-current receivables 9,923 12,825 1 The amount is the non-current part of other interest-bearing receivables in note 30 Financial instruments, table 30:1. 2 The amount is the non-current part of interest and currency risk derivatives in note 30 Financial instruments, table 30:1. 3 Non-current contract and right of return assets of SEK 1,678 M ( \u2013) have been reclassified to assets held for sale. Read more in Note 3 Acquisitions and divestments of shares and operations and Read more in Note 7 Revenue, about contract and right of return assets. 16:2 Current receivables Dec 31, 2023 Dec 31, 2022 Other interest-bearing receivables 1 2,331 5,062 Tax assets 2,223 2,059 Accounts receivables 2 43,210 48,220 Prepaid expenses and accrued income 3,837 3,624 VAT receivables 5,777 5,917 Interest and currency risk derivatives 3 1,460 760 Contract and right of return assets 2, 4 288 1,822 Other receivables 9,444 7,852 Current receivables, after deduction of allowance for expected credit losses on receivable s 68,570 75,316 1 The amount is the current part of other interest-bearing receivables in note 30 Financial instruments, table 30:1. 2 Accounts receivables of SEK 3,502 M ( \u2013) and current contract and right of return assets of SEK 2,043 M (\u2013) have been reclassified to assets held for sale. Read more in Note 3 Acquisitions and divestments of shares and operations. 3 The amount is the current part of interest and currency risk derivatives in note 30 Financial instruments, table 30:1. 4 Read more in Note 7 Revenue, about contract and right of return assets. 16:3 Change of allowance for expected credit losses for accounts receivables 2023 2022 Opening balance 1,501 846 New allowance charged to income 564 991 Reversal of allowance charged to income \u2013422 \u2013162 Utilization of allowance related to actual losses \u201361 \u201394 Exchange rate changes \u201373 53 Reclassifications, etc. 1 270 \u2013133 Allowance for expected credit losses for accounts receivables, Dec 31 1,778 1,501 1 Whereof reclassification from other non-current receivables of SEK 288 M (\u2013127 ) . ", "dimensions": { "concept": "ifrs-full:DisclosureOfPrepaymentsAndOtherAssetsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1027": { "value": "ACCOUNTING POLICY Receivables are measured at amortized cost. The Volvo Group is applying the simplified expected credit loss model for accounts receivables, under which the loss allowance is measured at an amount equal to lifetime expected credit losses. The allowance is recorded at initial recognition and is reassessed during the contract period. Changes to the allowance for expected credit losses for accounts receivables are recognized in other operating income and expense. Read more in Note 30 Financial instruments, in section derecognition of financial assets, about receivables subject to discounting activities . SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Allowance for expected credit losses Accounts receivables are short term by nature and consequently the risk assessment horizon is short. A collective assessment is made on accounts receivables not credit impaired. Historical information regarding credit loss experience is used to forecast future losses, adjusted for current and expected conditions. An individual assessment is made on credit impaired accounts receivables based on the financial condition of the customer. The past years have been affected by uncertainties in the geopolitical environment, high inflationary pressure, increased interest rates in many regions as well as the weakened Chinese construction equipment market which might impact the Volvo Group\u2019s customers\u2019 ability to fulfill their obli- gations and increase the risk for customer default. Based on this the assess- ment process for valuation allowances for expected credit losses for accounts receivables continues to be in focus in order to ensure allowances are in alignment with the current market conditions . 16:4 Age analysis of accounts receivables Dec 31, 2023 Dec 31, 2022 Not Due 1\u201330 31\u201390 >90 Total Not Due 1\u201330 31\u201390 >90 Total Accounts receivables, gross 39,758 1,630 1,046 2,554 44,988 43,023 2,279 2,086 2,334 49,721 Allowance for expected credit losses on accounts receivables \u2013355 \u201363 \u201368 \u20131,292 \u20131,778 \u2013678 \u201365 \u201354 \u2013704 \u20131,501 B/S Accounts receivables, net 39,403 1,567 978 1,262 43,210 42,345 2,214 2,032 1,630 48,220 Risk management practices Credit risks are managed through active credit monitoring and follow-up routines in accordance with the Volvo Group Credit management direc- tive. This directive includes different steps to perform when an invoice is not paid at due date. When an increased credit risk is verified, for example through a bankruptcy, or when an allowance has been unchanged for two years and it can be demonstrated that all required steps have been per- formed, the allowance is reversed and the accounts receivables are writ- ten off. Apart from certain exceptions the Volvo Group continues to engage in enforcement activity even after a write-off in order to recover the contractual amount not previously received. Due to the prevailing business model in the construction equipment industry in China, with longer payment terms to customers, a substantial part of the Volvo Groups accounts receivable is related to customers in this market. The weakened Chinese construction equipment market is currently impacting customers\u2019 and dealers\u2019 profitability negatively. This might affect their ability to honor their obligations to the Volvo Group and may consequently have a material adverse effect on the Volvo Group\u2019s financial result and position. Renegotiated receivables are on a slightly lower level than last year, with a substantial part of the exposure related to renegotiated receivables within Construction Equipment in China. Renegotiated receivables con- tinue to be closely monitored for on-going payment performance and signs of impairment. As of December 31, 2023, the total allowance for expected credit losses for accounts receivables amounted to 3.95% (3.02) of total accounts receivables. The increase in allowances is primarily due to the weaker con- struction equipment market in China this year compared to last year. Read more in Note 4 Goals and policies in financial risk management, regarding credit risk. 16:1 Non-current receivables Dec 31, 2023 Dec 31, 2022 Other interest-bearing receivables 1 902 676 Interest and currency risk derivatives 2 4,833 4,991 Contract and right of return assets 3 1,414 4,036 Other receivables 2,773 3,122 Non-current receivables 9,923 12,825 1 The amount is the non-current part of other interest-bearing receivables in note 30 Financial instruments, table 30:1. 2 The amount is the non-current part of interest and currency risk derivatives in note 30 Financial instruments, table 30:1. 3 Non-current contract and right of return assets of SEK 1,678 M ( \u2013) have been reclassified to assets held for sale. Read more in Note 3 Acquisitions and divestments of shares and operations and Read more in Note 7 Revenue, about contract and right of return assets. 16:2 Current receivables Dec 31, 2023 Dec 31, 2022 Other interest-bearing receivables 1 2,331 5,062 Tax assets 2,223 2,059 Accounts receivables 2 43,210 48,220 Prepaid expenses and accrued income 3,837 3,624 VAT receivables 5,777 5,917 Interest and currency risk derivatives 3 1,460 760 Contract and right of return assets 2, 4 288 1,822 Other receivables 9,444 7,852 Current receivables, after deduction of allowance for expected credit losses on receivable s 68,570 75,316 1 The amount is the current part of other interest-bearing receivables in note 30 Financial instruments, table 30:1. 2 Accounts receivables of SEK 3,502 M ( \u2013) and current contract and right of return assets of SEK 2,043 M (\u2013) have been reclassified to assets held for sale. Read more in Note 3 Acquisitions and divestments of shares and operations. 3 The amount is the current part of interest and currency risk derivatives in note 30 Financial instruments, table 30:1. 4 Read more in Note 7 Revenue, about contract and right of return assets. 16:3 Change of allowance for expected credit losses for accounts receivables 2023 2022 Opening balance 1,501 846 New allowance charged to income 564 991 Reversal of allowance charged to income \u2013422 \u2013162 Utilization of allowance related to actual losses \u201361 \u201394 Exchange rate changes \u201373 53 Reclassifications, etc. 1 270 \u2013133 Allowance for expected credit losses for accounts receivables, Dec 31 1,778 1,501 1 Whereof reclassification from other non-current receivables of SEK 288 M (\u2013127 ) ", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherNoncurrentAssetsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1028": { "value": "ACCOUNTING POLICY Receivables are measured at amortized cost. The Volvo Group is applying the simplified expected credit loss model for accounts receivables, under which the loss allowance is measured at an amount equal to lifetime expected credit losses. The allowance is recorded at initial recognition and is reassessed during the contract period. Changes to the allowance for expected credit losses for accounts receivables are recognized in other operating income and expense. Read more in Note 30 Financial instruments, in section derecognition of financial assets, about receivables subject to discounting activities . SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Allowance for expected credit losses Accounts receivables are short term by nature and consequently the risk assessment horizon is short. A collective assessment is made on accounts receivables not credit impaired. Historical information regarding credit loss experience is used to forecast future losses, adjusted for current and expected conditions. An individual assessment is made on credit impaired accounts receivables based on the financial condition of the customer. The past years have been affected by uncertainties in the geopolitical environment, high inflationary pressure, increased interest rates in many regions as well as the weakened Chinese construction equipment market which might impact the Volvo Group\u2019s customers\u2019 ability to fulfill their obli- gations and increase the risk for customer default. Based on this the assess- ment process for valuation allowances for expected credit losses for accounts receivables continues to be in focus in order to ensure allowances are in alignment with the current market conditions . 16:4 Age analysis of accounts receivables Dec 31, 2023 Dec 31, 2022 Not Due 1\u201330 31\u201390 >90 Total Not Due 1\u201330 31\u201390 >90 Total Accounts receivables, gross 39,758 1,630 1,046 2,554 44,988 43,023 2,279 2,086 2,334 49,721 Allowance for expected credit losses on accounts receivables \u2013355 \u201363 \u201368 \u20131,292 \u20131,778 \u2013678 \u201365 \u201354 \u2013704 \u20131,501 B/S Accounts receivables, net 39,403 1,567 978 1,262 43,210 42,345 2,214 2,032 1,630 48,220 Risk management practices Credit risks are managed through active credit monitoring and follow-up routines in accordance with the Volvo Group Credit management direc- tive. This directive includes different steps to perform when an invoice is not paid at due date. When an increased credit risk is verified, for example through a bankruptcy, or when an allowance has been unchanged for two years and it can be demonstrated that all required steps have been per- formed, the allowance is reversed and the accounts receivables are writ- ten off. Apart from certain exceptions the Volvo Group continues to engage in enforcement activity even after a write-off in order to recover the contractual amount not previously received. Due to the prevailing business model in the construction equipment industry in China, with longer payment terms to customers, a substantial part of the Volvo Groups accounts receivable is related to customers in this market. The weakened Chinese construction equipment market is currently impacting customers\u2019 and dealers\u2019 profitability negatively. This might affect their ability to honor their obligations to the Volvo Group and may consequently have a material adverse effect on the Volvo Group\u2019s financial result and position. Renegotiated receivables are on a slightly lower level than last year, with a substantial part of the exposure related to renegotiated receivables within Construction Equipment in China. Renegotiated receivables con- tinue to be closely monitored for on-going payment performance and signs of impairment. As of December 31, 2023, the total allowance for expected credit losses for accounts receivables amounted to 3.95% (3.02) of total accounts receivables. The increase in allowances is primarily due to the weaker con- struction equipment market in China this year compared to last year. Read more in Note 4 Goals and policies in financial risk management, regarding credit risk. 16:1 Non-current receivables Dec 31, 2023 Dec 31, 2022 Other interest-bearing receivables 1 902 676 Interest and currency risk derivatives 2 4,833 4,991 Contract and right of return assets 3 1,414 4,036 Other receivables 2,773 3,122 Non-current receivables 9,923 12,825 1 The amount is the non-current part of other interest-bearing receivables in note 30 Financial instruments, table 30:1. 2 The amount is the non-current part of interest and currency risk derivatives in note 30 Financial instruments, table 30:1. 3 Non-current contract and right of return assets of SEK 1,678 M ( \u2013) have been reclassified to assets held for sale. Read more in Note 3 Acquisitions and divestments of shares and operations and Read more in Note 7 Revenue, about contract and right of return assets. 16:2 Current receivables Dec 31, 2023 Dec 31, 2022 Other interest-bearing receivables 1 2,331 5,062 Tax assets 2,223 2,059 Accounts receivables 2 43,210 48,220 Prepaid expenses and accrued income 3,837 3,624 VAT receivables 5,777 5,917 Interest and currency risk derivatives 3 1,460 760 Contract and right of return assets 2, 4 288 1,822 Other receivables 9,444 7,852 Current receivables, after deduction of allowance for expected credit losses on receivable s 68,570 75,316 1 The amount is the current part of other interest-bearing receivables in note 30 Financial instruments, table 30:1. 2 Accounts receivables of SEK 3,502 M ( \u2013) and current contract and right of return assets of SEK 2,043 M (\u2013) have been reclassified to assets held for sale. Read more in Note 3 Acquisitions and divestments of shares and operations. 3 The amount is the current part of interest and currency risk derivatives in note 30 Financial instruments, table 30:1. 4 Read more in Note 7 Revenue, about contract and right of return assets. 16:3 Change of allowance for expected credit losses for accounts receivables 2023 2022 Opening balance 1,501 846 New allowance charged to income 564 991 Reversal of allowance charged to income \u2013422 \u2013162 Utilization of allowance related to actual losses \u201361 \u201394 Exchange rate changes \u201373 53 Reclassifications, etc. 1 270 \u2013133 Allowance for expected credit losses for accounts receivables, Dec 31 1,778 1,501 1 Whereof reclassification from other non-current receivables of SEK 288 M (\u2013127 ) ", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherCurrentAssetsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1029": { "value": "ACCOUNTING POLICY Receivables are measured at amortized cost. The Volvo Group is applying the simplified expected credit loss model for accounts receivables, under which the loss allowance is measured at an amount equal to lifetime expected credit losses. The allowance is recorded at initial recognition and is reassessed during the contract period. Changes to the allowance for expected credit losses for accounts receivables are recognized in other operating income and expense. Read more in Note 30 Financial instruments, in section derecognition of financial assets, about receivables subject to discounting activities . SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Allowance for expected credit losses Accounts receivables are short term by nature and consequently the risk assessment horizon is short. A collective assessment is made on accounts receivables not credit impaired. Historical information regarding credit loss experience is used to forecast future losses, adjusted for current and expected conditions. An individual assessment is made on credit impaired accounts receivables based on the financial condition of the customer. The past years have been affected by uncertainties in the geopolitical environment, high inflationary pressure, increased interest rates in many regions as well as the weakened Chinese construction equipment market which might impact the Volvo Group\u2019s customers\u2019 ability to fulfill their obli- gations and increase the risk for customer default. Based on this the assess- ment process for valuation allowances for expected credit losses for accounts receivables continues to be in focus in order to ensure allowances are in alignment with the current market conditions 16:4 Age analysis of accounts receivables Dec 31, 2023 Dec 31, 2022 Not Due 1\u201330 31\u201390 >90 Total Not Due 1\u201330 31\u201390 >90 Total Accounts receivables, gross 39,758 1,630 1,046 2,554 44,988 43,023 2,279 2,086 2,334 49,721 Allowance for expected credit losses on accounts receivables \u2013355 \u201363 \u201368 \u20131,292 \u20131,778 \u2013678 \u201365 \u201354 \u2013704 \u20131,501 B/S Accounts receivables, net 39,403 1,567 978 1,262 43,210 42,345 2,214 2,032 1,630 48,220 Risk management practices Credit risks are managed through active credit monitoring and follow-up routines in accordance with the Volvo Group Credit management direc- tive. This directive includes different steps to perform when an invoice is not paid at due date. When an increased credit risk is verified, for example through a bankruptcy, or when an allowance has been unchanged for two years and it can be demonstrated that all required steps have been per- formed, the allowance is reversed and the accounts receivables are writ- ten off. Apart from certain exceptions the Volvo Group continues to engage in enforcement activity even after a write-off in order to recover the contractual amount not previously received. Due to the prevailing business model in the construction equipment industry in China, with longer payment terms to customers, a substantial part of the Volvo Groups accounts receivable is related to customers in this market. The weakened Chinese construction equipment market is currently impacting customers\u2019 and dealers\u2019 profitability negatively. This might affect their ability to honor their obligations to the Volvo Group and may consequently have a material adverse effect on the Volvo Group\u2019s financial result and position. Renegotiated receivables are on a slightly lower level than last year, with a substantial part of the exposure related to renegotiated receivables within Construction Equipment in China. Renegotiated receivables con- tinue to be closely monitored for on-going payment performance and signs of impairment. As of December 31, 2023, the total allowance for expected credit losses for accounts receivables amounted to 3.95% (3.02) of total accounts receivables. The increase in allowances is primarily due to the weaker con- struction equipment market in China this year compared to last year. Read more in Note 4 Goals and policies in financial risk management, regarding credit risk. 16:1 Non-current receivables Dec 31, 2023 Dec 31, 2022 Other interest-bearing receivables 1 902 676 Interest and currency risk derivatives 2 4,833 4,991 Contract and right of return assets 3 1,414 4,036 Other receivables 2,773 3,122 Non-current receivables 9,923 12,825 1 The amount is the non-current part of other interest-bearing receivables in note 30 Financial instruments, table 30:1. 2 The amount is the non-current part of interest and currency risk derivatives in note 30 Financial instruments, table 30:1. 3 Non-current contract and right of return assets of SEK 1,678 M ( \u2013) have been reclassified to assets held for sale. Read more in Note 3 Acquisitions and divestments of shares and operations and Read more in Note 7 Revenue, about contract and right of return assets. 16:2 Current receivables Dec 31, 2023 Dec 31, 2022 Other interest-bearing receivables 1 2,331 5,062 Tax assets 2,223 2,059 Accounts receivables 2 43,210 48,220 Prepaid expenses and accrued income 3,837 3,624 VAT receivables 5,777 5,917 Interest and currency risk derivatives 3 1,460 760 Contract and right of return assets 2, 4 288 1,822 Other receivables 9,444 7,852 Current receivables, after deduction of allowance for expected credit losses on receivable s 68,570 75,316 1 The amount is the current part of other interest-bearing receivables in note 30 Financial instruments, table 30:1. 2 Accounts receivables of SEK 3,502 M ( \u2013) and current contract and right of return assets of SEK 2,043 M (\u2013) have been reclassified to assets held for sale. Read more in Note 3 Acquisitions and divestments of shares and operations. 3 The amount is the current part of interest and currency risk derivatives in note 30 Financial instruments, table 30:1. 4 Read more in Note 7 Revenue, about contract and right of return assets. 16:3 Change of allowance for expected credit losses for accounts receivables 2023 2022 Opening balance 1,501 846 New allowance charged to income 564 991 Reversal of allowance charged to income \u2013422 \u2013162 Utilization of allowance related to actual losses \u201361 \u201394 Exchange rate changes \u201373 53 Reclassifications, etc. 1 270 \u2013133 Allowance for expected credit losses for accounts receivables, Dec 31 1,778 1,501 1 Whereof reclassification from other non-current receivables of SEK 288 M (\u2013127 ", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherAssetsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1030": { "value": "17 Inventories ACCOUNTING POLICY Inventories are measured at the lower of cost and net realizable value. If the estimated net realizable value is lower than cost, a write down of invent ories is made. The cost is established by using the first-in, first-out principle (FIFO) and is based on a standard cost method, including costs for all direct manufac- turing expenses and the attributable share of capacity and other manu- facturing-related costs. The standard costs are reviewed regularly and adjustments are made based on current conditions. Manufacturing costs are based on normal capacity utilization which are allocated to inventory while unabsorbed cost due to changes in production volume are recog- nized in the income statement as incurred. Costs for research and develop- ment, selling, administration and financial expenses are not in cluded. Net realizable value is calculated as the selling price less costs attribut- able to the sale. SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Write-down of inventories The calculation of net realizable value is based on an estimation of a future sales price, which is dependent on several parameters, such as market demand, model changes and development of used products prices. 17:1 Inventories Dec 31, 2023 Dec 31, 2022 Finished products 41,129 37,854 Production materials etc. 35,734 37,835 B/S Inventories\u00b9 76,863 75,689 1 Inventories amounting to SEK 3,871 M (\u2013) have been reclassified to assets held for sale. Read more in Note 3 Acquisitions and divestments of operations. The total value of inventories, net after write-downs, was SEK 76,863 M (75,689) as of December 31, 2023. Inventories recognized as cost of sold products during the period amounted to SEK 375,176 M (346,539). 17:2 Change in write-down of inventories 2023 2022 Opening balance 4,021 3,581 Change in write-down of inventories charged to income 903 380 Scrapping \u2013241 \u2013259 Exchange rate changes \u201393 322 Reclassifications etc. \u2013671 \u20133 Write-down of inventories, December 31 3,918 4,021 ", "dimensions": { "concept": "ifrs-full:DisclosureOfInventoriesExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1031": { "value": "ACCOUNTING POLICY Inventories are measured at the lower of cost and net realizable value. If the estimated net realizable value is lower than cost, a write down of invent ories is made. The cost is established by using the first-in, first-out principle (FIFO) and is based on a standard cost method, including costs for all direct manufac- turing expenses and the attributable share of capacity and other manu- facturing-related costs. The standard costs are reviewed regularly and adjustments are made based on current conditions. Manufacturing costs are based on normal capacity utilization which are allocated to inventory while unabsorbed cost due to changes in production volume are recog- nized in the income statement as incurred. Costs for research and develop- ment, selling, administration and financial expenses are not in cluded. Net realizable value is calculated as the selling price less costs attribut- able to the sale. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForMeasuringInventories", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1032": { "value": "18 Cash and cash equivalents ACCOUNTING POLICY Cash and cash equivalents include highly liquid interest-bearing securities that are considered easily convertible to cash, including market able secu- rities, with a date of maturity less than three months at the time of invest- ment. Interest-bearing securities with a date of maturity exceeding three months at the time of investment are recognized as marketable securities. Read more in Note 30 Financial instruments, about accounting policies for financial instruments . 18:1 Cash and cash equivalents Dec 31, 2023 Dec 31, 2022 Cash in banks 51,576 54,636 Marketable securities with original duration less than 3 months 1 3,735 5,109 Time deposits in banks 28,015 24,141 B/S Cash and cash equivalents 83,326 83,886 1 Additionally the Volvo Group recognized outstanding marketable securities with original duration exceeding three months of SEK 89 M (93) in government securities as of December 31, 2023. Cash and cash equivalents as of December 31, 2023, included SEK 2.2 bil- lion (2.3) that is not available for use by the Volvo Group and SEK 7.6 billion (14.5) where other limitations exist, mainly cash and cash equivalents in countries where exchange controls or other legal restrictions apply. There- fore, it is not possible to immediately use these cash and cash equivalents in other parts of the Volvo Group, however there is normally no limitation to use them for the Volvo Group\u2019s operation in the respective country .", "dimensions": { "concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1033": { "value": "18 Cash and cash equivalents ACCOUNTING POLICY Cash and cash equivalents include highly liquid interest-bearing securities that are considered easily convertible to cash, including market able secu- rities, with a date of maturity less than three months at the time of invest- ment. Interest-bearing securities with a date of maturity exceeding three months at the time of investment are recognized as marketable securities. Read more in Note 30 Financial instruments, about accounting policies for financial instruments . 18:1 Cash and cash equivalents Dec 31, 2023 Dec 31, 2022 Cash in banks 51,576 54,636 Marketable securities with original duration less than 3 months 1 3,735 5,109 Time deposits in banks 28,015 24,141 B/S Cash and cash equivalents 83,326 83,886 1 Additionally the Volvo Group recognized outstanding marketable securities with original duration exceeding three months of SEK 89 M (93) in government securities as of December 31, 2023. Cash and cash equivalents as of December 31, 2023, included SEK 2.2 bil- lion (2.3) that is not available for use by the Volvo Group and SEK 7.6 billion (14.5) where other limitations exist, mainly cash and cash equivalents in countries where exchange controls or other legal restrictions apply. There- fore, it is not possible to immediately use these cash and cash equivalents in other parts of the Volvo Group, however there is normally no limitation to use them for the Volvo Group\u2019s operation in the respective country ", "dimensions": { "concept": "ifrs-full:DisclosureOfRestrictedCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1034": { "value": "ACCOUNTING POLICY Cash and cash equivalents include highly liquid interest-bearing securities that are considered easily convertible to cash, including market able secu- rities, with a date of maturity less than three months at the time of invest- ment. Interest-bearing securities with a date of maturity exceeding three months at the time of investment are recognized as marketable securities. Read more in Note 30 Financial instruments, about accounting policies for financial instruments . ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1035": { "value": "ACCOUNTING POLICY Cash and cash equivalents include highly liquid interest-bearing securities that are considered easily convertible to cash, including market able secu- rities, with a date of maturity less than three months at the time of invest- ment. Interest-bearing securities with a date of maturity exceeding three months at the time of investment are recognized as marketable securities. Read more in Note 30 Financial instruments, about accounting policies for financial instruments ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRestrictedCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1037": { "value": "19 Equity and number of shares ACCOUNTING POLICY Dividend resolutions are approved at the annual general meeting or, in certain cases, during an extraordinary general meeting. When the deci- sion has been approved, equity is reduced and the dividend is reported as a liability to the shareholders in the balance sheet until the payment has taken place . The Annual General Meeting, held on April 4, 2023, resolved that an ordi- nary dividend of SEK 7.00 (6.50) per share and an extraordinary dividend of SEK 7.00 (6.50) per share, totaling SEK 14. 00 (13.00) per share should be paid to shareholders. During 2023, the Volvo Group distributed SEK 28.5 billion (26.4) to the shareholders. The share capital of the Parent company amounted to SEK 2,562 M (2,562) on December 31, 2023 and is divided into two series of shares, A and B. Both series carry the same rights, except that each Series A share carries the right to one vote and each Series B share carries the right to one tenth of a vote. The shares\u2019 quota value is SEK 1.26 (1.26). During 2023 AB Volvo converted a total of 1,725 Series A shares to Series B shares. Unrestricted equity in the Parent company as of December 31, 2023 amounted to SEK 75,848 M (59,504). For the year 2023, the Board of Directors proposes an ordinary divi- dend of SEK 7.50 per share and an extraordinary dividend of SEK 10.50 per share, a total of SEK 18 .00 per share amounting to SEK 36. 6 billion. Read more in Changes in equity in the Parent company about AB Volvo\u2019s share capital. 19:1 Change in other reserves Holding of shares at fair value Other reserves, Dec 31, 2022 \u201337 Remeasurements of holdings of shares at fair value 15 Disposal \u2013 Other reserves, Dec 31, 2023 \u201321 19:2 Information regarding number of shares Dec 31, 2023 Dec 31, 2022 Own Series A shares \u2013 \u2013 Own Series B shares \u2013 \u2013 Total own shares \u2013 \u2013 Own shares in % of total registered shares \u2013 \u2013 Outstanding Series A shares 444,986,150 444,987,875 Outstanding Series B shares 1,588,465,934 1,588,464,209 Total outstanding shares 2,033,452,084 2,033,452,084 Total registered Series A shares 444,986,150 444,987,875 Total registered Series B shares 1,588,465,934 1,588,464,209 Total registered shares 2,033,452,084 2,033,452,084 Average number of outstanding shares 2,033,452,084 2,033,452,084 19:3 Series A shares Series B shares Total Outstanding shares 2023 2022 2023 2022 2023 2022 Outstanding shares opening balance 444,987,875 444,987,946 1,588,464,209 1,588,464,138 2,033,452,084 2,033,452,084 Converting Series A shares to Series B shares \u20131,725 \u201371 1,725 71 \u2013 \u2013 Outstanding shares, Dec 31 444,986,150 444,987,875 1,588,465,934 1,588,464,209 2,033,452,084 2,033,452,084 19:4 Information regarding shares 2023 2022 Number of outstanding shares, December 31, in millions 2,033 2,033 Average number of shares before dilution in millions 2,033 2,033 Average number of shares after dilution in millions 2,033 2,033 Average share price, SEK 218,70 179,32 Net income attributable to owners of AB Volvo, SEK M 49,825 32,722 Basic earnings per share, SEK 24.50 16.09 Diluted earnings per share, SEK 24.50 16.09 ", "dimensions": { "concept": "ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1038": { "value": "19 Equity and number of shares ACCOUNTING POLICY Dividend resolutions are approved at the annual general meeting or, in certain cases, during an extraordinary general meeting. When the deci- sion has been approved, equity is reduced and the dividend is reported as a liability to the shareholders in the balance sheet until the payment has taken place . The Annual General Meeting, held on April 4, 2023, resolved that an ordi- nary dividend of SEK 7.00 (6.50) per share and an extraordinary dividend of SEK 7.00 (6.50) per share, totaling SEK 14. 00 (13.00) per share should be paid to shareholders. During 2023, the Volvo Group distributed SEK 28.5 billion (26.4) to the shareholders. The share capital of the Parent company amounted to SEK 2,562 M (2,562) on December 31, 2023 and is divided into two series of shares, A and B. Both series carry the same rights, except that each Series A share carries the right to one vote and each Series B share carries the right to one tenth of a vote. The shares\u2019 quota value is SEK 1.26 (1.26). During 2023 AB Volvo converted a total of 1,725 Series A shares to Series B shares. Unrestricted equity in the Parent company as of December 31, 2023 amounted to SEK 75,848 M (59,504). For the year 2023, the Board of Directors proposes an ordinary divi- dend of SEK 7.50 per share and an extraordinary dividend of SEK 10.50 per share, a total of SEK 18 .00 per share amounting to SEK 36. 6 billion. Read more in Changes in equity in the Parent company about AB Volvo\u2019s share capital. 19:1 Change in other reserves Holding of shares at fair value Other reserves, Dec 31, 2022 \u201337 Remeasurements of holdings of shares at fair value 15 Disposal \u2013 Other reserves, Dec 31, 2023 \u201321 19:2 Information regarding number of shares Dec 31, 2023 Dec 31, 2022 Own Series A shares \u2013 \u2013 Own Series B shares \u2013 \u2013 Total own shares \u2013 \u2013 Own shares in % of total registered shares \u2013 \u2013 Outstanding Series A shares 444,986,150 444,987,875 Outstanding Series B shares 1,588,465,934 1,588,464,209 Total outstanding shares 2,033,452,084 2,033,452,084 Total registered Series A shares 444,986,150 444,987,875 Total registered Series B shares 1,588,465,934 1,588,464,209 Total registered shares 2,033,452,084 2,033,452,084 Average number of outstanding shares 2,033,452,084 2,033,452,084 19:3 Series A shares Series B shares Total Outstanding shares 2023 2022 2023 2022 2023 2022 Outstanding shares opening balance 444,987,875 444,987,946 1,588,464,209 1,588,464,138 2,033,452,084 2,033,452,084 Converting Series A shares to Series B shares \u20131,725 \u201371 1,725 71 \u2013 \u2013 Outstanding shares, Dec 31 444,986,150 444,987,875 1,588,465,934 1,588,464,209 2,033,452,084 2,033,452,084 19:4 Information regarding shares 2023 2022 Number of outstanding shares, December 31, in millions 2,033 2,033 Average number of shares before dilution in millions 2,033 2,033 Average number of shares after dilution in millions 2,033 2,033 Average share price, SEK 218,70 179,32 Net income attributable to owners of AB Volvo, SEK M 49,825 32,722 Basic earnings per share, SEK 24.50 16.09 Diluted earnings per share, SEK 24.50 16.09 ", "dimensions": { "concept": "ifrs-full:DisclosureOfDividendsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1039": { "value": "ACCOUNTING POLICY Dividend resolutions are approved at the annual general meeting or, in certain cases, during an extraordinary general meeting. When the deci- sion has been approved, equity is reduced and the dividend is reported as a liability to the shareholders in the balance sheet until the payment has taken place . ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDividendsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1040": { "value": "ACCOUNTING POLICY Dividend resolutions are approved at the annual general meeting or, in certain cases, during an extraordinary general meeting. When the deci- sion has been approved, equity is reduced and the dividend is reported as a liability to the shareholders in the balance sheet until the payment has taken place ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEarningsPerShareExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1042": { "value": "14", "decimals": 2, "dimensions": { "concept": "ifrs-full:DividendsRecognisedAsDistributionsToOwnersPerShare", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK/xbrli:shares" } }, "fact-1043": { "value": "18", "decimals": 2, "dimensions": { "concept": "ifrs-full:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersPerShare", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK/xbrli:shares" } }, "fact-1044": { "value": "36600000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwners", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:SEK" } }, "fact-1045": { "value": "19:1 Change in other reserves Holding of shares at fair value Other reserves, Dec 31, 2022 \u201337 Remeasurements of holdings of shares at fair value 15 Disposal \u2013 Other reserves, Dec 31, 2023 \u201321 ", "dimensions": { "concept": "ifrs-full:DisclosureOfReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1046": { "value": "20 Provisions for post-employment benefits ACCOUNTING POLICY The Volvo Group\u2019s post-employment benefits, such as pensions, health- care and other benefits are mainly settled by means of regular payments to independent authorities or bodies that assume pension obligations and administer pensions through defined contribution plans. For defined con- tribution plans, expenses for premiums are recognized in the income statement as incurred. Part of the post-employment benefits are defined benefit plans where the obligations remain within the Volvo Group and are secured primarily by proprietary pension foundations. The Volvo Group\u2019s largest defined benefit plans relate to subsidiaries in the USA and comprise both pensions and other benefits, such as healthcare. Other large-scale defined benefit plans apply to white collar employees in Sweden (mainly through the ITP pension plan) and employees in Great Britain, Belgium and France. Actuarial calculations are made for all defined benefit plans, subject to materiality, in order to determine the present value of the obligation for benefits vested by its current and former employees. The actuarial calcu- lations are prepared annually and are based upon actuarial assumptions that are determined at the end of the reporting period. Changes in the present value of obligations due to revised actuarial assumptions and experience adjustments constitute remeasurements. Provisions for post-employment benefits in the Volvo Group\u2019s balance sheet correspond to the present value of obligations at year-end, less fair value of plan assets. The fair value of buy-In contracts are set equal to the defined benefit obligations for the specific group of members the contract covers. All changes in the net defined liability (asset) are recognized when they occur. Service cost and net interest expense (income) are recognized in the income statement, while remeasurements such as actuarial gains and losses are rec- ognized in other comprehensive income. Special payroll tax is included in the pension liability for pension plans in Sweden and Belgium. SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Assumptions when calculating post-employment benefits Provisions and costs for post-employment benefits, mainly pensions and health care benefits, are dependent on actuarial assumptions. The actuar- ial assumptions and calculations are made separately for each defined benefit plan. The most significant assumptions are discount rate and infla- tion. Inflation assumptions are generally set as a long term assumption based on an evaluation of external market indicators. A sensitivity analysis is included in graph 20:6 and shows the effect on the defined benefit obligations if significant assumptions are changed. There are also other assumptions made such as salary increases, retirement rates, mortality rates, health care cost trends rates and other factors. The salary increase assumptions reflect the historical trend, the near-term and long-term out- look and assumed inflation. Retirement and mortality rates are based pri- marily on officially available mortality statistics. Healthcare cost trend assumptions are based on historical data as well as the near-term outlook and an assessment of likely long-term trends. The Volvo Group has engaged a global actuary in order to ensure that a professional assess- ment is made and that assumptions are consistently developed across jurisdictions. The actuarial assumptions are reviewed annually by the Volvo Group and modified when deemed appropriate. Actual inflation continued above long term assumptions and previous central bank projections during the year resulting in additional monetary policy tightening globally. Expectations of higher interest rates for longer period have led to a general increase in long term interest rates, while risk assets have experienced a volatile and fragmented performance during the year. Funding levels for the Volvo Group\u2019s funded pensions plans remains strong despite challenging financial conditions . The following tables disclose information about defined benefit plans. The Volvo Group recognizes the difference between the obligations and the plan assets, adjusted for potential asset ceilings, in the balance sheet. The disclosures refer to assumptions applied for actuarial calculations, recog- nized costs during the financial year and the value of obligations and plan assets at year-end. The tables also include a reconciliation of obligations and plan assets during the year. 20:1 Assumptions applied for actuarial calculations Dec 31, 2023 Dec 31, 2022 Sweden Discount rate, %1 3.45 3.95 Inflation, %2 2.00 2.00 Expected salary increase, % 2.65 2.65 Assumed life expectancy on retirement at age 65 (Male/Female) Retiring today (member age 65), year 22.3/23.3 22.2/24.4 Retiring in 25 years (member age 40 today), year 25.2/26.2 24.6/26.8 USA Discount rate, %1 4.80\u20135.02 5.00\u20135.35 Inflation, % 2.50 2.50 Expected salary increase, % 3.89 3.68 Assumed life expectancy on retirement at age 65 (Male/Female) Retiring today (member age 65), year 20.6/22.4 20.5/22.4 Retiring in 25 years (member age 40 today), year 22.5/24.2 22.4/24.2 Great Britain Discount rate, %1 4.75 4.95 Inflation, % 3.05 3.15 Expected salary increase, % 0.00 0.00 Assumed life expectancy on retirement at age 65 (Male/Female) Retiring today (member age 65), year 22.3/24.3 22.2/23.9 Retiring in 25 years (member age 40 today), year 22.4/25.6 24.3/26.7 Belgium Discount rate, %1 3.50 4.17 Inflation, % 2.00 2.00 Expected salary increase, % 2.89 2.86 France Discount rate, %1 3.49 4.19 Inflation, % 2.00 2.00 Expected salary increase, % 3.01 3.01 1 The discount rate for each country is determined by reference to market yields on high quality corporate bonds. In countries where there is no functioning market in such bonds, the market yields on government bonds are used. The discount rate for the Swedish pension obligation is determined by extra polating current market rates along the yield curve of mortgage bonds. 2 The long term inflation assumption is 2.00%. The pension obligations in Sweden have been adjusted for short-term inflation for the year 2024. 20:2 Summary of provisions for post-employment benefits Dec 31, 2023 Dec 31, 2022 Obligations \u201357,097 \u201352,862 Fair value of plan assets 47,917 46,844 Net provisions for post-employment benefits \u20139,180 \u20136,018 20:3 Pension costs 2023 2022 Current year service costs 1,112 1,553 Interest costs 2,176 1,325 Interest income \u20132,102 \u20131,255 Past service costs 131 13 Gain/loss on settlements \u2013 \u201322 Pension costs for the period, defined benefit plans 1,317 1,614 Pension costs for defined contribution plans 4,136 3,653 Total pension costs for the period 5,453 5,267 20:4 Costs for the period, post-employment benefits other than pensions 2023 2022 Current year service costs 96 106 Interest costs 205 134 Interest income \u201334 \u201331 Past service costs 1 \u2013 Gain/loss on settlements \u2013 \u2013 Remeasurements 161 99 Total costs for the period 428 308 20:5 Sweden Pensions USA Pensions Great Britain Pensions Belgium Pensions France Pensions USA Other benefits Average duration of the obligations, years 19.3 9.7 10.2 10.6 12.3 8.6 The analysis in graph 20:6 presents the sensitivity of the defined benefit obligations when changes in the applied assumptions for discount rate and inflation are made. The sensitivity analysis for the discount rate is based on a change in the assump tion while holding all other assump- tions constant. In practice, this is not probable, and a change in the assumption may be correlated. The sensitivity analysis for a change in long-term inflation correlates with other inflation linked assumptions. Depending on specific plan and benefit design, the sensitivity effect on the obligation differs for the respective assumptions.
20:6
\u2212
+
Effect on obligation, SEK M
Sweden Pensions
USA Pensions
USA Other benefits
Other plans
France Pensions
Great Britain Pensions
If inflation decreases 0.5% If inflation increases 0.5%
Sweden Pensions
USA Pensions
USA Other benefits
Other plans
France Pensions
Great Britain Pensions
Belgium Pensions
SENSITIVITY
ANALYSIS 2023
If discount rate decreases 0.5%
Belgium Pensions
If discount rate increases 0.5%
2,332
774
289
187
118
150
168
0
168
0
55
139
5
2,332
\u20132,076
\u2013707
\u2013268
\u2013168
\u2013109
\u2013135
\u2013154
\u20132,076
0
\u2013188
\u2013128
0
\u201351
\u20135
20:7
Obligations in defined benefit plans
Sweden
Pensions
USA
Pensions
Great
Britain
Pensions
Belgium
Pensions
France
Pensions
USA
Other
benefits
Other
plans Total
Obligations opening balance 2022 23,948 19,819 7,934 3,607 2,600 3,480 3,735 65,122
Acquisitions, divestments and other changes \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u20136 \u20135
Current year service costs 819 225 \u2013 205 167 39 203 1,659
Interest costs 475 581 144 44 32 95 89 1,460
Past service costs 25 \u2013 \u2013 \u2013 \u2013 \u2013 \u201312 12
Settlements \u2013 \u2013934 \u2013 \u2013 \u2013 \u2013 \u2013143 \u20131,077
Employee contributions \u2013 \u2013 \u2013 \u2013 \u2013 20 58 79
Remeasurements
1
:
\u2013 Effect of changes in demographic assumptions 602 \u2013 \u2013 \u2013 17 \u201320 \u2013 598
\u2013 Effect of changes in financial assumptions \u20136,516 \u20135,034 \u20133,027 \u20131,002 \u2013810 \u2013777 \u2013800 \u201317,967
\u2013 Effect of experience adjustments 590 \u2013209 426 165 106 136 20 1,234
Exchange rate changes \u2013 3,047 276 316 225 524 312 4,701
Benefits paid \u2013587 \u20131,306 \u2013287 \u2013132 \u201373 \u2013364 \u2013203 \u20132,953
Obligations, Dec 31, 2022 19,357 16,190 5,465 3,203 2,264 3,132 3,252 52,862
of which
Funded defined benefit plans \u201318,984 \u201315,542 \u20135,465 \u20133,203 \u201312 \u2013 \u20132,268 \u201345,475
Acquisitions, divestments and other changes
2
\u2013 \u20136 \u2013 \u2013 \u2013223 17 \u201384 \u2013296
Current year service costs 513 169 \u2013 173 139 27 188 1,209
Interest costs 755 821 276 131 97 152 149 2,381
Past service costs 16 103 4 \u2013 \u2013 \u2013 8 132
Settlements \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013
Employee contributions \u2013 \u2013 \u2013 \u2013 \u2013 21 69 90
Remeasurements
1
:
\u2013 Effect of changes in demographic assumptions 192 \u2013 \u2013148 \u2013 \u2013134 \u20137 \u20135 \u2013103
\u2013 Effect of changes in financial assumptions 3,737 437 79 228 220 74 173 4,950
\u2013 Effect of experience adjustments \u2013280 \u201359 \u201380 \u201351 81 149 20 \u2013221
Exchange rate changes \u2013 \u2013746 64 \u201329 \u201321 \u2013136 \u201391 \u2013960
Benefits paid \u2013644 \u20131,137 \u2013289 \u2013221 \u201378 \u2013377 \u2013199 \u20132,947
Obligations, Dec 31, 2023 23,645 15,772 5,370 3,434 2,345 3,051 3,479 57,097
of which
Funded defined benefit plans \u201323,246 \u201315,137 \u20135,370 \u20133,434 \u20138 \u2013 \u20132,408 \u201349,604
1 Out of the total remeasurement of the defined benefit obligation, SEK \u20134,462 M (16,227) has been recognized in Other Comprehensive Income,
and SEK \u2013164 M (\u201392) in the Income Statement.
