The principle of revenue recognition: revenues are recorded when they are realized or achievable, and earned. Services include spare parts sales, maintenance services, repairs, extended coverage and other aftermarket products. Control of the service has been transferred to the customer when the Volvo Group bears the costs associated with providing the service and the customer can benefit from the use of the services provided. For spare parts, revenue is usually recorded at a time, that is, when it is delivered to the customer. For maintenance services and other after-sales products, revenues are recorded over time, usually during the term of the contract. In the event of advance payment for maintenance contracts, payment is recognized as contractual liability. Contract assets are accounted for in other receivables and include revenues recorded for work performed but not yet billed. The right of return and the assets of return of the parts represent the cost of the product for assets that could be returned to the Volvo Group. The principle of revenue recognition is a cornerstone of accrual accounting with the principle of matching. Both determine the accounting period during which revenues and expenses are recorded.

According to accounting principles, income is accounted for when it is realized or achievable and is earned (usually when assets are transferred or provided of services), regardless of when the cash is received. On the other hand, cash accounting records income when money is received, regardless of when goods or services are sold. Cash may be honoured as obligations in a prior or later period (when goods or services are provided) and related revenues that result in the following two types of accounts: the contract method entered into counts revenue and gross margin after the conclusion of the contract. The advantage is that revenue is based on actual results rather than estimates, while its disadvantage is the distortion of the return date. Recognition at the time of delivery, called point of sale, is made when the product or service is delivered and the payment is made (realized) or the right to payment is guaranteed (achievable).