Reversal of reserve for tax receivables yields positive earnings effect of SEK 300 M
AB Volvo has decided to reverse a valuation reserve for deferred tax receivables in the Mack Trucks subsidiary. The decision is based on the fact that Volvo assesses that the company has a long-term higher profitability. Reporting of the deferred tax receivables reduces tax expenses in the income statement in the third quarter by SEK 2.0 billion. In accordance with prevailing accounting rules, Volvo is adjusting goodwill by SEK 1.7 billion, which will affect operating income adversely. The combined earnings effect for the third quarter will be a positive SEK 300 M.Most of the valuation