2 A reclassification has been made to asset held for sale of SEK 265 M (
\u2013). Read more in Note 3 Acquisitions and divestments of operations .
20:8
Fair value of plan assets in funded plans
Sweden
Pensions
USA
Pensions
Great
Britain
Pensions
Belgium
Pensions
France
Pensions
USA
Other
benefits
Other
plans Total
Plan assets opening balance 2022 20,845 21,013 8,024 3,113 14 37 2,271 55,317
Acquisitions, divestments and other changes \u2013 \u2013 \u2013 \u2013 1 \u2013 \u2013 2
Interest income 417 617 146 39 \u2013 \u2013 67 1,286
Settlements \u2013 \u2013901 \u2013 \u2013 \u2013 \u2013 \u2013154 \u20131,055
Remeasurements
1
\u20132,274 \u20135,484 \u20133,349 \u2013480 \u2013 \u2013 \u2013239 \u201311,826
Asset ceiling \u2013 \u2013 481 \u2013 \u2013 \u2013 14 495
Employer contributions \u2013156 16 66 158 \u2013 \u2013 328 411
Employee contributions \u2013 34 \u2013 \u2013 \u2013 \u2013 58 93
Exchange rate changes \u2013 3,225 281 275 1 5 202 3,989
Benefits paid \u20131 \u20131,302 \u2013287 \u2013132 \u20131 \u2013 \u2013144 \u20131,867
Plan assets, Dec 31, 2022 18,831 17,218 5,362 2,972 15 42 2,403 46,844
Acquisitions, divestments and other changes \u2013 \u20136 \u2013 \u2013 \u2013 16 \u201339 \u201328
Interest income 744 877 272 125 1 \u2013 118 2,136
Settlements \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013
Remeasurements
1
1,116 211 257 57 \u2013 \u2013 7 1,648
Asset ceiling \u2013 \u2013 \u2013293 \u2013 \u2013 \u2013 \u2013 \u2013293
Employer contributions \u2013245 \u2013 59 203 \u2013 \u2013 120 136
Employee contributions \u2013 34 \u2013 \u2013 \u2013 \u2013 69 103
Exchange rate changes \u2013 \u2013775 58 \u201329 \u2013 \u20132 \u201391 \u2013839
Benefits paid \u20132 \u20131,131 \u2013289 \u2013221 \u20131 \u2013 \u2013146 \u20131,791
Plan assets, Dec 31, 2023 20,445 16,428 5,426 3,107 14 56 2,440 47,917
1 Out of the total remeasurement of the plan assets, SEK 1,356 M (\u201311,331) has been recognized in Other Comprehensive Income.
20:9
Net provisions for post-employment benefits
Sweden
Pensions
USA
Pensions
Great
Britain
Pensions
Belgium
Pensions
France
Pensions
USA
Other
benefits
Other
plans Total
Net provisions for post-employment benefits,
Dec 31, 2022 \u2013525 1,029 \u2013103 \u2013231 \u20132,249 \u20133,089 \u2013849 \u20136,018
of which reported as:
B/S
Net pension assets 389 2,005 25 \u2013 \u2013 42 266 2,727
B/S
Provisions for post-employment benefits
\u2013914 \u2013976 \u2013128 \u2013231 \u20132,249 \u20133,132 \u20131,115 \u20138,745
Net provisions for post-employment benefits,
Dec 31, 2023 \u20133,201 656 56 \u2013327 \u20132,330 \u20132,995 \u20131,038 \u20139,180
of which reported as:
B/S
Net pension assets 107 1,689 16 \u2013 7 56 162 2,039
B/S
Provisions for post-employment benefits \u20133,308 \u20131,033 39 \u2013327 \u20132,338 \u20133,051 \u20131,201 \u201311,219
Sweden
The main defined benefit plan in Sweden is the ITP2 plan which is based
on final salary. The plan is semi-closed, meaning that only new employees
born before 1979 enters the ITP2 solution. The Volvo Group\u2019s pension
foundation in Sweden was formed in 1996 to secure obligations relating
to retirement pensions for white collar workers in Sweden in accordance
with the ITP plan. The plan assets in the Volvo Group\u2019s Swedish pension
foundation are mainly invested in interest-bearing securities and in alterna-
tive assets, in accordance with a strategic allocation that is determined by
the foundation\u2019s Board of Directors. As of December 31, 2023, the fair
value of the foundation\u2019s plan assets amounted to SEK 20,425 M (18,810),
of which 6% (6) was invested in equity instruments. At the same point in
time, retirement pension obligations attributable to the ITP plan amounted
to SEK 23,231 M (18,970) .
Swedish companies can secure new pension obligations through
balance sheet provisions or pension fund contributions. Furthermore, a
credit insurance policy must be taken out for the value of the obligations. In
addition to benefits relating to retirement pensions, the ITP plan also
includes, for example, a collective family pension, which the Volvo Group
finances through an insurance policy with the Alecta insurance company.
According to an interpretation from the Swedish Sustainability and Finan-
cial Reporting Board, this is a multi-employer defined benefit plan. For the
fiscal year 2023, the Volvo Group did not have access to information from
Alecta that would have enabled this plan to be recognized as a defined ben-
efit plan. Accordingly, the plan has been recognized as a defined contribu-
tion plan. The Volvo Group estimates it will pay premiums of about SEK
203 M to Alecta in 2024. The collective consolidation level measures the
apportionable assets in relation to the insurance commitment. According to
Alecta\u2019s consolidation policy for defined benefit pension insurance, the col-
lective consolidation level is normally allowed to vary between 125% and
175%. Alecta\u2019s preliminary consolidation ratio amounts to 157% (172). If
the consolidation level falls short or exceeds the normal interval, one mea-
sure may be to increase the contract price for new subscription or to intro-
duce premium reductions.
The Volvo Group\u2019s share of the total saving premiums for ITP2 in Alecta
as of December 31, 2023 amounted to 0.25% (0.23) and the share of the
total number of active policy holders amounted to 1.90% (1.77).
All employees in Sweden benefit from a jubilee awards plan according to
which they receive a certain number of shares after they have rendered 25,
35 and 45 years of services. This plan is accounted for as a share-based
payment program, where the fair value of the equity-settled payments is
determined at the grant date. The plan is recognized as other liabilities.
USA
In the USA, the Volvo Group has tax qualified pension plans, post- retirement
medical plans and non-qualified pension plans. The tax qualified pension
plans are funded while the other plans are generally unfunded. There are
five funded defined benefit plans, whereof all are closed to new entrants.
Three out of five plans are open for future accruals. The Volvo Group\u2019s
subsidiaries in the USA mainly secure their pension obligations through
transfer of funds to pension plans. The US Retirement Trust manages the
assets related to the five funded plans. The strategic allocation of plan
assets must comply with the investment policy as decided by the Board
of Directors of the Trust. All members of the board are nominated by the
company although each member is subject to strict regulatory require-
ments on fiduciary responsibility. During 2023, the US Retirement Trust
entered into a contract regarding a buy-in insurance with an insurance
company. The contract entails elimination of risks related to investment
and longevity for a significant portion of the US pension obligations. As of
December 31, 2023, the total value of pension obligations secured by
pension plans of this type amounted to SEK 15,137 M (15,542). At the
same point in time, the total value of the plan assets in these plans
amounted to SEK 16,428 M (17,218), of which 6% (8) was invested in
equity instruments. The regulations for securing pension obligations
stipulate certain minimum levels concerning the ratio between the value
of the plan assets and the value of the obligations. During 2023 no contri-
butions were made by the Volvo Group to the USA pension plans.
20:10
Cash and cash equivalents 1,090 (2%)
Equity instruments 2,771 (6%)
Debt instruments 34,080 (71%)
Real estate 2,134 (4%)
Assets held by insurance company 7,846 (16%)
Other assets 334 (1%)
Plan assets by category, December 31, 2023\u00b9
Cash and cash equivalents 509 (1%)
Equity instruments 2,985 (6%)
Debt instruments 38,450 (82%)
Real estate 2,057 (5%)
Assets held by insurance company 2,274 (5%)
Other assets 623 (1%)
Plan assets by category, December 31, 2022\u00b9
20:11
Fair value of plan assets Dec 31, 2023 Dec 31, 2022
Cash and cash equivalents 1,090 509
With a quoted market price
Equity instruments 624 553
Debt instruments 33,698 38,013
Derivatives 10 13
Assets held by insurance com-
pany 6,037 569
Other 364 523
With an unquoted market price
Other 6,434 6,717
Total
1
48,255 46,898
1 Excluding asset ceiling of SEK 340 M (54) .
Great Britain In Great Britain, the Volvo Group has five defined benefit pension plans, which are all funded. The pension funds are set up as separate legal enti- ties, which are governed by a professional trustee. All plans are closed to new entrants and closed for future accruals to existing members. The allo- cation of plan assets must comply with the investment strategy agreed between the company and the professional trustee. For three of the plans, if a net surplus is recognized in the balance sheet when the pension scheme runs-off, the Volvo Group has an unconditional right to the sur- plus of that plan or plans. For two plans this is not strictly legally the case and therefore an asset ceiling is applied. As of December 31, 2023, the total value of pension obligations amounted to SEK 5,370 M (5,465). At the same point in time, the total value of the plan assets in these plans amounted to SEK 5,426 M (5,362), of which 3% (4) was invested in equity instruments. During 2023, the Volvo Group contributed SEK 59 M (66) to the Great Britain pension plans. Belgium In Belgium, the Volvo Group has four traditional defined benefit pension plans based on final salary, whereof all are closed to new entrants. All plans are open for future accruals. Two plans are funded via an external pension fund with a legally ringfenced Volvo section and two are funded via the group insurance product referred to in Belgium as Branch 21. Benefits are paid as a lump sum at retirement. There is also an open defined contribu- tion pension plan as well as a local profit sharing program whereby any pay-outs are contributed to a defined contribution pension plan managed by the own pension fund or through a group insurance. All defined contribu- tion pension plans in Belgium have a statutory minimum return guarantee and are therefore accounted for as defined benefit plans. The strategic asset allocation of plan assets must comply with the investment policy as proposed by the Volvo Group and formally adopted by the Board of Direc- tors of the pension fund. As of December 31, 2023, the total value of pen- sion obligations amounted to SEK 3,434 M (3,203). At the same point in time, the plan assets of these plans amounted to SEK 3,107 M (2,972), of which 10% (9) was invested in equity instruments. During 2023, the Volvo Group contributed SEK 203 M (158) to the Belgium pension plans. France In France, the Volvo Group has two types of defined benefit plans, Indemnit\u00e9 de Fin de Carri\u00e8re (IFC) and jubilee awards plan. The plans are unfunded. The IFC is compulsory in France. The benefits are based on the Collective Bargaining Agreement applicable in the company, on the employee\u2019s seniority at retirement date and on the final pay. The benefit payment is due only if employees are working for the company when they retire. The jubilee award plan is an internal agreement and the benefit is based on the employee\u2019s seniority career at 20, 30, 35 and 40 years. As of December 31, 2023, the total value of pension obligations amounted to SEK 2,345 M (2,264). Investment strategy and risk management The Volvo Group manages the allocation and investment of pension plan assets with the purpose of meeting the long term objectives. The main objectives are to meet present and future benefit obligations, provide sufficient liquidity to meet such payment requirements and to provide a total return that maximizes the ratio of the plan assets in relation to the plan liabilities by maximizing return on the assets at an appropriate level of risk. The final investment decision often resides with the local trustee, but the investment policy for all plans ensures that the risks in the investment portfolios are well diversified. The primary risk mitigating activity in the long run is to close defined benefit plans to new entrants or to future accru- als for existing members and replace these plans with defined contribution plans when and where possible. The risks related to already accrued pension obligations, e.g. longevity and inflation, as well as buy out premiums and matching strategies are monitored on an ongoing basis in order to further limit the Volvo Group\u2019s exposure where and when possible. In the last couple of years, some of the defined benefit plans have been closed to new entrants and replaced by defined contribution plans in order to reduce risk for the Volvo Group. In Sweden, the minimum funding target is decided by PRI Pensions- garanti. This is mandatory in order to stay in the system and get insurance for the pension liability. The contributions usually represent one year\u2019s new accrued benefits plus any shortfall towards the minimum funding target unless there is a surplus according to local scheme valuation principles. In the USA, the minimum funding target is decided by the company in order to avoid penalties, keep flexibility and avoid extensive filing with the Internal Revenue Service and participants in the pension plan. The mini- mum contributions usually represents one year\u2019s accrued benefits plus a seventh of any deficit unless a scheme is showing a surplus according to local scheme valuation principles. In Great Britain, there is no minimum funding ratio. There is a regulatory requirement for each scheme to perform triennial valuations whereby any scheme showing a deficit must develop a recovery plan that returns the scheme to a fully funded basis within a reasonable time frame. The recovery plan shall be agreed with the company and submitted to the regulator for approval. In Belgium, the minimum funding level is regulated by law and monitored by the financial supervisory authority, FSMA. The framework for the mini- mum funding requirement is based on a discount rate, which is based on the expected return of the plan assets. The pension fund must be fully funded on this basis at all times. The contribution policy of the pension fund is designed to provide stability in contributions over the duration of the plan. In 2024, the Volvo Group estimates to transfer less than SEK 500 M to defined benefit pension plans 27 Personnel ACCOUNTING POLICY Incentive programs The Volvo Group has a long-term and a short-term incentive program which are cash-settled. The LTI Program 2023-2025 (as defined below) has a performance period of three-years and includes two performance measures, relative total shareholder return (relative TSR) and return on capital employed (ROCE). The relative TSR includes a fair value component, hence this part of the program is accounted for as a share-based payment program. A liability is recognized and measured at fair value using a Monte Carlo sim- ulation at each reporting date. Changes in the fair value are recognized in the income statement for each period until the liability is settled by a cash payment. To estimate the fair value, the Monte Carlo simulation uses sev- eral inputs where assumptions are made such as vesting period, risk free annual interest rate, expected share price volatility and TSR-price. The LTI Transition Program 2023 (as defined below) has a performance period of one-year and includes two performance measures, operating income and ROCE. The short-term incentive program has a performance period of one- year and includes performance measures which for example may relate to operating income, operating cash flow, ROCE or similar ratios, or sustain- ability targets. Performance measures included in the programs such as ROCE, oper- ating income and operating cash flow or similar ratios are based on best estimate and are accounted for as employee benefits. During the vesting period, the total remuneration expenses for the incentive programs are recognized as an expense in the income statement and as other non-current or current liabilities depending on when in time the liability will be settled. The liability at the end of the vesting period corresponds to the actual payout in cash. Guidelines for remuneration to the Volvo Group Executive Board, approved by the Annual General Meeting on 4 April 2023 The Annual General Meeting 2023 decided upon the following guidelines for remuneration and other terms of employment for the members of the Volvo Group Executive Board (\u201cExecutives\u201d). The guidelines are forward-looking, i.e. they are applicable to remuner- ation agreed, and amendments to remuneration already agreed, after the proposed adoption of these guidelines by the 2023 annual general meet- ing. These guidelines do not apply to any remuneration separately decided or approved by the general meeting. The guidelines\u2019 promotion of the Volvo Group\u2019s business strategy, long-term interests and sustainability It is a prerequisite for the successful implementation of the Volvo Group\u2019s business strategy and safeguarding of its long-term interests, including its sustainability, that the Group can recruit, retain and develop senior management. These guidelines enable AB Volvo to offer Executives a competitive total remuneration. More information regarding the Volvo Group\u2019s business strategy is available in the Volvo Group Annual Report. Types of remuneration Volvo Group remuneration to Executives shall consist of the following components: base salary, short-term and long-term variable incentives, pension benefits and other benefits. Short-term incentives may, for the President and CEO, amount to a maximum of 100% of the base salary and, for other Executives, a maximum of 80% of the base salary. Long-term incentives may, for the President and CEO, amount to a max- imum of 150% of the base salary and, for other Executives, a maximum of 80% of the base salary. Current and proposed long-term incentives are described and addressed separately by the 2023 general meeting. Further cash remuneration may be awarded in extraordinary circum- stances, provided that such extraordinary arrangements are limited in time and only made on an individual basis, either for the purpose of recruiting or retaining Executives, or as remuneration for extraordinary performance beyond the individual\u2019s ordinary tasks. Such remuneration may not exceed an amount corresponding to 100% of the annual base salary. Any resolution on such remuneration shall be made by the Board of Directors based on a proposal from the Remuneration Committee. For the President and CEO, pension benefits shall be granted on the basis of a defined contribution plan. The pensionable salary shall include base salary only. The pension contributions for the President and CEO attributable to the annual base salary shall amount to not more than 35% of the base salary. Other benefits may include, for example, life insurance, medical and health insurance, and company cars. Premiums and other costs relating to such benefits may amount to not more than 3% of the annual base salary for the President and CEO. For other Executives, pension benefits shall be granted on the basis of a defined contribution plan except where law or collective agreement requires a defined benefit pension. The pensionable salary shall include base salary and, where required by law or collective agreement, incen- tives. The total pension contributions for other Executives shall amount to not more than 35% of base salary, unless a higher percentage results from the application of law or collective agreement. Other benefits may include, for example, life insurance, medical and health insurance, and company cars. Premiums and other costs relating to such benefits may amount to not more than 10% of the annual base salary for other Executives. Remuneration for Executives that reside outside Sweden or reside in Sweden but having a material connection to or having been residing in a country other than Sweden may be duly adjusted to comply with manda- tory rules or local practice, taking into account, to the extent possible, the overall purpose of these guidelines. In addition to remuneration set out above, Executives who relocate for the purposes of the position or who work in other multiple countries may also receive such remuneration and benefits as are reasonable to reflect the special circumstances associated with such arrangements, taking into account the overall purpose of these guidelines and alignment with the general policies and practices within the Volvo Group applicable to cross border work. Termination of employment Upon termination of an Executive\u2019s employment, the notice period may not exceed twelve months. Base salary during the notice period and sev- erance pay may not together exceed an amount corresponding to the base salary for two years. Executives that reside outside Sweden or reside in Sweden but having a material connection to or having been residing in a country other than Sweden may be offered notice periods for termination and severance pay- ment as are reasonable to reflect the special circumstances, taking into account the overall purpose of these guidelines and alignment with the general policies and practices within the Volvo Group. Criteria for awarding variable remuneration, etc. Plans for long-term and short-term incentives shall be linked to predeter- mined and measurable criteria, to be determined by the Board of Directors. The criteria \u2013 which for example may relate to EBIT, cash flow, return on capital employed or similar ratios, or sustainability targets \u2013 shall be devised to promote the Volvo Group\u2019s strategy and long-term value cre- ation and strengthen the link between achieved performance targets and reward. The satisfaction of the criteria shall be measured over periods of one or multiple years, depending on the type of incentive plan. To which extent the criteria for awarding incentives has been satisfied shall be determined when the relevant measurement period has ended. The Board of Directors is responsible for the determination of the incen- tives to be paid, if any, to all Executives. Claw-back and adjustments Executives participating in the Volvo Group\u2019s short-term and long-term incentive plans are obliged, in certain circumstances and for specified periods of time, to repay, partially or in its entirety, incentive awards already paid if payments have been made by mistake or been based on intentionally falsified data or in the event of material restatement of the Volvo Group\u2019s financial results. Furthermore, the Board of Directors may decide on adjustments of pay-out under the incentive plans (before pay- ment has been made) in case of extraordinary circumstances or to adjust for unforeseen one-timers. Salary and employment conditions for employees In the preparation of the Board of Directors\u2019 proposal for these guidelines, the Board has considered that the various benefits offered to the Execu- tives need to be aligned with the general structures applicable for employ- ees of AB Volvo at levels that are competitive in the market. Thus, salary and employment conditions for other AB Volvo employees have been taken into account by including information thereon in the Remuneration Committee\u2019s and the Board of Directors\u2019 basis of decision when evaluat- ing whether the guidelines and the limitations set out herein are appropriate. The decision-making process to determine, review and implement the guidelines The Board of Directors has established a Remuneration Committee. The Committee\u2019s tasks include preparing the Board of Directors\u2019 decision to propose guidelines for executive remuneration. The Board of Directors shall prepare a proposal for new guidelines at least every fourth year and submit it to the general meeting. The guidelines shall be in force until new guidelines are adopted by the general meeting. The Remuneration Com- mittee shall also monitor and evaluate plans for variable remuneration for Executives, the application of the guidelines for executive remuneration as well as the current remuneration structures and compensation levels in the Group. The members of the Remuneration Committee are independent of AB Volvo and its executive management. The President and CEO and other members of the executive management do not participate in the Board of Directors\u2019 processing of and resolutions regarding remuneration-related matters in so far as they are affected by such matters. Derogation from the guidelines The Board of Directors may temporarily resolve to derogate from the guidelines, in whole or in part, if in a specific case there is special cause for the derogation and a derogation is necessary to serve the Volvo Group\u2019s long-term interests, including its sustainability, or to ensure the Group\u2019s financial viability. As set out above, the Remuneration Committee\u2019s tasks include preparing the Board of Directors\u2019 resolutions in remuneration- related matters. This includes any resolutions to derogate from the guide- lines. Description of changes to the guidelines, etc. During 2022, the company has carefully considered feedback received from shareholders and proxy advisors in connection with the general meeting 2022 and otherwise during the year. As a result of this dialogue, the Board and the Remuneration Committee have during 2022 per- formed a review of the design of the Group\u2019s long-term incentives. As a result of this review, the Board proposes the adoption of a new long-term incentive plan with a three-year performance period, to be implemented starting 2023. It is proposed that the transition into a new long-term incentive plan with a three-year performance period will be made in paral- lel with a two-year phasing out of the current long-term incentive plan. For further information, please refer to the Board\u2019s separate proposal for a new long-term incentive plan. For further information about the dialogue with shareholders and proxy advisors, please refer to the Remuneration Report 2022. Fees paid to the Board of Directors According to a resolution adopted at the Annual General Meeting 2023, fees to the Board of Directors appointed at the Annual General Meeting for the period until the close of the Annual General Meeting 2024 shall be paid as follows: The Chairman of the Board should be awarded SEK 3,925,000 (3,850,000) and each of the other members elected by the Annual Gen- eral Meeting SEK 1,175,000 (1,150,000) with exception of the President and CEO of AB Volvo, who does not receive a director\u2019s fee. In addition, SEK 445,000 (405,000) should be awarded to the Chairman of the Audit Committee and SEK 250,000 (190,000) to each of the other members of the Audit Committee, and SEK 175,000 (170,000) to the Chairman of the Remuneration Committee and SEK 130,000 (125,000) to each of the other members of the Remuneration Committee, and SEK 300,000 (200,000) to the Chairman of the Volvo CE Transformation Committee and SEK 200,000 (170,000) to each of the other members of the Volvo CE Transformation Committee. Long-term incentive plans Long-term incentive plan valid from 2016 In 2016, the Board of Directors approved a long-term cash-based incen- tive plan comprising the top 300 persons from senior management, including Executives, in the Volvo Group. During 2022, it was decided to increase the plan size with an additional 100 slots to accommodate attraction and retention of employees with rare and/or deep expertise and skills that are hard to find in the external market and are key to the Volvo Group\u2019s transformation journey. For more information, please refer to Types of remuneration on page 141. Long-term incentive plan valid from 2023 In 2023, the Annual General Meeting adopted a new long-term incentive plan comprising a maximum number of 600 participants from senior management, including Executives and employees in certain busi- ness-critical positions within the Volvo Group. The new plan will replace the current long-term incentive plan adopted in 2016. The replacement will, due to increased performance period under the new plan, take place during a two-year phase out of the current plan via two long-term transition pro- grams for 2023 and 2024, respectively. Hence, in 2023 the Board of Direc- tors approved a long-term incentive program for 2023 to 2025 (the \u201cLTI Program 2023-2025) issued under the long-term incentive plan adopted in 2023. In addition, as part of the two-year phase out of the current long-term incentive plan, the Board of Directors also approved a long-term incentive transition program for 2023 (the \u201cLTI Transition Program 2023\u201d) based on the terms of the long-term incentive plan adopted in 2016. The LTI Transi- tion Program 2023 only applies to participants who were also enrolled in the long-term incentive program decided by the Board of Directors in 2022. Measures have been taken to ensure that parallel application of the long- term programs do not lead to annual pay-outs exceeding the annual maxi- mum percentage for long-term incentives. 27:1 Remuneration to the Group Executive Board SEK Fixed remuneration Variable remuneration Fixed salary Other benefits 1 Short-term incentives Long-term incentives Other remunerations 2 Pension premiums President and CEO 18,072,526 239,119 17,271,313 26,699,958 \u2013 6,229,991 Other members of the Group Executive Board 3 101,003,684 4,625,316 77,198,042 80,206,754 \u2013 33,749,987 Total 2023 119,076,210 4,864,435 94,469,355 106,906,712 \u2013 39,979,978 Total 2022 122,676,039 15,054,935 71,552,876 76,663,918 3,165,174 39,289,073 1 Other benefits mainly pertain to company cars, housing and, various insurance costs. 2 Other remunerations include payments in 2022 to Swedish individuals in the Group Executive Board in connection to a change in their pension benefits. 3 The Group Executive Board comprised, except the President and CEO, of 13 (13) members at the end of the year. The new plan has a three-year performance period followed by a one- year lock-in period for the AB Volvo shares that the participants are required to acquire. At the end of the lock-in period, participants may sell their shares. However, Executives may only do so if they meet the requirement for owning AB Volvo shares at a value of at least two years of gross base salary for the President and CEO and one year of the gross base salary for the other Executives. The holding requirements for participants shall cease upon termination of a participant\u2019s employment, and the Board may grant such other exceptions to the requirements as the Board deems appropriate. Participants in the long-term incentive programs must be employed on December 31 of the final year of the performance period in order to qualify for a pay-out. Participants who terminate their employment before this date lose entitlements to a (pro-rated) pay-out, unless they leave the Volvo Group in certain predefined situations (pension, disability, divesti- ture, etc.). These so-called \u201cgood leaver\u201d situations are subject to approval by the Remuneration Committee. The long-term incentive plan is linked to two predetermined perfor- mance measures: \u2022 AB Volvo\u2019s three-year average ROCE with a linear scale (0% at mini- mum, 100% at maximum of the scale; relative weighting 70%) and \u2022 The relative three-year average Volvo B total shareholder return vs. MSCI World Machinery Index with a linear scale (20% at minimum, 100% at maximum of the scale; relative weighting 30%) (relative TSR) The result on each of these two performance measures is determined after the relevant three-year measurement period has ended. The total remuneration expenses including social security charges for the LTI Program 2023-2025 affecting the income statement for 2023 amounts to SEK 170 M (-) and the total liability as of December 31, 2023, amounts to SEK 170 M (-). The income statement effect is an estimate of the outcome and will during the three-year period be continuously adjusted to reflect the outcome at the end of the program. The final out- come of the LTI Program 2023-2025 will be presented in the annual report for 2025. Terms of employment and remuneration to the President and CEO Fixed salary, short-term and long-term incentives The President and CEO is entitled to a remuneration consisting of a fixed annual salary and short-term and long-term incentives. During 2023, the short-term incentive program is based on operating income, operating cash flow and electric vehicle volume for the Volvo Group; the LTI Program 2023-2025 is based on relative TSR and three-year aver- age ROCE; the LTI Transition Program 2023 is based on operating income and one-year ROCE. The short-term incentive program amounts to a maxi- mum of 100% of the annual base salary, the LTI Program 2023-2025 (to be paid out in 2026) and the LTI Transition Program 2023 (to, subject to divi- dend pay-out, be paid out in 2024) amounts to a maximum of 150% of the annual base salary (measures have been taken to ensure that parallel appli- cation of the long-term programs do not lead to annual pay-outs exceeding the annual maximum percentage for long-term incentives). For the financial year 2023, the President and CEO received a fixed salary including vacation payment of SEK 18,072,526 (17,496,875) and a short-term incentive of SEK 17,271,313 (13,910,861). The short-term incentive was 97.0% (80.7) of the annual base salary. Other benefits, mainly pertaining to a company car and insurance benefits, amounted to SEK 239,119 (279,057). The President and CEO also participated in the LTI Program 2023- 2025 and the LTI Transition Program 2023. During the financial year 2023, the outcome of the LTI Transition Program 2023 amounted to SEK 26,699,958 (19,183,651), which was 150.0% (111.3) of the annual base salary. The full net amount shall be invested in Volvo B shares, which will be subject to a lock-in period of three years. There is to be no pay-out of the amount if the Annual General Meeting held in 2024 decides not to distrib- ute any dividends to the shareholders for 2023. As the outcome of the LTI Program 2023-2025 is measured over a period of three years (i.e. deter- mined as of 31 December 2025) no amounts has been paid out during 2023 (for the CEO). Pensions The President and CEO was covered by a pension benefit in the form of a defined contribution plan with a contribution amounting to 35% of the annual base salary. There were no commitments other than the payment of the contributions. Total pension premiums for the President and CEO amounted to SEK 6,229,991 (6,035,732) in 2023. Severance payments The President and CEO has a 12 months' notice period upon termination by AB Volvo and a 6 months' notice period upon termination on his own initia- tive. If terminated by the company, the President and CEO is entitled to a severance payment equivalent to 12 months\u2019 salary. In the event of new employment during the severance period, the severance pay is reduced with an amount equal to 100% of the income from the new employment. Remuneration to the Group Executive Board Fixed salary, short-term and long-term incentives Members of the Group Executive Board receive short-term and long-term incentives in addition to fixed salaries. During 2023, the short-term incentive program is based on operating income, operating cash flow and electric vehicle volume for the Volvo Group; the LTI Program 2023-2025 is based on relative TSR and three- year average ROCE; the LTI Transition Program 2023 is based on operat- ing income and one-year ROCE. The short-term incentive program, the LTI Program 2023-2025 (to be paid out in 2026) and the LTI Transition Pro- gram 2023 (to, subject to dividend pay-out, be paid out in 2024) for Group Executive Board members excluding the President and CEO, in 2023, could each amount to a maximum of 80% of the annual base salary (mea- sures have been taken to ensure that parallel application of the long-term programs do not lead to annual pay-outs exceeding the annual maximum percentage for long-term incentives). For the financial year 2023, fixed salaries including vacation payment amounted to SEK 101,003,684 (95,635,834) for the Group Executive Board members excluding the President and CEO. The short-term incentive amounted to SEK 77,198,042 (51,590,551) for the Group Executive Board members excluding the President and CEO. Short-term incentive was in average 77.0% (59.0) of the annual base salary. Other benefits, including company cars, housing, and insurance benefits, amounted to SEK 4,625,316 (14,565,147). The Group Executive Board also participated in the LTI Program 2023- 2025 and the (to the extent they participated in the long-term incentive program decided by the Board of Directors in 2022) LTI Transition Pro- gram 2023. During the financial year 2023, the outcome of the LTI Transi- tion Program 2023 amounted to SEK 80,206,754 (51,916,788) for the Group Executive Board members, excluding the President and CEO, which was 80.0% (59.4) of the annual base salaries. The full net amount shall be invested in Volvo B shares, which will be subject to a lock-in period of three years. There is to be no pay-out of the amount if the Annual General Meet- ing held in 2024 decides not to distribute any dividends to the sharehold- ers for 2023. As the outcome of the LTI Program 2023-2025 is measured over a period of three years (i.e. determined as of 31 December 2025) no amounts has been paid out during 2023 (for the Executive Board excl. the President and CEO). Pensions During 2023, the Group Executive Board members enrolled in the Swed- ish pension plan continued to participate in the collective bargain agree- ment (ITP), as well as the Volvo Executive Pension (VEP) plan. The VEP plan is a defined contribution plan with a contribution amounting to 35% of the annual base salary exceeding 30 income base amounts (SEK 2,229,000 in 2023). There were no commitments other than the pay- ment of the contributions. Pension premiums for the Group Executive Board, excluding the President and CEO, amounted to SEK 33,749,987 (30,022,143) in 2023. Severance payments The employment contracts for Group Executive Board members contain rules governing severance payments when AB Volvo terminates the employment. For Executives resident in Sweden, the notice period upon termination by the company shall not exceed 12 months and the notice period upon termination by the Executive shall not exceed 6 months. In addition, in the event of termination by the company, the Executive is enti- tled to a maximum of 12 months\u2019 severance pay. Executives resident outside Sweden or resident in Sweden but having a material connection to or having been resident in a country other than Sweden may be offered notice periods for termination and severance pay- ment that are competitive in the country where the Executives are or have been resident or to which the Executives have a material connection, pref- erably solutions comparable to the solutions applied to Executives resi- dent in Sweden. Volvo Group's total cost for remuneration and benefits to the Group Executive Board The total cost for remuneration and benefits to the Group Executive Board amounted to SEK 493 M (411) and pertained to fixed salaries, short-term and long-term incentives, other benefits and pensions. It also included social fees on salaries and benefits, special payroll tax and additional costs for other benefits. Out of the SEK 493 M, SEK 31 M pertains to the LTI Program 2023-2025 and is an estimate of the outcome which will be continuously adjusted to reflect the outcome at the end of the program. 27:2 Average number of employees 2023 2022 Number of employees of which women, % Number of employees of which women, % AB Volvo Sweden 297 49 282 50 Subsidiaries Sweden 23,247 25 22,013 25 Western Europe (excl. Sweden) 21,779 18 20,817 18 Eastern Europe 6,072 22 6,224 22 North America 17,908 22 17,459 21 South America 6,971 19 7,110 19 Asia 10,687 19 10,137 18 Other countries 2,321 20 2,275 19 Volvo Group 89,282 21 86,316 21 27:3 Board members and other senior executives 2023 2022 Number at year-end of which women, % Number at year-end of which women, % AB Volvo Board members 1 11 36 11 45 CEO & other senior executives 14 29 15 33 Volvo Group Board members 532 24 561 25 Presidents and other senior executives 599 29 613 28 1 Board members elected by the Annual General meeting. 27:4 Wages, salaries and other remunerations SEK M 2023 2022 Board and Presidents of which variable salaries Other employees Board and Presidents of which variable salaries Other employees AB Volvo 1 84.4 49.6 513.1 88.0 41.8 399.9 Subsidiaries 1,049.9 334.7 55,372.4 816.4 216.3 48,226.6 Volvo Group 1,134.3 384.3 55,885.5 904.4 258.0 48,626.4 27:5 Wages, salaries and other remunerations and social costs SEK M 2023 2022 Wages, salaries remuneration Social costs Pension costs Wages, salaries remuneration Social costs Pension costs AB Volvo 2 597.4 178.7 129.4 487.9 140.2 121.6 Subsidiaries 56,422.3 12,712.7 5,323.5 49,043.0 10,541.4 5,145.9 Volvo Group 3 57,019.8 12,891.4 5,452.9 49,530.9 10,681.6 5,267.5 1 Including current and former Board members and the President and CEO. 2 The parent company\u2019s pension costs, pertaining to Board members and Presidents are disclosed in note 3 Administrative expenses in the annual report of the parent company. 3 Of the Volvo Group\u2019s pension costs, SEK 106 M (93) pertain to Board members and Presidents, including current and former Board members, Presidents and CEO, and other senior executives. The Volvo Group\u2019s outstanding pension obligations to these individuals amount to SEK 618 M (567). The cost for non-monetary benefits in the Volvo Group amounted to SEK 4,092 M (3,409) of which SEK 41 M (33) pertained to Board members and Presidents. The cost for non-monetary benefits in the parent company amounted to SEK 4.9 M (7.4) of which SEK 0.2 M (0.4) to Board members and President ", "dimensions": { "concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1047": { "value": "Provisions for post-employment benefits ACCOUNTING POLICY The Volvo Group\u2019s post-employment benefits, such as pensions, health- care and other benefits are mainly settled by means of regular payments to independent authorities or bodies that assume pension obligations and administer pensions through defined contribution plans. For defined con- tribution plans, expenses for premiums are recognized in the income statement as incurred. Part of the post-employment benefits are defined benefit plans where the obligations remain within the Volvo Group and are secured primarily by proprietary pension foundations. The Volvo Group\u2019s largest defined benefit plans relate to subsidiaries in the USA and comprise both pensions and other benefits, such as healthcare. Other large-scale defined benefit plans apply to white collar employees in Sweden (mainly through the ITP pension plan) and employees in Great Britain, Belgium and France. Actuarial calculations are made for all defined benefit plans, subject to materiality, in order to determine the present value of the obligation for benefits vested by its current and former employees. The actuarial calcu- lations are prepared annually and are based upon actuarial assumptions that are determined at the end of the reporting period. Changes in the present value of obligations due to revised actuarial assumptions and experience adjustments constitute remeasurements. Provisions for post-employment benefits in the Volvo Group\u2019s balance sheet correspond to the present value of obligations at year-end, less fair value of plan assets. The fair value of buy-In contracts are set equal to the defined benefit obligations for the specific group of members the contract covers. All changes in the net defined liability (asset) are recognized when they occur. Service cost and net interest expense (income) are recognized in the income statement, while remeasurements such as actuarial gains and losses are rec- ognized in other comprehensive income. Special payroll tax is included in the pension liability for pension plans in Sweden and Belgium. SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS Assumptions when calculating post-employment benefits Provisions and costs for post-employment benefits, mainly pensions and health care benefits, are dependent on actuarial assumptions. The actuar- ial assumptions and calculations are made separately for each defined benefit plan. The most significant assumptions are discount rate and infla- tion. Inflation assumptions are generally set as a long term assumption based on an evaluation of external market indicators. A sensitivity analysis is included in graph 20:6 and shows the effect on the defined benefit obligations if significant assumptions are changed. There are also other assumptions made such as salary increases, retirement rates, mortality rates, health care cost trends rates and other factors. The salary increase assumptions reflect the historical trend, the near-term and long-term out- look and assumed inflation. Retirement and mortality rates are based pri- marily on officially available mortality statistics. Healthcare cost trend assumptions are based on historical data as well as the near-term outlook and an assessment of likely long-term trends. The Volvo Group has engaged a global actuary in order to ensure that a professional assess- ment is made and that assumptions are consistently developed across jurisdictions. The actuarial assumptions are reviewed annually by the Volvo Group and modified when deemed appropriate. Actual inflation continued above long term assumptions and previous central bank projections during the year resulting in additional monetary policy tightening globally. Expectations of higher interest rates for longer period have led to a general increase in long term interest rates, while risk assets have experienced a volatile and fragmented performance during the year. Funding levels for the Volvo Group\u2019s funded pensions plans remains strong despite challenging financial conditions . The following tables disclose information about defined benefit plans. The Volvo Group recognizes the difference between the obligations and the plan assets, adjusted for potential asset ceilings, in the balance sheet. The disclosures refer to assumptions applied for actuarial calculations, recog- nized costs during the financial year and the value of obligations and plan assets at year-end. The tables also include a reconciliation of obligations and plan assets during the year. 20:1 Assumptions applied for actuarial calculations Dec 31, 2023 Dec 31, 2022 Sweden Discount rate, %1 3.45 3.95 Inflation, %2 2.00 2.00 Expected salary increase, % 2.65 2.65 Assumed life expectancy on retirement at age 65 (Male/Female) Retiring today (member age 65), year 22.3/23.3 22.2/24.4 Retiring in 25 years (member age 40 today), year 25.2/26.2 24.6/26.8 USA Discount rate, %1 4.80\u20135.02 5.00\u20135.35 Inflation, % 2.50 2.50 Expected salary increase, % 3.89 3.68 Assumed life expectancy on retirement at age 65 (Male/Female) Retiring today (member age 65), year 20.6/22.4 20.5/22.4 Retiring in 25 years (member age 40 today), year 22.5/24.2 22.4/24.2 Great Britain Discount rate, %1 4.75 4.95 Inflation, % 3.05 3.15 Expected salary increase, % 0.00 0.00 Assumed life expectancy on retirement at age 65 (Male/Female) Retiring today (member age 65), year 22.3/24.3 22.2/23.9 Retiring in 25 years (member age 40 today), year 22.4/25.6 24.3/26.7 Belgium Discount rate, %1 3.50 4.17 Inflation, % 2.00 2.00 Expected salary increase, % 2.89 2.86 France Discount rate, %1 3.49 4.19 Inflation, % 2.00 2.00 Expected salary increase, % 3.01 3.01 1 The discount rate for each country is determined by reference to market yields on high quality corporate bonds. In countries where there is no functioning market in such bonds, the market yields on government bonds are used. The discount rate for the Swedish pension obligation is determined by extra polating current market rates along the yield curve of mortgage bonds. 