Scania Annual Report 2011

More documents

Recommendations

Info

92 notes to the consolidated financial statements NOTE 1 Accounting principles, continued Leases • Operating lease – in case of delivery of vehicles that Scania finances with an operating lease, revenue is allocated on a straight-line basis over the lease period. The assets are recognised as lease assets in the balance sheet. • Residual value obligation – in case of delivery of vehicles for which substantial risks remain with Scania and on which Scania has a repurchase obligation at a guaranteed residual value, revenue is allo cated on a straight-line basis until the repurchase date, as with an operating lease. • Short-term rental – in case of short-term rental of vehicles, revenue is allocated on a straight-line basis over the contract period. Leasing and rentals mainly involve new trucks and buses. In such cases, the asset is recognised in the balance sheet as a lease asset. Service-related products Income for service and repairs is recognised as income when the service is performed. For service and repair contracts, income is allo cated over the life of the contracts, as expenses for the fulfilment of the contract arise. Financial Services In case of financial and operating leases, with Scania as the lessor, the recognition of interest income and lease income, respectively, is allocated over the lease period. Other income is recognised on a continuous basis. MISCELLANEOUS Related party transactions Related party transactions occur on market terms. “Related parties” refer to the companies in which Scania can exercise a controlling or significant influence in terms of the operating and financial decision s that are made. The circle of related parties also includes those companies and physical persons that are able to exercise a controlling or significant influence over the financial and operating decisions of the Scania Group. Related party transactions also include defined benefit and defined contribution pension plans. Government grants including EU grants Government grants received that are attributable to operating expense s reduce these expenses. Government grants related to investments reduce the gross cost of non-current assets. Contingent liabilities A contingent liability is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events. A contingen t liability can also be a present obligation that is not recognised as a liability or provision because it is not probable that an outflow of resources will be required, or because the amount of the obligation cannot be measured with sufficient reliability. Earnings per share Earnings per share are calculated as net income for the period attributable to Parent Company shareholders, divided by the weighted average number of shares outstanding per report period. Incentive programmes and share-based payment The outcome of the incentive programme for executive officers is recognised as a salary expense in the year the payment is related to. Part of the programme is payable in such a way that the employee him/ herself acquires shares in Scania AB at market price (see Note 28, “Compensation to executive officers”). As a result, the rules according to IFRS 2, “Share-based payments”, are not applicable. CHANGES IN ACCOUNTING PRINCIPLES DURING THE NEXT YEAR New standards, amended standards and interpretations that enter into force on 1 January 2012 and subsequently have not been applied in advance. The following new and amended standards have not yet begun to be applied. None of the following standards have been approve d by the EU at present, which is a requirement for the adoption of the standard. IFRS 9, “Financial Instruments” – This standard replaces the provisions of IAS 39, “Financial Instruments: Recognition and Measurement” that relate to classification and measurement. The standard is mandatory starting with the financial year 2015, but earlier adoption is permitted, provided that the EU has approved the standard. This has not yet occurred. IFRS 10, “Consolidated Financial Statements” – The standard replaces IAS 27 and SIC-12, “Consolidation – Special Purpose Entities” and contains a model for assessing whether or not control exists. An entity or investment should be included in the consolidated statement s if control exists based on a control concept. The standard enters into force on 1 January 2013 and shall be applied on this date. The standard is not expected to have any material impact on Scania’s financial statements. IFRS 11, “Joint Arrangements” – The standard replaces IAS 31, “Inte rests in Joint Ventures”. According to the standard, jointly controlled investments shall be divided into two categories, joint venture or joint operation. Different accounting rules shall be applied to the two categories. The standard enters into force on 1 January 2013 and shall be applied on this date. The standard is not expected to have any material impact on Scania’s financial statements. IFRS 12, “Disclosure of Interests in Other Entities” contains new disclosure requirements for all types of interests in other entities irrespective of whether the interest is consolidated or not. The standard enters into force on 1 January 2013 and shall be applied on this date. IFRS 13, “Fair Value Measurement” – The standard is being introduced to create a uniform definition of fair value and uniform valuation methods for measurement of fair value. New disclosure requirements are also being introduced. The standard enters into force on 1 Januar y 2013 and shall be applied for annual periods starting in 2013. The standard is not expected to have any material impact on Scania’s financial statements. financial reports Scania 2011
