Exhibit 9-20 provides a recent summary of the Volvo Group's net income and shareholders' equity determined in accordance with Swedish GAAP and U.S. GAAP.

Required:
a. Compute the return on shareholders' equity for the year based first on Swedish GAAP, and then on U.S. GAAP.
b. Which return statistic is the better measure of performance and why? If you were comparing your preferred statistic in 

c. With a comparable statistic for a U.S. firm in a comparable industry as Volvo, what factors would you take into account in making your assessment?

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EXHIBIT 9-20 Volvo Group's Restated Net Income and Shareholders'Equity Numbers Net income Net income in accordance with Swedish GAAP Items increasing (decreasing) reported net income: Foreign currency derivatives Income taxes Business combinations Shares and participations Interest costs Leasing Investments in debt and equity securities Items affecting comparability Pensions and other post-employment benefits SPP surplus funds Software development Entrance fees, aircraft engine programs Tax effect of above U.S. GAAP adjustments Net increase (decrease) in net income Approximate net income in accordance with U.S. GAAP Shareholders' equity 2015 4,709 (654) (91) 24 16 (548) (281) (170) (523) 384 (336) 600 (1,582) 3,127 20X5 Continued) EXHIBIT 9-20 Volvo Group's Restated Net Income and Shareholders' equity in accordance with Swedish GAAP Items increasing (decreasing) reported shareholders' equity: Foreign currency derivatives Income taxes Business combinations Shares and participations Interest costs Leasing Investments in debt and equity securities Items affecting comparability Pensions and other post-employment benefits SPP surplus funds Software development Entrance fees, aircraft engine programs Other Tax effect of above U.S. GAAP adjustments Net increase (decrease) in shareholders' equity Approximate shareholders' equity based on US. GAAP Equity Numbers (Continued) 88,338 (1,286) 1,317 36 112 (163) (6,066) 579 109 (523) 754 (387) 1,941 (3,577) 84,761