2 The long term inflation assumption is 2.00%. The pension obligations in Sweden have been adjusted for short-term inflation for the year 2024. 20:2 Summary of provisions for post-employment benefits Dec 31, 2023 Dec 31, 2022 Obligations \u201357,097 \u201352,862 Fair value of plan assets 47,917 46,844 Net provisions for post-employment benefits \u20139,180 \u20136,018 20:3 Pension costs 2023 2022 Current year service costs 1,112 1,553 Interest costs 2,176 1,325 Interest income \u20132,102 \u20131,255 Past service costs 131 13 Gain/loss on settlements \u2013 \u201322 Pension costs for the period, defined benefit plans 1,317 1,614 Pension costs for defined contribution plans 4,136 3,653 Total pension costs for the period 5,453 5,267 20:4 Costs for the period, post-employment benefits other than pensions 2023 2022 Current year service costs 96 106 Interest costs 205 134 Interest income \u201334 \u201331 Past service costs 1 \u2013 Gain/loss on settlements \u2013 \u2013 Remeasurements 161 99 Total costs for the period 428 308 20:5 Sweden Pensions USA Pensions Great Britain Pensions Belgium Pensions France Pensions USA Other benefits Average duration of the obligations, years 19.3 9.7 10.2 10.6 12.3 8.6 The analysis in graph 20:6 presents the sensitivity of the defined benefit obligations when changes in the applied assumptions for discount rate and inflation are made. The sensitivity analysis for the discount rate is based on a change in the assump tion while holding all other assump- tions constant. In practice, this is not probable, and a change in the assumption may be correlated. The sensitivity analysis for a change in long-term inflation correlates with other inflation linked assumptions. Depending on specific plan and benefit design, the sensitivity effect on the obligation differs for the respective assumptions. 20:6 \u2212 + Effect on obligation, SEK M Sweden Pensions USA Pensions USA Other benefits Other plans France Pensions Great Britain Pensions If inflation decreases 0.5% If inflation increases 0.5% Sweden Pensions USA Pensions USA Other benefits Other plans France Pensions Great Britain Pensions Belgium Pensions SENSITIVITY ANALYSIS 2023 If discount rate decreases 0.5% Belgium Pensions If discount rate increases 0.5% 2,332 774 289 187 118 150 168 0 168 0 55 139 5 2,332 \u20132,076 \u2013707 \u2013268 \u2013168 \u2013109 \u2013135 \u2013154 \u20132,076 0 \u2013188 \u2013128 0 \u201351 \u20135 20:7 Obligations in defined benefit plans Sweden Pensions USA Pensions Great Britain Pensions Belgium Pensions France Pensions USA Other benefits Other plans Total Obligations opening balance 2022 23,948 19,819 7,934 3,607 2,600 3,480 3,735 65,122 Acquisitions, divestments and other changes \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u20136 \u20135 Current year service costs 819 225 \u2013 205 167 39 203 1,659 Interest costs 475 581 144 44 32 95 89 1,460 Past service costs 25 \u2013 \u2013 \u2013 \u2013 \u2013 \u201312 12 Settlements \u2013 \u2013934 \u2013 \u2013 \u2013 \u2013 \u2013143 \u20131,077 Employee contributions \u2013 \u2013 \u2013 \u2013 \u2013 20 58 79 Remeasurements 1 : \u2013 Effect of changes in demographic assumptions 602 \u2013 \u2013 \u2013 17 \u201320 \u2013 598 \u2013 Effect of changes in financial assumptions \u20136,516 \u20135,034 \u20133,027 \u20131,002 \u2013810 \u2013777 \u2013800 \u201317,967 \u2013 Effect of experience adjustments 590 \u2013209 426 165 106 136 20 1,234 Exchange rate changes \u2013 3,047 276 316 225 524 312 4,701 Benefits paid \u2013587 \u20131,306 \u2013287 \u2013132 \u201373 \u2013364 \u2013203 \u20132,953 Obligations, Dec 31, 2022 19,357 16,190 5,465 3,203 2,264 3,132 3,252 52,862 of which Funded defined benefit plans \u201318,984 \u201315,542 \u20135,465 \u20133,203 \u201312 \u2013 \u20132,268 \u201345,475 Acquisitions, divestments and other changes 2 \u2013 \u20136 \u2013 \u2013 \u2013223 17 \u201384 \u2013296 Current year service costs 513 169 \u2013 173 139 27 188 1,209 Interest costs 755 821 276 131 97 152 149 2,381 Past service costs 16 103 4 \u2013 \u2013 \u2013 8 132 Settlements \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 Employee contributions \u2013 \u2013 \u2013 \u2013 \u2013 21 69 90 Remeasurements 1 : \u2013 Effect of changes in demographic assumptions 192 \u2013 \u2013148 \u2013 \u2013134 \u20137 \u20135 \u2013103 \u2013 Effect of changes in financial assumptions 3,737 437 79 228 220 74 173 4,950 \u2013 Effect of experience adjustments \u2013280 \u201359 \u201380 \u201351 81 149 20 \u2013221 Exchange rate changes \u2013 \u2013746 64 \u201329 \u201321 \u2013136 \u201391 \u2013960 Benefits paid \u2013644 \u20131,137 \u2013289 \u2013221 \u201378 \u2013377 \u2013199 \u20132,947 Obligations, Dec 31, 2023 23,645 15,772 5,370 3,434 2,345 3,051 3,479 57,097 of which Funded defined benefit plans \u201323,246 \u201315,137 \u20135,370 \u20133,434 \u20138 \u2013 \u20132,408 \u201349,604 1 Out of the total remeasurement of the defined benefit obligation, SEK \u20134,462 M (16,227) has been recognized in Other Comprehensive Income, and SEK \u2013164 M (\u201392) in the Income Statement. 2 A reclassification has been made to asset held for sale of SEK 265 M ( \u2013). Read more in Note 3 Acquisitions and divestments of operations 20:8 Fair value of plan assets in funded plans Sweden Pensions USA Pensions Great Britain Pensions Belgium Pensions France Pensions USA Other benefits Other plans Total Plan assets opening balance 2022 20,845 21,013 8,024 3,113 14 37 2,271 55,317 Acquisitions, divestments and other changes \u2013 \u2013 \u2013 \u2013 1 \u2013 \u2013 2 Interest income 417 617 146 39 \u2013 \u2013 67 1,286 Settlements \u2013 \u2013901 \u2013 \u2013 \u2013 \u2013 \u2013154 \u20131,055 Remeasurements 1 \u20132,274 \u20135,484 \u20133,349 \u2013480 \u2013 \u2013 \u2013239 \u201311,826 Asset ceiling \u2013 \u2013 481 \u2013 \u2013 \u2013 14 495 Employer contributions \u2013156 16 66 158 \u2013 \u2013 328 411 Employee contributions \u2013 34 \u2013 \u2013 \u2013 \u2013 58 93 Exchange rate changes \u2013 3,225 281 275 1 5 202 3,989 Benefits paid \u20131 \u20131,302 \u2013287 \u2013132 \u20131 \u2013 \u2013144 \u20131,867 Plan assets, Dec 31, 2022 18,831 17,218 5,362 2,972 15 42 2,403 46,844 Acquisitions, divestments and other changes \u2013 \u20136 \u2013 \u2013 \u2013 16 \u201339 \u201328 Interest income 744 877 272 125 1 \u2013 118 2,136 Settlements \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 Remeasurements 1 1,116 211 257 57 \u2013 \u2013 7 1,648 Asset ceiling \u2013 \u2013 \u2013293 \u2013 \u2013 \u2013 \u2013 \u2013293 Employer contributions \u2013245 \u2013 59 203 \u2013 \u2013 120 136 Employee contributions \u2013 34 \u2013 \u2013 \u2013 \u2013 69 103 Exchange rate changes \u2013 \u2013775 58 \u201329 \u2013 \u20132 \u201391 \u2013839 Benefits paid \u20132 \u20131,131 \u2013289 \u2013221 \u20131 \u2013 \u2013146 \u20131,791 Plan assets, Dec 31, 2023 20,445 16,428 5,426 3,107 14 56 2,440 47,917 1 Out of the total remeasurement of the plan assets, SEK 1,356 M (\u201311,331) has been recognized in Other Comprehensive Income. 20:9 Net provisions for post-employment benefits Sweden Pensions USA Pensions Great Britain Pensions Belgium Pensions France Pensions USA Other benefits Other plans Total Net provisions for post-employment benefits, Dec 31, 2022 \u2013525 1,029 \u2013103 \u2013231 \u20132,249 \u20133,089 \u2013849 \u20136,018 of which reported as: B/S Net pension assets 389 2,005 25 \u2013 \u2013 42 266 2,727 B/S Provisions for post-employment benefits \u2013914 \u2013976 \u2013128 \u2013231 \u20132,249 \u20133,132 \u20131,115 \u20138,745 Net provisions for post-employment benefits, Dec 31, 2023 \u20133,201 656 56 \u2013327 \u20132,330 \u20132,995 \u20131,038 \u20139,180 of which reported as: B/S Net pension assets 107 1,689 16 \u2013 7 56 162 2,039 B/S Provisions for post-employment benefits \u20133,308 \u20131,033 39 \u2013327 \u20132,338 \u20133,051 \u20131,201 \u201311,219 Sweden The main defined benefit plan in Sweden is the ITP2 plan which is based on final salary. The plan is semi-closed, meaning that only new employees born before 1979 enters the ITP2 solution. The Volvo Group\u2019s pension foundation in Sweden was formed in 1996 to secure obligations relating to retirement pensions for white collar workers in Sweden in accordance with the ITP plan. The plan assets in the Volvo Group\u2019s Swedish pension foundation are mainly invested in interest-bearing securities and in alterna- tive assets, in accordance with a strategic allocation that is determined by the foundation\u2019s Board of Directors. As of December 31, 2023, the fair value of the foundation\u2019s plan assets amounted to SEK 20,425 M (18,810), of which 6% (6) was invested in equity instruments. At the same point in time, retirement pension obligations attributable to the ITP plan amounted to SEK 23,231 M (18,970) . Swedish companies can secure new pension obligations through balance sheet provisions or pension fund contributions. Furthermore, a credit insurance policy must be taken out for the value of the obligations. In addition to benefits relating to retirement pensions, the ITP plan also includes, for example, a collective family pension, which the Volvo Group finances through an insurance policy with the Alecta insurance company. According to an interpretation from the Swedish Sustainability and Finan- cial Reporting Board, this is a multi-employer defined benefit plan. For the fiscal year 2023, the Volvo Group did not have access to information from Alecta that would have enabled this plan to be recognized as a defined ben- efit plan. Accordingly, the plan has been recognized as a defined contribu- tion plan. The Volvo Group estimates it will pay premiums of about SEK 203 M to Alecta in 2024. The collective consolidation level measures the apportionable assets in relation to the insurance commitment. According to Alecta\u2019s consolidation policy for defined benefit pension insurance, the col- lective consolidation level is normally allowed to vary between 125% and 175%. Alecta\u2019s preliminary consolidation ratio amounts to 157% (172). If the consolidation level falls short or exceeds the normal interval, one mea- sure may be to increase the contract price for new subscription or to intro- duce premium reductions. The Volvo Group\u2019s share of the total saving premiums for ITP2 in Alecta as of December 31, 2023 amounted to 0.25% (0.23) and the share of the total number of active policy holders amounted to 1.90% (1.77). All employees in Sweden benefit from a jubilee awards plan according to which they receive a certain number of shares after they have rendered 25, 35 and 45 years of services. This plan is accounted for as a share-based payment program, where the fair value of the equity-settled payments is determined at the grant date. The plan is recognized as other liabilities. USA In the USA, the Volvo Group has tax qualified pension plans, post- retirement medical plans and non-qualified pension plans. The tax qualified pension plans are funded while the other plans are generally unfunded. There are five funded defined benefit plans, whereof all are closed to new entrants. Three out of five plans are open for future accruals. The Volvo Group\u2019s subsidiaries in the USA mainly secure their pension obligations through transfer of funds to pension plans. The US Retirement Trust manages the assets related to the five funded plans. The strategic allocation of plan assets must comply with the investment policy as decided by the Board of Directors of the Trust. All members of the board are nominated by the company although each member is subject to strict regulatory require- ments on fiduciary responsibility. During 2023, the US Retirement Trust entered into a contract regarding a buy-in insurance with an insurance company. The contract entails elimination of risks related to investment and longevity for a significant portion of the US pension obligations. As of December 31, 2023, the total value of pension obligations secured by pension plans of this type amounted to SEK 15,137 M (15,542). At the same point in time, the total value of the plan assets in these plans amounted to SEK 16,428 M (17,218), of which 6% (8) was invested in equity instruments. The regulations for securing pension obligations stipulate certain minimum levels concerning the ratio between the value of the plan assets and the value of the obligations. During 2023 no contri- butions were made by the Volvo Group to the USA pension plans. 20:10 Cash and cash equivalents 1,090 (2%) Equity instruments 2,771 (6%) Debt instruments 34,080 (71%) Real estate 2,134 (4%) Assets held by insurance company 7,846 (16%) Other assets 334 (1%) Plan assets by category, December 31, 2023\u00b9 Cash and cash equivalents 509 (1%) Equity instruments 2,985 (6%) Debt instruments 38,450 (82%) Real estate 2,057 (5%) Assets held by insurance company 2,274 (5%) Other assets 623 (1%) Plan assets by category, December 31, 2022\u00b9 20:11 Fair value of plan assets Dec 31, 2023 Dec 31, 2022 Cash and cash equivalents 1,090 509 With a quoted market price Equity instruments 624 553 Debt instruments 33,698 38,013 Derivatives 10 13 Assets held by insurance com- pany 6,037 569 Other 364 523 With an unquoted market price Other 6,434 6,717 Total 1 48,255 46,898 1 Excluding asset ceiling of SEK 340 M (54) . Great Britain In Great Britain, the Volvo Group has five defined benefit pension plans, which are all funded. The pension funds are set up as separate legal enti- ties, which are governed by a professional trustee. All plans are closed to new entrants and closed for future accruals to existing members. The allo- cation of plan assets must comply with the investment strategy agreed between the company and the professional trustee. For three of the plans, if a net surplus is recognized in the balance sheet when the pension scheme runs-off, the Volvo Group has an unconditional right to the sur- plus of that plan or plans. For two plans this is not strictly legally the case and therefore an asset ceiling is applied. As of December 31, 2023, the total value of pension obligations amounted to SEK 5,370 M (5,465). At the same point in time, the total value of the plan assets in these plans amounted to SEK 5,426 M (5,362), of which 3% (4) was invested in equity instruments. During 2023, the Volvo Group contributed SEK 59 M (66) to the Great Britain pension plans. Belgium In Belgium, the Volvo Group has four traditional defined benefit pension plans based on final salary, whereof all are closed to new entrants. All plans are open for future accruals. Two plans are funded via an external pension fund with a legally ringfenced Volvo section and two are funded via the group insurance product referred to in Belgium as Branch 21. Benefits are paid as a lump sum at retirement. There is also an open defined contribu- tion pension plan as well as a local profit sharing program whereby any pay-outs are contributed to a defined contribution pension plan managed by the own pension fund or through a group insurance. All defined contribu- tion pension plans in Belgium have a statutory minimum return guarantee and are therefore accounted for as defined benefit plans. The strategic asset allocation of plan assets must comply with the investment policy as proposed by the Volvo Group and formally adopted by the Board of Direc- tors of the pension fund. As of December 31, 2023, the total value of pen- sion obligations amounted to SEK 3,434 M (3,203). At the same point in time, the plan assets of these plans amounted to SEK 3,107 M (2,972), of which 10% (9) was invested in equity instruments. During 2023, the Volvo Group contributed SEK 203 M (158) to the Belgium pension plans. France In France, the Volvo Group has two types of defined benefit plans, Indemnit\u00e9 de Fin de Carri\u00e8re (IFC) and jubilee awards plan. The plans are unfunded. The IFC is compulsory in France. The benefits are based on the Collective Bargaining Agreement applicable in the company, on the employee\u2019s seniority at retirement date and on the final pay. The benefit payment is due only if employees are working for the company when they retire. The jubilee award plan is an internal agreement and the benefit is based on the employee\u2019s seniority career at 20, 30, 35 and 40 years. As of December 31, 2023, the total value of pension obligations amounted to SEK 2,345 M (2,264). Investment strategy and risk management The Volvo Group manages the allocation and investment of pension plan assets with the purpose of meeting the long term objectives. The main objectives are to meet present and future benefit obligations, provide sufficient liquidity to meet such payment requirements and to provide a total return that maximizes the ratio of the plan assets in relation to the plan liabilities by maximizing return on the assets at an appropriate level of risk. The final investment decision often resides with the local trustee, but the investment policy for all plans ensures that the risks in the investment portfolios are well diversified. The primary risk mitigating activity in the long run is to close defined benefit plans to new entrants or to future accru- als for existing members and replace these plans with defined contribution plans when and where possible. The risks related to already accrued pension obligations, e.g. longevity and inflation, as well as buy out premiums and matching strategies are monitored on an ongoing basis in order to further limit the Volvo Group\u2019s exposure where and when possible. In the last couple of years, some of the defined benefit plans have been closed to new entrants and replaced by defined contribution plans in order to reduce risk for the Volvo Group. In Sweden, the minimum funding target is decided by PRI Pensions- garanti. This is mandatory in order to stay in the system and get insurance for the pension liability. The contributions usually represent one year\u2019s new accrued benefits plus any shortfall towards the minimum funding target unless there is a surplus according to local scheme valuation principles. In the USA, the minimum funding target is decided by the company in order to avoid penalties, keep flexibility and avoid extensive filing with the Internal Revenue Service and participants in the pension plan. The mini- mum contributions usually represents one year\u2019s accrued benefits plus a seventh of any deficit unless a scheme is showing a surplus according to local scheme valuation principles. In Great Britain, there is no minimum funding ratio. There is a regulatory requirement for each scheme to perform triennial valuations whereby any scheme showing a deficit must develop a recovery plan that returns the scheme to a fully funded basis within a reasonable time frame. The recovery plan shall be agreed with the company and submitted to the regulator for approval. In Belgium, the minimum funding level is regulated by law and monitored by the financial supervisory authority, FSMA. The framework for the mini- mum funding requirement is based on a discount rate, which is based on the expected return of the plan assets. The pension fund must be fully funded on this basis at all times. The contribution policy of the pension fund is designed to provide stability in contributions over the duration of the plan. In 2024, the Volvo Group estimates to transfer less than SEK 500 M to defined benefit pension plans .ACCOUNTING POLICY Provisions are recognized in the balance sheet when a legal or construc- tive obligation exists as a result from a past event, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. When these criteria are not met, a con- tingent liability may be recognized. Long-term provisions are mainly expected to be settled within 2 to 3 years. Provisions for product warranty Provisions for product warranty are recognized as cost of sales and include contractual warranty and campaign warranty. Provisions for con- tractual warranty are recognized when the products are sold. Provision for campaigns in connection with specific quality problems are recognized when the campaign is decided. Provisions for extended coverage An extended coverage is a product insurance sold to a customer to cover a product according to specific conditions for an agreed period as an addi- tional insurance to the factory contractual warranty. The provision is intended to cover the risk that the expected cost of providing services under the extended coverage contract exceed the expected revenue. Provisions in insurance operations Volvo Group has a captive insurance company and the provisions in insur- ance operations are related to third party claims addressed to companies within the Volvo Group. The claims reserve also includes a provision for unreported losses based on past experience. The unearned premium reserve is reported within other current liabilities. Provisions for restructuring costs A provision for decided restructuring measures is recognized when a detailed plan for the implementation of the measures is complete and when this plan is communicated to those who are affected. A provision and costs for termination benefits as a result of a voluntary termination program is recognized when the employee accepts the offer. Normally restructuring costs are included in other operating income and expenses. Provisions for residual value risks Residual value risks are the risks that the Volvo Group in the future would have to dispose used vehicles at a loss if the price development of these products is worse than expected when the contracts were entered. The residual value risks pertain to operating lease contracts and sales transac- tions with residual value commitments (buybacks and tradebacks) where the Volvo Group has a residual value commitment. The majority of these contracts are recognized as assets under operating leases or as right of return asset in the balance sheet. The potential residual value risks related to these assets are not recognized as provisions, but are reflected as a reduction of the assets through accelerated depreciation and/or write- downs. Read more in Note 13 Tangible assets about residual value risks. Residual value commitments that are independent from the sales trans- action are not recognized as assets under operating leases or as right of return in the balance sheet, hence the potential residual value risks related to these contracts are recognized as provisions. To the extent the residual value exposure does not meet the definition of a provision, the gross exposure is reported as a contingent liability. Read more in Note 24 Contingent liabilities and financial commitments. Provisions for service contracts Service contracts offer the customer preventive maintenance according to an agreed service plan. The provision is intended to cover the risk that the expected cost of providing services and repairs under the service contract exceeds the expected revenue. Other provisions Other provisions mainly include provisions for legal disputes, provisions for externally issued credit guarantees and other provisions, unless sepa- rately specified. ", "dimensions": { "concept": "ifrs-full:DisclosureOfProvisionsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1048": { "value": "ACCOUNTING POLICY The Volvo Group\u2019s post-employment benefits, such as pensions, health- care and other benefits are mainly settled by means of regular payments to independent authorities or bodies that assume pension obligations and administer pensions through defined contribution plans. For defined con- tribution plans, expenses for premiums are recognized in the income statement as incurred. Part of the post-employment benefits are defined benefit plans where the obligations remain within the Volvo Group and are secured primarily by proprietary pension foundations. The Volvo Group\u2019s largest defined benefit plans relate to subsidiaries in the USA and comprise both pensions and other benefits, such as healthcare. Other large-scale defined benefit plans apply to white collar employees in Sweden (mainly through the ITP pension plan) and employees in Great Britain, Belgium and France. Actuarial calculations are made for all defined benefit plans, subject to materiality, in order to determine the present value of the obligation for benefits vested by its current and former employees. The actuarial calcu- lations are prepared annually and are based upon actuarial assumptions that are determined at the end of the reporting period. Changes in the present value of obligations due to revised actuarial assumptions and experience adjustments constitute remeasurements. Provisions for post-employment benefits in the Volvo Group\u2019s balance sheet correspond to the present value of obligations at year-end, less fair value of plan assets. The fair value of buy-In contracts are set equal to the defined benefit obligations for the specific group of members the contract covers. All changes in the net defined liability (asset) are recognized when they occur. Service cost and net interest expense (income) are recognized in the income statement, while remeasurements such as actuarial gains and losses are rec- ognized in other comprehensive income. Special payroll tax is included in the pension liability for pension plans in Sweden and Belgium. ACCOUNTING POLICY Provisions are recognized in the balance sheet when a legal or construc- tive obligation exists as a result from a past event, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. When these criteria are not met, a con- tingent liability may be recognized. Long-term provisions are mainly expected to be settled within 2 to 3 years. Provisions for product warranty Provisions for product warranty are recognized as cost of sales and include contractual warranty and campaign warranty. Provisions for con- tractual warranty are recognized when the products are sold. Provision for campaigns in connection with specific quality problems are recognized when the campaign is decided. Provisions for extended coverage An extended coverage is a product insurance sold to a customer to cover a product according to specific conditions for an agreed period as an addi- tional insurance to the factory contractual warranty. The provision is intended to cover the risk that the expected cost of providing services under the extended coverage contract exceed the expected revenue. Provisions in insurance operations Volvo Group has a captive insurance company and the provisions in insur- ance operations are related to third party claims addressed to companies within the Volvo Group. The claims reserve also includes a provision for unreported losses based on past experience. The unearned premium reserve is reported within other current liabilities. Provisions for restructuring costs A provision for decided restructuring measures is recognized when a detailed plan for the implementation of the measures is complete and when this plan is communicated to those who are affected. A provision and costs for termination benefits as a result of a voluntary termination program is recognized when the employee accepts the offer. Normally restructuring costs are included in other operating income and expenses. Provisions for residual value risks Residual value risks are the risks that the Volvo Group in the future would have to dispose used vehicles at a loss if the price development of these products is worse than expected when the contracts were entered. The residual value risks pertain to operating lease contracts and sales transac- tions with residual value commitments (buybacks and tradebacks) where the Volvo Group has a residual value commitment. The majority of these contracts are recognized as assets under operating leases or as right of return asset in the balance sheet. The potential residual value risks related to these assets are not recognized as provisions, but are reflected as a reduction of the assets through accelerated depreciation and/or write- downs. Read more in Note 13 Tangible assets about residual value risks. Residual value commitments that are independent from the sales trans- action are not recognized as assets under operating leases or as right of return in the balance sheet, hence the potential residual value risks related to these contracts are recognized as provisions. To the extent the residual value exposure does not meet the definition of a provision, the gross exposure is reported as a contingent liability. Read more in Note 24 Contingent liabilities and financial commitments. Provisions for service contracts Service contracts offer the customer preventive maintenance according to an agreed service plan. The provision is intended to cover the risk that the expected cost of providing services and repairs under the service contract exceeds the expected revenue. Other provisions Other provisions mainly include provisions for legal disputes, provisions for externally issued credit guarantees and other provisions, unless sepa- rately specified. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForProvisionsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1049": { "value": "ACCOUNTING POLICY The Volvo Group\u2019s post-employment benefits, such as pensions, health- care and other benefits are mainly settled by means of regular payments to independent authorities or bodies that assume pension obligations and administer pensions through defined contribution plans. For defined con- tribution plans, expenses for premiums are recognized in the income statement as incurred. Part of the post-employment benefits are defined benefit plans where the obligations remain within the Volvo Group and are secured primarily by proprietary pension foundations. The Volvo Group\u2019s largest defined benefit plans relate to subsidiaries in the USA and comprise both pensions and other benefits, such as healthcare. Other large-scale defined benefit plans apply to white collar employees in Sweden (mainly through the ITP pension plan) and employees in Great Britain, Belgium and France. Actuarial calculations are made for all defined benefit plans, subject to materiality, in order to determine the present value of the obligation for benefits vested by its current and former employees. The actuarial calcu- lations are prepared annually and are based upon actuarial assumptions that are determined at the end of the reporting period. Changes in the present value of obligations due to revised actuarial assumptions and experience adjustments constitute remeasurements. Provisions for post-employment benefits in the Volvo Group\u2019s balance sheet correspond to the present value of obligations at year-end, less fair value of plan assets. The fair value of buy-In contracts are set equal to the defined benefit obligations for the specific group of members the contract covers. All changes in the net defined liability (asset) are recognized when they occur. Service cost and net interest expense (income) are recognized in the income statement, while remeasurements such as actuarial gains and losses are rec- ognized in other comprehensive income. Special payroll tax is included in the pension liability for pension plans in Sweden and Belgium. ACCOUNTING POLICY Incentive programs The Volvo Group has a long-term and a short-term incentive program which are cash-settled. The LTI Program 2023-2025 (as defined below) has a performance period of three-years and includes two performance measures, relative total shareholder return (relative TSR) and return on capital employed (ROCE). The relative TSR includes a fair value component, hence this part of the program is accounted for as a share-based payment program. A liability is recognized and measured at fair value using a Monte Carlo sim- ulation at each reporting date. Changes in the fair value are recognized in the income statement for each period until the liability is settled by a cash payment. To estimate the fair value, the Monte Carlo simulation uses sev- eral inputs where assumptions are made such as vesting period, risk free annual interest rate, expected share price volatility and TSR-price. The LTI Transition Program 2023 (as defined below) has a performance period of one-year and includes two performance measures, operating income and ROCE. The short-term incentive program has a performance period of one- year and includes performance measures which for example may relate to operating income, operating cash flow, ROCE or similar ratios, or sustain- ability targets. Performance measures included in the programs such as ROCE, oper- ating income and operating cash flow or similar ratios are based on best estimate and are accounted for as employee benefits. During the vesting period, the total remuneration expenses for the incentive programs are recognized as an expense in the income statement and as other non-current or current liabilities depending on when in time the liability will be settled. The liability at the end of the vesting period corresponds to the actual payout in cash. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1053": { "value": "21 Other provisions ACCOUNTING POLICY Provisions are recognized in the balance sheet when a legal or construc- tive obligation exists as a result from a past event, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. When these criteria are not met, a con- tingent liability may be recognized. Long-term provisions are mainly expected to be settled within 2 to 3 years. Provisions for product warranty Provisions for product warranty are recognized as cost of sales and include contractual warranty and campaign warranty. Provisions for con- tractual warranty are recognized when the products are sold. Provision for campaigns in connection with specific quality problems are recognized when the campaign is decided. Provisions for extended coverage An extended coverage is a product insurance sold to a customer to cover a product according to specific conditions for an agreed period as an addi- tional insurance to the factory contractual warranty. The provision is intended to cover the risk that the expected cost of providing services under the extended coverage contract exceed the expected revenue. Provisions in insurance operations Volvo Group has a captive insurance company and the provisions in insur- ance operations are related to third party claims addressed to companies within the Volvo Group. The claims reserve also includes a provision for unreported losses based on past experience. The unearned premium reserve is reported within other current liabilities. Provisions for restructuring costs A provision for decided restructuring measures is recognized when a detailed plan for the implementation of the measures is complete and when this plan is communicated to those who are affected. A provision and costs for termination benefits as a result of a voluntary termination program is recognized when the employee accepts the offer. Normally restructuring costs are included in other operating income and expenses. Provisions for residual value risks Residual value risks are the risks that the Volvo Group in the future would have to dispose used vehicles at a loss if the price development of these products is worse than expected when the contracts were entered. The residual value risks pertain to operating lease contracts and sales transac- tions with residual value commitments (buybacks and tradebacks) where the Volvo Group has a residual value commitment. The majority of these contracts are recognized as assets under operating leases or as right of return asset in the balance sheet. The potential residual value risks related to these assets are not recognized as provisions, but are reflected as a reduction of the assets through accelerated depreciation and/or write- downs. Read more in Note 13 Tangible assets about residual value risks. Residual value commitments that are independent from the sales trans- action are not recognized as assets under operating leases or as right of return in the balance sheet, hence the potential residual value risks related to these contracts are recognized as provisions. To the extent the residual value exposure does not meet the definition of a provision, the gross exposure is reported as a contingent liability. Read more in Note 24 Contingent liabilities and financial commitments. Provisions for service contracts Service contracts offer the customer preventive maintenance according to an agreed service plan. The provision is intended to cover the risk that the expected cost of providing services and repairs under the service contract exceeds the expected revenue. Other provisions Other provisions mainly include provisions for legal disputes, provisions for externally issued credit guarantees and other provisions, unless sepa- rately specified. SOURCE OF ESTIMATION UNCERTAINTY AND CRITICAL JUDGMENTS The uncertainties about the amount or timing of outflows vary for different kind of provisions. Regarding provisions for product warranty, extended cov- erage, residual value risks and service contracts, the provisions are based on historical statistics and estimated future costs, which is why the provided amount has a high correlation with the outflow of resources. Regarding pro- visions for disputes, like tax and legal disputes, the uncertainty is higher. Provisions for product warranty Warranty provisions are estimated with consideration of historical statis- tics with regard to known changes in warranty claims, warranty periods, the average time-lag between faults occurring until claims are received by the company and anticipated changes in quality indexes. The actual out- come of product warranties may deviate from the expected outcome and materially affect the warranty costs and provisions in future periods. Re funds from suppliers, that decrease the Volvo Group\u2019s warranty costs, are recognized to the extent these are considered to be certain. Other provisions The Volvo Group works actively to ensure compliance with applicable environmental laws and regulations, which are often complex and uncer- tain. If the Volvo Group fails to meet climate related targets or regulatory requirements it could be subject to significant penalties and other sanc- tions which could materially affect the financial statements. Provisions for legal proceedings The Volvo Group regularly reviews the development of significant out- standing legal disputes in which the Volvo Group companies are parties, both regarding civil law and tax disputes, in order to assess the need for provisions and contingent liabilities in the financial statements. Among the factors that the Volvo Group considers in making decisions on provisions and contingent liabilities are the nature of the dispute, the amount claimed, the progress of the case, the opinions of legal and other advisers, experi- ence in similar cases, and any decision of the Volvo Group\u2019s management as to how the Volvo Group intends to handle the dispute. The actual out- come of a legal dispute may deviate from the expected outcome of the dispute. The difference between actual and expected outcome of a dispute might materially affect future financial statements, with an adverse impact upon the Volvo Group\u2019s operating income, financial position and liquidity. Provisions for legal disputes are included within other provisions in table 21:1. Read more in Note 24 Contingent liabilities and financial commitments. 21:1 Carrying value, Dec 31, 2022 Provisions Reversals Utilizations Acquired and divested operations 2 Exchange rate changes Other reclassi- fications 2 Carrying value , Dec 31, 2023 Of which due within 12 months Of which due after 12 months Provisions for product warranty 1 16,841 11,427 \u20131,963 \u20138,729 \u201332 \u2013407 194 17,331 8,575 8,756 Provisions for extended coverage 692 568 \u2013116 \u2013479 \u2013 \u201320 \u2013 645 237 408 Provisions in insurance operations 848 350 \u2013109 \u201325 \u2013 \u201327 \u2013 1,037 \u2013 1,037 Provisions for restructuring costs 3 212 2,345 \u2013126 \u2013135 \u2013 \u201389 \u201352 2,155 1,771 384 Provisions for residual value risks 259 186 \u201388 \u2013152 \u2013 1 \u20136 200 100 100 Provisions for service contracts 558 367 \u2013180 \u2013158 \u2013 \u201310 \u201317 560 255 305 Other provisions 4 6,105 11,016 \u20131,194 \u20134,818 \u201316 \u2013169 \u2013250 10,674 8,685 1,989 B/S Total 25,515 26,259 \u20133,776 \u201314,496 \u201348 \u2013721 \u2013131 32,602 19,623 12,979 1 Including a provision for emission control component. For more information see below. 2 Read more in Note 3 Acquisitions and divestments of operations, for a description of acquired and divested operations as well as assets and liabilities held for sale. 3 For more information see below. 4 Includes costs of SEK 6 billion, for claims arising from the European Commission\u2019s 2016 antitrust settlement decision, recognized in the second quarter of 2023. Read more in Note 24 Contingent liabilities and financial commitments about the European Commission\u2019s 2016 antitrust settlement decision. The Volvo Group has detected that an emissions control component used in certain markets and models, may degrade more quickly than expected, affecting the vehicles emission performance negatively. The Volvo Group made a provision of SEK 7 billion impacting the operating income in 2018, relating to the estimated costs to address the issue. The negative cash flow effect started in 2019 and will continue in the coming years. As of year-end 2023, approximately half of the initial provision had been uti- lized. The Volvo Group will continuously assess the size of the provision as the matter develops. Volvo Buses has decided to close its bodybuilding factory in Wroclaw, Poland, during the first quarter of 2024. Restructuring costs of SEK 1.3 billion impacted operating income negatively in 2023 whereof restructur- ing provision SEK 1.2 billion and write down of assets SEK 0.1 billion. Nova Bus is exiting bus production in the US market. Consequently, the company has decided to close its Plattsburgh manufacturing and delivery facility by 2025. Restructuring costs of SEK 1.3 billion impacted the Volvo Group\u2019s operating income negatively in 2023, whereof restructuring provi- sion SEK 1.0 billion, disposal of goodwill SEK 0.1 billion and write down of assets SEK 0.2 billion . 24 Contingent liabilities and financial commitments ACCOUNTING POLICY A contingent liability is recognized for a possible obligation, for which it is not yet confirmed that a present obligation exists that could lead to an outflow of resources. Alternatively, there is a present obligation that does not meet the definitions of a provision or a liability as it is not probable that an outflow of resources will be required to settle the obligation or a suffi- ciently reliable estimate of the amount of the obligation cannot be made. Financial commitments are contractual commitments to a possible expense at a future date and is not reported as liabilities on the balance sheet date. 24:1 Contingent liabilities Dec 31, 2023 Dec 31, 2022 Credit guarantees issued for customers and others 3,806 5,947 Tax claims 6,041 5,661 Residual value commitments 152 342 Other contingent liabilities 5,907 6,251 Total contingent liabilities 15,907 18,201 Total contingent liabilities at December 31, 2023, amounted to SEK 15,907 M (18,201). Credit guarantees issued amounted to SEK 3,806 M (5,947). The recog- nized amount for credit guarantees corresponds to the gross exposure and has not been reduced by the value of counter guarantees received or other collaterals such as the right to repossess products. The value of counter guarantees and other collaterals reducing the exposure is depen- dent on the development of used products prices and on the possibility to repossess products. A major part of the credit guarantees pertains to the credit guarantees related to Chinese dealers and retail customers within Construction Equipment. Tax claims amounted to SEK 6,041 M (5,661) and pertain to charges or expected claims against the Volvo Group for which the criteria for recog- nizing a tax liability or a provision were not met. Global companies such as the Volvo Group are occasionally involved in tax processes of varying scope and in various stages. Volvo Group regularly assesses these tax processes. When it is probable that additional taxes must be paid and the outcome can be reliably estimated, the required provision is made. Of total tax claims, SEK 1.4 billion (1.7) is related to a transfer price audit in Brazil and SEK 2.5 billion (2.5) are related to two custom duties audits in India. Residual value commitments amounted to SEK 152 M (342) and were attributable to sales transactions with residual value commitments (buy- backs and tradebacks) that are independent from the sales transaction and therefore not recognized as assets in the balance sheet. The amount corresponds to the gross exposure and has not been reduced by the esti- mated net selling price of used products taken as collaterals. To the extent the used products pertaining to those transactions are expected to be disposed at a loss, a provision for residual value risk is recognized. Read more in Note 21 Other provisions about provisions for residual value risks. Other contingent liabilities amounted to SEK 5,907 M (6,251) and include for example bid and performance clauses and legal proceedings. Legal proceedings Starting in January 2011, the Volvo Group, together with a number of other truck manufacturers, was investigated by the European Commission in rela- tion to a possible violation of EU antitrust rules. In July 2016 the European Commission adopted a settlement decision against the Volvo Group and other truck manufacturers finding that they were involved in an antitrust infringement which, in the case of the Volvo Group, covered a 14-year period from 1997 to 2011. The Volvo Group paid a monetary fine of EUR 670 million. Following the adoption of the European Commission\u2019s settlement deci- sion, the Volvo Group has received and is defending itself against a signif- icant number of private damages claims brought by customers and other third parties alleging that they suffered loss, directly or indirectly, by rea- son of the conduct covered in the decision. The claims relate primarily to Volvo Group trucks sold during the 14-year period of the infringement and, in some cases, to trucks sold in certain periods after the infringement ended. Some claims have also been made against the Volvo Group that relate to trucks sold by other manufacturers. The truck manufacturers subject to the 2016 settlement decision are, in most countries, jointly and severally liable for any losses arising from the infringement. In the region of 3,000 claims are being brought in over 20 countries (including EU Member States, the United Kingdom, Norway and Israel) by large numbers of claimants either acting individually or as part of a wider group or class of claimants. Further claims may be commenced. The liti- gation in many countries can be expected to run for several years. Several hundred thousand trucks sold by the Volvo Group are currently subject to claims against it or other truck manufacturers, with claimants alleging that the infringement resulted in an increase in the prices paid for Volvo Group trucks which directly or indirectly caused them loss. The Volvo Group maintains its firm view that no damage was caused to its customers or any third party by the conduct set out in the settlement decision, and in fact, the European Commission did not assess any poten- tial effects of the infringement on the market. The Volvo Group considers that transaction prices our customers paid for their trucks were unaf- fected by the infringement and were the outcome of individual negotia- tions across all elements of their purchasing requirements, including not only the prices for new trucks but also (where relevant) associated prod- ucts and services sold together with new trucks such as service con- tracts, financing, buy-back guarantees etc. Litigation developments so far have been mixed with some adverse outcomes, although uncertainty regarding ultimate exposure to the litiga- tion remains high and it is inherent in complex litigation that outlooks and risks fluctuate over time. At this stage it is not possible to make a reliable estimate of the total liability that could arise from such proceedings given the complexity of the claims and the different (and in some cases relatively early) stages to which national proceedings have progressed. However, the litigation is substantial in scale and any adverse outcome or outcomes of some or all of the litigation, depending on the nature and extent of such outcomes, may have a material negative impact on the Volvo Group\u2019s financial results, cash flows and financial position. In light of progress in litigations and current risks, the Volvo Group has in Q2 2023 recognized a cost of SEK 6 billion, besides legal fees to advisors, which relate to aspects of the litiga- tion that are currently possible to estimate and where an outflow of resources is probable. This is Volvo Group\u2019s current assessment, which may change as the litigation progresses. The Volvo Group is also involved in a number of legal proceedings other than those described above. The Volvo Group\u2019s assessment is that such other legal proceedings in aggregate are not likely to entail any risk of having a material effect on the Volvo Group\u2019s financial position. Read more in Note 21 Other provisions ", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherProvisionsContingentLiabilitiesAndContingentAssetsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1060": { "value": "22 Liabilities ACCOUNTING POLICY Loans are measured at amortized cost using the effective interest rate method. Read more in Note 30 Financial instruments for accounting policies related to financial instruments. Read more in Note 14 Leasing, for accounting policies related to lease liabilities . Bond loans and other loans The Volvo Group\u2019s non-current and current loans are disclosed in tables 22:1 and 22:2 below, with the issued bond loans listed by currency. Loans in the Volvo Group\u2019s subsidiaries are mainly denominated in local curren- cies through Volvo Group Treasury which minimizes the currency exposure in the individual companies. Volvo Group Treasury uses various derivatives to facilitate lending and borrowing in different currencies without increas- ing the risk for the Volvo Group. 