93 Amendment to IAS 1, “Presentation of Financial Statements” implies new disclosure requirements of components accounted for in other comprehensive income in respect of items that possibly will be reclassified to net income and those which will never be reclassified to net income. The standard enters into force on 1 July 2012 and shall be applied for annual periods from 2013. Amendment to IAS 19, “Employee Benefits” – Scania already applie s the method for measurement of pension liabilities contained in the new proposal, except that the returns on pension assets shall be measured based on the same discount rate as pension liabilities rather than on the estimated return. At present, it is not clear how Swedish payroll tax and tax on investment returns shall be accounted for under the new rules. The standard enters into force on 1 January 2013 and shall be applied on this date. The standard is not expected to have any material impact on Scania’s financial statements. Other changes in standards and interpretations that enter into force on 1 January 2012 or subsequently are not expected to have any impact on Scania’s accounting. PARENT COMPANY Parent Company accounting principles The Parent Company has prepared its Annual Report in compliance with Sweden’s Annual Accounts Act and Recommendation RFR 2, “Accounting for Legal Entities” of the Swedish Financial Reporting Board. RFR 2 implies that the Parent Company in the Annual Report of a legal entity shall apply all International Financial Reporting Standards and interpretations approved by the EU as far as this is possible within the framework of the Annual Accounts Act, and taking into account the connection between reporting and taxation. The recommendation states what exceptions from IFRS and additions shall be made. The Parent Company does not apply IAS 39, “Financial instruments”, but instead applies a cost-based method in accordance with the Annual Accounts Act. The scope of financial instruments in the accounts of the Paren t Company is extremely limited. The reader is thus referred to the Group’s disclosures related to IFRS 7, “Financial instruments – Disclosures”. Subsidiaries Holdings in subsidiaries are recognised in the Parent Company financial statements according to the cost method of accounting. Testing of the value of subsidiaries occurs when there is an indication of a decline in value. Dividends received from subsidiaries are recognised as income. Anticipated dividends Anticipated dividends from subsidiaries are recognised in cases where the Parent Company has the exclusive right to decide on the size of the dividend and the Parent Company has made a decision on the size of the dividend before having published its financial reports. Taxes The Parent Company financial statements recognise untaxed reserves including deferred tax liability. The consolidated financial statements, however, reclassify untaxed reserves to deferred tax liability and equity. Group contributions The Parent Company recognises Group contributions received as financial revenue in the income statement and recognises Group contributions provided as financial expenses in the income statement. This is a new accounting principle according to the Swedish Financial Reporting Board’s recommendation RFR 2, and comparative years have been restated accordingly. financial reports Scania 2011
Page 1 and 2:
ANNUAL REPORT 2011
Page 3 and 4:
1 Operations 2-31 Statement of the
Page 5 and 6:
SCANIA’S STRATEGY 3 Our solution
Page 7 and 8:
The world of Scania Scania is a glo
Page 9 and 10:
scania’s strategY 7 Scania’s st
Page 11 and 12:
SCANIA’S STRATEGY 9 The change in
Page 13 and 14:
SCANIA’S STRATEGY 11 The aluminiu
Page 15 and 16:
SCANIA’S STRATEGY 13 Profitable b
Page 17 and 18:
SCANIA’S STRATEGY 15 Component mo
Page 19 and 20:
SCANIA’S STRATEGY 17 Methods for
Page 21 and 22:
SCANIA’S STRATEGY 19 Scania is st
Page 23 and 24:
market - TRUCKS 21 Effective overal
Page 25 and 26:
23 assembles the bodies for the Sca
Page 27 and 28:
100 years of innovation In 2011, Sc
Page 29 and 30:
27 Productivity and energy efficien
Page 31 and 32:
SCANIA’S STRATEGY 29 service tech
Page 33:
SCANIA’S STRATEGY 31 Experience s
Page 36 and 37:
34 MARKET Lastbilar nettoomsättnin
Page 38 and 39:
36 production
Page 40 and 41:
38 production Greater flexibility w
Page 42 and 43:
40 RESEARCH AND DEVELOPMENT
Page 44 and 45: 42 RESEARCH AND DEVELOPMENT Scania
Page 46 and 47: 44 SCANIA’S SUSTAINABILITY WORK R
Page 48 and 49: 46 SCANIA’S SUSTAINABILITY WORK K
Page 50 and 51: 48 SCANIA’S SUSTAINABILITY WORK S
Page 52 and 53: 50 SCANIA’S SUSTAINABILITY WORK S
Page 54 and 55: 52 SCANIA’S SUSTAINABILITY WORK C
Page 56 and 57: 54 SCANIA’S SUSTAINABILITY WORK M
Page 58 and 59: 56 Scania share data Scania share d
Page 60 and 61: 58 Annual General Meeting and Finan
Page 62 and 63: 60 Risks and risk management servic
Page 64 and 65: 62 Risks and risk management Produc
Page 66 and 67: 64 CORPORATE GOVERNANCE REPORT owne
Page 68 and 69: 66 CORPORATE GOVERNANCE REPORT The
Page 70 and 71: 68 CORPORATE GOVERNANCE REPORT by t
Page 72 and 73: 70 BOARD OF DIRECTORS Board of Dire
Page 74 and 75: 72 EXECUTIVE BOARD AND CORPORATE UN
Page 76 and 77: financial reports Amounts in tables
Page 78 and 79: 76 group financial review Group fin
Page 80 and 81: 78 group financial review During 20
Page 82 and 83: 80 consolidated income statements C
Page 84 and 85: 82 consolidated balance sheets Cons
Page 86 and 87: 84 Consolidated statement of change
Page 88 and 89: 86 notes to the consolidated financ
Page 102 and 103: 100 notes to the consolidated finan
Page 140 and 141: 138 parent company financial statem
Page 142 and 143: 140 notes to the parent company fin
Page 144 and 145:
142 proposed guidelines for salary
Page 146 and 147:
144 audit report Audit Report TRANS
Page 148 and 149:
146 quarterly data Quarterly data,
Page 150 and 151:
148 key financial ratios and figure
Page 152 and 153:
150 multi-year statistical review M
Page 154 and 155:
152 The Annual Report contains forw
Page 156:
Scania AB (publ), SE-151 87 Södert
show all

Scania Annual Report 2011

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?