22:1 Non-current bond loans and other loans Currency Weighted average interest rate Dec 31, 2023, % Dec 31, 2023 Dec 31, 2022 Bond loans EUR 2.65 67,219 78,319 SEK 4.55 21,440 18,054 GBP 5.47 7,614 3,125 USD 2.72 698 730 NOK \u2013 1,691 HKD \u2013 969 B/S Bond loans 1 96,970 102,887 Other loans Other loans 1 33,983 26,699 Lease liabilities 5,314 4,806 Revaluation of outstanding derivatives to SEK 2 2,236 4,179 B/S Other loans 41,532 35,684 1 Non-current loans of SEK 1,900 M (1,093) were secured by assets pledged. Read more in Note 23 Assets pledged 2 Read more in Note 30 Financial instruments, table 30:1 regarding non-current part of outstanding interest and currency risk derivatives. 22:2 Current bond loans and other loans Currency Weighted average interest rate Dec 31, 2023, % Dec 31, 2023 Dec 31, 2022 Bond loans EUR 2.61 38,137 21,762 SEK 3.51 6,011 13,890 NOK 6.09 1,568 1,216 HKD 2.31 925 \u2013 JPY \u2013 926 B/S Bond loans 1 46,641 37,794 Other loans Other loans 1 48,731 31,084 Lease liabilities 1,877 1,777 Revaluation of outstanding derivatives to SEK 2 1,040 1,722 B/S Other loans 51,648 34,583 1 Current loans of SEK 4,694 M (1,994) were secured by assets pledged. Read more in Note 23 Assets pledged. 2 Read more in Note 30 Financial instruments, table 30:1 regarding current part of outstanding interest and currency risk derivatives. . 22:3 Maturity Year Bond loans and other loans Not utilized non-current credit facilities 2025 60,224 7,553 2026 46,043 23,108 2027 18,466 \u2013 2028 6,975 22,108 2029 3,534 \u2013 2030 or later 3,260 \u2013 Total 138,502 52,770 Read more in Note 14 Leasing, table 14:4 for maturities of non-current lease liabilities. A total of SEK 142,108 M (133,905) in bond loans and SEK 76,020 M (51,770) in other loans in tables 22:1 and 22:2 were borrowed to finance the credit portfolio in Financial services. The interest rate risk in Financial Services is managed with the objective to achieve a match of interest rate fixings on borrowing and lending, in order to eliminate interest rate risk. The average interest rate on Industrial Operations financial liabilities at year end amounted to 5.7% (5.2), including the Volvo Group\u2019s credit costs. Read more in Note 4 Goals and policies in financial risk management on how the funding for Industrial operations and Financial Services respectively is man- aged and presented in the Volvo Group\u2019s balance sheet. A hybrid bond amounting to EUR 1.5 billion was issued in the Volvo Group in 2014. The final tranche of this bond (EUR 0.6 billion) was repaid in March, 2023 without any impact on the net financial position of the Volvo Group. The predominant part of loans that mature in 2025 is an effect of the Volvo Group\u2019s normal business cycle, with shorter duration in the Finan- cial Services portfolio compared to Industrial Operations. Granted but not utilized credit facilities consist of stand-by facilities for loans. A fee is charged for granted credit facilities and recognized in the income statement within other financial income and expenses. Read more in Note 9 Other financial income and expenses . Other liabilities 22:4 Non-current other liabilities Dec 31, 2023 Dec 31, 2022 Deferred leasing income 1 6,251 6,928 Residual value liabilities 1 7,408 9,747 Deferred service revenue 1 20,359 17,493 Refund liabilities 1 1,536 1,700 Advances from customers 1, 2 12 3,093 interest and currency risk derivatives 3 2,100 3,011 Other liabilities 3,876 3,577 B/S Other liabilities 41,542 45,549 1 Read more in Note 7 Revenue regarding contract and refund liabilities, and sales with residual value commitments. 2 Non-current advances from customers of SEK 2,605 M ( \u2013) have been reclassi- fied to liabilities held for sale. Read more in Note 3 Acquisitions and divest- ments of shares and operations. 3 Read more in Note 30 Financial instruments, table 30:1 regarding non-cur- rent part of interest and currency risk derivatives. 22:5 Current other liabilities Dec 31, 2023 Dec 31, 2022 Trade payables 1 82,987 90,177 Tax liabilities 5,087 6,907 Advances from customers 1, 2 3,611 5,892 Wages, salaries and withholding taxes 16,939 14,805 VAT liabilities 6,167 5,717 Accrued expenses for dealer bonuses and rebates 2 6,940 5,767 Other accrued expenses 14,917 15,071 Deferred leasing income 2 3,739 3,852 Deferred service revenue 2 4,557 4,446 Other deferred income 2 1,383 1,829 Residual value liabilities 2 4,545 4,559 Refund liabilities 2 519 783 Other financial liabilities 249 330 Interest and currency risk derivatives 3 404 64 Other liabilities 6,248 6,403 Other liabilities 158,292 166,601 1 Trade payables of SEK 1,279 M (\u2013) and current advances from customers of SEK 1,974 M (\u2013) have been reclassified to liabilities held for sale. Read more in Note 3 Acquisitions and divestments of shares and operations. 2 Read more in Note 7 Revenue, regarding contract and refund liabilities, and sales with residual value commitments. 3 Read more in Note 30 Financial instruments, table 30:1 regarding current part of interest and currency risk derivatives. Non interest-bearing current liabilities, including liabilities held for sale, amounted to SEK 166,052 M (166,601), or 63% (70) of the Volvo Group\u2019s total current liabilities . ", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1062": { "value": "22 Liabilities ACCOUNTING POLICY Loans are measured at amortized cost using the effective interest rate method. Read more in Note 30 Financial instruments for accounting policies related to financial instruments. Read more in Note 14 Leasing, for accounting policies related to lease liabilities . Bond loans and other loans The Volvo Group\u2019s non-current and current loans are disclosed in tables 22:1 and 22:2 below, with the issued bond loans listed by currency. Loans in the Volvo Group\u2019s subsidiaries are mainly denominated in local curren- cies through Volvo Group Treasury which minimizes the currency exposure in the individual companies. Volvo Group Treasury uses various derivatives to facilitate lending and borrowing in different currencies without increas- ing the risk for the Volvo Group. 22:1 Non-current bond loans and other loans Currency Weighted average interest rate Dec 31, 2023, % Dec 31, 2023 Dec 31, 2022 Bond loans EUR 2.65 67,219 78,319 SEK 4.55 21,440 18,054 GBP 5.47 7,614 3,125 USD 2.72 698 730 NOK \u2013 1,691 HKD \u2013 969 B/S Bond loans 1 96,970 102,887 Other loans Other loans 1 33,983 26,699 Lease liabilities 5,314 4,806 Revaluation of outstanding derivatives to SEK 2 2,236 4,179 B/S Other loans 41,532 35,684 1 Non-current loans of SEK 1,900 M (1,093) were secured by assets pledged. Read more in Note 23 Assets pledged 2 Read more in Note 30 Financial instruments, table 30:1 regarding non-current part of outstanding interest and currency risk derivatives. 22:2 Current bond loans and other loans Currency Weighted average interest rate Dec 31, 2023, % Dec 31, 2023 Dec 31, 2022 Bond loans EUR 2.61 38,137 21,762 SEK 3.51 6,011 13,890 NOK 6.09 1,568 1,216 HKD 2.31 925 \u2013 JPY \u2013 926 B/S Bond loans 1 46,641 37,794 Other loans Other loans 1 48,731 31,084 Lease liabilities 1,877 1,777 Revaluation of outstanding derivatives to SEK 2 1,040 1,722 B/S Other loans 51,648 34,583 1 Current loans of SEK 4,694 M (1,994) were secured by assets pledged. Read more in Note 23 Assets pledged. 2 Read more in Note 30 Financial instruments, table 30:1 regarding current part of outstanding interest and currency risk derivatives. . 22:3 Maturity Year Bond loans and other loans Not utilized non-current credit facilities 2025 60,224 7,553 2026 46,043 23,108 2027 18,466 \u2013 2028 6,975 22,108 2029 3,534 \u2013 2030 or later 3,260 \u2013 Total 138,502 52,770 Read more in Note 14 Leasing, table 14:4 for maturities of non-current lease liabilities. A total of SEK 142,108 M (133,905) in bond loans and SEK 76,020 M (51,770) in other loans in tables 22:1 and 22:2 were borrowed to finance the credit portfolio in Financial services. The interest rate risk in Financial Services is managed with the objective to achieve a match of interest rate fixings on borrowing and lending, in order to eliminate interest rate risk. The average interest rate on Industrial Operations financial liabilities at year end amounted to 5.7% (5.2), including the Volvo Group\u2019s credit costs. Read more in Note 4 Goals and policies in financial risk management on how the funding for Industrial operations and Financial Services respectively is man- aged and presented in the Volvo Group\u2019s balance sheet. A hybrid bond amounting to EUR 1.5 billion was issued in the Volvo Group in 2014. The final tranche of this bond (EUR 0.6 billion) was repaid in March, 2023 without any impact on the net financial position of the Volvo Group. The predominant part of loans that mature in 2025 is an effect of the Volvo Group\u2019s normal business cycle, with shorter duration in the Finan- cial Services portfolio compared to Industrial Operations. Granted but not utilized credit facilities consist of stand-by facilities for loans. A fee is charged for granted credit facilities and recognized in the income statement within other financial income and expenses. Read more in Note 9 Other financial income and expenses . Other liabilities 22:4 Non-current other liabilities Dec 31, 2023 Dec 31, 2022 Deferred leasing income 1 6,251 6,928 Residual value liabilities 1 7,408 9,747 Deferred service revenue 1 20,359 17,493 Refund liabilities 1 1,536 1,700 Advances from customers 1, 2 12 3,093 interest and currency risk derivatives 3 2,100 3,011 Other liabilities 3,876 3,577 B/S Other liabilities 41,542 45,549 1 Read more in Note 7 Revenue regarding contract and refund liabilities, and sales with residual value commitments. 2 Non-current advances from customers of SEK 2,605 M ( \u2013) have been reclassi- fied to liabilities held for sale. Read more in Note 3 Acquisitions and divest- ments of shares and operations. 3 Read more in Note 30 Financial instruments, table 30:1 regarding non-cur- rent part of interest and currency risk derivatives. 22:5 Current other liabilities Dec 31, 2023 Dec 31, 2022 Trade payables 1 82,987 90,177 Tax liabilities 5,087 6,907 Advances from customers 1, 2 3,611 5,892 Wages, salaries and withholding taxes 16,939 14,805 VAT liabilities 6,167 5,717 Accrued expenses for dealer bonuses and rebates 2 6,940 5,767 Other accrued expenses 14,917 15,071 Deferred leasing income 2 3,739 3,852 Deferred service revenue 2 4,557 4,446 Other deferred income 2 1,383 1,829 Residual value liabilities 2 4,545 4,559 Refund liabilities 2 519 783 Other financial liabilities 249 330 Interest and currency risk derivatives 3 404 64 Other liabilities 6,248 6,403 Other liabilities 158,292 166,601 1 Trade payables of SEK 1,279 M (\u2013) and current advances from customers of SEK 1,974 M (\u2013) have been reclassified to liabilities held for sale. Read more in Note 3 Acquisitions and divestments of shares and operations. 2 Read more in Note 7 Revenue, regarding contract and refund liabilities, and sales with residual value commitments. 3 Read more in Note 30 Financial instruments, table 30:1 regarding current part of interest and currency risk derivatives. Non interest-bearing current liabilities, including liabilities held for sale, amounted to SEK 166,052 M (166,601), or 63% (70) of the Volvo Group\u2019s total current liabilities ", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1063": { "value": "22 Liabilities ACCOUNTING POLICY Loans are measured at amortized cost using the effective interest rate method. Read more in Note 30 Financial instruments for accounting policies related to financial instruments. Read more in Note 14 Leasing, for accounting policies related to lease liabilities . Bond loans and other loans The Volvo Group\u2019s non-current and current loans are disclosed in tables 22:1 and 22:2 below, with the issued bond loans listed by currency. Loans in the Volvo Group\u2019s subsidiaries are mainly denominated in local curren- cies through Volvo Group Treasury which minimizes the currency exposure in the individual companies. Volvo Group Treasury uses various derivatives to facilitate lending and borrowing in different currencies without increas- ing the risk for the Volvo Group. 22:1 Non-current bond loans and other loans Currency Weighted average interest rate Dec 31, 2023, % Dec 31, 2023 Dec 31, 2022 Bond loans EUR 2.65 67,219 78,319 SEK 4.55 21,440 18,054 GBP 5.47 7,614 3,125 USD 2.72 698 730 NOK \u2013 1,691 HKD \u2013 969 B/S Bond loans 1 96,970 102,887 Other loans Other loans 1 33,983 26,699 Lease liabilities 5,314 4,806 Revaluation of outstanding derivatives to SEK 2 2,236 4,179 B/S Other loans 41,532 35,684 1 Non-current loans of SEK 1,900 M (1,093) were secured by assets pledged. Read more in Note 23 Assets pledged 2 Read more in Note 30 Financial instruments, table 30:1 regarding non-current part of outstanding interest and currency risk derivatives. 22:2 Current bond loans and other loans Currency Weighted average interest rate Dec 31, 2023, % Dec 31, 2023 Dec 31, 2022 Bond loans EUR 2.61 38,137 21,762 SEK 3.51 6,011 13,890 NOK 6.09 1,568 1,216 HKD 2.31 925 \u2013 JPY \u2013 926 B/S Bond loans 1 46,641 37,794 Other loans Other loans 1 48,731 31,084 Lease liabilities 1,877 1,777 Revaluation of outstanding derivatives to SEK 2 1,040 1,722 B/S Other loans 51,648 34,583 1 Current loans of SEK 4,694 M (1,994) were secured by assets pledged. Read more in Note 23 Assets pledged. 2 Read more in Note 30 Financial instruments, table 30:1 regarding current part of outstanding interest and currency risk derivatives. . 22:3 Maturity Year Bond loans and other loans Not utilized non-current credit facilities 2025 60,224 7,553 2026 46,043 23,108 2027 18,466 \u2013 2028 6,975 22,108 2029 3,534 \u2013 2030 or later 3,260 \u2013 Total 138,502 52,770 Read more in Note 14 Leasing, table 14:4 for maturities of non-current lease liabilities. A total of SEK 142,108 M (133,905) in bond loans and SEK 76,020 M (51,770) in other loans in tables 22:1 and 22:2 were borrowed to finance the credit portfolio in Financial services. The interest rate risk in Financial Services is managed with the objective to achieve a match of interest rate fixings on borrowing and lending, in order to eliminate interest rate risk. The average interest rate on Industrial Operations financial liabilities at year end amounted to 5.7% (5.2), including the Volvo Group\u2019s credit costs. Read more in Note 4 Goals and policies in financial risk management on how the funding for Industrial operations and Financial Services respectively is man- aged and presented in the Volvo Group\u2019s balance sheet. A hybrid bond amounting to EUR 1.5 billion was issued in the Volvo Group in 2014. The final tranche of this bond (EUR 0.6 billion) was repaid in March, 2023 without any impact on the net financial position of the Volvo Group. The predominant part of loans that mature in 2025 is an effect of the Volvo Group\u2019s normal business cycle, with shorter duration in the Finan- cial Services portfolio compared to Industrial Operations. Granted but not utilized credit facilities consist of stand-by facilities for loans. A fee is charged for granted credit facilities and recognized in the income statement within other financial income and expenses. Read more in Note 9 Other financial income and expenses Other liabilities 22:4 Non-current other liabilities Dec 31, 2023 Dec 31, 2022 Deferred leasing income 1 6,251 6,928 Residual value liabilities 1 7,408 9,747 Deferred service revenue 1 20,359 17,493 Refund liabilities 1 1,536 1,700 Advances from customers 1, 2 12 3,093 interest and currency risk derivatives 3 2,100 3,011 Other liabilities 3,876 3,577 B/S Other liabilities 41,542 45,549 1 Read more in Note 7 Revenue regarding contract and refund liabilities, and sales with residual value commitments. 2 Non-current advances from customers of SEK 2,605 M ( \u2013) have been reclassi- fied to liabilities held for sale. Read more in Note 3 Acquisitions and divest- ments of shares and operations. 3 Read more in Note 30 Financial instruments, table 30:1 regarding non-cur- rent part of interest and currency risk derivatives. 22:5 Current other liabilities Dec 31, 2023 Dec 31, 2022 Trade payables 1 82,987 90,177 Tax liabilities 5,087 6,907 Advances from customers 1, 2 3,611 5,892 Wages, salaries and withholding taxes 16,939 14,805 VAT liabilities 6,167 5,717 Accrued expenses for dealer bonuses and rebates 2 6,940 5,767 Other accrued expenses 14,917 15,071 Deferred leasing income 2 3,739 3,852 Deferred service revenue 2 4,557 4,446 Other deferred income 2 1,383 1,829 Residual value liabilities 2 4,545 4,559 Refund liabilities 2 519 783 Other financial liabilities 249 330 Interest and currency risk derivatives 3 404 64 Other liabilities 6,248 6,403 Other liabilities 158,292 166,601 1 Trade payables of SEK 1,279 M (\u2013) and current advances from customers of SEK 1,974 M (\u2013) have been reclassified to liabilities held for sale. Read more in Note 3 Acquisitions and divestments of shares and operations. 2 Read more in Note 7 Revenue, regarding contract and refund liabilities, and sales with residual value commitments. 3 Read more in Note 30 Financial instruments, table 30:1 regarding current part of interest and currency risk derivatives. Non interest-bearing current liabilities, including liabilities held for sale, amounted to SEK 166,052 M (166,601), or 63% (70) of the Volvo Group\u2019s total current liabilities ", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherNoncurrentLiabilitiesExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1064": { "value": "22 Liabilities ACCOUNTING POLICY Loans are measured at amortized cost using the effective interest rate method. Read more in Note 30 Financial instruments for accounting policies related to financial instruments. Read more in Note 14 Leasing, for accounting policies related to lease liabilities . Bond loans and other loans The Volvo Group\u2019s non-current and current loans are disclosed in tables 22:1 and 22:2 below, with the issued bond loans listed by currency. Loans in the Volvo Group\u2019s subsidiaries are mainly denominated in local curren- cies through Volvo Group Treasury which minimizes the currency exposure in the individual companies. Volvo Group Treasury uses various derivatives to facilitate lending and borrowing in different currencies without increas- ing the risk for the Volvo Group. 22:1 Non-current bond loans and other loans Currency Weighted average interest rate Dec 31, 2023, % Dec 31, 2023 Dec 31, 2022 Bond loans EUR 2.65 67,219 78,319 SEK 4.55 21,440 18,054 GBP 5.47 7,614 3,125 USD 2.72 698 730 NOK \u2013 1,691 HKD \u2013 969 B/S Bond loans 1 96,970 102,887 Other loans Other loans 1 33,983 26,699 Lease liabilities 5,314 4,806 Revaluation of outstanding derivatives to SEK 2 2,236 4,179 B/S Other loans 41,532 35,684 1 Non-current loans of SEK 1,900 M (1,093) were secured by assets pledged. Read more in Note 23 Assets pledged 2 Read more in Note 30 Financial instruments, table 30:1 regarding non-current part of outstanding interest and currency risk derivatives. 22:2 Current bond loans and other loans Currency Weighted average interest rate Dec 31, 2023, % Dec 31, 2023 Dec 31, 2022 Bond loans EUR 2.61 38,137 21,762 SEK 3.51 6,011 13,890 NOK 6.09 1,568 1,216 HKD 2.31 925 \u2013 JPY \u2013 926 B/S Bond loans 1 46,641 37,794 Other loans Other loans 1 48,731 31,084 Lease liabilities 1,877 1,777 Revaluation of outstanding derivatives to SEK 2 1,040 1,722 B/S Other loans 51,648 34,583 1 Current loans of SEK 4,694 M (1,994) were secured by assets pledged. Read more in Note 23 Assets pledged. 2 Read more in Note 30 Financial instruments, table 30:1 regarding current part of outstanding interest and currency risk derivatives. . 22:3 Maturity Year Bond loans and other loans Not utilized non-current credit facilities 2025 60,224 7,553 2026 46,043 23,108 2027 18,466 \u2013 2028 6,975 22,108 2029 3,534 \u2013 2030 or later 3,260 \u2013 Total 138,502 52,770 Read more in Note 14 Leasing, table 14:4 for maturities of non-current lease liabilities. A total of SEK 142,108 M (133,905) in bond loans and SEK 76,020 M (51,770) in other loans in tables 22:1 and 22:2 were borrowed to finance the credit portfolio in Financial services. The interest rate risk in Financial Services is managed with the objective to achieve a match of interest rate fixings on borrowing and lending, in order to eliminate interest rate risk. The average interest rate on Industrial Operations financial liabilities at year end amounted to 5.7% (5.2), including the Volvo Group\u2019s credit costs. Read more in Note 4 Goals and policies in financial risk management on how the funding for Industrial operations and Financial Services respectively is man- aged and presented in the Volvo Group\u2019s balance sheet. A hybrid bond amounting to EUR 1.5 billion was issued in the Volvo Group in 2014. The final tranche of this bond (EUR 0.6 billion) was repaid in March, 2023 without any impact on the net financial position of the Volvo Group. The predominant part of loans that mature in 2025 is an effect of the Volvo Group\u2019s normal business cycle, with shorter duration in the Finan- cial Services portfolio compared to Industrial Operations. Granted but not utilized credit facilities consist of stand-by facilities for loans. A fee is charged for granted credit facilities and recognized in the income statement within other financial income and expenses. Read more in Note 9 Other financial income and expenses Other liabilities 22:4 Non-current other liabilities Dec 31, 2023 Dec 31, 2022 Deferred leasing income 1 6,251 6,928 Residual value liabilities 1 7,408 9,747 Deferred service revenue 1 20,359 17,493 Refund liabilities 1 1,536 1,700 Advances from customers 1, 2 12 3,093 interest and currency risk derivatives 3 2,100 3,011 Other liabilities 3,876 3,577 B/S Other liabilities 41,542 45,549 1 Read more in Note 7 Revenue regarding contract and refund liabilities, and sales with residual value commitments. 2 Non-current advances from customers of SEK 2,605 M ( \u2013) have been reclassi- fied to liabilities held for sale. Read more in Note 3 Acquisitions and divest- ments of shares and operations. 3 Read more in Note 30 Financial instruments, table 30:1 regarding non-cur- rent part of interest and currency risk derivatives. 22:5 Current other liabilities Dec 31, 2023 Dec 31, 2022 Trade payables 1 82,987 90,177 Tax liabilities 5,087 6,907 Advances from customers 1, 2 3,611 5,892 Wages, salaries and withholding taxes 16,939 14,805 VAT liabilities 6,167 5,717 Accrued expenses for dealer bonuses and rebates 2 6,940 5,767 Other accrued expenses 14,917 15,071 Deferred leasing income 2 3,739 3,852 Deferred service revenue 2 4,557 4,446 Other deferred income 2 1,383 1,829 Residual value liabilities 2 4,545 4,559 Refund liabilities 2 519 783 Other financial liabilities 249 330 Interest and currency risk derivatives 3 404 64 Other liabilities 6,248 6,403 Other liabilities 158,292 166,601 1 Trade payables of SEK 1,279 M (\u2013) and current advances from customers of SEK 1,974 M (\u2013) have been reclassified to liabilities held for sale. Read more in Note 3 Acquisitions and divestments of shares and operations. 2 Read more in Note 7 Revenue, regarding contract and refund liabilities, and sales with residual value commitments. 3 Read more in Note 30 Financial instruments, table 30:1 regarding current part of interest and currency risk derivatives. Non interest-bearing current liabilities, including liabilities held for sale, amounted to SEK 166,052 M (166,601), or 63% (70) of the Volvo Group\u2019s total current liabilities ", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherCurrentLiabilitiesExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1065": { "value": "22 Liabilities ACCOUNTING POLICY Loans are measured at amortized cost using the effective interest rate method. Read more in Note 30 Financial instruments for accounting policies related to financial instruments. Read more in Note 14 Leasing, for accounting policies related to lease liabilities . Bond loans and other loans The Volvo Group\u2019s non-current and current loans are disclosed in tables 22:1 and 22:2 below, with the issued bond loans listed by currency. Loans in the Volvo Group\u2019s subsidiaries are mainly denominated in local curren- cies through Volvo Group Treasury which minimizes the currency exposure in the individual companies. Volvo Group Treasury uses various derivatives to facilitate lending and borrowing in different currencies without increas- ing the risk for the Volvo Group. 22:1 Non-current bond loans and other loans Currency Weighted average interest rate Dec 31, 2023, % Dec 31, 2023 Dec 31, 2022 Bond loans EUR 2.65 67,219 78,319 SEK 4.55 21,440 18,054 GBP 5.47 7,614 3,125 USD 2.72 698 730 NOK \u2013 1,691 HKD \u2013 969 B/S Bond loans 1 96,970 102,887 Other loans Other loans 1 33,983 26,699 Lease liabilities 5,314 4,806 Revaluation of outstanding derivatives to SEK 2 2,236 4,179 B/S Other loans 41,532 35,684 1 Non-current loans of SEK 1,900 M (1,093) were secured by assets pledged. Read more in Note 23 Assets pledged 2 Read more in Note 30 Financial instruments, table 30:1 regarding non-current part of outstanding interest and currency risk derivatives. 22:2 Current bond loans and other loans Currency Weighted average interest rate Dec 31, 2023, % Dec 31, 2023 Dec 31, 2022 Bond loans EUR 2.61 38,137 21,762 SEK 3.51 6,011 13,890 NOK 6.09 1,568 1,216 HKD 2.31 925 \u2013 JPY \u2013 926 B/S Bond loans 1 46,641 37,794 Other loans Other loans 1 48,731 31,084 Lease liabilities 1,877 1,777 Revaluation of outstanding derivatives to SEK 2 1,040 1,722 B/S Other loans 51,648 34,583 1 Current loans of SEK 4,694 M (1,994) were secured by assets pledged. Read more in Note 23 Assets pledged. 2 Read more in Note 30 Financial instruments, table 30:1 regarding current part of outstanding interest and currency risk derivatives. . 22:3 Maturity Year Bond loans and other loans Not utilized non-current credit facilities 2025 60,224 7,553 2026 46,043 23,108 2027 18,466 \u2013 2028 6,975 22,108 2029 3,534 \u2013 2030 or later 3,260 \u2013 Total 138,502 52,770 Read more in Note 14 Leasing, table 14:4 for maturities of non-current lease liabilities. A total of SEK 142,108 M (133,905) in bond loans and SEK 76,020 M (51,770) in other loans in tables 22:1 and 22:2 were borrowed to finance the credit portfolio in Financial services. The interest rate risk in Financial Services is managed with the objective to achieve a match of interest rate fixings on borrowing and lending, in order to eliminate interest rate risk. The average interest rate on Industrial Operations financial liabilities at year end amounted to 5.7% (5.2), including the Volvo Group\u2019s credit costs. Read more in Note 4 Goals and policies in financial risk management on how the funding for Industrial operations and Financial Services respectively is man- aged and presented in the Volvo Group\u2019s balance sheet. A hybrid bond amounting to EUR 1.5 billion was issued in the Volvo Group in 2014. The final tranche of this bond (EUR 0.6 billion) was repaid in March, 2023 without any impact on the net financial position of the Volvo Group. The predominant part of loans that mature in 2025 is an effect of the Volvo Group\u2019s normal business cycle, with shorter duration in the Finan- cial Services portfolio compared to Industrial Operations. Granted but not utilized credit facilities consist of stand-by facilities for loans. A fee is charged for granted credit facilities and recognized in the income statement within other financial income and expenses. Read more in Note 9 Other financial income and expenses . Other liabilities 22:4 Non-current other liabilities Dec 31, 2023 Dec 31, 2022 Deferred leasing income 1 6,251 6,928 Residual value liabilities 1 7,408 9,747 Deferred service revenue 1 20,359 17,493 Refund liabilities 1 1,536 1,700 Advances from customers 1, 2 12 3,093 interest and currency risk derivatives 3 2,100 3,011 Other liabilities 3,876 3,577 B/S Other liabilities 41,542 45,549 1 Read more in Note 7 Revenue regarding contract and refund liabilities, and sales with residual value commitments. 2 Non-current advances from customers of SEK 2,605 M ( \u2013) have been reclassi- fied to liabilities held for sale. Read more in Note 3 Acquisitions and divest- ments of shares and operations. 3 Read more in Note 30 Financial instruments, table 30:1 regarding non-cur- rent part of interest and currency risk derivatives. 22:5 Current other liabilities Dec 31, 2023 Dec 31, 2022 Trade payables 1 82,987 90,177 Tax liabilities 5,087 6,907 Advances from customers 1, 2 3,611 5,892 Wages, salaries and withholding taxes 16,939 14,805 VAT liabilities 6,167 5,717 Accrued expenses for dealer bonuses and rebates 2 6,940 5,767 Other accrued expenses 14,917 15,071 Deferred leasing income 2 3,739 3,852 Deferred service revenue 2 4,557 4,446 Other deferred income 2 1,383 1,829 Residual value liabilities 2 4,545 4,559 Refund liabilities 2 519 783 Other financial liabilities 249 330 Interest and currency risk derivatives 3 404 64 Other liabilities 6,248 6,403 Other liabilities 158,292 166,601 1 Trade payables of SEK 1,279 M (\u2013) and current advances from customers of SEK 1,974 M (\u2013) have been reclassified to liabilities held for sale. Read more in Note 3 Acquisitions and divestments of shares and operations. 2 Read more in Note 7 Revenue, regarding contract and refund liabilities, and sales with residual value commitments. 3 Read more in Note 30 Financial instruments, table 30:1 regarding current part of interest and currency risk derivatives. Non interest-bearing current liabilities, including liabilities held for sale, amounted to SEK 166,052 M (166,601), or 63% (70) of the Volvo Group\u2019s total current liabilities ", "dimensions": { "concept": "ifrs-full:DisclosureOfBorrowingsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1066": { "value": "22 Liabilities ACCOUNTING POLICY Loans are measured at amortized cost using the effective interest rate method. Read more in Note 30 Financial instruments for accounting policies related to financial instruments. Read more in Note 14 Leasing, for accounting policies related to lease liabilities . Bond loans and other loans The Volvo Group\u2019s non-current and current loans are disclosed in tables 22:1 and 22:2 below, with the issued bond loans listed by currency. Loans in the Volvo Group\u2019s subsidiaries are mainly denominated in local curren- cies through Volvo Group Treasury which minimizes the currency exposure in the individual companies. Volvo Group Treasury uses various derivatives to facilitate lending and borrowing in different currencies without increas- ing the risk for the Volvo Group. 22:1 Non-current bond loans and other loans Currency Weighted average interest rate Dec 31, 2023, % Dec 31, 2023 Dec 31, 2022 Bond loans EUR 2.65 67,219 78,319 SEK 4.55 21,440 18,054 GBP 5.47 7,614 3,125 USD 2.72 698 730 NOK \u2013 1,691 HKD \u2013 969 B/S Bond loans 1 96,970 102,887 Other loans Other loans 1 33,983 26,699 Lease liabilities 5,314 4,806 Revaluation of outstanding derivatives to SEK 2 2,236 4,179 B/S Other loans 41,532 35,684 1 Non-current loans of SEK 1,900 M (1,093) were secured by assets pledged. Read more in Note 23 Assets pledged 2 Read more in Note 30 Financial instruments, table 30:1 regarding non-current part of outstanding interest and currency risk derivatives. 22:2 Current bond loans and other loans Currency Weighted average interest rate Dec 31, 2023, % Dec 31, 2023 Dec 31, 2022 Bond loans EUR 2.61 38,137 21,762 SEK 3.51 6,011 13,890 NOK 6.09 1,568 1,216 HKD 2.31 925 \u2013 JPY \u2013 926 B/S Bond loans 1 46,641 37,794 Other loans Other loans 1 48,731 31,084 Lease liabilities 1,877 1,777 Revaluation of outstanding derivatives to SEK 2 1,040 1,722 B/S Other loans 51,648 34,583 1 Current loans of SEK 4,694 M (1,994) were secured by assets pledged. Read more in Note 23 Assets pledged. 2 Read more in Note 30 Financial instruments, table 30:1 regarding current part of outstanding interest and currency risk derivatives. . 22:3 Maturity Year Bond loans and other loans Not utilized non-current credit facilities 2025 60,224 7,553 2026 46,043 23,108 2027 18,466 \u2013 2028 6,975 22,108 2029 3,534 \u2013 2030 or later 3,260 \u2013 Total 138,502 52,770 Read more in Note 14 Leasing, table 14:4 for maturities of non-current lease liabilities. A total of SEK 142,108 M (133,905) in bond loans and SEK 76,020 M (51,770) in other loans in tables 22:1 and 22:2 were borrowed to finance the credit portfolio in Financial services. The interest rate risk in Financial Services is managed with the objective to achieve a match of interest rate fixings on borrowing and lending, in order to eliminate interest rate risk. The average interest rate on Industrial Operations financial liabilities at year end amounted to 5.7% (5.2), including the Volvo Group\u2019s credit costs. Read more in Note 4 Goals and policies in financial risk management on how the funding for Industrial operations and Financial Services respectively is man- aged and presented in the Volvo Group\u2019s balance sheet. A hybrid bond amounting to EUR 1.5 billion was issued in the Volvo Group in 2014. The final tranche of this bond (EUR 0.6 billion) was repaid in March, 2023 without any impact on the net financial position of the Volvo Group. The predominant part of loans that mature in 2025 is an effect of the Volvo Group\u2019s normal business cycle, with shorter duration in the Finan- cial Services portfolio compared to Industrial Operations. Granted but not utilized credit facilities consist of stand-by facilities for loans. A fee is charged for granted credit facilities and recognized in the income statement within other financial income and expenses. Read more in Note 9 Other financial income and expenses Other liabilities 22:4 Non-current other liabilities Dec 31, 2023 Dec 31, 2022 Deferred leasing income 1 6,251 6,928 Residual value liabilities 1 7,408 9,747 Deferred service revenue 1 20,359 17,493 Refund liabilities 1 1,536 1,700 Advances from customers 1, 2 12 3,093 interest and currency risk derivatives 3 2,100 3,011 Other liabilities 3,876 3,577 B/S Other liabilities 41,542 45,549 1 Read more in Note 7 Revenue regarding contract and refund liabilities, and sales with residual value commitments. 2 Non-current advances from customers of SEK 2,605 M ( \u2013) have been reclassi- fied to liabilities held for sale. Read more in Note 3 Acquisitions and divest- ments of shares and operations. 3 Read more in Note 30 Financial instruments, table 30:1 regarding non-cur- rent part of interest and currency risk derivatives. 22:5 Current other liabilities Dec 31, 2023 Dec 31, 2022 Trade payables 1 82,987 90,177 Tax liabilities 5,087 6,907 Advances from customers 1, 2 3,611 5,892 Wages, salaries and withholding taxes 16,939 14,805 VAT liabilities 6,167 5,717 Accrued expenses for dealer bonuses and rebates 2 6,940 5,767 Other accrued expenses 14,917 15,071 Deferred leasing income 2 3,739 3,852 Deferred service revenue 2 4,557 4,446 Other deferred income 2 1,383 1,829 Residual value liabilities 2 4,545 4,559 Refund liabilities 2 519 783 Other financial liabilities 249 330 Interest and currency risk derivatives 3 404 64 Other liabilities 6,248 6,403 Other liabilities 158,292 166,601 1 Trade payables of SEK 1,279 M (\u2013) and current advances from customers of SEK 1,974 M (\u2013) have been reclassified to liabilities held for sale. Read more in Note 3 Acquisitions and divestments of shares and operations. 2 Read more in Note 7 Revenue, regarding contract and refund liabilities, and sales with residual value commitments. 3 Read more in Note 30 Financial instruments, table 30:1 regarding current part of interest and currency risk derivatives. Non interest-bearing current liabilities, including liabilities held for sale, amounted to SEK 166,052 M (166,601), or 63% (70) of the Volvo Group\u2019s total current liabilities . ", "dimensions": { "concept": "ifrs-full:DisclosureOfAccruedExpensesAndOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1067": { "value": "ACCOUNTING POLICY Loans are measured at amortized cost using the effective interest rate method. Read more in Note 30 Financial instruments for accounting policies related to financial instruments. Read more in Note 14 Leasing, for accounting policies related to lease liabilities . ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1068": { "value": "23 Assets pledged 23:1 Assets pledged Dec 31, 2023 Dec 31, 2022 Property, plant and equipment mortgages \u2013 60 Assets under operating leases 44 249 Customer-financing receivables 7,605 3,273 Cash and cash equivalents 1 274 565 Total assets pledged 7,924 4,147 1 Read more in Note 18 Cash and cash equivalents regarding cash not available for use. Non-current and current loans of SEK 6,594 M (3,087) were secured by assets pledged to an amount of SEK 7,924 M (4,147). Under the terms of asset-backed securitizations, securities were issued, whereof SEK 598 M (2,783) is outstanding. These are secured by customer- financing receivables of SEK 1,016 M (3,273) with trucks and construction equipments as collaterals and cash and cash equivalents of SEK 274 (565) not available for use. A warehouse facility is used to fund customer-financing receivables in preparation for asset-backed securitizations. At December 31, 2023, SEK 5,975 M ( \u2013) was outstanding under this facility which is secured by SEK 6,589 M (\u2013) of customer-financing receivables. Read more in Note 22 Liabilities .", "dimensions": { "concept": "ifrs-full:DisclosureOfCollateralExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1069": { "value": "24 Contingent liabilities and financial commitments ACCOUNTING POLICY A contingent liability is recognized for a possible obligation, for which it is not yet confirmed that a present obligation exists that could lead to an outflow of resources. Alternatively, there is a present obligation that does not meet the definitions of a provision or a liability as it is not probable that an outflow of resources will be required to settle the obligation or a suffi- ciently reliable estimate of the amount of the obligation cannot be made. Financial commitments are contractual commitments to a possible expense at a future date and is not reported as liabilities on the balance sheet date. 24:1 Contingent liabilities Dec 31, 2023 Dec 31, 2022 Credit guarantees issued for customers and others 3,806 5,947 Tax claims 6,041 5,661 Residual value commitments 152 342 Other contingent liabilities 5,907 6,251 Total contingent liabilities 15,907 18,201 Total contingent liabilities at December 31, 2023, amounted to SEK 15,907 M (18,201). Credit guarantees issued amounted to SEK 3,806 M (5,947). The recog- nized amount for credit guarantees corresponds to the gross exposure and has not been reduced by the value of counter guarantees received or other collaterals such as the right to repossess products. The value of counter guarantees and other collaterals reducing the exposure is depen- dent on the development of used products prices and on the possibility to repossess products. A major part of the credit guarantees pertains to the credit guarantees related to Chinese dealers and retail customers within Construction Equipment. Tax claims amounted to SEK 6,041 M (5,661) and pertain to charges or expected claims against the Volvo Group for which the criteria for recog- nizing a tax liability or a provision were not met. Global companies such as the Volvo Group are occasionally involved in tax processes of varying scope and in various stages. Volvo Group regularly assesses these tax processes. When it is probable that additional taxes must be paid and the outcome can be reliably estimated, the required provision is made. Of total tax claims, SEK 1.4 billion (1.7) is related to a transfer price audit in Brazil and SEK 2.5 billion (2.5) are related to two custom duties audits in India. Residual value commitments amounted to SEK 152 M (342) and were attributable to sales transactions with residual value commitments (buy- backs and tradebacks) that are independent from the sales transaction and therefore not recognized as assets in the balance sheet. The amount corresponds to the gross exposure and has not been reduced by the esti- mated net selling price of used products taken as collaterals. To the extent the used products pertaining to those transactions are expected to be disposed at a loss, a provision for residual value risk is recognized. Read more in Note 21 Other provisions about provisions for residual value risks. Other contingent liabilities amounted to SEK 5,907 M (6,251) and include for example bid and performance clauses and legal proceedings. Legal proceedings Starting in January 2011, the Volvo Group, together with a number of other truck manufacturers, was investigated by the European Commission in rela- tion to a possible violation of EU antitrust rules. In July 2016 the European Commission adopted a settlement decision against the Volvo Group and other truck manufacturers finding that they were involved in an antitrust infringement which, in the case of the Volvo Group, covered a 14-year period from 1997 to 2011. The Volvo Group paid a monetary fine of EUR 670 million. Following the adoption of the European Commission\u2019s settlement deci- sion, the Volvo Group has received and is defending itself against a signif- icant number of private damages claims brought by customers and other third parties alleging that they suffered loss, directly or indirectly, by rea- son of the conduct covered in the decision. The claims relate primarily to Volvo Group trucks sold during the 14-year period of the infringement and, in some cases, to trucks sold in certain periods after the infringement ended. Some claims have also been made against the Volvo Group that relate to trucks sold by other manufacturers. The truck manufacturers subject to the 2016 settlement decision are, in most countries, jointly and severally liable for any losses arising from the infringement. In the region of 3,000 claims are being brought in over 20 countries (including EU Member States, the United Kingdom, Norway and Israel) by large numbers of claimants either acting individually or as part of a wider group or class of claimants. Further claims may be commenced. The liti- gation in many countries can be expected to run for several years. Several hundred thousand trucks sold by the Volvo Group are currently subject to claims against it or other truck manufacturers, with claimants alleging that the infringement resulted in an increase in the prices paid for Volvo Group trucks which directly or indirectly caused them loss. The Volvo Group maintains its firm view that no damage was caused to its customers or any third party by the conduct set out in the settlement decision, and in fact, the European Commission did not assess any poten- tial effects of the infringement on the market. The Volvo Group considers that transaction prices our customers paid for their trucks were unaf- fected by the infringement and were the outcome of individual negotia- tions across all elements of their purchasing requirements, including not only the prices for new trucks but also (where relevant) associated prod- ucts and services sold together with new trucks such as service con- tracts, financing, buy-back guarantees etc. Litigation developments so far have been mixed with some adverse outcomes, although uncertainty regarding ultimate exposure to the litiga- tion remains high and it is inherent in complex litigation that outlooks and risks fluctuate over time. At this stage it is not possible to make a reliable estimate of the total liability that could arise from such proceedings given the complexity of the claims and the different (and in some cases relatively early) stages to which national proceedings have progressed. However, the litigation is substantial in scale and any adverse outcome or outcomes of some or all of the litigation, depending on the nature and extent of such outcomes, may have a material negative impact on the Volvo Group\u2019s financial results, cash flows and financial position. In light of progress in litigations and current risks, the Volvo Group has in Q2 2023 recognized a cost of SEK 6 billion, besides legal fees to advisors, which relate to aspects of the litiga- tion that are currently possible to estimate and where an outflow of resources is probable. This is Volvo Group\u2019s current assessment, which may change as the litigation progresses. The Volvo Group is also involved in a number of legal proceedings other than those described above. The Volvo Group\u2019s assessment is that such other legal proceedings in aggregate are not likely to entail any risk of having a material effect on the Volvo Group\u2019s financial position. Read more in Note 21 Other provisions . Financial commitments In 2023, Volvo Group and Westport signed a letter of intent to establish a joint venture for high-pressure gas injection fuel systems (HPDI). Volvo will acquire 45% of the shares for approximately SEK 300 M (USD 28 M) plus up to an additional approximately SEK 500 M (USD 45 M) depending on the performance of the joint venture. Volvo Group, Renault Group and CMA CGM Group will join forces to address the growing needs of decarbonized and efficient logistics with an all-new generation of fully electric vans. A new company is expected to be established in the beginning of 2024 and remains subject to the comple- tion of all regulatory approval processes. The Volvo Group is planning to invest EUR 300 M over the course of the next three years. In 2022, the Volvo Group, Daimler Truck and the Traton Group estab- lished the joint venture Milence for charging infrastructure in Europe. The Volvo Group is committing to invest EUR 167 M within a few years from the establishment of the joint venture, whereof EUR 123 M remains as of December 31, 2023 . ", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1070": { "value": "24 Contingent liabilities and financial commitments ACCOUNTING POLICY A contingent liability is recognized for a possible obligation, for which it is not yet confirmed that a present obligation exists that could lead to an outflow of resources. Alternatively, there is a present obligation that does not meet the definitions of a provision or a liability as it is not probable that an outflow of resources will be required to settle the obligation or a suffi- ciently reliable estimate of the amount of the obligation cannot be made. Financial commitments are contractual commitments to a possible expense at a future date and is not reported as liabilities on the balance sheet date. 24:1 Contingent liabilities Dec 31, 2023 Dec 31, 2022 Credit guarantees issued for customers and others 3,806 5,947 Tax claims 6,041 5,661 Residual value commitments 152 342 Other contingent liabilities 5,907 6,251 Total contingent liabilities 15,907 18,201 Total contingent liabilities at December 31, 2023, amounted to SEK 15,907 M (18,201). Credit guarantees issued amounted to SEK 3,806 M (5,947). The recog- nized amount for credit guarantees corresponds to the gross exposure and has not been reduced by the value of counter guarantees received or other collaterals such as the right to repossess products. The value of counter guarantees and other collaterals reducing the exposure is depen- dent on the development of used products prices and on the possibility to repossess products. A major part of the credit guarantees pertains to the credit guarantees related to Chinese dealers and retail customers within Construction Equipment. Tax claims amounted to SEK 6,041 M (5,661) and pertain to charges or expected claims against the Volvo Group for which the criteria for recog- nizing a tax liability or a provision were not met. Global companies such as the Volvo Group are occasionally involved in tax processes of varying scope and in various stages. Volvo Group regularly assesses these tax processes. When it is probable that additional taxes must be paid and the outcome can be reliably estimated, the required provision is made. Of total tax claims, SEK 1.4 billion (1.7) is related to a transfer price audit in Brazil and SEK 2.5 billion (2.5) are related to two custom duties audits in India. Residual value commitments amounted to SEK 152 M (342) and were attributable to sales transactions with residual value commitments (buy- backs and tradebacks) that are independent from the sales transaction and therefore not recognized as assets in the balance sheet. The amount corresponds to the gross exposure and has not been reduced by the esti- mated net selling price of used products taken as collaterals. To the extent the used products pertaining to those transactions are expected to be disposed at a loss, a provision for residual value risk is recognized. Read more in Note 21 Other provisions about provisions for residual value risks. Other contingent liabilities amounted to SEK 5,907 M (6,251) and include for example bid and performance clauses and legal proceedings. Legal proceedings Starting in January 2011, the Volvo Group, together with a number of other truck manufacturers, was investigated by the European Commission in rela- tion to a possible violation of EU antitrust rules. In July 2016 the European Commission adopted a settlement decision against the Volvo Group and other truck manufacturers finding that they were involved in an antitrust infringement which, in the case of the Volvo Group, covered a 14-year period from 1997 to 2011. The Volvo Group paid a monetary fine of EUR 670 million. Following the adoption of the European Commission\u2019s settlement deci- sion, the Volvo Group has received and is defending itself against a signif- icant number of private damages claims brought by customers and other third parties alleging that they suffered loss, directly or indirectly, by rea- son of the conduct covered in the decision. The claims relate primarily to Volvo Group trucks sold during the 14-year period of the infringement and, in some cases, to trucks sold in certain periods after the infringement ended. Some claims have also been made against the Volvo Group that relate to trucks sold by other manufacturers. The truck manufacturers subject to the 2016 settlement decision are, in most countries, jointly and severally liable for any losses arising from the infringement. In the region of 3,000 claims are being brought in over 20 countries (including EU Member States, the United Kingdom, Norway and Israel) by large numbers of claimants either acting individually or as part of a wider group or class of claimants. Further claims may be commenced. The liti- gation in many countries can be expected to run for several years. Several hundred thousand trucks sold by the Volvo Group are currently subject to claims against it or other truck manufacturers, with claimants alleging that the infringement resulted in an increase in the prices paid for Volvo Group trucks which directly or indirectly caused them loss. The Volvo Group maintains its firm view that no damage was caused to its customers or any third party by the conduct set out in the settlement decision, and in fact, the European Commission did not assess any poten- tial effects of the infringement on the market. The Volvo Group considers that transaction prices our customers paid for their trucks were unaf- fected by the infringement and were the outcome of individual negotia- tions across all elements of their purchasing requirements, including not only the prices for new trucks but also (where relevant) associated prod- ucts and services sold together with new trucks such as service con- tracts, financing, buy-back guarantees etc. Litigation developments so far have been mixed with some adverse outcomes, although uncertainty regarding ultimate exposure to the litiga- tion remains high and it is inherent in complex litigation that outlooks and risks fluctuate over time. At this stage it is not possible to make a reliable estimate of the total liability that could arise from such proceedings given the complexity of the claims and the different (and in some cases relatively early) stages to which national proceedings have progressed. However, the litigation is substantial in scale and any adverse outcome or outcomes of some or all of the litigation, depending on the nature and extent of such outcomes, may have a material negative impact on the Volvo Group\u2019s financial results, cash flows and financial position. In light of progress in litigations and current risks, the Volvo Group has in Q2 2023 recognized a cost of SEK 6 billion, besides legal fees to advisors, which relate to aspects of the litiga- tion that are currently possible to estimate and where an outflow of resources is probable. This is Volvo Group\u2019s current assessment, which may change as the litigation progresses. The Volvo Group is also involved in a number of legal proceedings other than those described above. The Volvo Group\u2019s assessment is that such other legal proceedings in aggregate are not likely to entail any risk of having a material effect on the Volvo Group\u2019s financial position. Read more in Note 21 Other provisions . ", "dimensions": { "concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1071": { "value": "24 Contingent liabilities and financial commitments ACCOUNTING POLICY A contingent liability is recognized for a possible obligation, for which it is not yet confirmed that a present obligation exists that could lead to an outflow of resources. Alternatively, there is a present obligation that does not meet the definitions of a provision or a liability as it is not probable that an outflow of resources will be required to settle the obligation or a suffi- ciently reliable estimate of the amount of the obligation cannot be made. Financial commitments are contractual commitments to a possible expense at a future date and is not reported as liabilities on the balance sheet date. 24:1 Contingent liabilities Dec 31, 2023 Dec 31, 2022 Credit guarantees issued for customers and others 3,806 5,947 Tax claims 6,041 5,661 Residual value commitments 152 342 Other contingent liabilities 5,907 6,251 Total contingent liabilities 15,907 18,201 Total contingent liabilities at December 31, 2023, amounted to SEK 15,907 M (18,201). Credit guarantees issued amounted to SEK 3,806 M (5,947). The recog- nized amount for credit guarantees corresponds to the gross exposure and has not been reduced by the value of counter guarantees received or other collaterals such as the right to repossess products. The value of counter guarantees and other collaterals reducing the exposure is depen- dent on the development of used products prices and on the possibility to repossess products. A major part of the credit guarantees pertains to the credit guarantees related to Chinese dealers and retail customers within Construction Equipment. Tax claims amounted to SEK 6,041 M (5,661) and pertain to charges or expected claims against the Volvo Group for which the criteria for recog- nizing a tax liability or a provision were not met. Global companies such as the Volvo Group are occasionally involved in tax processes of varying scope and in various stages. Volvo Group regularly assesses these tax processes. When it is probable that additional taxes must be paid and the outcome can be reliably estimated, the required provision is made. Of total tax claims, SEK 1.4 billion (1.7) is related to a transfer price audit in Brazil and SEK 2.5 billion (2.5) are related to two custom duties audits in India. Residual value commitments amounted to SEK 152 M (342) and were attributable to sales transactions with residual value commitments (buy- backs and tradebacks) that are independent from the sales transaction and therefore not recognized as assets in the balance sheet. The amount corresponds to the gross exposure and has not been reduced by the esti- mated net selling price of used products taken as collaterals. To the extent the used products pertaining to those transactions are expected to be disposed at a loss, a provision for residual value risk is recognized. Read more in Note 21 Other provisions about provisions for residual value risks. Other contingent liabilities amounted to SEK 5,907 M (6,251) and include for example bid and performance clauses and legal proceedings. Legal proceedings Starting in January 2011, the Volvo Group, together with a number of other truck manufacturers, was investigated by the European Commission in rela- tion to a possible violation of EU antitrust rules. In July 2016 the European Commission adopted a settlement decision against the Volvo Group and other truck manufacturers finding that they were involved in an antitrust infringement which, in the case of the Volvo Group, covered a 14-year period from 1997 to 2011. The Volvo Group paid a monetary fine of EUR 670 million. Following the adoption of the European Commission\u2019s settlement deci- sion, the Volvo Group has received and is defending itself against a signif- icant number of private damages claims brought by customers and other third parties alleging that they suffered loss, directly or indirectly, by rea- son of the conduct covered in the decision. The claims relate primarily to Volvo Group trucks sold during the 14-year period of the infringement and, in some cases, to trucks sold in certain periods after the infringement ended. Some claims have also been made against the Volvo Group that relate to trucks sold by other manufacturers. The truck manufacturers subject to the 2016 settlement decision are, in most countries, jointly and severally liable for any losses arising from the infringement. In the region of 3,000 claims are being brought in over 20 countries (including EU Member States, the United Kingdom, Norway and Israel) by large numbers of claimants either acting individually or as part of a wider group or class of claimants. Further claims may be commenced. The liti- gation in many countries can be expected to run for several years. Several hundred thousand trucks sold by the Volvo Group are currently subject to claims against it or other truck manufacturers, with claimants alleging that the infringement resulted in an increase in the prices paid for Volvo Group trucks which directly or indirectly caused them loss. The Volvo Group maintains its firm view that no damage was caused to its customers or any third party by the conduct set out in the settlement decision, and in fact, the European Commission did not assess any poten- tial effects of the infringement on the market. The Volvo Group considers that transaction prices our customers paid for their trucks were unaf- fected by the infringement and were the outcome of individual negotia- tions across all elements of their purchasing requirements, including not only the prices for new trucks but also (where relevant) associated prod- ucts and services sold together with new trucks such as service con- tracts, financing, buy-back guarantees etc. Litigation developments so far have been mixed with some adverse outcomes, although uncertainty regarding ultimate exposure to the litiga- tion remains high and it is inherent in complex litigation that outlooks and risks fluctuate over time. At this stage it is not possible to make a reliable estimate of the total liability that could arise from such proceedings given the complexity of the claims and the different (and in some cases relatively early) stages to which national proceedings have progressed. However, the litigation is substantial in scale and any adverse outcome or outcomes of some or all of the litigation, depending on the nature and extent of such outcomes, may have a material negative impact on the Volvo Group\u2019s financial results, cash flows and financial position. In light of progress in litigations and current risks, the Volvo Group has in Q2 2023 recognized a cost of SEK 6 billion, besides legal fees to advisors, which relate to aspects of the litiga- tion that are currently possible to estimate and where an outflow of resources is probable. This is Volvo Group\u2019s current assessment, which may change as the litigation progresses. The Volvo Group is also involved in a number of legal proceedings other than those described above. The Volvo Group\u2019s assessment is that such other legal proceedings in aggregate are not likely to entail any risk of having a material effect on the Volvo Group\u2019s financial position. Read more in Note 21 Other provisions Financial commitments In 2023, Volvo Group and Westport signed a letter of intent to establish a joint venture for high-pressure gas injection fuel systems (HPDI). Volvo will acquire 45% of the shares for approximately SEK 300 M (USD 28 M) plus up to an additional approximately SEK 500 M (USD 45 M) depending on the performance of the joint venture. Volvo Group, Renault Group and CMA CGM Group will join forces to address the growing needs of decarbonized and efficient logistics with an all-new generation of fully electric vans. A new company is expected to be established in the beginning of 2024 and remains subject to the comple- tion of all regulatory approval processes. The Volvo Group is planning to invest EUR 300 M over the course of the next three years. In 2022, the Volvo Group, Daimler Truck and the Traton Group estab- lished the joint venture Milence for charging infrastructure in Europe. The Volvo Group is committing to invest EUR 167 M within a few years from the establishment of the joint venture, whereof EUR 123 M remains as of December 31, 2023 ", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1072": { "value": "ACCOUNTING POLICY A contingent liability is recognized for a possible obligation, for which it is not yet confirmed that a present obligation exists that could lead to an outflow of resources. Alternatively, there is a present obligation that does not meet the definitions of a provision or a liability as it is not probable that an outflow of resources will be required to settle the obligation or a suffi- ciently reliable estimate of the amount of the obligation cannot be made. Financial commitments are contractual commitments to a possible expense at a future date and is not reported as liabilities on the balance sheet date. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForContingentLiabilitiesAndContingentAssetsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1073": { "value": "25 Transactions with related parties ACCOUNTING POLICY The Volvo Group engages in transactions with some of its related parties, such as associated companies and joint ventures. The transactions arise in the ordinary course of business and are conducted on commercial terms and market prices. They mainly consist of sales of vehicles, parts, equip- ment and services as well as purchases of parts, engines and vehicles for resale. Transactions between AB Volvo and its subsidiaries have been elim- inated in the consolidated financial statements and transactions with the Board of Directors and the Group Executive Board consist of remunera- tions, which are not disclosed in this note. Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Read more in Note 27 Personnel, about remunerations to the Board of Directors and the Group Executive Board. Read more in Corporate Governance Report about Board of Directors and Group Executive Board . The Volvo Group\u2019s transactions with related parties are presented in table 25:1 and 25:2 . 25:1 Sales of goods, services and other income Purchases of goods, services and other expense 2023 2022 2023 2022 Associated companies 2,549 1,557 213 145 Joint ventures 3,541 2,336 1,380 1,260 25:2 Receivables Payables Dec 31, 2023 Dec 31, 2022 Dec 31, 2023 Dec 31, 2022 Associated companies 259 113 106 63 Joint ventures 535 472 85 122 ", "dimensions": { "concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1074": { "value": "ACCOUNTING POLICY The Volvo Group engages in transactions with some of its related parties, such as associated companies and joint ventures. The transactions arise in the ordinary course of business and are conducted on commercial terms and market prices. They mainly consist of sales of vehicles, parts, equip- ment and services as well as purchases of parts, engines and vehicles for resale. Transactions between AB Volvo and its subsidiaries have been elim- inated in the consolidated financial statements and transactions with the Board of Directors and the Group Executive Board consist of remunera- tions, which are not disclosed in this note. Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Read more in Note 27 Personnel, about remunerations to the Board of Directors and the Group Executive Board. Read more in Corporate Governance Report about Board of Directors and Group Executive Board ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTransactionsWithRelatedPartiesExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1075": { "value": "26 Government grants ACCOUNTING POLICY Government grants are financial grants from governmental or supra- national bodies that are received in exchange for fulfillment of certain con- ditions by the Volvo Group. The financial grants are recognized in the financial statement when there is a reasonable assurance that the condi- tions will be complied with and that the grants will be received. Government grants related to assets are usually reported as deferred income in the balance sheet. Government grants related to income are reported as deferred income in the balance sheet and recognized in the income statement to match the related costs. If the costs incurred before the grants have been received, but there is an agreement that grants will be received, grants are recognized in the income statement to match the related costs. In 2023, government grants of SEK 1,057 M (689) were received, and SEK 618 M (701) were recognized in the income statement. Government grants includes tax credits of SEK 373 M (312) related to product development, which were primarily received in France and in the United States. Other grants were mainly received from Swedish, Chinese and US governmental organizations and from the European Commission.", "dimensions": { "concept": "ifrs-full:DisclosureOfGovernmentGrantsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1076": { "value": "ACCOUNTING POLICY Government grants are financial grants from governmental or supra- national bodies that are received in exchange for fulfillment of certain con- ditions by the Volvo Group. The financial grants are recognized in the financial statement when there is a reasonable assurance that the condi- tions will be complied with and that the grants will be received. Government grants related to assets are usually reported as deferred income in the balance sheet. Government grants related to income are reported as deferred income in the balance sheet and recognized in the income statement to match the related costs. If the costs incurred before the grants have been received, but there is an agreement that grants will be received, grants are recognized in the income statement to match the related costs. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGovernmentGrants", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1078": { "value": "27 Personnel ACCOUNTING POLICY Incentive programs The Volvo Group has a long-term and a short-term incentive program which are cash-settled. The LTI Program 2023-2025 (as defined below) has a performance period of three-years and includes two performance measures, relative total shareholder return (relative TSR) and return on capital employed (ROCE). The relative TSR includes a fair value component, hence this part of the program is accounted for as a share-based payment program. A liability is recognized and measured at fair value using a Monte Carlo sim- ulation at each reporting date. Changes in the fair value are recognized in the income statement for each period until the liability is settled by a cash payment. To estimate the fair value, the Monte Carlo simulation uses sev- eral inputs where assumptions are made such as vesting period, risk free annual interest rate, expected share price volatility and TSR-price. The LTI Transition Program 2023 (as defined below) has a performance period of one-year and includes two performance measures, operating income and ROCE. The short-term incentive program has a performance period of one- year and includes performance measures which for example may relate to operating income, operating cash flow, ROCE or similar ratios, or sustain- ability targets. Performance measures included in the programs such as ROCE, oper- ating income and operating cash flow or similar ratios are based on best estimate and are accounted for as employee benefits. During the vesting period, the total remuneration expenses for the incentive programs are recognized as an expense in the income statement and as other non-current or current liabilities depending on when in time the liability will be settled. The liability at the end of the vesting period corresponds to the actual payout in cash. Guidelines for remuneration to the Volvo Group Executive Board, approved by the Annual General Meeting on 4 April 2023 The Annual General Meeting 2023 decided upon the following guidelines for remuneration and other terms of employment for the members of the Volvo Group Executive Board (\u201cExecutives\u201d). The guidelines are forward-looking, i.e. they are applicable to remuner- ation agreed, and amendments to remuneration already agreed, after the proposed adoption of these guidelines by the 2023 annual general meet- ing. These guidelines do not apply to any remuneration separately decided or approved by the general meeting. The guidelines\u2019 promotion of the Volvo Group\u2019s business strategy, long-term interests and sustainability It is a prerequisite for the successful implementation of the Volvo Group\u2019s business strategy and safeguarding of its long-term interests, including its sustainability, that the Group can recruit, retain and develop senior management. These guidelines enable AB Volvo to offer Executives a competitive total remuneration. More information regarding the Volvo Group\u2019s business strategy is available in the Volvo Group Annual Report. Types of remuneration Volvo Group remuneration to Executives shall consist of the following components: base salary, short-term and long-term variable incentives, pension benefits and other benefits. Short-term incentives may, for the President and CEO, amount to a maximum of 100% of the base salary and, for other Executives, a maximum of 80% of the base salary. Long-term incentives may, for the President and CEO, amount to a max- imum of 150% of the base salary and, for other Executives, a maximum of 80% of the base salary. Current and proposed long-term incentives are described and addressed separately by the 2023 general meeting. Further cash remuneration may be awarded in extraordinary circum- stances, provided that such extraordinary arrangements are limited in time and only made on an individual basis, either for the purpose of recruiting or retaining Executives, or as remuneration for extraordinary performance beyond the individual\u2019s ordinary tasks. Such remuneration may not exceed an amount corresponding to 100% of the annual base salary. Any resolution on such remuneration shall be made by the Board of Directors based on a proposal from the Remuneration Committee. For the President and CEO, pension benefits shall be granted on the basis of a defined contribution plan. The pensionable salary shall include base salary only. The pension contributions for the President and CEO attributable to the annual base salary shall amount to not more than 35% of the base salary. Other benefits may include, for example, life insurance, medical and health insurance, and company cars. Premiums and other costs relating to such benefits may amount to not more than 3% of the annual base salary for the President and CEO. For other Executives, pension benefits shall be granted on the basis of a defined contribution plan except where law or collective agreement requires a defined benefit pension. The pensionable salary shall include base salary and, where required by law or collective agreement, incen- tives. The total pension contributions for other Executives shall amount to not more than 35% of base salary, unless a higher percentage results from the application of law or collective agreement. Other benefits may include, for example, life insurance, medical and health insurance, and company cars. Premiums and other costs relating to such benefits may amount to not more than 10% of the annual base salary for other Executives. Remuneration for Executives that reside outside Sweden or reside in Sweden but having a material connection to or having been residing in a country other than Sweden may be duly adjusted to comply with manda- tory rules or local practice, taking into account, to the extent possible, the overall purpose of these guidelines. In addition to remuneration set out above, Executives who relocate for the purposes of the position or who work in other multiple countries may also receive such remuneration and benefits as are reasonable to reflect the special circumstances associated with such arrangements, taking into account the overall purpose of these guidelines and alignment with the general policies and practices within the Volvo Group applicable to cross border work. Termination of employment Upon termination of an Executive\u2019s employment, the notice period may not exceed twelve months. Base salary during the notice period and sev- erance pay may not together exceed an amount corresponding to the base salary for two years. Executives that reside outside Sweden or reside in Sweden but having a material connection to or having been residing in a country other than Sweden may be offered notice periods for termination and severance pay- ment as are reasonable to reflect the special circumstances, taking into account the overall purpose of these guidelines and alignment with the general policies and practices within the Volvo Group. Criteria for awarding variable remuneration, etc. Plans for long-term and short-term incentives shall be linked to predeter- mined and measurable criteria, to be determined by the Board of Directors. The criteria \u2013 which for example may relate to EBIT, cash flow, return on capital employed or similar ratios, or sustainability targets \u2013 shall be
devised to promote the Volvo Group\u2019s strategy and long-term value cre-
ation and strengthen the link between achieved performance targets and
reward. The satisfaction of the criteria shall be measured over periods of
one or multiple years, depending on the type of incentive plan.
To which extent the criteria for awarding incentives has been satisfied
shall be determined when the relevant measurement period has ended.
The Board of Directors is responsible for the determination of the incen-
tives to be paid, if any, to all Executives.
Claw-back and adjustments
Executives participating in the Volvo Group\u2019s short-term and long-term
incentive plans are obliged, in certain circumstances and for specified
periods of time, to repay, partially or in its entirety, incentive awards
already paid if payments have been made by mistake or been based on
intentionally falsified data or in the event of material restatement of the
Volvo Group\u2019s financial results. Furthermore, the Board of Directors may
decide on adjustments of pay-out under the incentive plans (before pay-
ment has been made) in case of extraordinary circumstances or to adjust
for unforeseen one-timers.
Salary and employment conditions for employees
In the preparation of the Board of Directors\u2019 proposal for these guidelines,
the Board has considered that the various benefits offered to the Execu-
tives need to be aligned with the general structures applicable for employ-
ees of AB Volvo at levels that are competitive in the market. Thus, salary
and employment conditions for other AB Volvo employees have been
taken into account by including information thereon in the Remuneration
Committee\u2019s and the Board of Directors\u2019 basis of decision when evaluat-
ing whether the guidelines and the limitations set out herein are appropriate.
The decision-making process to determine,
review and implement the guidelines
The Board of Directors has established a Remuneration Committee. The
Committee\u2019s tasks include preparing the Board of Directors\u2019 decision to
propose guidelines for executive remuneration. The Board of Directors
shall prepare a proposal for new guidelines at least every fourth year and
submit it to the general meeting. The guidelines shall be in force until new
guidelines are adopted by the general meeting. The Remuneration Com-
mittee shall also monitor and evaluate plans for variable remuneration for
Executives, the application of the guidelines for executive remuneration as
well as the current remuneration structures and compensation levels in the
Group. The members of the Remuneration Committee are independent of
AB Volvo and its executive management. The President and CEO and other
members of the executive management do not participate in the Board of
Directors\u2019 processing of and resolutions regarding remuneration-related
matters in so far as they are affected by such matters.
Derogation from the guidelines
The Board of Directors may temporarily resolve to derogate from the
guidelines, in whole or in part, if in a specific case there is special cause for
the derogation and a derogation is necessary to serve the Volvo Group\u2019s
long-term interests, including its sustainability, or to ensure the Group\u2019s
financial viability. As set out above, the Remuneration Committee\u2019s tasks
include preparing the Board of Directors\u2019 resolutions in remuneration-
related matters. This includes any resolutions to derogate from the guide-
lines.
Description of changes to the guidelines, etc.
During 2022, the company has carefully considered feedback received
from shareholders and proxy advisors in connection with the general
meeting 2022 and otherwise during the year. As a result of this dialogue,
the Board and the Remuneration Committee have during 2022 per-
formed a review of the design of the Group\u2019s long-term incentives. As a
result of this review, the Board proposes the adoption of a new long-term
incentive plan with a three-year performance period, to be implemented
starting 2023. It is proposed that the transition into a new long-term
incentive plan with a three-year performance period will be made in paral-
lel with a two-year phasing out of the current long-term incentive plan.
For further information, please refer to the Board\u2019s separate proposal for
a new long-term incentive plan.
For further information about the dialogue with shareholders and proxy
advisors, please refer to the Remuneration Report 2022.
Fees paid to the Board of Directors
According to a resolution adopted at the Annual General Meeting 2023,
fees to the Board of Directors appointed at the Annual General Meeting for
the period until the close of the Annual General Meeting 2024 shall be paid
as follows: The Chairman of the Board should be awarded SEK 3,925,000
(3,850,000) and each of the other members elected by the Annual Gen-
eral Meeting SEK 1,175,000 (1,150,000) with exception of the President
and CEO of AB Volvo, who does not receive a director\u2019s fee. In addition,
SEK 445,000 (405,000) should be awarded to the Chairman of the Audit
Committee and SEK 250,000 (190,000) to each of the other members of
the Audit Committee, and SEK 175,000 (170,000) to the Chairman of the
Remuneration Committee and SEK 130,000 (125,000) to each of the
other members of the Remuneration Committee, and SEK 300,000
(200,000) to the Chairman of the Volvo CE Transformation Committee
and SEK 200,000 (170,000) to each of the other members of the Volvo
CE Transformation Committee.
Long-term incentive plans
Long-term incentive plan valid from 2016
In 2016, the Board of Directors approved a long-term cash-based incen-
tive plan comprising the top 300 persons from senior management,
including Executives, in the Volvo Group. During 2022, it was decided to
increase the plan size with an additional 100 slots to accommodate
attraction and retention of employees with rare and/or deep expertise and
skills that are hard to find in the external market and are key to the Volvo
Group\u2019s transformation journey. For more information, please refer to
Types of remuneration on page 141.
Long-term incentive plan valid from 2023
In 2023, the Annual General Meeting adopted a new long-term incentive
plan comprising a maximum number of 600 participants from senior
management, including Executives and employees in certain busi-
ness-critical positions within the Volvo Group. The new plan will replace
the current long-term incentive plan adopted in 2016. The replacement will,
due to increased performance period under the new plan, take place during
a two-year phase out of the current plan via two long-term transition pro-
grams for 2023 and 2024, respectively. Hence, in 2023 the Board of Direc-
tors approved a long-term incentive program for 2023 to 2025 (the \u201cLTI
Program 2023-2025) issued under the long-term incentive plan adopted in
2023. In addition, as part of the two-year phase out of the current long-term
incentive plan, the Board of Directors also approved a long-term incentive
transition program for 2023 (the \u201cLTI Transition Program 2023\u201d) based on
the terms of the long-term incentive plan adopted in 2016. The LTI Transi-
tion Program 2023 only applies to participants who were also enrolled in
the long-term incentive program decided by the Board of Directors in 2022.
Measures have been taken to ensure that parallel application of the long-
term programs do not lead to annual pay-outs exceeding the annual maxi-
mum percentage for long-term incentives.
27:1 Remuneration to the Group Executive Board SEK Fixed remuneration Variable remuneration Fixed salary Other benefits 1 Short-term incentives Long-term incentives Other remunerations 2 Pension premiums President and CEO 18,072,526 239,119 17,271,313 26,699,958 \u2013 6,229,991 Other members of the Group Executive Board 3 101,003,684 4,625,316 77,198,042 80,206,754 \u2013 33,749,987 Total 2023 119,076,210 4,864,435 94,469,355 106,906,712 \u2013 39,979,978 Total 2022 122,676,039 15,054,935 71,552,876 76,663,918 3,165,174 39,289,073 1 Other benefits mainly pertain to company cars, housing and, various insurance costs. 2 Other remunerations include payments in 2022 to Swedish individuals in the Group Executive Board in connection to a change in their pension benefits. 3 The Group Executive Board comprised, except the President and CEO, of 13 (13) members at the end of the year. The new plan has a three-year performance period followed by a one- year lock-in period for the AB Volvo shares that the participants are required to acquire. At the end of the lock-in period, participants may sell their shares. However, Executives may only do so if they meet the requirement for owning AB Volvo shares at a value of at least two years of gross base salary for the President and CEO and one year of the gross base salary for the other Executives. The holding requirements for participants shall cease upon termination of a participant\u2019s employment, and the Board may grant such other exceptions to the requirements as the Board deems appropriate. Participants in the long-term incentive programs must be employed on December 31 of the final year of the performance period in order to qualify for a pay-out. Participants who terminate their employment before this date lose entitlements to a (pro-rated) pay-out, unless they leave the Volvo Group in certain predefined situations (pension, disability, divesti- ture, etc.). These so-called \u201cgood leaver\u201d situations are subject to approval by the Remuneration Committee. The long-term incentive plan is linked to two predetermined perfor- mance measures: \u2022 AB Volvo\u2019s three-year average ROCE with a linear scale (0% at mini- mum, 100% at maximum of the scale; relative weighting 70%) and \u2022 The relative three-year average Volvo B total shareholder return vs. MSCI World Machinery Index with a linear scale (20% at minimum, 100% at maximum of the scale; relative weighting 30%) (relative TSR) The result on each of these two performance measures is determined after the relevant three-year measurement period has ended. The total remuneration expenses including social security charges for the LTI Program 2023-2025 affecting the income statement for 2023 amounts to SEK 170 M (-) and the total liability as of December 31, 2023, amounts to SEK 170 M (-). The income statement effect is an estimate of the outcome and will during the three-year period be continuously adjusted to reflect the outcome at the end of the program. The final out- come of the LTI Program 2023-2025 will be presented in the annual report for 2025. Terms of employment and remuneration to the President and CEO Fixed salary, short-term and long-term incentives The President and CEO is entitled to a remuneration consisting of a fixed annual salary and short-term and long-term incentives. During 2023, the short-term incentive program is based on operating income, operating cash flow and electric vehicle volume for the Volvo Group; the LTI Program 2023-2025 is based on relative TSR and three-year aver- age ROCE; the LTI Transition Program 2023 is based on operating income and one-year ROCE. The short-term incentive program amounts to a maxi- mum of 100% of the annual base salary, the LTI Program 2023-2025 (to be paid out in 2026) and the LTI Transition Program 2023 (to, subject to divi- dend pay-out, be paid out in 2024) amounts to a maximum of 150% of the annual base salary (measures have been taken to ensure that parallel appli- cation of the long-term programs do not lead to annual pay-outs exceeding the annual maximum percentage for long-term incentives). For the financial year 2023, the President and CEO received a fixed salary including vacation payment of SEK 18,072,526 (17,496,875) and a short-term incentive of SEK 17,271,313 (13,910,861). The short-term incentive was 97.0% (80.7) of the annual base salary. Other benefits, mainly pertaining to a company car and insurance benefits, amounted to SEK 239,119 (279,057). The President and CEO also participated in the LTI Program 2023- 2025 and the LTI Transition Program 2023. During the financial year 2023, the outcome of the LTI Transition Program 2023 amounted to SEK 26,699,958 (19,183,651), which was 150.0% (111.3) of the annual base salary. The full net amount shall be invested in Volvo B shares, which will be subject to a lock-in period of three years. There is to be no pay-out of the amount if the Annual General Meeting held in 2024 decides not to distrib- ute any dividends to the shareholders for 2023. As the outcome of the LTI Program 2023-2025 is measured over a period of three years (i.e. deter- mined as of 31 December 2025) no amounts has been paid out during 2023 (for the CEO). Pensions The President and CEO was covered by a pension benefit in the form of a defined contribution plan with a contribution amounting to 35% of the annual base salary. There were no commitments other than the payment of the contributions. Total pension premiums for the President and CEO amounted to SEK 6,229,991 (6,035,732) in 2023. Severance payments The President and CEO has a 12 months' notice period upon termination by AB Volvo and a 6 months' notice period upon termination on his own initia- tive. If terminated by the company, the President and CEO is entitled to a severance payment equivalent to 12 months\u2019 salary. In the event of new employment during the severance period, the severance pay is reduced with an amount equal to 100% of the income from the new employment. Remuneration to the Group Executive Board Fixed salary, short-term and long-term incentives Members of the Group Executive Board receive short-term and long-term incentives in addition to fixed salaries. During 2023, the short-term incentive program is based on operating income, operating cash flow and electric vehicle volume for the Volvo Group; the LTI Program 2023-2025 is based on relative TSR and three- year average ROCE; the LTI Transition Program 2023 is based on operat- ing income and one-year ROCE. The short-term incentive program, the LTI Program 2023-2025 (to be paid out in 2026) and the LTI Transition Pro- gram 2023 (to, subject to dividend pay-out, be paid out in 2024) for Group Executive Board members excluding the President and CEO, in 2023, could each amount to a maximum of 80% of the annual base salary (mea- sures have been taken to ensure that parallel application of the long-term programs do not lead to annual pay-outs exceeding the annual maximum percentage for long-term incentives). For the financial year 2023, fixed salaries including vacation payment amounted to SEK 101,003,684 (95,635,834) for the Group Executive Board members excluding the President and CEO. The short-term incentive amounted to SEK 77,198,042 (51,590,551) for the Group Executive Board members excluding the President and CEO. Short-term incentive was in average 77.0% (59.0) of the annual base salary. Other benefits, including company cars, housing, and insurance benefits, amounted to SEK 4,625,316 (14,565,147). The Group Executive Board also participated in the LTI Program 2023- 2025 and the (to the extent they participated in the long-term incentive program decided by the Board of Directors in 2022) LTI Transition Pro- gram 2023. During the financial year 2023, the outcome of the LTI Transi- tion Program 2023 amounted to SEK 80,206,754 (51,916,788) for the Group Executive Board members, excluding the President and CEO, which was 80.0% (59.4) of the annual base salaries. The full net amount shall be invested in Volvo B shares, which will be subject to a lock-in period of three years. There is to be no pay-out of the amount if the Annual General Meet- ing held in 2024 decides not to distribute any dividends to the sharehold- ers for 2023. As the outcome of the LTI Program 2023-2025 is measured over a period of three years (i.e. determined as of 31 December 2025) no amounts has been paid out during 2023 (for the Executive Board excl. the President and CEO). Pensions During 2023, the Group Executive Board members enrolled in the Swed- ish pension plan continued to participate in the collective bargain agree- ment (ITP), as well as the Volvo Executive Pension (VEP) plan. The VEP plan is a defined contribution plan with a contribution amounting to 35% of the annual base salary exceeding 30 income base amounts (SEK 2,229,000 in 2023). There were no commitments other than the pay- ment of the contributions. Pension premiums for the Group Executive Board, excluding the President and CEO, amounted to SEK 33,749,987 (30,022,143) in 2023. Severance payments The employment contracts for Group Executive Board members contain rules governing severance payments when AB Volvo terminates the employment. For Executives resident in Sweden, the notice period upon termination by the company shall not exceed 12 months and the notice period upon termination by the Executive shall not exceed 6 months. In addition, in the event of termination by the company, the Executive is enti- tled to a maximum of 12 months\u2019 severance pay. Executives resident outside Sweden or resident in Sweden but having a material connection to or having been resident in a country other than Sweden may be offered notice periods for termination and severance pay- ment that are competitive in the country where the Executives are or have been resident or to which the Executives have a material connection, pref- erably solutions comparable to the solutions applied to Executives resi- dent in Sweden. Volvo Group's total cost for remuneration and benefits to the Group Executive Board The total cost for remuneration and benefits to the Group Executive Board amounted to SEK 493 M (411) and pertained to fixed salaries, short-term and long-term incentives, other benefits and pensions. It also included social fees on salaries and benefits, special payroll tax and additional costs for other benefits. Out of the SEK 493 M, SEK 31 M pertains to the LTI Program 2023-2025 and is an estimate of the outcome which will be continuously adjusted to reflect the outcome at the end of the program. 27:2 Average number of employees 2023 2022 Number of employees of which women, % Number of employees of which women, % AB Volvo Sweden 297 49 282 50 Subsidiaries Sweden 23,247 25 22,013 25 Western Europe (excl. Sweden) 21,779 18 20,817 18 Eastern Europe 6,072 22 6,224 22 North America 17,908 22 17,459 21 South America 6,971 19 7,110 19 Asia 10,687 19 10,137 18 Other countries 2,321 20 2,275 19 Volvo Group 89,282 21 86,316 21 27:3 Board members and other senior executives 2023 2022 Number at year-end of which women, % Number at year-end of which women, % AB Volvo Board members 1 11 36 11 45 CEO & other senior executives 14 29 15 33 Volvo Group Board members 532 24 561 25 Presidents and other senior executives 599 29 613 28 1 Board members elected by the Annual General meeting. 27:4 Wages, salaries and other remunerations SEK M 2023 2022 Board and Presidents of which variable salaries Other employees Board and Presidents of which variable salaries Other employees AB Volvo 1 84.4 49.6 513.1 88.0 41.8 399.9 Subsidiaries 1,049.9 334.7 55,372.4 816.4 216.3 48,226.6 Volvo Group 1,134.3 384.3 55,885.5 904.4 258.0 48,626.4 27:5 Wages, salaries and other remunerations and social costs SEK M 2023 2022 Wages, salaries remuneration Social costs Pension costs Wages, salaries remuneration Social costs Pension costs AB Volvo 2 597.4 178.7 129.4 487.9 140.2 121.6 Subsidiaries 56,422.3 12,712.7 5,323.5 49,043.0 10,541.4 5,145.9 Volvo Group 3 57,019.8 12,891.4 5,452.9 49,530.9 10,681.6 5,267.5 1 Including current and former Board members and the President and CEO. 2 The parent company\u2019s pension costs, pertaining to Board members and Presidents are disclosed in note 3 Administrative expenses in the annual report of the parent company. 3 Of the Volvo Group\u2019s pension costs, SEK 106 M (93) pertain to Board members and Presidents, including current and former Board members, Presidents and CEO, and other senior executives. The Volvo Group\u2019s outstanding pension obligations to these individuals amount to SEK 618 M (567). The cost for non-monetary benefits in the Volvo Group amounted to SEK 4,092 M (3,409) of which SEK 41 M (33) pertained to Board members and Presidents. The cost for non-monetary benefits in the parent company amounted to SEK 4.9 M (7.4) of which SEK 0.2 M (0.4) to Board members and President . ", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutKeyManagementPersonnelExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1079": { "value": "27 Personnel ACCOUNTING POLICY Incentive programs The Volvo Group has a long-term and a short-term incentive program which are cash-settled. The LTI Program 2023-2025 (as defined below) has a performance period of three-years and includes two performance measures, relative total shareholder return (relative TSR) and return on capital employed (ROCE). The relative TSR includes a fair value component, hence this part of the program is accounted for as a share-based payment program. A liability is recognized and measured at fair value using a Monte Carlo sim- ulation at each reporting date. Changes in the fair value are recognized in the income statement for each period until the liability is settled by a cash payment. To estimate the fair value, the Monte Carlo simulation uses sev- eral inputs where assumptions are made such as vesting period, risk free annual interest rate, expected share price volatility and TSR-price. The LTI Transition Program 2023 (as defined below) has a performance period of one-year and includes two performance measures, operating income and ROCE. The short-term incentive program has a performance period of one- year and includes performance measures which for example may relate to operating income, operating cash flow, ROCE or similar ratios, or sustain- ability targets. Performance measures included in the programs such as ROCE, oper- ating income and operating cash flow or similar ratios are based on best estimate and are accounted for as employee benefits. During the vesting period, the total remuneration expenses for the incentive programs are recognized as an expense in the income statement and as other non-current or current liabilities depending on when in time the liability will be settled. The liability at the end of the vesting period corresponds to the actual payout in cash. Guidelines for remuneration to the Volvo Group Executive Board, approved by the Annual General Meeting on 4 April 2023 The Annual General Meeting 2023 decided upon the following guidelines for remuneration and other terms of employment for the members of the Volvo Group Executive Board (\u201cExecutives\u201d). The guidelines are forward-looking, i.e. they are applicable to remuner- ation agreed, and amendments to remuneration already agreed, after the proposed adoption of these guidelines by the 2023 annual general meet- ing. These guidelines do not apply to any remuneration separately decided or approved by the general meeting. The guidelines\u2019 promotion of the Volvo Group\u2019s business strategy, long-term interests and sustainability It is a prerequisite for the successful implementation of the Volvo Group\u2019s business strategy and safeguarding of its long-term interests, including its sustainability, that the Group can recruit, retain and develop senior management. These guidelines enable AB Volvo to offer Executives a competitive total remuneration. More information regarding the Volvo Group\u2019s business strategy is available in the Volvo Group Annual Report. Types of remuneration Volvo Group remuneration to Executives shall consist of the following components: base salary, short-term and long-term variable incentives, pension benefits and other benefits. Short-term incentives may, for the President and CEO, amount to a maximum of 100% of the base salary and, for other Executives, a maximum of 80% of the base salary. Long-term incentives may, for the President and CEO, amount to a max- imum of 150% of the base salary and, for other Executives, a maximum of 80% of the base salary. Current and proposed long-term incentives are described and addressed separately by the 2023 general meeting. Further cash remuneration may be awarded in extraordinary circum- stances, provided that such extraordinary arrangements are limited in time and only made on an individual basis, either for the purpose of recruiting or retaining Executives, or as remuneration for extraordinary performance beyond the individual\u2019s ordinary tasks. Such remuneration may not exceed an amount corresponding to 100% of the annual base salary. Any resolution on such remuneration shall be made by the Board of Directors based on a proposal from the Remuneration Committee. For the President and CEO, pension benefits shall be granted on the basis of a defined contribution plan. The pensionable salary shall include base salary only. The pension contributions for the President and CEO attributable to the annual base salary shall amount to not more than 35% of the base salary. Other benefits may include, for example, life insurance, medical and health insurance, and company cars. Premiums and other costs relating to such benefits may amount to not more than 3% of the annual base salary for the President and CEO. For other Executives, pension benefits shall be granted on the basis of a defined contribution plan except where law or collective agreement requires a defined benefit pension. The pensionable salary shall include base salary and, where required by law or collective agreement, incen- tives. The total pension contributions for other Executives shall amount to not more than 35% of base salary, unless a higher percentage results from the application of law or collective agreement. Other benefits may include, for example, life insurance, medical and health insurance, and company cars. Premiums and other costs relating to such benefits may amount to not more than 10% of the annual base salary for other Executives. Remuneration for Executives that reside outside Sweden or reside in Sweden but having a material connection to or having been residing in a country other than Sweden may be duly adjusted to comply with manda- tory rules or local practice, taking into account, to the extent possible, the overall purpose of these guidelines. In addition to remuneration set out above, Executives who relocate for the purposes of the position or who work in other multiple countries may also receive such remuneration and benefits as are reasonable to reflect the special circumstances associated with such arrangements, taking into account the overall purpose of these guidelines and alignment with the general policies and practices within the Volvo Group applicable to cross border work. Termination of employment Upon termination of an Executive\u2019s employment, the notice period may not exceed twelve months. Base salary during the notice period and sev- erance pay may not together exceed an amount corresponding to the base salary for two years. Executives that reside outside Sweden or reside in Sweden but having a material connection to or having been residing in a country other than Sweden may be offered notice periods for termination and severance pay- ment as are reasonable to reflect the special circumstances, taking into account the overall purpose of these guidelines and alignment with the general policies and practices within the Volvo Group. Criteria for awarding variable remuneration, etc. Plans for long-term and short-term incentives shall be linked to predeter- mined and measurable criteria, to be determined by the Board of Directors. The criteria \u2013 which for example may relate to EBIT, cash flow, return on capital employed or similar ratios, or sustainability targets \u2013 shall be devised to promote the Volvo Group\u2019s strategy and long-term value cre- ation and strengthen the link between achieved performance targets and reward. The satisfaction of the criteria shall be measured over periods of one or multiple years, depending on the type of incentive plan. To which extent the criteria for awarding incentives has been satisfied shall be determined when the relevant measurement period has ended. The Board of Directors is responsible for the determination of the incen- tives to be paid, if any, to all Executives. Claw-back and adjustments Executives participating in the Volvo Group\u2019s short-term and long-term incentive plans are obliged, in certain circumstances and for specified periods of time, to repay, partially or in its entirety, incentive awards already paid if payments have been made by mistake or been based on intentionally falsified data or in the event of material restatement of the Volvo Group\u2019s financial results. Furthermore, the Board of Directors may decide on adjustments of pay-out under the incentive plans (before pay- ment has been made) in case of extraordinary circumstances or to adjust for unforeseen one-timers. Salary and employment conditions for employees In the preparation of the Board of Directors\u2019 proposal for these guidelines, the Board has considered that the various benefits offered to the Execu- tives need to be aligned with the general structures applicable for employ- ees of AB Volvo at levels that are competitive in the market. Thus, salary and employment conditions for other AB Volvo employees have been taken into account by including information thereon in the Remuneration Committee\u2019s and the Board of Directors\u2019 basis of decision when evaluat- ing whether the guidelines and the limitations set out herein are appropriate. The decision-making process to determine, review and implement the guidelines The Board of Directors has established a Remuneration Committee. The Committee\u2019s tasks include preparing the Board of Directors\u2019 decision to propose guidelines for executive remuneration. The Board of Directors shall prepare a proposal for new guidelines at least every fourth year and submit it to the general meeting. The guidelines shall be in force until new guidelines are adopted by the general meeting. The Remuneration Com- mittee shall also monitor and evaluate plans for variable remuneration for Executives, the application of the guidelines for executive remuneration as well as the current remuneration structures and compensation levels in the Group. The members of the Remuneration Committee are independent of AB Volvo and its executive management. The President and CEO and other members of the executive management do not participate in the Board of Directors\u2019 processing of and resolutions regarding remuneration-related matters in so far as they are affected by such matters. Derogation from the guidelines The Board of Directors may temporarily resolve to derogate from the guidelines, in whole or in part, if in a specific case there is special cause for the derogation and a derogation is necessary to serve the Volvo Group\u2019s long-term interests, including its sustainability, or to ensure the Group\u2019s financial viability. As set out above, the Remuneration Committee\u2019s tasks include preparing the Board of Directors\u2019 resolutions in remuneration- related matters. This includes any resolutions to derogate from the guide- lines. Description of changes to the guidelines, etc. During 2022, the company has carefully considered feedback received from shareholders and proxy advisors in connection with the general meeting 2022 and otherwise during the year. As a result of this dialogue, the Board and the Remuneration Committee have during 2022 per- formed a review of the design of the Group\u2019s long-term incentives. As a result of this review, the Board proposes the adoption of a new long-term incentive plan with a three-year performance period, to be implemented starting 2023. It is proposed that the transition into a new long-term incentive plan with a three-year performance period will be made in paral- lel with a two-year phasing out of the current long-term incentive plan. For further information, please refer to the Board\u2019s separate proposal for a new long-term incentive plan. For further information about the dialogue with shareholders and proxy advisors, please refer to the Remuneration Report 2022. Fees paid to the Board of Directors According to a resolution adopted at the Annual General Meeting 2023, fees to the Board of Directors appointed at the Annual General Meeting for the period until the close of the Annual General Meeting 2024 shall be paid as follows: The Chairman of the Board should be awarded SEK 3,925,000 (3,850,000) and each of the other members elected by the Annual Gen- eral Meeting SEK 1,175,000 (1,150,000) with exception of the President and CEO of AB Volvo, who does not receive a director\u2019s fee. In addition, SEK 445,000 (405,000) should be awarded to the Chairman of the Audit Committee and SEK 250,000 (190,000) to each of the other members of the Audit Committee, and SEK 175,000 (170,000) to the Chairman of the Remuneration Committee and SEK 130,000 (125,000) to each of the other members of the Remuneration Committee, and SEK 300,000 (200,000) to the Chairman of the Volvo CE Transformation Committee and SEK 200,000 (170,000) to each of the other members of the Volvo CE Transformation Committee. Long-term incentive plans Long-term incentive plan valid from 2016 In 2016, the Board of Directors approved a long-term cash-based incen- tive plan comprising the top 300 persons from senior management, including Executives, in the Volvo Group. During 2022, it was decided to increase the plan size with an additional 100 slots to accommodate attraction and retention of employees with rare and/or deep expertise and skills that are hard to find in the external market and are key to the Volvo Group\u2019s transformation journey. For more information, please refer to Types of remuneration on page 141. Long-term incentive plan valid from 2023 In 2023, the Annual General Meeting adopted a new long-term incentive plan comprising a maximum number of 600 participants from senior management, including Executives and employees in certain busi- ness-critical positions within the Volvo Group. The new plan will replace the current long-term incentive plan adopted in 2016. The replacement will, due to increased performance period under the new plan, take place during a two-year phase out of the current plan via two long-term transition pro- grams for 2023 and 2024, respectively. Hence, in 2023 the Board of Direc- tors approved a long-term incentive program for 2023 to 2025 (the \u201cLTI Program 2023-2025) issued under the long-term incentive plan adopted in 2023. In addition, as part of the two-year phase out of the current long-term incentive plan, the Board of Directors also approved a long-term incentive transition program for 2023 (the \u201cLTI Transition Program 2023\u201d) based on the terms of the long-term incentive plan adopted in 2016. The LTI Transi- tion Program 2023 only applies to participants who were also enrolled in the long-term incentive program decided by the Board of Directors in 2022. Measures have been taken to ensure that parallel application of the long- term programs do not lead to annual pay-outs exceeding the annual maxi- mum percentage for long-term incentives. 27:1 Remuneration to the Group Executive Board SEK Fixed remuneration Variable remuneration Fixed salary Other benefits 1 Short-term incentives Long-term incentives Other remunerations 2 Pension premiums President and CEO 18,072,526 239,119 17,271,313 26,699,958 \u2013 6,229,991 Other members of the Group Executive Board 3 101,003,684 4,625,316 77,198,042 80,206,754 \u2013 33,749,987 Total 2023 119,076,210 4,864,435 94,469,355 106,906,712 \u2013 39,979,978 Total 2022 122,676,039 15,054,935 71,552,876 76,663,918 3,165,174 39,289,073 1 Other benefits mainly pertain to company cars, housing and, various insurance costs. 2 Other remunerations include payments in 2022 to Swedish individuals in the Group Executive Board in connection to a change in their pension benefits. 3 The Group Executive Board comprised, except the President and CEO, of 13 (13) members at the end of the year. The new plan has a three-year performance period followed by a one- year lock-in period for the AB Volvo shares that the participants are required to acquire. At the end of the lock-in period, participants may sell their shares. However, Executives may only do so if they meet the requirement for owning AB Volvo shares at a value of at least two years of gross base salary for the President and CEO and one year of the gross base salary for the other Executives. The holding requirements for participants shall cease upon termination of a participant\u2019s employment, and the Board may grant such other exceptions to the requirements as the Board deems appropriate. Participants in the long-term incentive programs must be employed on December 31 of the final year of the performance period in order to qualify for a pay-out. Participants who terminate their employment before this date lose entitlements to a (pro-rated) pay-out, unless they leave the Volvo Group in certain predefined situations (pension, disability, divesti- ture, etc.). These so-called \u201cgood leaver\u201d situations are subject to approval by the Remuneration Committee. The long-term incentive plan is linked to two predetermined perfor- mance measures: \u2022 AB Volvo\u2019s three-year average ROCE with a linear scale (0% at mini- mum, 100% at maximum of the scale; relative weighting 70%) and \u2022 The relative three-year average Volvo B total shareholder return vs. MSCI World Machinery Index with a linear scale (20% at minimum, 100% at maximum of the scale; relative weighting 30%) (relative TSR) The result on each of these two performance measures is determined after the relevant three-year measurement period has ended. The total remuneration expenses including social security charges for the LTI Program 2023-2025 affecting the income statement for 2023 amounts to SEK 170 M (-) and the total liability as of December 31, 2023, amounts to SEK 170 M (-). The income statement effect is an estimate of the outcome and will during the three-year period be continuously adjusted to reflect the outcome at the end of the program. The final out- come of the LTI Program 2023-2025 will be presented in the annual report for 2025. Terms of employment and remuneration to the President and CEO Fixed salary, short-term and long-term incentives The President and CEO is entitled to a remuneration consisting of a fixed annual salary and short-term and long-term incentives. During 2023, the short-term incentive program is based on operating income, operating cash flow and electric vehicle volume for the Volvo Group; the LTI Program 2023-2025 is based on relative TSR and three-year aver- age ROCE; the LTI Transition Program 2023 is based on operating income and one-year ROCE. The short-term incentive program amounts to a maxi- mum of 100% of the annual base salary, the LTI Program 2023-2025 (to be paid out in 2026) and the LTI Transition Program 2023 (to, subject to divi- dend pay-out, be paid out in 2024) amounts to a maximum of 150% of the annual base salary (measures have been taken to ensure that parallel appli- cation of the long-term programs do not lead to annual pay-outs exceeding the annual maximum percentage for long-term incentives). For the financial year 2023, the President and CEO received a fixed salary including vacation payment of SEK 18,072,526 (17,496,875) and a short-term incentive of SEK 17,271,313 (13,910,861). The short-term incentive was 97.0% (80.7) of the annual base salary. Other benefits, mainly pertaining to a company car and insurance benefits, amounted to SEK 239,119 (279,057). The President and CEO also participated in the LTI Program 2023- 2025 and the LTI Transition Program 2023. During the financial year 2023, the outcome of the LTI Transition Program 2023 amounted to SEK 26,699,958 (19,183,651), which was 150.0% (111.3) of the annual base salary. The full net amount shall be invested in Volvo B shares, which will be subject to a lock-in period of three years. There is to be no pay-out of the amount if the Annual General Meeting held in 2024 decides not to distrib- ute any dividends to the shareholders for 2023. As the outcome of the LTI Program 2023-2025 is measured over a period of three years (i.e. deter- mined as of 31 December 2025) no amounts has been paid out during 2023 (for the CEO). Pensions The President and CEO was covered by a pension benefit in the form of a defined contribution plan with a contribution amounting to 35% of the annual base salary. There were no commitments other than the payment of the contributions. Total pension premiums for the President and CEO amounted to SEK 6,229,991 (6,035,732) in 2023. Severance payments The President and CEO has a 12 months' notice period upon termination by AB Volvo and a 6 months' notice period upon termination on his own initia- tive. If terminated by the company, the President and CEO is entitled to a severance payment equivalent to 12 months\u2019 salary. In the event of new employment during the severance period, the severance pay is reduced with an amount equal to 100% of the income from the new employment. Remuneration to the Group Executive Board Fixed salary, short-term and long-term incentives Members of the Group Executive Board receive short-term and long-term incentives in addition to fixed salaries. During 2023, the short-term incentive program is based on operating income, operating cash flow and electric vehicle volume for the Volvo Group; the LTI Program 2023-2025 is based on relative TSR and three- year average ROCE; the LTI Transition Program 2023 is based on operat- ing income and one-year ROCE. The short-term incentive program, the LTI Program 2023-2025 (to be paid out in 2026) and the LTI Transition Pro- gram 2023 (to, subject to dividend pay-out, be paid out in 2024) for Group Executive Board members excluding the President and CEO, in 2023, could each amount to a maximum of 80% of the annual base salary (mea- sures have been taken to ensure that parallel application of the long-term programs do not lead to annual pay-outs exceeding the annual maximum percentage for long-term incentives). For the financial year 2023, fixed salaries including vacation payment amounted to SEK 101,003,684 (95,635,834) for the Group Executive Board members excluding the President and CEO. The short-term incentive amounted to SEK 77,198,042 (51,590,551) for the Group Executive Board members excluding the President and CEO. Short-term incentive was in average 77.0% (59.0) of the annual base salary. Other benefits, including company cars, housing, and insurance benefits, amounted to SEK 4,625,316 (14,565,147). The Group Executive Board also participated in the LTI Program 2023- 2025 and the (to the extent they participated in the long-term incentive program decided by the Board of Directors in 2022) LTI Transition Pro- gram 2023. During the financial year 2023, the outcome of the LTI Transi- tion Program 2023 amounted to SEK 80,206,754 (51,916,788) for the Group Executive Board members, excluding the President and CEO, which was 80.0% (59.4) of the annual base salaries. The full net amount shall be invested in Volvo B shares, which will be subject to a lock-in period of three years. There is to be no pay-out of the amount if the Annual General Meet- ing held in 2024 decides not to distribute any dividends to the sharehold- ers for 2023. As the outcome of the LTI Program 2023-2025 is measured over a period of three years (i.e. determined as of 31 December 2025) no amounts has been paid out during 2023 (for the Executive Board excl. the President and CEO). Pensions During 2023, the Group Executive Board members enrolled in the Swed- ish pension plan continued to participate in the collective bargain agree- ment (ITP), as well as the Volvo Executive Pension (VEP) plan. The VEP plan is a defined contribution plan with a contribution amounting to 35% of the annual base salary exceeding 30 income base amounts (SEK 2,229,000 in 2023). There were no commitments other than the pay- ment of the contributions. Pension premiums for the Group Executive Board, excluding the President and CEO, amounted to SEK 33,749,987 (30,022,143) in 2023. Severance payments The employment contracts for Group Executive Board members contain rules governing severance payments when AB Volvo terminates the employment. For Executives resident in Sweden, the notice period upon termination by the company shall not exceed 12 months and the notice period upon termination by the Executive shall not exceed 6 months. In addition, in the event of termination by the company, the Executive is enti- tled to a maximum of 12 months\u2019 severance pay. Executives resident outside Sweden or resident in Sweden but having a material connection to or having been resident in a country other than Sweden may be offered notice periods for termination and severance pay- ment that are competitive in the country where the Executives are or have been resident or to which the Executives have a material connection, pref- erably solutions comparable to the solutions applied to Executives resi- dent in Sweden. Volvo Group's total cost for remuneration and benefits to the Group Executive Board The total cost for remuneration and benefits to the Group Executive Board amounted to SEK 493 M (411) and pertained to fixed salaries, short-term and long-term incentives, other benefits and pensions. It also included social fees on salaries and benefits, special payroll tax and additional costs for other benefits. Out of the SEK 493 M, SEK 31 M pertains to the LTI Program 2023-2025 and is an estimate of the outcome which will be continuously adjusted to reflect the outcome at the end of the program. 27:2 Average number of employees 2023 2022 Number of employees of which women, % Number of employees of which women, % AB Volvo Sweden 297 49 282 50 Subsidiaries Sweden 23,247 25 22,013 25 Western Europe (excl. Sweden) 21,779 18 20,817 18 Eastern Europe 6,072 22 6,224 22 North America 17,908 22 17,459 21 South America 6,971 19 7,110 19 Asia 10,687 19 10,137 18 Other countries 2,321 20 2,275 19 Volvo Group 89,282 21 86,316 21
27:3
Board members
and other senior executives 2023 2022
Number at year-end of which women, % Number at year-end of which women, %
AB Volvo
Board members
1
11 36 11 45
CEO & other senior executives 14 29 15 33
Volvo Group
Board members 532 24 561 25
Presidents and other senior executives 599 29 613 28
1 Board members elected by the Annual General meeting.
27:4
Wages, salaries and other
remunerations
SEK M
2023 2022
Board and
Presidents
of which
variable salaries
Other
employees
Board and
Presidents
of which
variable salaries
Other
employees
AB Volvo
1
84.4 49.6 513.1 88.0 41.8 399.9
Subsidiaries 1,049.9 334.7 55,372.4 816.4 216.3 48,226.6
Volvo Group 1,134.3 384.3 55,885.5 904.4 258.0 48,626.4
27:5
Wages, salaries and other
remunerations and social costs
SEK M
2023 2022
Wages, salaries
remuneration Social costs Pension costs
Wages, salaries
remuneration Social costs Pension costs
AB Volvo
2
597.4 178.7 129.4 487.9 140.2 121.6
Subsidiaries 56,422.3 12,712.7 5,323.5 49,043.0 10,541.4 5,145.9
Volvo Group
3
57,019.8 12,891.4 5,452.9 49,530.9 10,681.6 5,267.5
1 Including current and former Board members and the President and CEO.
2 The parent company\u2019s pension costs, pertaining to Board members and Presidents are disclosed in note 3 Administrative expenses in the annual report of the parent company.
3 Of the Volvo Group\u2019s pension costs, SEK 106 M (93) pertain to Board members and Presidents, including current and former Board members, Presidents and CEO, and other
senior executives. The Volvo Group\u2019s outstanding pension obligations to these individuals amount to SEK 618 M (567). The cost for non-monetary benefits in the Volvo Group
amounted to SEK 4,092 M (3,409) of which SEK 41 M (33) pertained to Board members and Presidents. The cost for non-monetary benefits in the parent company
amounted to SEK 4.9 M (7.4) of which SEK 0.2 M (0.4) to Board members and President .
", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutEmployeesExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1083": { "value": "28 Fees to the auditors 28:1 Fees to the auditors 2023 2022 Deloitte \u2013 Audit assignment 140 122 whereof to Deloitte AB 45 41 \u2013 Audit-related assignments 9 8 whereof to Deloitte AB 3 3 \u2013 Tax advisory services 1 \u2013 whereof to Deloitte AB \u2013 \u2013 \u2013 Other services 52 5 whereof to Deloitte AB \u2013 \u2013 Total Deloitte 202 135 Audit fees to others 3 2 Total fees to the auditors 205 137 The audit assignment involves review of the Annual report and financial accounting and the administration by the Board and the President. Audit-related assignments mean quality assurance services required by enactment, articles of association, regulations or agreement. The amount includes the fee for reviewing the half-year report. Tax advisory services include both tax consultancy and tax compliance services. All other tasks are defined as other services. ", "dimensions": { "concept": "ifrs-full:DisclosureOfAuditorsRemunerationExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1084": { "value": "29 Cash flow ACCOUNTING POLICY Cash flow statement The cash flow statement is prepared in accordance with the indirect method. The cash flows of foreign group companies are translated at aver- age rates. Changes in group structure, acquisitions and divestments are recognized gross and are included in cash flow from investing activities, in the items acquired operations and divested operations. Operating cash flow The operating cash flow is a measure of the amount of cash generated by the Volvo Group\u2019s regular business operations. The operating cash flow also includes investments and disposals of intangible and tangible assets, which are part of the investing activities. Read more in Note 18 Cash and cash equivalents. 29:1 Other non-cash items 2023 2022 Allowance for expected credit losses on receivables/customer-financing receivables 1 1,398 4,260 Gains/losses on divested operations 2 710 \u2013 Unrealized exchange rate gains/losses on accounts receivables and payables \u2013150 455 Unrealized exchange rate gains/losses on other operating assets and liabilities 55 283 Provision for incentive programs 2,619 1,761 Gains/losses on disposals of in-/tangible assets \u2013422 \u2013232 Gains/losses on divestments of shares and participations 231 \u2013109 Results from investments in joint ventures 2,368 1,333 Service cost related to pensions 1,209 1,659 Deferred sales with residual value commitments \u20134,316 \u20133,957 Provisions for restructuring charges related to the US bus production for Nova Bus and the European bus operation 2,336 \u2013 Financial impact related to the planned divestment of Arquus and the ABG paver business 1,490 \u2013 Other changes 3 6,313 1,512 Total other non-cash items 13,842 6,964 1 The increase in 2022 was mainly referred to the financial impact related to Russia. 2 Includes financial impact related to the divestment of the Russian entities. 3 Includes costs for claims arising from the European Commission's 2016 antitrust settlement decision. The comparative figures also includes costs for a civil pen- alty from the National Highway Traffic Safety Administration in the US. 29:2 Changes in loans 2023 Cash flows Non-cash items December 31, 2022 New borrowings Repayment of borrowings Reclass i- fications and other changes 1 Unrealized currency effects Exchange rate changes December 31, 2023 Current bond loans and other loans 72,377 160,207 \u2013206,589 72,517 3,683 \u20133,906 98,289 Non-current bond loans and other loans 138,571 77,472 \u2013153 \u201371,184 \u20131,943 \u20134,261 138,502 Interest and currency risk derivatives \u20131,730 \u2013 \u2013 \u2013 \u20131,320 7 \u20133,043 Realized derivatives \u2013 \u2013 \u2013967 \u2013 \u2013 \u2013 \u2013 Cash transfers 2 \u2013 6,111 \u20133,449 \u2013 \u2013 \u2013 \u2013 Other \u2013 \u20131,832 3 \u2013 \u2013 \u2013 \u2013 \u2013 Cash flow impact from changes in loans 241,958 \u2013211,157 Changes in loans 2022 Cash flows Non-cash items December 31, 2021 New borrowings Repayment of borrowings Reclass i- fications and other changes 1 Unrealized currency effects Exchange rate changes December 31, 2022 Current bond loans and other loans 49,447 95,984 4 \u2013131,481 4 51,763 131 6,532 72,377 Non-current bond loans and other loans 104,177 74,108 \u20131,970 \u201350,958 2,259 10,955 138,571 Interest and currency risk derivatives \u20132,013 \u2013 \u2013 \u2013 306 \u201323 \u20131,730 Realized derivatives \u2013 \u2013 2,605 \u2013 \u2013 \u2013 \u2013 Cash transfers 2 \u2013 4,191 \u20137,990 \u2013 \u2013 \u2013 \u2013 Other \u2013 \u20131,466 3 \u2013 \u2013 \u2013 \u2013 \u2013 Cash flow impact from changes in loans 172,817 \u2013138,836 1 Includes remeasurements of lease liabilities which had no impact on cash flow. 2 Cash transfers for credit support annexes (CSA) are used to reduce the exposure from net open positions on interest and currency risk derivatives. Cash transfers for CSAs are also included in current bond loans and other loans, where the net cash flow amounted to SEK 1,702 M (1,059). The netting agreements have no effect on the financial performance or the net financial position of the Volvo Group. 3 During 2023, new lease liabilities of SEK 1.8 billion (1.5), included in non-current other loans, were adjusted as non-cash items. 4 The comparative figures are restated due to a reclassification between new borrowings and repayments of borrowings. Net borrowings increased by SEK 30.8 billion (34.0), mainly due to sig- nificantly higher new business volume in the credit portfolio. During 2023, a decision was made to call the final tranche (EUR 0.6 billion) of the hybrid bond with payment date on March 10, 2023. Syndications were performed in Financial Services to an amount of SEK 8.8 billion (12.2). All syndications have impacted cash flow this year. Read more in Note 4 Goals and policies in financial risk management about credit support annexes (CSA). Read more in Note 22 Liabilities regarding Bond loans and other loans. ", "dimensions": { "concept": "ifrs-full:DisclosureOfCashFlowStatementExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1085": { "value": "ACCOUNTING POLICY Cash flow statement The cash flow statement is prepared in accordance with the indirect method. The cash flows of foreign group companies are translated at aver- age rates. Changes in group structure, acquisitions and divestments are recognized gross and are included in cash flow from investing activities, in the items acquired operations and divested operations. Operating cash flow The operating cash flow is a measure of the amount of cash generated by the Volvo Group\u2019s regular business operations. The operating cash flow also includes investments and disposals of intangible and tangible assets, which are part of the investing activities. Read more in Note 18 Cash and cash equivalents. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForCashFlowsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1086": { "value": "30 Financial instruments ACCOUNTING POLICY Financial assets and liabilities are recognized on the transaction date accord- ing to the contractual terms of the instrument. Transaction costs are included in the assets\u2019 fair value, except in cases in which the change in value is recog- nized in the income statement. The transaction costs that arise in conjunction with the admission of financial liabilities are amortized over the term of the loan as financial cost. A financial asset is derecognized from the balance sheet when the rights to the cash flows from the asset have expired at maturity or when all significant risks and rewards related to the asset have been transferred to a third party. The fair value of financial assets is determined based on valid market prices, when available. If market prices are unavailable, the fair value is deter- mined for each asset through the use of various measurement techniques. The fair value of financial instruments is classified based on the degree that market values have been utilized when measuring fair value. The majority of financial instruments measured at fair value held by Volvo Group is clas- sified as level 2. 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 is used to calculate the present value of all the estimated future cash flows. For forward exchange contracts the basis is the forward premium based on current spot rate for each currency and future date. The fair value is then discounted based on the forward rates as per the balance sheet date. Holding of shares are classified as level 1 for listed shares and level 3 for non-listed shares. Call options are classified as level 3 and are based on the Black & Scholes option pricing formula. Financial assets and liabilities measured at fair value through the income statement Volvo Group\u2019s financial assets and liabilities held for trading are recog- nized at fair value through the income statement. As presented in table 30:1, these instruments are derivatives, used for hedging interest and currency risks and marketable securities, further presented in note 18 Cash and cash equivalents. Derivatives used for hedging interest rate exposure financing the cus- tomer financing porfolio within Financial Services as well as the debt port- folio in Industrial Operations are included in this category. Unrealized gains and losses from fluctuations in the fair value of the financial instruments are recognized in other financial income and expenses, with the exception of derivatives entered into by Financial Services, which are recognized in operating income. The Volvo Group intends to hold these derivatives to maturity, which is why, over time, the market valuation will have no impact on financial performance or cash flow. Financial instruments used for hedging currency risks arising from future cash flows are also recognized in this category. When hedging future cash flows for specific orders, the classification in the income statement is decided on a case by case basis. In 2023, SEK 16 M (44) have been recognized in operating income and SEK 105 M (1) in finance net. The result from hedging future cash flows in foreign currency from dividends paid to group companies is included in operating income with an amount of SEK 27 M (177). Read more in Note 4 Goals and policies in financial risk management. Financial assets measured at fair value through other comprehensive income In this category the Volvo Group includes holding of shares in listed compa- nies as the shares are not held for trading. Changes in fair value is measured through other comprehensive income and amounted to SEK 15 M (\u201345). Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Financial assets measured at amortized cost Customer-financing receivables are held as part of a business model whose objective is to collect contractual cash flows. The contractual cash flows are solely payments of principal and interest and are valued at amor- tized cost in accordance with the effective interest method. In this cate- gory the Volvo Group also includes accounts receivables and holding of shares in non-listed companies for which a fair value cannot reasonably be determined. The carrying value has been analyzed and compared with an estimated fair value and is a reasonable approximation of the fair value. Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Read more in Note 15 Customer-financing receivables. Read more in Note 16 Receivables. Hedge Accounting is not applied by the Volvo Group . Information regarding carrying amounts and fair values In table 30:1, carrying amounts are compared with fair values for all of the Volvo Group\u2019s financial instruments. 30:1 Carrying amounts and fair values on financial instruments Dec 31, 2023 Dec 31, 2022 Carrying value Fair value Carrying value Fair value Assets Financial assets measured at fair value through the income statement Interest and currency risk derivatives 1 Note 16 6,293 6,293 5,751 5,751 Other derivatives 2 564 564 564 564 B/S Marketable securities Note 18 89 89 93 93 6,945 6,945 6,408 6,408 Financial assets measured at fair value through other comprehensive income Holding of shares in listed companies Note 5 22 22 6 6 Financial assets measured at amortized cost B/S Accounts receivables Note 16 43,210 43,210 48,220 48,220 Customer-financing receivables Note 15 232,203 232,203 193,928 193,928 Holding of shares in non-listed companies Note 5 859 859 599 599 Other interest-bearing receivables 3 Note 16 3,233 3,233 5,738 5,738 279,505 279,505 248,485 248,485 B/S Cash and cash equivalents Note 18 83,326 83,326 83,886 83,886 Liabilities Note 22 Financial liabilities measured at fair value through the income statement Interest and currency risk derivatives 4 5,779 5,779 8,975 8,975 Financial liabilities measured at amortized cost 5 Non-current bond loans and other loans 136,267 135,652 134,392 130,794 Current bond loans and other loans 3 97,250 97,102 70,655 70,475 B/S Trade Payables 82,987 82,987 90,177 90,177 316,503 315,741 295,224 291,446 1 The Volvo Group\u2019s gross exposure from derivatives reported as assets was reduced by 84% (79) by netting agreements and cash deposits to SEK 1,034 M (1,223). 2 The input data used in the valuation model for calculating the fair value has not changed during 2023. 3 The amount includes cash deposits for credit support annexes (CSA), where the receivable amounted to SEK 2,297 M (4,959) and the liability amounted to SEK \u20131,889 M (\u2013187). The agreements have no effect on the financial performance or net financial position of the Volvo Group. 4 The Volvo Group\u2019s gross exposure from derivatives reported as liabilities was reduced by 97% (98) by netting agreements and cash deposits to SEK 183 M (189). 5 In the Volvo Group balance sheet, financial liabilities include loan-related deriva- tives amounting to SEK \u20133,275 M (\u20135,900). The credit risk is included in the fair value of loans. Read more in Note 4 Goals and policies in financial risk management about credit support annexes (CSA) . Derecognition of financial assets The Volvo Group is involved in discounting activities to reduce financial risks. An evaluation is performed to establish whether substantially all the risks and rewards have been transferred to an external party when entering into an agreement. The Volvo Group\u2019s intention is not to be involved in discounting activities if not substantially all the risks and rewards can be transferred to an external party. As of December 31, 2023, there were no transferred financial assets in the Volvo Group that did not fulfill the requirements for derecognition. Financial assets are derecognized from the balance sheet when the rights to the cash flows from the assets have expired or when substan- tially all risks and rewards have been transferred. Involvement in these assets is reflected in the Volvo Group\u2019s balance sheet as part of the exter- nal credit guarantees. They are valued at best estimate and recognized as provisions in the balance sheet to an amount of SEK 0.1 billion (0.2). The Volvo Group\u2019s maximum loss exposure is considered being the total recourse relating to transferred and derecognized assets that are part of the recognized credit guarantees, i.e. the total amount the Volvo Group would have to pay in case of default of the customers. The likelihood for all custom- ers going into default at the same time is considered to be low. The gross exposure for the Volvo Group amounted to SEK 3.8 billion (5.9) related to credit guarantees issued for customers and others and is part of the Volvo Group\u2019s contingent liabilities. This amount has not been reduced by the value of counter guarantees received or other collaterals such as the right to repos- sess the products. Read more in Note 21 Other provisions. Read more in Note 24 Contingent liabilities and financial commitments. Gains, losses, interest income and interest expenses from financial instruments Table 30:3 shows how gains and losses, as well as interest income and interest expenses have affected income after financial items in the Volvo Group divided by the different categories of financial instruments.
In table 30:2, outstanding derivatives hedging currency and interest rate risks are presented.
30:2 Outstanding derivative instruments Dec 31, 2023 Dec 31, 2022 Nominal amount Carrying value Nominal amount Carrying value Interest-rate swaps \u2013 receivable position 232,945 5,932 217,951 5,532 \u2013 payable position 142,572 \u20135,478 162,277 \u20138,616 Foreign exchange derivatives \u2013 receivable position 38,282 361 33,932 218 \u2013 payable position 21,108 \u2013301 30,486 \u2013359 Options purchased \u2013 receivable position 111 \u2013 56 \u2013 Options written \u2013 payable position \u2013 \u2013 56 \u2013 Total 514 \u20133,224 30:3 Recognized in operating income 2023 2022 Gain/ Loss Interest income Interest expense Gain/ Loss Interest income Interest expense Financial assets and liabilities at fair value through the income statement Interest and currency risk derivatives 1, 2 \u201389 \u2013 8 133 \u2013 \u2013 Marketable securities \u20131 \u2013 \u2013 16 \u2013 \u2013 Financial assets measured at amortized cost Accounts receivables/trade payables 3 \u2013785 \u2013 \u2013 \u20131,600 \u2013 \u2013 Cash and cash equivalents \u201332 \u2013 \u2013 77 \u2013 \u2013 Customer-financing receivables 4 287 15,829 \u2013 145 10,005 \u2013 Holding of shares in listed companies 5 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 Holding of shares in non-listed companies \u201314 \u2013 \u2013 132 \u2013 \u2013 Financial liabilities measured at amortized cost 6 \u2013 \u2013 \u20139,837 \u2013 \u2013 \u20134,599 Impact on operating income \u2013634 15,829 \u20139,829 \u20131,099 10,005 \u20134,599 Recognized in net financial items 7, 8 2023 2022 Gain/ Loss Interest income Interest expense Gain/ Loss Interest income Interest expense Financial assets and liabilities at fair value through the income statement Marketable securities \u20138 5 \u2013 3 1 \u2013 Interest and currency risk derivatives 1, 2 1,165 \u2013 \u20131,411 \u20134,816 \u201335 \u20131,470 Financial assets measured at amortized cost Cash and cash equivalents \u2013744 2,685 \u2013 \u2013179 1,042 \u2013 Financial liabilities measured at amortized cost \u20132,000 \u2013 483 4,678 \u2013 432 Impact on net financial items 7, 8 \u20131,587 2,690 \u2013928 \u2013313 1,008 \u20131,038 1 Accrued interest related to financial assets and liabilities measured at fair value through the income statement is included in the amounts for gains and losses. 2 The Volvo Group uses forward contracts and currency options to hedge the value of future cash flows in foreign currency. Both unrealized and realized result of currency risk contracts is included in the table. 3 Information regarding changes in allowance for expected credit losses on accounts receivables is provided in note 16 Receivables and note 8 Other operating income and expenses. The amount includes gains/losses of SEK \u201358 M (\u2013199) from revalu- ation of receivables in foreign currency related to dividends paid to group companies. 4 The amount includes gains/losses due to derecognition of assets where SEK 144 M (\u201311) is related to the sale of customer-financing receivables and SEK 143 M (155) is related to early buy-out revenue. Information regarding changes in allowance for expected credit losses on customer-financing receivables is pro- vided in note 15 Customer-financing receivables and note 8 Other operating income and expenses. 5 Changes in fair value on shares and participations in listed companies through other comprehensive income amounted to SEK 15 M (\u201345). Read more in Note 5 Investments in joint ventures, associated companies and other shares and partici pations. 6 Interest expenses attributable to financial liabilities measured at amortized cost recognized in operating income include interest expenses for financing operating lease activities, which are not classified as financial instruments. 7 In gain/loss, income and expenses related to financial instruments recognized in net financial items, SEK \u20131,587 M (\u2013313) was recognized in other financial income and expenses. Read more in Note 9 Other financial income and expenses. 8 Interest expenses attributable to pensions reported in net financial items of SEK \u2013238 M (\u2013167) are not included in this table .", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1087": { "value": "30 Financial instruments ACCOUNTING POLICY Financial assets and liabilities are recognized on the transaction date accord- ing to the contractual terms of the instrument. Transaction costs are included in the assets\u2019 fair value, except in cases in which the change in value is recog- nized in the income statement. The transaction costs that arise in conjunction with the admission of financial liabilities are amortized over the term of the loan as financial cost. A financial asset is derecognized from the balance sheet when the rights to the cash flows from the asset have expired at maturity or when all significant risks and rewards related to the asset have been transferred to a third party. The fair value of financial assets is determined based on valid market prices, when available. If market prices are unavailable, the fair value is deter- mined for each asset through the use of various measurement techniques. The fair value of financial instruments is classified based on the degree that market values have been utilized when measuring fair value. The majority of financial instruments measured at fair value held by Volvo Group is clas- sified as level 2. 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 is used to calculate the present value of all the estimated future cash flows. For forward exchange contracts the basis is the forward premium based on current spot rate for each currency and future date. The fair value is then discounted based on the forward rates as per the balance sheet date. Holding of shares are classified as level 1 for listed shares and level 3 for non-listed shares. Call options are classified as level 3 and are based on the Black & Scholes option pricing formula. Financial assets and liabilities measured at fair value through the income statement Volvo Group\u2019s financial assets and liabilities held for trading are recog- nized at fair value through the income statement. As presented in table 30:1, these instruments are derivatives, used for hedging interest and currency risks and marketable securities, further presented in note 18 Cash and cash equivalents. Derivatives used for hedging interest rate exposure financing the cus- tomer financing porfolio within Financial Services as well as the debt port- folio in Industrial Operations are included in this category. Unrealized gains and losses from fluctuations in the fair value of the financial instruments are recognized in other financial income and expenses, with the exception of derivatives entered into by Financial Services, which are recognized in operating income. The Volvo Group intends to hold these derivatives to maturity, which is why, over time, the market valuation will have no impact on financial performance or cash flow. Financial instruments used for hedging currency risks arising from future cash flows are also recognized in this category. When hedging future cash flows for specific orders, the classification in the income statement is decided on a case by case basis. In 2023, SEK 16 M (44) have been recognized in operating income and SEK 105 M (1) in finance net. The result from hedging future cash flows in foreign currency from dividends paid to group companies is included in operating income with an amount of SEK 27 M (177). Read more in Note 4 Goals and policies in financial risk management. Financial assets measured at fair value through other comprehensive income In this category the Volvo Group includes holding of shares in listed compa- nies as the shares are not held for trading. Changes in fair value is measured through other comprehensive income and amounted to SEK 15 M (\u201345). Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Financial assets measured at amortized cost Customer-financing receivables are held as part of a business model whose objective is to collect contractual cash flows. The contractual cash flows are solely payments of principal and interest and are valued at amor- tized cost in accordance with the effective interest method. In this cate- gory the Volvo Group also includes accounts receivables and holding of shares in non-listed companies for which a fair value cannot reasonably be determined. The carrying value has been analyzed and compared with an estimated fair value and is a reasonable approximation of the fair value. Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Read more in Note 15 Customer-financing receivables. Read more in Note 16 Receivables. Hedge Accounting is not applied by the Volvo Group . Information regarding carrying amounts and fair values In table 30:1, carrying amounts are compared with fair values for all of the Volvo Group\u2019s financial instruments. 30:1 Carrying amounts and fair values on financial instruments Dec 31, 2023 Dec 31, 2022 Carrying value Fair value Carrying value Fair value Assets Financial assets measured at fair value through the income statement Interest and currency risk derivatives 1 Note 16 6,293 6,293 5,751 5,751 Other derivatives 2 564 564 564 564 B/S Marketable securities Note 18 89 89 93 93 6,945 6,945 6,408 6,408 Financial assets measured at fair value through other comprehensive income Holding of shares in listed companies Note 5 22 22 6 6 Financial assets measured at amortized cost B/S Accounts receivables Note 16 43,210 43,210 48,220 48,220 Customer-financing receivables Note 15 232,203 232,203 193,928 193,928 Holding of shares in non-listed companies Note 5 859 859 599 599 Other interest-bearing receivables 3 Note 16 3,233 3,233 5,738 5,738 279,505 279,505 248,485 248,485 B/S Cash and cash equivalents Note 18 83,326 83,326 83,886 83,886 Liabilities Note 22 Financial liabilities measured at fair value through the income statement Interest and currency risk derivatives 4 5,779 5,779 8,975 8,975 Financial liabilities measured at amortized cost 5 Non-current bond loans and other loans 136,267 135,652 134,392 130,794 Current bond loans and other loans 3 97,250 97,102 70,655 70,475 B/S Trade Payables 82,987 82,987 90,177 90,177 316,503 315,741 295,224 291,446 1 The Volvo Group\u2019s gross exposure from derivatives reported as assets was reduced by 84% (79) by netting agreements and cash deposits to SEK 1,034 M (1,223). 2 The input data used in the valuation model for calculating the fair value has not changed during 2023. 3 The amount includes cash deposits for credit support annexes (CSA), where the receivable amounted to SEK 2,297 M (4,959) and the liability amounted to SEK \u20131,889 M (\u2013187). The agreements have no effect on the financial performance or net financial position of the Volvo Group. 4 The Volvo Group\u2019s gross exposure from derivatives reported as liabilities was reduced by 97% (98) by netting agreements and cash deposits to SEK 183 M (189). 5 In the Volvo Group balance sheet, financial liabilities include loan-related deriva- tives amounting to SEK \u20133,275 M (\u20135,900). The credit risk is included in the fair value of loans. Read more in Note 4 Goals and policies in financial risk management about credit support annexes (CSA) . Derecognition of financial assets The Volvo Group is involved in discounting activities to reduce financial risks. An evaluation is performed to establish whether substantially all the risks and rewards have been transferred to an external party when entering into an agreement. The Volvo Group\u2019s intention is not to be involved in discounting activities if not substantially all the risks and rewards can be transferred to an external party. As of December 31, 2023, there were no transferred financial assets in the Volvo Group that did not fulfill the requirements for derecognition. Financial assets are derecognized from the balance sheet when the rights to the cash flows from the assets have expired or when substan- tially all risks and rewards have been transferred. Involvement in these assets is reflected in the Volvo Group\u2019s balance sheet as part of the exter- nal credit guarantees. They are valued at best estimate and recognized as provisions in the balance sheet to an amount of SEK 0.1 billion (0.2). The Volvo Group\u2019s maximum loss exposure is considered being the total recourse relating to transferred and derecognized assets that are part of the recognized credit guarantees, i.e. the total amount the Volvo Group would have to pay in case of default of the customers. The likelihood for all custom- ers going into default at the same time is considered to be low. The gross exposure for the Volvo Group amounted to SEK 3.8 billion (5.9) related to credit guarantees issued for customers and others and is part of the Volvo Group\u2019s contingent liabilities. This amount has not been reduced by the value of counter guarantees received or other collaterals such as the right to repos- sess the products. Read more in Note 21 Other provisions. Read more in Note 24 Contingent liabilities and financial commitments. Gains, losses, interest income and interest expenses from financial instruments Table 30:3 shows how gains and losses, as well as interest income and interest expenses have affected income after financial items in the Volvo Group divided by the different categories of financial instruments. In table 30:2, outstanding derivatives hedging currency and interest rate risks are presented. 30:2 Outstanding derivative instruments Dec 31, 2023 Dec 31, 2022 Nominal amount Carrying value Nominal amount Carrying value Interest-rate swaps \u2013 receivable position 232,945 5,932 217,951 5,532 \u2013 payable position 142,572 \u20135,478 162,277 \u20138,616 Foreign exchange derivatives \u2013 receivable position 38,282 361 33,932 218 \u2013 payable position 21,108 \u2013301 30,486 \u2013359 Options purchased \u2013 receivable position 111 \u2013 56 \u2013 Options written \u2013 payable position \u2013 \u2013 56 \u2013 Total 514 \u20133,224 30:3 Recognized in operating income 2023 2022 Gain/ Loss Interest income Interest expense Gain/ Loss Interest income Interest expense Financial assets and liabilities at fair value through the income statement Interest and currency risk derivatives 1, 2 \u201389 \u2013 8 133 \u2013 \u2013 Marketable securities \u20131 \u2013 \u2013 16 \u2013 \u2013 Financial assets measured at amortized cost Accounts receivables/trade payables 3 \u2013785 \u2013 \u2013 \u20131,600 \u2013 \u2013 Cash and cash equivalents \u201332 \u2013 \u2013 77 \u2013 \u2013 Customer-financing receivables 4 287 15,829 \u2013 145 10,005 \u2013 Holding of shares in listed companies 5 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 Holding of shares in non-listed companies \u201314 \u2013 \u2013 132 \u2013 \u2013 Financial liabilities measured at amortized cost 6 \u2013 \u2013 \u20139,837 \u2013 \u2013 \u20134,599 Impact on operating income \u2013634 15,829 \u20139,829 \u20131,099 10,005 \u20134,599 Recognized in net financial items 7, 8 2023 2022 Gain/ Loss Interest income Interest expense Gain/ Loss Interest income Interest expense Financial assets and liabilities at fair value through the income statement Marketable securities \u20138 5 \u2013 3 1 \u2013 Interest and currency risk derivatives 1, 2 1,165 \u2013 \u20131,411 \u20134,816 \u201335 \u20131,470 Financial assets measured at amortized cost Cash and cash equivalents \u2013744 2,685 \u2013 \u2013179 1,042 \u2013 Financial liabilities measured at amortized cost \u20132,000 \u2013 483 4,678 \u2013 432 Impact on net financial items 7, 8 \u20131,587 2,690 \u2013928 \u2013313 1,008 \u20131,038 1 Accrued interest related to financial assets and liabilities measured at fair value through the income statement is included in the amounts for gains and losses. 2 The Volvo Group uses forward contracts and currency options to hedge the value of future cash flows in foreign currency. Both unrealized and realized result of currency risk contracts is included in the table. 3 Information regarding changes in allowance for expected credit losses on accounts receivables is provided in note 16 Receivables and note 8 Other operating income and expenses. The amount includes gains/losses of SEK \u201358 M (\u2013199) from revalu- ation of receivables in foreign currency related to dividends paid to group companies. 4 The amount includes gains/losses due to derecognition of assets where SEK 144 M (\u201311) is related to the sale of customer-financing receivables and SEK 143 M (155) is related to early buy-out revenue. Information regarding changes in allowance for expected credit losses on customer-financing receivables is pro- vided in note 15 Customer-financing receivables and note 8 Other operating income and expenses. 5 Changes in fair value on shares and participations in listed companies through other comprehensive income amounted to SEK 15 M (\u201345). Read more in Note 5 Investments in joint ventures, associated companies and other shares and partici pations. 6 Interest expenses attributable to financial liabilities measured at amortized cost recognized in operating income include interest expenses for financing operating lease activities, which are not classified as financial instruments. 7 In gain/loss, income and expenses related to financial instruments recognized in net financial items, SEK \u20131,587 M (\u2013313) was recognized in other financial income and expenses. Read more in Note 9 Other financial income and expenses. 8 Interest expenses attributable to pensions reported in net financial items of SEK \u2013238 M (\u2013167) are not included in this table ", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsDesignatedAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1088": { "value": "30 Financial instruments ACCOUNTING POLICY Financial assets and liabilities are recognized on the transaction date accord- ing to the contractual terms of the instrument. Transaction costs are included in the assets\u2019 fair value, except in cases in which the change in value is recog- nized in the income statement. The transaction costs that arise in conjunction with the admission of financial liabilities are amortized over the term of the loan as financial cost. A financial asset is derecognized from the balance sheet when the rights to the cash flows from the asset have expired at maturity or when all significant risks and rewards related to the asset have been transferred to a third party. The fair value of financial assets is determined based on valid market prices, when available. If market prices are unavailable, the fair value is deter- mined for each asset through the use of various measurement techniques. The fair value of financial instruments is classified based on the degree that market values have been utilized when measuring fair value. The majority of financial instruments measured at fair value held by Volvo Group is clas- sified as level 2. 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 is used to calculate the present value of all the estimated future cash flows. For forward exchange contracts the basis is the forward premium based on current spot rate for each currency and future date. The fair value is then discounted based on the forward rates as per the balance sheet date. Holding of shares are classified as level 1 for listed shares and level 3 for non-listed shares. Call options are classified as level 3 and are based on the Black & Scholes option pricing formula. Financial assets and liabilities measured at fair value through the income statement Volvo Group\u2019s financial assets and liabilities held for trading are recog- nized at fair value through the income statement. As presented in table 30:1, these instruments are derivatives, used for hedging interest and currency risks and marketable securities, further presented in note 18 Cash and cash equivalents. Derivatives used for hedging interest rate exposure financing the cus- tomer financing porfolio within Financial Services as well as the debt port- folio in Industrial Operations are included in this category. Unrealized gains and losses from fluctuations in the fair value of the financial instruments are recognized in other financial income and expenses, with the exception of derivatives entered into by Financial Services, which are recognized in operating income. The Volvo Group intends to hold these derivatives to maturity, which is why, over time, the market valuation will have no impact on financial performance or cash flow. Financial instruments used for hedging currency risks arising from future cash flows are also recognized in this category. When hedging future cash flows for specific orders, the classification in the income statement is decided on a case by case basis. In 2023, SEK 16 M (44) have been recognized in operating income and SEK 105 M (1) in finance net. The result from hedging future cash flows in foreign currency from dividends paid to group companies is included in operating income with an amount of SEK 27 M (177). Read more in Note 4 Goals and policies in financial risk management. Financial assets measured at fair value through other comprehensive income In this category the Volvo Group includes holding of shares in listed compa- nies as the shares are not held for trading. Changes in fair value is measured through other comprehensive income and amounted to SEK 15 M (\u201345). Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Financial assets measured at amortized cost Customer-financing receivables are held as part of a business model whose objective is to collect contractual cash flows. The contractual cash flows are solely payments of principal and interest and are valued at amor- tized cost in accordance with the effective interest method. In this cate- gory the Volvo Group also includes accounts receivables and holding of shares in non-listed companies for which a fair value cannot reasonably be determined. The carrying value has been analyzed and compared with an estimated fair value and is a reasonable approximation of the fair value. Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Read more in Note 15 Customer-financing receivables. Read more in Note 16 Receivables. Hedge Accounting is not applied by the Volvo Group . Information regarding carrying amounts and fair values In table 30:1, carrying amounts are compared with fair values for all of the Volvo Group\u2019s financial instruments. 30:1 Carrying amounts and fair values on financial instruments Dec 31, 2023 Dec 31, 2022 Carrying value Fair value Carrying value Fair value Assets Financial assets measured at fair value through the income statement Interest and currency risk derivatives 1 Note 16 6,293 6,293 5,751 5,751 Other derivatives 2 564 564 564 564 B/S Marketable securities Note 18 89 89 93 93 6,945 6,945 6,408 6,408 Financial assets measured at fair value through other comprehensive income Holding of shares in listed companies Note 5 22 22 6 6 Financial assets measured at amortized cost B/S Accounts receivables Note 16 43,210 43,210 48,220 48,220 Customer-financing receivables Note 15 232,203 232,203 193,928 193,928 Holding of shares in non-listed companies Note 5 859 859 599 599 Other interest-bearing receivables 3 Note 16 3,233 3,233 5,738 5,738 279,505 279,505 248,485 248,485 B/S Cash and cash equivalents Note 18 83,326 83,326 83,886 83,886 Liabilities Note 22 Financial liabilities measured at fair value through the income statement Interest and currency risk derivatives 4 5,779 5,779 8,975 8,975 Financial liabilities measured at amortized cost 5 Non-current bond loans and other loans 136,267 135,652 134,392 130,794 Current bond loans and other loans 3 97,250 97,102 70,655 70,475 B/S Trade Payables 82,987 82,987 90,177 90,177 316,503 315,741 295,224 291,446 1 The Volvo Group\u2019s gross exposure from derivatives reported as assets was reduced by 84% (79) by netting agreements and cash deposits to SEK 1,034 M (1,223). 2 The input data used in the valuation model for calculating the fair value has not changed during 2023. 3 The amount includes cash deposits for credit support annexes (CSA), where the receivable amounted to SEK 2,297 M (4,959) and the liability amounted to SEK \u20131,889 M (\u2013187). The agreements have no effect on the financial performance or net financial position of the Volvo Group. 4 The Volvo Group\u2019s gross exposure from derivatives reported as liabilities was reduced by 97% (98) by netting agreements and cash deposits to SEK 183 M (189). 5 In the Volvo Group balance sheet, financial liabilities include loan-related deriva- tives amounting to SEK \u20133,275 M (\u20135,900). The credit risk is included in the fair value of loans. Read more in Note 4 Goals and policies in financial risk management about credit support annexes (CSA) . Derecognition of financial assets The Volvo Group is involved in discounting activities to reduce financial risks. An evaluation is performed to establish whether substantially all the risks and rewards have been transferred to an external party when entering into an agreement. The Volvo Group\u2019s intention is not to be involved in discounting activities if not substantially all the risks and rewards can be transferred to an external party. As of December 31, 2023, there were no transferred financial assets in the Volvo Group that did not fulfill the requirements for derecognition. Financial assets are derecognized from the balance sheet when the rights to the cash flows from the assets have expired or when substan- tially all risks and rewards have been transferred. Involvement in these assets is reflected in the Volvo Group\u2019s balance sheet as part of the exter- nal credit guarantees. They are valued at best estimate and recognized as provisions in the balance sheet to an amount of SEK 0.1 billion (0.2). The Volvo Group\u2019s maximum loss exposure is considered being the total recourse relating to transferred and derecognized assets that are part of the recognized credit guarantees, i.e. the total amount the Volvo Group would have to pay in case of default of the customers. The likelihood for all custom- ers going into default at the same time is considered to be low. The gross exposure for the Volvo Group amounted to SEK 3.8 billion (5.9) related to credit guarantees issued for customers and others and is part of the Volvo Group\u2019s contingent liabilities. This amount has not been reduced by the value of counter guarantees received or other collaterals such as the right to repos- sess the products. Read more in Note 21 Other provisions. Read more in Note 24 Contingent liabilities and financial commitments. Gains, losses, interest income and interest expenses from financial instruments Table 30:3 shows how gains and losses, as well as interest income and interest expenses have affected income after financial items in the Volvo Group divided by the different categories of financial instruments. In table 30:2, outstanding derivatives hedging currency and interest rate risks are presented. 30:2 Outstanding derivative instruments Dec 31, 2023 Dec 31, 2022 Nominal amount Carrying value Nominal amount Carrying value Interest-rate swaps \u2013 receivable position 232,945 5,932 217,951 5,532 \u2013 payable position 142,572 \u20135,478 162,277 \u20138,616 Foreign exchange derivatives \u2013 receivable position 38,282 361 33,932 218 \u2013 payable position 21,108 \u2013301 30,486 \u2013359 Options purchased \u2013 receivable position 111 \u2013 56 \u2013 Options written \u2013 payable position \u2013 \u2013 56 \u2013 Total 514 \u20133,224 30:3 Recognized in operating income 2023 2022 Gain/ Loss Interest income Interest expense Gain/ Loss Interest income Interest expense Financial assets and liabilities at fair value through the income statement Interest and currency risk derivatives 1, 2 \u201389 \u2013 8 133 \u2013 \u2013 Marketable securities \u20131 \u2013 \u2013 16 \u2013 \u2013 Financial assets measured at amortized cost Accounts receivables/trade payables 3 \u2013785 \u2013 \u2013 \u20131,600 \u2013 \u2013 Cash and cash equivalents \u201332 \u2013 \u2013 77 \u2013 \u2013 Customer-financing receivables 4 287 15,829 \u2013 145 10,005 \u2013 Holding of shares in listed companies 5 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 Holding of shares in non-listed companies \u201314 \u2013 \u2013 132 \u2013 \u2013 Financial liabilities measured at amortized cost 6 \u2013 \u2013 \u20139,837 \u2013 \u2013 \u20134,599 Impact on operating income \u2013634 15,829 \u20139,829 \u20131,099 10,005 \u20134,599 Recognized in net financial items 7, 8 2023 2022 Gain/ Loss Interest income Interest expense Gain/ Loss Interest income Interest expense Financial assets and liabilities at fair value through the income statement Marketable securities \u20138 5 \u2013 3 1 \u2013 Interest and currency risk derivatives 1, 2 1,165 \u2013 \u20131,411 \u20134,816 \u201335 \u20131,470 Financial assets measured at amortized cost Cash and cash equivalents \u2013744 2,685 \u2013 \u2013179 1,042 \u2013 Financial liabilities measured at amortized cost \u20132,000 \u2013 483 4,678 \u2013 432 Impact on net financial items 7, 8 \u20131,587 2,690 \u2013928 \u2013313 1,008 \u20131,038 1 Accrued interest related to financial assets and liabilities measured at fair value through the income statement is included in the amounts for gains and losses. 2 The Volvo Group uses forward contracts and currency options to hedge the value of future cash flows in foreign currency. Both unrealized and realized result of currency risk contracts is included in the table. 3 Information regarding changes in allowance for expected credit losses on accounts receivables is provided in note 16 Receivables and note 8 Other operating income and expenses. The amount includes gains/losses of SEK \u201358 M (\u2013199) from revalu- ation of receivables in foreign currency related to dividends paid to group companies. 4 The amount includes gains/losses due to derecognition of assets where SEK 144 M (\u201311) is related to the sale of customer-financing receivables and SEK 143 M (155) is related to early buy-out revenue. Information regarding changes in allowance for expected credit losses on customer-financing receivables is pro- vided in note 15 Customer-financing receivables and note 8 Other operating income and expenses. 5 Changes in fair value on shares and participations in listed companies through other comprehensive income amounted to SEK 15 M (\u201345). Read more in Note 5 Investments in joint ventures, associated companies and other shares and partici pations. 6 Interest expenses attributable to financial liabilities measured at amortized cost recognized in operating income include interest expenses for financing operating lease activities, which are not classified as financial instruments. 7 In gain/loss, income and expenses related to financial instruments recognized in net financial items, SEK \u20131,587 M (\u2013313) was recognized in other financial income and expenses. Read more in Note 9 Other financial income and expenses. 8 Interest expenses attributable to pensions reported in net financial items of SEK \u2013238 M (\u2013167) are not included in this table ", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1089": { "value": "30 Financial instruments ACCOUNTING POLICY Financial assets and liabilities are recognized on the transaction date accord- ing to the contractual terms of the instrument. Transaction costs are included in the assets\u2019 fair value, except in cases in which the change in value is recog- nized in the income statement. The transaction costs that arise in conjunction with the admission of financial liabilities are amortized over the term of the loan as financial cost. A financial asset is derecognized from the balance sheet when the rights to the cash flows from the asset have expired at maturity or when all significant risks and rewards related to the asset have been transferred to a third party. The fair value of financial assets is determined based on valid market prices, when available. If market prices are unavailable, the fair value is deter- mined for each asset through the use of various measurement techniques. The fair value of financial instruments is classified based on the degree that market values have been utilized when measuring fair value. The majority of financial instruments measured at fair value held by Volvo Group is clas- sified as level 2. 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 is used to calculate the present value of all the estimated future cash flows. For forward exchange contracts the basis is the forward premium based on current spot rate for each currency and future date. The fair value is then discounted based on the forward rates as per the balance sheet date. Holding of shares are classified as level 1 for listed shares and level 3 for non-listed shares. Call options are classified as level 3 and are based on the Black & Scholes option pricing formula. Financial assets and liabilities measured at fair value through the income statement Volvo Group\u2019s financial assets and liabilities held for trading are recog- nized at fair value through the income statement. As presented in table 30:1, these instruments are derivatives, used for hedging interest and currency risks and marketable securities, further presented in note 18 Cash and cash equivalents. Derivatives used for hedging interest rate exposure financing the cus- tomer financing porfolio within Financial Services as well as the debt port- folio in Industrial Operations are included in this category. Unrealized gains and losses from fluctuations in the fair value of the financial instruments are recognized in other financial income and expenses, with the exception of derivatives entered into by Financial Services, which are recognized in operating income. The Volvo Group intends to hold these derivatives to maturity, which is why, over time, the market valuation will have no impact on financial performance or cash flow. Financial instruments used for hedging currency risks arising from future cash flows are also recognized in this category. When hedging future cash flows for specific orders, the classification in the income statement is decided on a case by case basis. In 2023, SEK 16 M (44) have been recognized in operating income and SEK 105 M (1) in finance net. The result from hedging future cash flows in foreign currency from dividends paid to group companies is included in operating income with an amount of SEK 27 M (177). Read more in Note 4 Goals and policies in financial risk management. Financial assets measured at fair value through other comprehensive income In this category the Volvo Group includes holding of shares in listed compa- nies as the shares are not held for trading. Changes in fair value is measured through other comprehensive income and amounted to SEK 15 M (\u201345). Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Financial assets measured at amortized cost Customer-financing receivables are held as part of a business model whose objective is to collect contractual cash flows. The contractual cash flows are solely payments of principal and interest and are valued at amor- tized cost in accordance with the effective interest method. In this cate- gory the Volvo Group also includes accounts receivables and holding of shares in non-listed companies for which a fair value cannot reasonably be determined. The carrying value has been analyzed and compared with an estimated fair value and is a reasonable approximation of the fair value. Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Read more in Note 15 Customer-financing receivables. Read more in Note 16 Receivables. Hedge Accounting is not applied by the Volvo Group . Information regarding carrying amounts and fair values In table 30:1, carrying amounts are compared with fair values for all of the Volvo Group\u2019s financial instruments. 30:1 Carrying amounts and fair values on financial instruments Dec 31, 2023 Dec 31, 2022 Carrying value Fair value Carrying value Fair value Assets Financial assets measured at fair value through the income statement Interest and currency risk derivatives 1 Note 16 6,293 6,293 5,751 5,751 Other derivatives 2 564 564 564 564 B/S Marketable securities Note 18 89 89 93 93 6,945 6,945 6,408 6,408 Financial assets measured at fair value through other comprehensive income Holding of shares in listed companies Note 5 22 22 6 6 Financial assets measured at amortized cost B/S Accounts receivables Note 16 43,210 43,210 48,220 48,220 Customer-financing receivables Note 15 232,203 232,203 193,928 193,928 Holding of shares in non-listed companies Note 5 859 859 599 599 Other interest-bearing receivables 3 Note 16 3,233 3,233 5,738 5,738 279,505 279,505 248,485 248,485 B/S Cash and cash equivalents Note 18 83,326 83,326 83,886 83,886 Liabilities Note 22 Financial liabilities measured at fair value through the income statement Interest and currency risk derivatives 4 5,779 5,779 8,975 8,975 Financial liabilities measured at amortized cost 5 Non-current bond loans and other loans 136,267 135,652 134,392 130,794 Current bond loans and other loans 3 97,250 97,102 70,655 70,475 B/S Trade Payables 82,987 82,987 90,177 90,177 316,503 315,741 295,224 291,446 1 The Volvo Group\u2019s gross exposure from derivatives reported as assets was reduced by 84% (79) by netting agreements and cash deposits to SEK 1,034 M (1,223). 2 The input data used in the valuation model for calculating the fair value has not changed during 2023. 3 The amount includes cash deposits for credit support annexes (CSA), where the receivable amounted to SEK 2,297 M (4,959) and the liability amounted to SEK \u20131,889 M (\u2013187). The agreements have no effect on the financial performance or net financial position of the Volvo Group. 4 The Volvo Group\u2019s gross exposure from derivatives reported as liabilities was reduced by 97% (98) by netting agreements and cash deposits to SEK 183 M (189). 5 In the Volvo Group balance sheet, financial liabilities include loan-related deriva- tives amounting to SEK \u20133,275 M (\u20135,900). The credit risk is included in the fair value of loans. Read more in Note 4 Goals and policies in financial risk management about credit support annexes (CSA) . Derecognition of financial assets The Volvo Group is involved in discounting activities to reduce financial risks. An evaluation is performed to establish whether substantially all the risks and rewards have been transferred to an external party when entering into an agreement. The Volvo Group\u2019s intention is not to be involved in discounting activities if not substantially all the risks and rewards can be transferred to an external party. As of December 31, 2023, there were no transferred financial assets in the Volvo Group that did not fulfill the requirements for derecognition. Financial assets are derecognized from the balance sheet when the rights to the cash flows from the assets have expired or when substan- tially all risks and rewards have been transferred. Involvement in these assets is reflected in the Volvo Group\u2019s balance sheet as part of the exter- nal credit guarantees. They are valued at best estimate and recognized as provisions in the balance sheet to an amount of SEK 0.1 billion (0.2). The Volvo Group\u2019s maximum loss exposure is considered being the total recourse relating to transferred and derecognized assets that are part of the recognized credit guarantees, i.e. the total amount the Volvo Group would have to pay in case of default of the customers. The likelihood for all custom- ers going into default at the same time is considered to be low. The gross exposure for the Volvo Group amounted to SEK 3.8 billion (5.9) related to credit guarantees issued for customers and others and is part of the Volvo Group\u2019s contingent liabilities. This amount has not been reduced by the value of counter guarantees received or other collaterals such as the right to repos- sess the products. Read more in Note 21 Other provisions. Read more in Note 24 Contingent liabilities and financial commitments. Gains, losses, interest income and interest expenses from financial instruments Table 30:3 shows how gains and losses, as well as interest income and interest expenses have affected income after financial items in the Volvo Group divided by the different categories of financial instruments. In table 30:2, outstanding derivatives hedging currency and interest rate risks are presented. 30:2 Outstanding derivative instruments Dec 31, 2023 Dec 31, 2022 Nominal amount Carrying value Nominal amount Carrying value Interest-rate swaps \u2013 receivable position 232,945 5,932 217,951 5,532 \u2013 payable position 142,572 \u20135,478 162,277 \u20138,616 Foreign exchange derivatives \u2013 receivable position 38,282 361 33,932 218 \u2013 payable position 21,108 \u2013301 30,486 \u2013359 Options purchased \u2013 receivable position 111 \u2013 56 \u2013 Options written \u2013 payable position \u2013 \u2013 56 \u2013 Total 514 \u20133,224 30:3 Recognized in operating income 2023 2022 Gain/ Loss Interest income Interest expense Gain/ Loss Interest income Interest expense Financial assets and liabilities at fair value through the income statement Interest and currency risk derivatives 1, 2 \u201389 \u2013 8 133 \u2013 \u2013 Marketable securities \u20131 \u2013 \u2013 16 \u2013 \u2013 Financial assets measured at amortized cost Accounts receivables/trade payables 3 \u2013785 \u2013 \u2013 \u20131,600 \u2013 \u2013 Cash and cash equivalents \u201332 \u2013 \u2013 77 \u2013 \u2013 Customer-financing receivables 4 287 15,829 \u2013 145 10,005 \u2013 Holding of shares in listed companies 5 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 Holding of shares in non-listed companies \u201314 \u2013 \u2013 132 \u2013 \u2013 Financial liabilities measured at amortized cost 6 \u2013 \u2013 \u20139,837 \u2013 \u2013 \u20134,599 Impact on operating income \u2013634 15,829 \u20139,829 \u20131,099 10,005 \u20134,599 Recognized in net financial items 7, 8 2023 2022 Gain/ Loss Interest income Interest expense Gain/ Loss Interest income Interest expense Financial assets and liabilities at fair value through the income statement Marketable securities \u20138 5 \u2013 3 1 \u2013 Interest and currency risk derivatives 1, 2 1,165 \u2013 \u20131,411 \u20134,816 \u201335 \u20131,470 Financial assets measured at amortized cost Cash and cash equivalents \u2013744 2,685 \u2013 \u2013179 1,042 \u2013 Financial liabilities measured at amortized cost \u20132,000 \u2013 483 4,678 \u2013 432 Impact on net financial items 7, 8 \u20131,587 2,690 \u2013928 \u2013313 1,008 \u20131,038 1 Accrued interest related to financial assets and liabilities measured at fair value through the income statement is included in the amounts for gains and losses. 2 The Volvo Group uses forward contracts and currency options to hedge the value of future cash flows in foreign currency. Both unrealized and realized result of currency risk contracts is included in the table. 3 Information regarding changes in allowance for expected credit losses on accounts receivables is provided in note 16 Receivables and note 8 Other operating income and expenses. The amount includes gains/losses of SEK \u201358 M (\u2013199) from revalu- ation of receivables in foreign currency related to dividends paid to group companies. 4 The amount includes gains/losses due to derecognition of assets where SEK 144 M (\u201311) is related to the sale of customer-financing receivables and SEK 143 M (155) is related to early buy-out revenue. Information regarding changes in allowance for expected credit losses on customer-financing receivables is pro- vided in note 15 Customer-financing receivables and note 8 Other operating income and expenses. 5 Changes in fair value on shares and participations in listed companies through other comprehensive income amounted to SEK 15 M (\u201345). Read more in Note 5 Investments in joint ventures, associated companies and other shares and partici pations. 6 Interest expenses attributable to financial liabilities measured at amortized cost recognized in operating income include interest expenses for financing operating lease activities, which are not classified as financial instruments. 7 In gain/loss, income and expenses related to financial instruments recognized in net financial items, SEK \u20131,587 M (\u2013313) was recognized in other financial income and expenses. Read more in Note 9 Other financial income and expenses. 8 Interest expenses attributable to pensions reported in net financial items of SEK \u2013238 M (\u2013167) are not included in this table ", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1090": { "value": "30 Financial instruments ACCOUNTING POLICY Financial assets and liabilities are recognized on the transaction date accord- ing to the contractual terms of the instrument. Transaction costs are included in the assets\u2019 fair value, except in cases in which the change in value is recog- nized in the income statement. The transaction costs that arise in conjunction with the admission of financial liabilities are amortized over the term of the loan as financial cost. A financial asset is derecognized from the balance sheet when the rights to the cash flows from the asset have expired at maturity or when all significant risks and rewards related to the asset have been transferred to a third party. The fair value of financial assets is determined based on valid market prices, when available. If market prices are unavailable, the fair value is deter- mined for each asset through the use of various measurement techniques. The fair value of financial instruments is classified based on the degree that market values have been utilized when measuring fair value. The majority of financial instruments measured at fair value held by Volvo Group is clas- sified as level 2. 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 is used to calculate the present value of all the estimated future cash flows. For forward exchange contracts the basis is the forward premium based on current spot rate for each currency and future date. The fair value is then discounted based on the forward rates as per the balance sheet date. Holding of shares are classified as level 1 for listed shares and level 3 for non-listed shares. Call options are classified as level 3 and are based on the Black & Scholes option pricing formula. Financial assets and liabilities measured at fair value through the income statement Volvo Group\u2019s financial assets and liabilities held for trading are recog- nized at fair value through the income statement. As presented in table 30:1, these instruments are derivatives, used for hedging interest and currency risks and marketable securities, further presented in note 18 Cash and cash equivalents. Derivatives used for hedging interest rate exposure financing the cus- tomer financing porfolio within Financial Services as well as the debt port- folio in Industrial Operations are included in this category. Unrealized gains and losses from fluctuations in the fair value of the financial instruments are recognized in other financial income and expenses, with the exception of derivatives entered into by Financial Services, which are recognized in operating income. The Volvo Group intends to hold these derivatives to maturity, which is why, over time, the market valuation will have no impact on financial performance or cash flow. Financial instruments used for hedging currency risks arising from future cash flows are also recognized in this category. When hedging future cash flows for specific orders, the classification in the income statement is decided on a case by case basis. In 2023, SEK 16 M (44) have been recognized in operating income and SEK 105 M (1) in finance net. The result from hedging future cash flows in foreign currency from dividends paid to group companies is included in operating income with an amount of SEK 27 M (177). Read more in Note 4 Goals and policies in financial risk management. Financial assets measured at fair value through other comprehensive income In this category the Volvo Group includes holding of shares in listed compa- nies as the shares are not held for trading. Changes in fair value is measured through other comprehensive income and amounted to SEK 15 M (\u201345). Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Financial assets measured at amortized cost Customer-financing receivables are held as part of a business model whose objective is to collect contractual cash flows. The contractual cash flows are solely payments of principal and interest and are valued at amor- tized cost in accordance with the effective interest method. In this cate- gory the Volvo Group also includes accounts receivables and holding of shares in non-listed companies for which a fair value cannot reasonably be determined. The carrying value has been analyzed and compared with an estimated fair value and is a reasonable approximation of the fair value. Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Read more in Note 15 Customer-financing receivables. Read more in Note 16 Receivables. Hedge Accounting is not applied by the Volvo Group . Information regarding carrying amounts and fair values In table 30:1, carrying amounts are compared with fair values for all of the Volvo Group\u2019s financial instruments. 30:1 Carrying amounts and fair values on financial instruments Dec 31, 2023 Dec 31, 2022 Carrying value Fair value Carrying value Fair value Assets Financial assets measured at fair value through the income statement Interest and currency risk derivatives 1 Note 16 6,293 6,293 5,751 5,751 Other derivatives 2 564 564 564 564 B/S Marketable securities Note 18 89 89 93 93 6,945 6,945 6,408 6,408 Financial assets measured at fair value through other comprehensive income Holding of shares in listed companies Note 5 22 22 6 6 Financial assets measured at amortized cost B/S Accounts receivables Note 16 43,210 43,210 48,220 48,220 Customer-financing receivables Note 15 232,203 232,203 193,928 193,928 Holding of shares in non-listed companies Note 5 859 859 599 599 Other interest-bearing receivables 3 Note 16 3,233 3,233 5,738 5,738 279,505 279,505 248,485 248,485 B/S Cash and cash equivalents Note 18 83,326 83,326 83,886 83,886 Liabilities Note 22 Financial liabilities measured at fair value through the income statement Interest and currency risk derivatives 4 5,779 5,779 8,975 8,975 Financial liabilities measured at amortized cost 5 Non-current bond loans and other loans 136,267 135,652 134,392 130,794 Current bond loans and other loans 3 97,250 97,102 70,655 70,475 B/S Trade Payables 82,987 82,987 90,177 90,177 316,503 315,741 295,224 291,446 1 The Volvo Group\u2019s gross exposure from derivatives reported as assets was reduced by 84% (79) by netting agreements and cash deposits to SEK 1,034 M (1,223). 2 The input data used in the valuation model for calculating the fair value has not changed during 2023. 3 The amount includes cash deposits for credit support annexes (CSA), where the receivable amounted to SEK 2,297 M (4,959) and the liability amounted to SEK \u20131,889 M (\u2013187). The agreements have no effect on the financial performance or net financial position of the Volvo Group. 4 The Volvo Group\u2019s gross exposure from derivatives reported as liabilities was reduced by 97% (98) by netting agreements and cash deposits to SEK 183 M (189). 5 In the Volvo Group balance sheet, financial liabilities include loan-related deriva- tives amounting to SEK \u20133,275 M (\u20135,900). The credit risk is included in the fair value of loans. Read more in Note 4 Goals and policies in financial risk management about credit support annexes (CSA) . Derecognition of financial assets The Volvo Group is involved in discounting activities to reduce financial risks. An evaluation is performed to establish whether substantially all the risks and rewards have been transferred to an external party when entering into an agreement. The Volvo Group\u2019s intention is not to be involved in discounting activities if not substantially all the risks and rewards can be transferred to an external party. As of December 31, 2023, there were no transferred financial assets in the Volvo Group that did not fulfill the requirements for derecognition. Financial assets are derecognized from the balance sheet when the rights to the cash flows from the assets have expired or when substan- tially all risks and rewards have been transferred. Involvement in these assets is reflected in the Volvo Group\u2019s balance sheet as part of the exter- nal credit guarantees. They are valued at best estimate and recognized as provisions in the balance sheet to an amount of SEK 0.1 billion (0.2). The Volvo Group\u2019s maximum loss exposure is considered being the total recourse relating to transferred and derecognized assets that are part of the recognized credit guarantees, i.e. the total amount the Volvo Group would have to pay in case of default of the customers. The likelihood for all custom- ers going into default at the same time is considered to be low. The gross exposure for the Volvo Group amounted to SEK 3.8 billion (5.9) related to credit guarantees issued for customers and others and is part of the Volvo Group\u2019s contingent liabilities. This amount has not been reduced by the value of counter guarantees received or other collaterals such as the right to repos- sess the products. Read more in Note 21 Other provisions. Read more in Note 24 Contingent liabilities and financial commitments. Gains, losses, interest income and interest expenses from financial instruments Table 30:3 shows how gains and losses, as well as interest income and interest expenses have affected income after financial items in the Volvo Group divided by the different categories of financial instruments. In table 30:2, outstanding derivatives hedging currency and interest rate risks are presented. 30:2 Outstanding derivative instruments Dec 31, 2023 Dec 31, 2022 Nominal amount Carrying value Nominal amount Carrying value Interest-rate swaps \u2013 receivable position 232,945 5,932 217,951 5,532 \u2013 payable position 142,572 \u20135,478 162,277 \u20138,616 Foreign exchange derivatives \u2013 receivable position 38,282 361 33,932 218 \u2013 payable position 21,108 \u2013301 30,486 \u2013359 Options purchased \u2013 receivable position 111 \u2013 56 \u2013 Options written \u2013 payable position \u2013 \u2013 56 \u2013 Total 514 \u20133,224 30:3 Recognized in operating income 2023 2022 Gain/ Loss Interest income Interest expense Gain/ Loss Interest income Interest expense Financial assets and liabilities at fair value through the income statement Interest and currency risk derivatives 1, 2 \u201389 \u2013 8 133 \u2013 \u2013 Marketable securities \u20131 \u2013 \u2013 16 \u2013 \u2013 Financial assets measured at amortized cost Accounts receivables/trade payables 3 \u2013785 \u2013 \u2013 \u20131,600 \u2013 \u2013 Cash and cash equivalents \u201332 \u2013 \u2013 77 \u2013 \u2013 Customer-financing receivables 4 287 15,829 \u2013 145 10,005 \u2013 Holding of shares in listed companies 5 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 Holding of shares in non-listed companies \u201314 \u2013 \u2013 132 \u2013 \u2013 Financial liabilities measured at amortized cost 6 \u2013 \u2013 \u20139,837 \u2013 \u2013 \u20134,599 Impact on operating income \u2013634 15,829 \u20139,829 \u20131,099 10,005 \u20134,599 Recognized in net financial items 7, 8 2023 2022 Gain/ Loss Interest income Interest expense Gain/ Loss Interest income Interest expense Financial assets and liabilities at fair value through the income statement Marketable securities \u20138 5 \u2013 3 1 \u2013 Interest and currency risk derivatives 1, 2 1,165 \u2013 \u20131,411 \u20134,816 \u201335 \u20131,470 Financial assets measured at amortized cost Cash and cash equivalents \u2013744 2,685 \u2013 \u2013179 1,042 \u2013 Financial liabilities measured at amortized cost \u20132,000 \u2013 483 4,678 \u2013 432 Impact on net financial items 7, 8 \u20131,587 2,690 \u2013928 \u2013313 1,008 \u20131,038 1 Accrued interest related to financial assets and liabilities measured at fair value through the income statement is included in the amounts for gains and losses. 2 The Volvo Group uses forward contracts and currency options to hedge the value of future cash flows in foreign currency. Both unrealized and realized result of currency risk contracts is included in the table. 3 Information regarding changes in allowance for expected credit losses on accounts receivables is provided in note 16 Receivables and note 8 Other operating income and expenses. The amount includes gains/losses of SEK \u201358 M (\u2013199) from revalu- ation of receivables in foreign currency related to dividends paid to group companies. 4 The amount includes gains/losses due to derecognition of assets where SEK 144 M (\u201311) is related to the sale of customer-financing receivables and SEK 143 M (155) is related to early buy-out revenue. Information regarding changes in allowance for expected credit losses on customer-financing receivables is pro- vided in note 15 Customer-financing receivables and note 8 Other operating income and expenses. 5 Changes in fair value on shares and participations in listed companies through other comprehensive income amounted to SEK 15 M (\u201345). Read more in Note 5 Investments in joint ventures, associated companies and other shares and partici pations. 6 Interest expenses attributable to financial liabilities measured at amortized cost recognized in operating income include interest expenses for financing operating lease activities, which are not classified as financial instruments. 7 In gain/loss, income and expenses related to financial instruments recognized in net financial items, SEK \u20131,587 M (\u2013313) was recognized in other financial income and expenses. Read more in Note 9 Other financial income and expenses. 8 Interest expenses attributable to pensions reported in net financial items of SEK \u2013238 M (\u2013167) are not included in this table ", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1091": { "value": "30 Financial instruments ACCOUNTING POLICY Financial assets and liabilities are recognized on the transaction date accord- ing to the contractual terms of the instrument. Transaction costs are included in the assets\u2019 fair value, except in cases in which the change in value is recog- nized in the income statement. The transaction costs that arise in conjunction with the admission of financial liabilities are amortized over the term of the loan as financial cost. A financial asset is derecognized from the balance sheet when the rights to the cash flows from the asset have expired at maturity or when all significant risks and rewards related to the asset have been transferred to a third party. The fair value of financial assets is determined based on valid market prices, when available. If market prices are unavailable, the fair value is deter- mined for each asset through the use of various measurement techniques. The fair value of financial instruments is classified based on the degree that market values have been utilized when measuring fair value. The majority of financial instruments measured at fair value held by Volvo Group is clas- sified as level 2. 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 is used to calculate the present value of all the estimated future cash flows. For forward exchange contracts the basis is the forward premium based on current spot rate for each currency and future date. The fair value is then discounted based on the forward rates as per the balance sheet date. Holding of shares are classified as level 1 for listed shares and level 3 for non-listed shares. Call options are classified as level 3 and are based on the Black & Scholes option pricing formula. Financial assets and liabilities measured at fair value through the income statement Volvo Group\u2019s financial assets and liabilities held for trading are recog- nized at fair value through the income statement. As presented in table 30:1, these instruments are derivatives, used for hedging interest and currency risks and marketable securities, further presented in note 18 Cash and cash equivalents. Derivatives used for hedging interest rate exposure financing the cus- tomer financing porfolio within Financial Services as well as the debt port- folio in Industrial Operations are included in this category. Unrealized gains and losses from fluctuations in the fair value of the financial instruments are recognized in other financial income and expenses, with the exception of derivatives entered into by Financial Services, which are recognized in operating income. The Volvo Group intends to hold these derivatives to maturity, which is why, over time, the market valuation will have no impact on financial performance or cash flow. Financial instruments used for hedging currency risks arising from future cash flows are also recognized in this category. When hedging future cash flows for specific orders, the classification in the income statement is decided on a case by case basis. In 2023, SEK 16 M (44) have been recognized in operating income and SEK 105 M (1) in finance net. The result from hedging future cash flows in foreign currency from dividends paid to group companies is included in operating income with an amount of SEK 27 M (177). Read more in Note 4 Goals and policies in financial risk management. Financial assets measured at fair value through other comprehensive income In this category the Volvo Group includes holding of shares in listed compa- nies as the shares are not held for trading. Changes in fair value is measured through other comprehensive income and amounted to SEK 15 M (\u201345). Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Financial assets measured at amortized cost Customer-financing receivables are held as part of a business model whose objective is to collect contractual cash flows. The contractual cash flows are solely payments of principal and interest and are valued at amor- tized cost in accordance with the effective interest method. In this cate- gory the Volvo Group also includes accounts receivables and holding of shares in non-listed companies for which a fair value cannot reasonably be determined. The carrying value has been analyzed and compared with an estimated fair value and is a reasonable approximation of the fair value. Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Read more in Note 15 Customer-financing receivables. Read more in Note 16 Receivables. Hedge Accounting is not applied by the Volvo Group . Information regarding carrying amounts and fair values In table 30:1, carrying amounts are compared with fair values for all of the Volvo Group\u2019s financial instruments. 30:1 Carrying amounts and fair values on financial instruments Dec 31, 2023 Dec 31, 2022 Carrying value Fair value Carrying value Fair value Assets Financial assets measured at fair value through the income statement Interest and currency risk derivatives 1 Note 16 6,293 6,293 5,751 5,751 Other derivatives 2 564 564 564 564 B/S Marketable securities Note 18 89 89 93 93 6,945 6,945 6,408 6,408 Financial assets measured at fair value through other comprehensive income Holding of shares in listed companies Note 5 22 22 6 6 Financial assets measured at amortized cost B/S Accounts receivables Note 16 43,210 43,210 48,220 48,220 Customer-financing receivables Note 15 232,203 232,203 193,928 193,928 Holding of shares in non-listed companies Note 5 859 859 599 599 Other interest-bearing receivables 3 Note 16 3,233 3,233 5,738 5,738 279,505 279,505 248,485 248,485 B/S Cash and cash equivalents Note 18 83,326 83,326 83,886 83,886 Liabilities Note 22 Financial liabilities measured at fair value through the income statement Interest and currency risk derivatives 4 5,779 5,779 8,975 8,975 Financial liabilities measured at amortized cost 5 Non-current bond loans and other loans 136,267 135,652 134,392 130,794 Current bond loans and other loans 3 97,250 97,102 70,655 70,475 B/S Trade Payables 82,987 82,987 90,177 90,177 316,503 315,741 295,224 291,446 1 The Volvo Group\u2019s gross exposure from derivatives reported as assets was reduced by 84% (79) by netting agreements and cash deposits to SEK 1,034 M (1,223). 2 The input data used in the valuation model for calculating the fair value has not changed during 2023. 3 The amount includes cash deposits for credit support annexes (CSA), where the receivable amounted to SEK 2,297 M (4,959) and the liability amounted to SEK \u20131,889 M (\u2013187). The agreements have no effect on the financial performance or net financial position of the Volvo Group. 4 The Volvo Group\u2019s gross exposure from derivatives reported as liabilities was reduced by 97% (98) by netting agreements and cash deposits to SEK 183 M (189). 5 In the Volvo Group balance sheet, financial liabilities include loan-related deriva- tives amounting to SEK \u20133,275 M (\u20135,900). The credit risk is included in the fair value of loans. Read more in Note 4 Goals and policies in financial risk management about credit support annexes (CSA) . Derecognition of financial assets The Volvo Group is involved in discounting activities to reduce financial risks. An evaluation is performed to establish whether substantially all the risks and rewards have been transferred to an external party when entering into an agreement. The Volvo Group\u2019s intention is not to be involved in discounting activities if not substantially all the risks and rewards can be transferred to an external party. As of December 31, 2023, there were no transferred financial assets in the Volvo Group that did not fulfill the requirements for derecognition. Financial assets are derecognized from the balance sheet when the rights to the cash flows from the assets have expired or when substan- tially all risks and rewards have been transferred. Involvement in these assets is reflected in the Volvo Group\u2019s balance sheet as part of the exter- nal credit guarantees. They are valued at best estimate and recognized as provisions in the balance sheet to an amount of SEK 0.1 billion (0.2). The Volvo Group\u2019s maximum loss exposure is considered being the total recourse relating to transferred and derecognized assets that are part of the recognized credit guarantees, i.e. the total amount the Volvo Group would have to pay in case of default of the customers. The likelihood for all custom- ers going into default at the same time is considered to be low. The gross exposure for the Volvo Group amounted to SEK 3.8 billion (5.9) related to credit guarantees issued for customers and others and is part of the Volvo Group\u2019s contingent liabilities. This amount has not been reduced by the value of counter guarantees received or other collaterals such as the right to repos- sess the products. Read more in Note 21 Other provisions. Read more in Note 24 Contingent liabilities and financial commitments. Gains, losses, interest income and interest expenses from financial instruments Table 30:3 shows how gains and losses, as well as interest income and interest expenses have affected income after financial items in the Volvo Group divided by the different categories of financial instruments. In table 30:2, outstanding derivatives hedging currency and interest rate risks are presented. 30:2 Outstanding derivative instruments Dec 31, 2023 Dec 31, 2022 Nominal amount Carrying value Nominal amount Carrying value Interest-rate swaps \u2013 receivable position 232,945 5,932 217,951 5,532 \u2013 payable position 142,572 \u20135,478 162,277 \u20138,616 Foreign exchange derivatives \u2013 receivable position 38,282 361 33,932 218 \u2013 payable position 21,108 \u2013301 30,486 \u2013359 Options purchased \u2013 receivable position 111 \u2013 56 \u2013 Options written \u2013 payable position \u2013 \u2013 56 \u2013 Total 514 \u20133,224 30:3 Recognized in operating income 2023 2022 Gain/ Loss Interest income Interest expense Gain/ Loss Interest income Interest expense Financial assets and liabilities at fair value through the income statement Interest and currency risk derivatives 1, 2 \u201389 \u2013 8 133 \u2013 \u2013 Marketable securities \u20131 \u2013 \u2013 16 \u2013 \u2013 Financial assets measured at amortized cost Accounts receivables/trade payables 3 \u2013785 \u2013 \u2013 \u20131,600 \u2013 \u2013 Cash and cash equivalents \u201332 \u2013 \u2013 77 \u2013 \u2013 Customer-financing receivables 4 287 15,829 \u2013 145 10,005 \u2013 Holding of shares in listed companies 5 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 Holding of shares in non-listed companies \u201314 \u2013 \u2013 132 \u2013 \u2013 Financial liabilities measured at amortized cost 6 \u2013 \u2013 \u20139,837 \u2013 \u2013 \u20134,599 Impact on operating income \u2013634 15,829 \u20139,829 \u20131,099 10,005 \u20134,599 Recognized in net financial items 7, 8 2023 2022 Gain/ Loss Interest income Interest expense Gain/ Loss Interest income Interest expense Financial assets and liabilities at fair value through the income statement Marketable securities \u20138 5 \u2013 3 1 \u2013 Interest and currency risk derivatives 1, 2 1,165 \u2013 \u20131,411 \u20134,816 \u201335 \u20131,470 Financial assets measured at amortized cost Cash and cash equivalents \u2013744 2,685 \u2013 \u2013179 1,042 \u2013 Financial liabilities measured at amortized cost \u20132,000 \u2013 483 4,678 \u2013 432 Impact on net financial items 7, 8 \u20131,587 2,690 \u2013928 \u2013313 1,008 \u20131,038 1 Accrued interest related to financial assets and liabilities measured at fair value through the income statement is included in the amounts for gains and losses. 2 The Volvo Group uses forward contracts and currency options to hedge the value of future cash flows in foreign currency. Both unrealized and realized result of currency risk contracts is included in the table. 3 Information regarding changes in allowance for expected credit losses on accounts receivables is provided in note 16 Receivables and note 8 Other operating income and expenses. The amount includes gains/losses of SEK \u201358 M (\u2013199) from revalu- ation of receivables in foreign currency related to dividends paid to group companies. 4 The amount includes gains/losses due to derecognition of assets where SEK 144 M (\u201311) is related to the sale of customer-financing receivables and SEK 143 M (155) is related to early buy-out revenue. Information regarding changes in allowance for expected credit losses on customer-financing receivables is pro- vided in note 15 Customer-financing receivables and note 8 Other operating income and expenses. 5 Changes in fair value on shares and participations in listed companies through other comprehensive income amounted to SEK 15 M (\u201345). Read more in Note 5 Investments in joint ventures, associated companies and other shares and partici pations. 6 Interest expenses attributable to financial liabilities measured at amortized cost recognized in operating income include interest expenses for financing operating lease activities, which are not classified as financial instruments. 7 In gain/loss, income and expenses related to financial instruments recognized in net financial items, SEK \u20131,587 M (\u2013313) was recognized in other financial income and expenses. Read more in Note 9 Other financial income and expenses. 8 Interest expenses attributable to pensions reported in net financial items of SEK \u2013238 M (\u2013167) are not included in this table ", "dimensions": { "concept": "ifrs-full:DisclosureOfDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1092": { "value": "30 Financial instruments ACCOUNTING POLICY Financial assets and liabilities are recognized on the transaction date accord- ing to the contractual terms of the instrument. Transaction costs are included in the assets\u2019 fair value, except in cases in which the change in value is recog- nized in the income statement. The transaction costs that arise in conjunction with the admission of financial liabilities are amortized over the term of the loan as financial cost. A financial asset is derecognized from the balance sheet when the rights to the cash flows from the asset have expired at maturity or when all significant risks and rewards related to the asset have been transferred to a third party. The fair value of financial assets is determined based on valid market prices, when available. If market prices are unavailable, the fair value is deter- mined for each asset through the use of various measurement techniques. The fair value of financial instruments is classified based on the degree that market values have been utilized when measuring fair value. The majority of financial instruments measured at fair value held by Volvo Group is clas- sified as level 2. 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 is used to calculate the present value of all the estimated future cash flows. For forward exchange contracts the basis is the forward premium based on current spot rate for each currency and future date. The fair value is then discounted based on the forward rates as per the balance sheet date. Holding of shares are classified as level 1 for listed shares and level 3 for non-listed shares. Call options are classified as level 3 and are based on the Black & Scholes option pricing formula. Financial assets and liabilities measured at fair value through the income statement Volvo Group\u2019s financial assets and liabilities held for trading are recog- nized at fair value through the income statement. As presented in table 30:1, these instruments are derivatives, used for hedging interest and currency risks and marketable securities, further presented in note 18 Cash and cash equivalents. Derivatives used for hedging interest rate exposure financing the cus- tomer financing porfolio within Financial Services as well as the debt port- folio in Industrial Operations are included in this category. Unrealized gains and losses from fluctuations in the fair value of the financial instruments are recognized in other financial income and expenses, with the exception of derivatives entered into by Financial Services, which are recognized in operating income. The Volvo Group intends to hold these derivatives to maturity, which is why, over time, the market valuation will have no impact on financial performance or cash flow. Financial instruments used for hedging currency risks arising from future cash flows are also recognized in this category. When hedging future cash flows for specific orders, the classification in the income statement is decided on a case by case basis. In 2023, SEK 16 M (44) have been recognized in operating income and SEK 105 M (1) in finance net. The result from hedging future cash flows in foreign currency from dividends paid to group companies is included in operating income with an amount of SEK 27 M (177). Read more in Note 4 Goals and policies in financial risk management. Financial assets measured at fair value through other comprehensive income In this category the Volvo Group includes holding of shares in listed compa- nies as the shares are not held for trading. Changes in fair value is measured through other comprehensive income and amounted to SEK 15 M (\u201345). Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Financial assets measured at amortized cost Customer-financing receivables are held as part of a business model whose objective is to collect contractual cash flows. The contractual cash flows are solely payments of principal and interest and are valued at amor- tized cost in accordance with the effective interest method. In this cate- gory the Volvo Group also includes accounts receivables and holding of shares in non-listed companies for which a fair value cannot reasonably be determined. The carrying value has been analyzed and compared with an estimated fair value and is a reasonable approximation of the fair value. Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Read more in Note 15 Customer-financing receivables. Read more in Note 16 Receivables. Hedge Accounting is not applied by the Volvo Group . Information regarding carrying amounts and fair values In table 30:1, carrying amounts are compared with fair values for all of the Volvo Group\u2019s financial instruments. 30:1 Carrying amounts and fair values on financial instruments Dec 31, 2023 Dec 31, 2022 Carrying value Fair value Carrying value Fair value Assets Financial assets measured at fair value through the income statement Interest and currency risk derivatives 1 Note 16 6,293 6,293 5,751 5,751 Other derivatives 2 564 564 564 564 B/S Marketable securities Note 18 89 89 93 93 6,945 6,945 6,408 6,408 Financial assets measured at fair value through other comprehensive income Holding of shares in listed companies Note 5 22 22 6 6 Financial assets measured at amortized cost B/S Accounts receivables Note 16 43,210 43,210 48,220 48,220 Customer-financing receivables Note 15 232,203 232,203 193,928 193,928 Holding of shares in non-listed companies Note 5 859 859 599 599 Other interest-bearing receivables 3 Note 16 3,233 3,233 5,738 5,738 279,505 279,505 248,485 248,485 B/S Cash and cash equivalents Note 18 83,326 83,326 83,886 83,886 Liabilities Note 22 Financial liabilities measured at fair value through the income statement Interest and currency risk derivatives 4 5,779 5,779 8,975 8,975 Financial liabilities measured at amortized cost 5 Non-current bond loans and other loans 136,267 135,652 134,392 130,794 Current bond loans and other loans 3 97,250 97,102 70,655 70,475 B/S Trade Payables 82,987 82,987 90,177 90,177 316,503 315,741 295,224 291,446 1 The Volvo Group\u2019s gross exposure from derivatives reported as assets was reduced by 84% (79) by netting agreements and cash deposits to SEK 1,034 M (1,223). 2 The input data used in the valuation model for calculating the fair value has not changed during 2023. 3 The amount includes cash deposits for credit support annexes (CSA), where the receivable amounted to SEK 2,297 M (4,959) and the liability amounted to SEK \u20131,889 M (\u2013187). The agreements have no effect on the financial performance or net financial position of the Volvo Group. 4 The Volvo Group\u2019s gross exposure from derivatives reported as liabilities was reduced by 97% (98) by netting agreements and cash deposits to SEK 183 M (189). 5 In the Volvo Group balance sheet, financial liabilities include loan-related deriva- tives amounting to SEK \u20133,275 M (\u20135,900). The credit risk is included in the fair value of loans. Read more in Note 4 Goals and policies in financial risk management about credit support annexes (CSA) Derecognition of financial assets The Volvo Group is involved in discounting activities to reduce financial risks. An evaluation is performed to establish whether substantially all the risks and rewards have been transferred to an external party when entering into an agreement. The Volvo Group\u2019s intention is not to be involved in discounting activities if not substantially all the risks and rewards can be transferred to an external party. As of December 31, 2023, there were no transferred financial assets in the Volvo Group that did not fulfill the requirements for derecognition. Financial assets are derecognized from the balance sheet when the rights to the cash flows from the assets have expired or when substan- tially all risks and rewards have been transferred. Involvement in these assets is reflected in the Volvo Group\u2019s balance sheet as part of the exter- nal credit guarantees. They are valued at best estimate and recognized as provisions in the balance sheet to an amount of SEK 0.1 billion (0.2). The Volvo Group\u2019s maximum loss exposure is considered being the total recourse relating to transferred and derecognized assets that are part of the recognized credit guarantees, i.e. the total amount the Volvo Group would have to pay in case of default of the customers. The likelihood for all custom- ers going into default at the same time is considered to be low. The gross exposure for the Volvo Group amounted to SEK 3.8 billion (5.9) related to credit guarantees issued for customers and others and is part of the Volvo Group\u2019s contingent liabilities. This amount has not been reduced by the value of counter guarantees received or other collaterals such as the right to repos- sess the products. Read more in Note 21 Other provisions. Read more in Note 24 Contingent liabilities and financial commitments. Gains, losses, interest income and interest expenses from financial instruments Table 30:3 shows how gains and losses, as well as interest income and interest expenses have affected income after financial items in the Volvo Group divided by the different categories of financial instruments. In table 30:2, outstanding derivatives hedging currency and interest rate risks are presented. 30:2 Outstanding derivative instruments Dec 31, 2023 Dec 31, 2022 Nominal amount Carrying value Nominal amount Carrying value Interest-rate swaps \u2013 receivable position 232,945 5,932 217,951 5,532 \u2013 payable position 142,572 \u20135,478 162,277 \u20138,616 Foreign exchange derivatives \u2013 receivable position 38,282 361 33,932 218 \u2013 payable position 21,108 \u2013301 30,486 \u2013359 Options purchased \u2013 receivable position 111 \u2013 56 \u2013 Options written \u2013 payable position \u2013 \u2013 56 \u2013 Total 514 \u20133,224 30:3 Recognized in operating income 2023 2022 Gain/ Loss Interest income Interest expense Gain/ Loss Interest income Interest expense Financial assets and liabilities at fair value through the income statement Interest and currency risk derivatives 1, 2 \u201389 \u2013 8 133 \u2013 \u2013 Marketable securities \u20131 \u2013 \u2013 16 \u2013 \u2013 Financial assets measured at amortized cost Accounts receivables/trade payables 3 \u2013785 \u2013 \u2013 \u20131,600 \u2013 \u2013 Cash and cash equivalents \u201332 \u2013 \u2013 77 \u2013 \u2013 Customer-financing receivables 4 287 15,829 \u2013 145 10,005 \u2013 Holding of shares in listed companies 5 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 Holding of shares in non-listed companies \u201314 \u2013 \u2013 132 \u2013 \u2013 Financial liabilities measured at amortized cost 6 \u2013 \u2013 \u20139,837 \u2013 \u2013 \u20134,599 Impact on operating income \u2013634 15,829 \u20139,829 \u20131,099 10,005 \u20134,599 Recognized in net financial items 7, 8 2023 2022 Gain/ Loss Interest income Interest expense Gain/ Loss Interest income Interest expense Financial assets and liabilities at fair value through the income statement Marketable securities \u20138 5 \u2013 3 1 \u2013 Interest and currency risk derivatives 1, 2 1,165 \u2013 \u20131,411 \u20134,816 \u201335 \u20131,470 Financial assets measured at amortized cost Cash and cash equivalents \u2013744 2,685 \u2013 \u2013179 1,042 \u2013 Financial liabilities measured at amortized cost \u20132,000 \u2013 483 4,678 \u2013 432 Impact on net financial items 7, 8 \u20131,587 2,690 \u2013928 \u2013313 1,008 \u20131,038 1 Accrued interest related to financial assets and liabilities measured at fair value through the income statement is included in the amounts for gains and losses. 2 The Volvo Group uses forward contracts and currency options to hedge the value of future cash flows in foreign currency. Both unrealized and realized result of currency risk contracts is included in the table. 3 Information regarding changes in allowance for expected credit losses on accounts receivables is provided in note 16 Receivables and note 8 Other operating income and expenses. The amount includes gains/losses of SEK \u201358 M (\u2013199) from revalu- ation of receivables in foreign currency related to dividends paid to group companies. 4 The amount includes gains/losses due to derecognition of assets where SEK 144 M (\u201311) is related to the sale of customer-financing receivables and SEK 143 M (155) is related to early buy-out revenue. Information regarding changes in allowance for expected credit losses on customer-financing receivables is pro- vided in note 15 Customer-financing receivables and note 8 Other operating income and expenses. 5 Changes in fair value on shares and participations in listed companies through other comprehensive income amounted to SEK 15 M (\u201345). Read more in Note 5 Investments in joint ventures, associated companies and other shares and partici pations. 6 Interest expenses attributable to financial liabilities measured at amortized cost recognized in operating income include interest expenses for financing operating lease activities, which are not classified as financial instruments. 7 In gain/loss, income and expenses related to financial instruments recognized in net financial items, SEK \u20131,587 M (\u2013313) was recognized in other financial income and expenses. Read more in Note 9 Other financial income and expenses. 8 Interest expenses attributable to pensions reported in net financial items of SEK \u2013238 M (\u2013167) are not included in this table .", "dimensions": { "concept": "ifrs-full:DisclosureOfDebtSecuritiesExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1093": { "value": "ACCOUNTING POLICY Financial assets and liabilities are recognized on the transaction date accord- ing to the contractual terms of the instrument. Transaction costs are included in the assets\u2019 fair value, except in cases in which the change in value is recog- nized in the income statement. The transaction costs that arise in conjunction with the admission of financial liabilities are amortized over the term of the loan as financial cost. A financial asset is derecognized from the balance sheet when the rights to the cash flows from the asset have expired at maturity or when all significant risks and rewards related to the asset have been transferred to a third party. The fair value of financial assets is determined based on valid market prices, when available. If market prices are unavailable, the fair value is deter- mined for each asset through the use of various measurement techniques. The fair value of financial instruments is classified based on the degree that market values have been utilized when measuring fair value. The majority of financial instruments measured at fair value held by Volvo Group is clas- sified as level 2. 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 is used to calculate the present value of all the estimated future cash flows. For forward exchange contracts the basis is the forward premium based on current spot rate for each currency and future date. The fair value is then discounted based on the forward rates as per the balance sheet date. Holding of shares are classified as level 1 for listed shares and level 3 for non-listed shares. Call options are classified as level 3 and are based on the Black & Scholes option pricing formula. Financial assets and liabilities measured at fair value through the income statement Volvo Group\u2019s financial assets and liabilities held for trading are recog- nized at fair value through the income statement. As presented in table 30:1, these instruments are derivatives, used for hedging interest and currency risks and marketable securities, further presented in note 18 Cash and cash equivalents. Derivatives used for hedging interest rate exposure financing the cus- tomer financing porfolio within Financial Services as well as the debt port- folio in Industrial Operations are included in this category. Unrealized gains and losses from fluctuations in the fair value of the financial instruments are recognized in other financial income and expenses, with the exception of derivatives entered into by Financial Services, which are recognized in operating income. The Volvo Group intends to hold these derivatives to maturity, which is why, over time, the market valuation will have no impact on financial performance or cash flow. Financial instruments used for hedging currency risks arising from future cash flows are also recognized in this category. When hedging future cash flows for specific orders, the classification in the income statement is decided on a case by case basis. In 2023, SEK 16 M (44) have been recognized in operating income and SEK 105 M (1) in finance net. The result from hedging future cash flows in foreign currency from dividends paid to group companies is included in operating income with an amount of SEK 27 M (177). Read more in Note 4 Goals and policies in financial risk management. Financial assets measured at fair value through other comprehensive income In this category the Volvo Group includes holding of shares in listed compa- nies as the shares are not held for trading. Changes in fair value is measured through other comprehensive income and amounted to SEK 15 M (\u201345). Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Financial assets measured at amortized cost Customer-financing receivables are held as part of a business model whose objective is to collect contractual cash flows. The contractual cash flows are solely payments of principal and interest and are valued at amor- tized cost in accordance with the effective interest method. In this cate- gory the Volvo Group also includes accounts receivables and holding of shares in non-listed companies for which a fair value cannot reasonably be determined. The carrying value has been analyzed and compared with an estimated fair value and is a reasonable approximation of the fair value. Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Read more in Note 15 Customer-financing receivables. Read more in Note 16 Receivables. Hedge Accounting is not applied by the Volvo Group . ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1094": { "value": "ACCOUNTING POLICY Financial assets and liabilities are recognized on the transaction date accord- ing to the contractual terms of the instrument. Transaction costs are included in the assets\u2019 fair value, except in cases in which the change in value is recog- nized in the income statement. The transaction costs that arise in conjunction with the admission of financial liabilities are amortized over the term of the loan as financial cost. A financial asset is derecognized from the balance sheet when the rights to the cash flows from the asset have expired at maturity or when all significant risks and rewards related to the asset have been transferred to a third party. The fair value of financial assets is determined based on valid market prices, when available. If market prices are unavailable, the fair value is deter- mined for each asset through the use of various measurement techniques. The fair value of financial instruments is classified based on the degree that market values have been utilized when measuring fair value. The majority of financial instruments measured at fair value held by Volvo Group is clas- sified as level 2. 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 is used to calculate the present value of all the estimated future cash flows. For forward exchange contracts the basis is the forward premium based on current spot rate for each currency and future date. The fair value is then discounted based on the forward rates as per the balance sheet date. Holding of shares are classified as level 1 for listed shares and level 3 for non-listed shares. Call options are classified as level 3 and are based on the Black & Scholes option pricing formula. Financial assets and liabilities measured at fair value through the income statement Volvo Group\u2019s financial assets and liabilities held for trading are recog- nized at fair value through the income statement. As presented in table 30:1, these instruments are derivatives, used for hedging interest and currency risks and marketable securities, further presented in note 18 Cash and cash equivalents. Derivatives used for hedging interest rate exposure financing the cus- tomer financing porfolio within Financial Services as well as the debt port- folio in Industrial Operations are included in this category. Unrealized gains and losses from fluctuations in the fair value of the financial instruments are recognized in other financial income and expenses, with the exception of derivatives entered into by Financial Services, which are recognized in operating income. The Volvo Group intends to hold these derivatives to maturity, which is why, over time, the market valuation will have no impact on financial performance or cash flow. Financial instruments used for hedging currency risks arising from future cash flows are also recognized in this category. When hedging future cash flows for specific orders, the classification in the income statement is decided on a case by case basis. In 2023, SEK 16 M (44) have been recognized in operating income and SEK 105 M (1) in finance net. The result from hedging future cash flows in foreign currency from dividends paid to group companies is included in operating income with an amount of SEK 27 M (177). Read more in Note 4 Goals and policies in financial risk management. Financial assets measured at fair value through other comprehensive income In this category the Volvo Group includes holding of shares in listed compa- nies as the shares are not held for trading. Changes in fair value is measured through other comprehensive income and amounted to SEK 15 M (\u201345). Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Financial assets measured at amortized cost Customer-financing receivables are held as part of a business model whose objective is to collect contractual cash flows. The contractual cash flows are solely payments of principal and interest and are valued at amor- tized cost in accordance with the effective interest method. In this cate- gory the Volvo Group also includes accounts receivables and holding of shares in non-listed companies for which a fair value cannot reasonably be determined. The carrying value has been analyzed and compared with an estimated fair value and is a reasonable approximation of the fair value. Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Read more in Note 15 Customer-financing receivables. Read more in Note 16 Receivables. Hedge Accounting is not applied by the Volvo Group . ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1095": { "value": "ACCOUNTING POLICY Financial assets and liabilities are recognized on the transaction date accord- ing to the contractual terms of the instrument. Transaction costs are included in the assets\u2019 fair value, except in cases in which the change in value is recog- nized in the income statement. The transaction costs that arise in conjunction with the admission of financial liabilities are amortized over the term of the loan as financial cost. A financial asset is derecognized from the balance sheet when the rights to the cash flows from the asset have expired at maturity or when all significant risks and rewards related to the asset have been transferred to a third party. The fair value of financial assets is determined based on valid market prices, when available. If market prices are unavailable, the fair value is deter- mined for each asset through the use of various measurement techniques. The fair value of financial instruments is classified based on the degree that market values have been utilized when measuring fair value. The majority of financial instruments measured at fair value held by Volvo Group is clas- sified as level 2. 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 is used to calculate the present value of all the estimated future cash flows. For forward exchange contracts the basis is the forward premium based on current spot rate for each currency and future date. The fair value is then discounted based on the forward rates as per the balance sheet date. Holding of shares are classified as level 1 for listed shares and level 3 for non-listed shares. Call options are classified as level 3 and are based on the Black & Scholes option pricing formula. Financial assets and liabilities measured at fair value through the income statement Volvo Group\u2019s financial assets and liabilities held for trading are recog- nized at fair value through the income statement. As presented in table 30:1, these instruments are derivatives, used for hedging interest and currency risks and marketable securities, further presented in note 18 Cash and cash equivalents. Derivatives used for hedging interest rate exposure financing the cus- tomer financing porfolio within Financial Services as well as the debt port- folio in Industrial Operations are included in this category. Unrealized gains and losses from fluctuations in the fair value of the financial instruments are recognized in other financial income and expenses, with the exception of derivatives entered into by Financial Services, which are recognized in operating income. The Volvo Group intends to hold these derivatives to maturity, which is why, over time, the market valuation will have no impact on financial performance or cash flow. Financial instruments used for hedging currency risks arising from future cash flows are also recognized in this category. When hedging future cash flows for specific orders, the classification in the income statement is decided on a case by case basis. In 2023, SEK 16 M (44) have been recognized in operating income and SEK 105 M (1) in finance net. The result from hedging future cash flows in foreign currency from dividends paid to group companies is included in operating income with an amount of SEK 27 M (177). Read more in Note 4 Goals and policies in financial risk management. Financial assets measured at fair value through other comprehensive income In this category the Volvo Group includes holding of shares in listed compa- nies as the shares are not held for trading. Changes in fair value is measured through other comprehensive income and amounted to SEK 15 M (\u201345). Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Financial assets measured at amortized cost Customer-financing receivables are held as part of a business model whose objective is to collect contractual cash flows. The contractual cash flows are solely payments of principal and interest and are valued at amor- tized cost in accordance with the effective interest method. In this cate- gory the Volvo Group also includes accounts receivables and holding of shares in non-listed companies for which a fair value cannot reasonably be determined. The carrying value has been analyzed and compared with an estimated fair value and is a reasonable approximation of the fair value. Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Read more in Note 15 Customer-financing receivables. Read more in Note 16 Receivables. Hedge Accounting is not applied by the Volvo Group . ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1096": { "value": "ACCOUNTING POLICY Financial assets and liabilities are recognized on the transaction date accord- ing to the contractual terms of the instrument. Transaction costs are included in the assets\u2019 fair value, except in cases in which the change in value is recog- nized in the income statement. The transaction costs that arise in conjunction with the admission of financial liabilities are amortized over the term of the loan as financial cost. A financial asset is derecognized from the balance sheet when the rights to the cash flows from the asset have expired at maturity or when all significant risks and rewards related to the asset have been transferred to a third party. The fair value of financial assets is determined based on valid market prices, when available. If market prices are unavailable, the fair value is deter- mined for each asset through the use of various measurement techniques. The fair value of financial instruments is classified based on the degree that market values have been utilized when measuring fair value. The majority of financial instruments measured at fair value held by Volvo Group is clas- sified as level 2. 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 is used to calculate the present value of all the estimated future cash flows. For forward exchange contracts the basis is the forward premium based on current spot rate for each currency and future date. The fair value is then discounted based on the forward rates as per the balance sheet date. Holding of shares are classified as level 1 for listed shares and level 3 for non-listed shares. Call options are classified as level 3 and are based on the Black & Scholes option pricing formula. Financial assets and liabilities measured at fair value through the income statement Volvo Group\u2019s financial assets and liabilities held for trading are recog- nized at fair value through the income statement. As presented in table 30:1, these instruments are derivatives, used for hedging interest and currency risks and marketable securities, further presented in note 18 Cash and cash equivalents. Derivatives used for hedging interest rate exposure financing the cus- tomer financing porfolio within Financial Services as well as the debt port- folio in Industrial Operations are included in this category. Unrealized gains and losses from fluctuations in the fair value of the financial instruments are recognized in other financial income and expenses, with the exception of derivatives entered into by Financial Services, which are recognized in operating income. The Volvo Group intends to hold these derivatives to maturity, which is why, over time, the market valuation will have no impact on financial performance or cash flow. Financial instruments used for hedging currency risks arising from future cash flows are also recognized in this category. When hedging future cash flows for specific orders, the classification in the income statement is decided on a case by case basis. In 2023, SEK 16 M (44) have been recognized in operating income and SEK 105 M (1) in finance net. The result from hedging future cash flows in foreign currency from dividends paid to group companies is included in operating income with an amount of SEK 27 M (177). Read more in Note 4 Goals and policies in financial risk management. Financial assets measured at fair value through other comprehensive income In this category the Volvo Group includes holding of shares in listed compa- nies as the shares are not held for trading. Changes in fair value is measured through other comprehensive income and amounted to SEK 15 M (\u201345). Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Financial assets measured at amortized cost Customer-financing receivables are held as part of a business model whose objective is to collect contractual cash flows. The contractual cash flows are solely payments of principal and interest and are valued at amor- tized cost in accordance with the effective interest method. In this cate- gory the Volvo Group also includes accounts receivables and holding of shares in non-listed companies for which a fair value cannot reasonably be determined. The carrying value has been analyzed and compared with an estimated fair value and is a reasonable approximation of the fair value. Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Read more in Note 15 Customer-financing receivables. Read more in Note 16 Receivables. Hedge Accounting is not applied by the Volvo Group . ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1097": { "value": "ACCOUNTING POLICY Financial assets and liabilities are recognized on the transaction date accord- ing to the contractual terms of the instrument. Transaction costs are included in the assets\u2019 fair value, except in cases in which the change in value is recog- nized in the income statement. The transaction costs that arise in conjunction with the admission of financial liabilities are amortized over the term of the loan as financial cost. A financial asset is derecognized from the balance sheet when the rights to the cash flows from the asset have expired at maturity or when all significant risks and rewards related to the asset have been transferred to a third party. The fair value of financial assets is determined based on valid market prices, when available. If market prices are unavailable, the fair value is deter- mined for each asset through the use of various measurement techniques. The fair value of financial instruments is classified based on the degree that market values have been utilized when measuring fair value. The majority of financial instruments measured at fair value held by Volvo Group is clas- sified as level 2. 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 is used to calculate the present value of all the estimated future cash flows. For forward exchange contracts the basis is the forward premium based on current spot rate for each currency and future date. The fair value is then discounted based on the forward rates as per the balance sheet date. Holding of shares are classified as level 1 for listed shares and level 3 for non-listed shares. Call options are classified as level 3 and are based on the Black & Scholes option pricing formula. Financial assets and liabilities measured at fair value through the income statement Volvo Group\u2019s financial assets and liabilities held for trading are recog- nized at fair value through the income statement. As presented in table 30:1, these instruments are derivatives, used for hedging interest and currency risks and marketable securities, further presented in note 18 Cash and cash equivalents. Derivatives used for hedging interest rate exposure financing the cus- tomer financing porfolio within Financial Services as well as the debt port- folio in Industrial Operations are included in this category. Unrealized gains and losses from fluctuations in the fair value of the financial instruments are recognized in other financial income and expenses, with the exception of derivatives entered into by Financial Services, which are recognized in operating income. The Volvo Group intends to hold these derivatives to maturity, which is why, over time, the market valuation will have no impact on financial performance or cash flow. Financial instruments used for hedging currency risks arising from future cash flows are also recognized in this category. When hedging future cash flows for specific orders, the classification in the income statement is decided on a case by case basis. In 2023, SEK 16 M (44) have been recognized in operating income and SEK 105 M (1) in finance net. The result from hedging future cash flows in foreign currency from dividends paid to group companies is included in operating income with an amount of SEK 27 M (177). Read more in Note 4 Goals and policies in financial risk management. Financial assets measured at fair value through other comprehensive income In this category the Volvo Group includes holding of shares in listed compa- nies as the shares are not held for trading. Changes in fair value is measured through other comprehensive income and amounted to SEK 15 M (\u201345). Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Financial assets measured at amortized cost Customer-financing receivables are held as part of a business model whose objective is to collect contractual cash flows. The contractual cash flows are solely payments of principal and interest and are valued at amor- tized cost in accordance with the effective interest method. In this cate- gory the Volvo Group also includes accounts receivables and holding of shares in non-listed companies for which a fair value cannot reasonably be determined. The carrying value has been analyzed and compared with an estimated fair value and is a reasonable approximation of the fair value. Read more in Note 5 Investments in joint ventures, associated companies and other shares and participations. Read more in Note 15 Customer-financing receivables. Read more in Note 16 Receivables. Hedge Accounting is not applied by the Volvo Group ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1098": { "value": "ACCOUNTING POLICY Financial assets and liabilities are recognized on the transaction date accord- ing to the contractual terms of the instrument. Transaction costs are included in the assets\u2019 fair value, except in cases in which the change in value is recog- nized in the income statement. The transaction costs that arise in conjunction with the admission of financial liabilities are amortized over the term of the loan as financial cost. A financial asset is derecognized from the balance sheet when the rights to the cash flows from the asset have expired at maturity or when all significant risks and rewards related to the asset have been transferred to a third party. The fair value of financial assets is determined based on valid market prices, when available. If market prices are unavailable, the fair value is deter- mined for each asset through the use of various measurement techniques. The fair value of financial instruments is classified based on the degree that market values have been utilized when measuring fair value. The majority of financial instruments measured at fair value held by Volvo Group is clas- sified as level 2. 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 is used to calculate the present value of all the estimated future cash flows. For forward exchange contracts the basis is the forward premium based on current spot rate for each currency and future date. The fair value is then discounted based on the forward rates as per the balance sheet date. Holding of shares are classified as level 1 for listed shares and level 3 for non-listed shares. Call options are classified as level 3 and are based on the Black & Scholes option pricing formula. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1099": { "value": "Financial assets and liabilities measured at fair value through the income statement Volvo Group\u2019s financial assets and liabilities held for trading are recog- nized at fair value through the income statement. As presented in table 30:1, these instruments are derivatives, used for hedging interest and currency risks and marketable securities, further presented in note 18 Cash and cash equivalents. Derivatives used for hedging interest rate exposure financing the cus- tomer financing porfolio within Financial Services as well as the debt port- folio in Industrial Operations are included in this category. Unrealized gains and losses from fluctuations in the fair value of the financial instruments are recognized in other financial income and expenses, with the exception of derivatives entered into by Financial Services, which are recognized in operating income. The Volvo Group intends to hold these derivatives to maturity, which is why, over time, the market valuation will have no impact on financial performance or cash flow. Financial instruments used for hedging currency risks arising from future cash flows are also recognized in this category. When hedging future cash flows for specific orders, the classification in the income statement is decided on a case by case basis. In 2023, SEK 16 M (44) have been recognized in operating income and SEK 105 M (1) in finance net. The result from hedging future cash flows in foreign currency from dividends paid to group companies is included in operating income with an amount of SEK 27 M (177). Read more in Note 4 Goals and policies in financial risk management. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForHedgingExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1100": { "value": "Financial assets and liabilities measured at fair value through the income statement Volvo Group\u2019s financial assets and liabilities held for trading are recog- nized at fair value through the income statement. As presented in table 30:1, these instruments are derivatives, used for hedging interest and currency risks and marketable securities, further presented in note 18 Cash and cash equivalents. Derivatives used for hedging interest rate exposure financing the cus- tomer financing porfolio within Financial Services as well as the debt port- folio in Industrial Operations are included in this category. Unrealized gains and losses from fluctuations in the fair value of the financial instruments are recognized in other financial income and expenses, with the exception of derivatives entered into by Financial Services, which are recognized in operating income. The Volvo Group intends to hold these derivatives to maturity, which is why, over time, the market valuation will have no impact on financial performance or cash flow. Financial instruments used for hedging currency risks arising from future cash flows are also recognized in this category. When hedging future cash flows for specific orders, the classification in the income statement is decided on a case by case basis. In 2023, SEK 16 M (44) have been recognized in operating income and SEK 105 M (1) in finance net. The result from hedging future cash flows in foreign currency from dividends paid to group companies is included in operating income with an amount of SEK 27 M (177). Read more in Note 4 Goals and policies in financial risk management. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1101": { "value": "Derecognition of financial assets The Volvo Group is involved in discounting activities to reduce financial risks. An evaluation is performed to establish whether substantially all the risks and rewards have been transferred to an external party when entering into an agreement. The Volvo Group\u2019s intention is not to be involved in discounting activities if not substantially all the risks and rewards can be transferred to an external party. As of December 31, 2023, there were no transferred financial assets in the Volvo Group that did not fulfill the requirements for derecognition. Financial assets are derecognized from the balance sheet when the rights to the cash flows from the assets have expired or when substan- tially all risks and rewards have been transferred. Involvement in these assets is reflected in the Volvo Group\u2019s balance sheet as part of the exter- nal credit guarantees. They are valued at best estimate and recognized as provisions in the balance sheet to an amount of SEK 0.1 billion (0.2). The Volvo Group\u2019s maximum loss exposure is considered being the total recourse relating to transferred and derecognized assets that are part of the recognized credit guarantees, i.e. the total amount the Volvo Group would have to pay in case of default of the customers. The likelihood for all custom- ers going into default at the same time is considered to be low. The gross exposure for the Volvo Group amounted to SEK 3.8 billion (5.9) related to credit guarantees issued for customers and others and is part of the Volvo Group\u2019s contingent liabilities. This amount has not been reduced by the value of counter guarantees received or other collaterals such as the right to repos- sess the products. Read more in Note 21 Other provisions. Read more in Note 24 Contingent liabilities and financial commitments. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerecognitionOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "fact-1102": { "value": "G\u00f6teborg, February 28, 2024 Carl-Henric Svanberg Board Chairman Matti Alahuhta Board member Bo Annvik Board member Jan Carlson Board member Eric Elzvik Board member Martha Finn Brooks Board member Kurt Jofs Board member Martin Lundstedt President, CEO and Board member Kathryn V. Marinello Board member Martina Merz Board member Helena Stjernholm Board member Lars Ask Board member Mari Larsson Board member Urban Sp\u00e4nnar Board member", "dimensions": { "concept": "ifrs-full:DisclosureOfAuthorisationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:549300HGV012CNC8JD22", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } } } }