BMW 2002 Annual Report Download - page 6

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5
ment
to consistently pursue this strategy. The Supervisory Board and the
Board
of Management have devoted particular attention during the year 2002 to the
marketing of the MINI in its first full year on the market. The fact that sales of this
brand are well above expectations demonstrate that the expansion of the
product
range, within the
BMW
Groups defined strategy, is on the road to success.
The Supervisory Board has also observed and supported the Board of Manage-
ment
during the planning phase up to assumption of responsibility for the manu-
facture and sale of Rolls-Royce motor cars from January 2003 onwards.
The Supervisory Board has also held extensive discussions with the Board of
Management in connection with the new regulations issued by the
EU
Commis-
sion
dated 31July 2002 relating to the sale of vehicles.The new regulations, which
are intended to open up and diversify the current distribution system, pose a
challenge to the
BMW
Group and its dealers to maintain in the future a high quality
of accessible services for all customers, meeting the premium brand assertions
of
the BMW Group and its dealers.The Supervisory Board is convinced that the
BMW
Group is well prepared for the framework now set out by the Commission.
Another focus of the joint consultations with the Board of Management was
the long-term business development of the
BMW
Group and its business divisions.
The Financial Services segment was also discussed in depth by the Supervisory
Board.
The Company and Group financial statements were drawn up for the first time
in 2001 in accordance with International Accounting Standards (IAS). In advance
and in the Supervisory Boards approval of the financial statements at the begin-
ning of 2002, the Supervisory Board deliberated the adoption of International
Accounting Standards (IAS) for group reporting purposes. The Board of Manage-
ment explained the impact of the adoption and the key conceptual differences
between the accounting and financial reporting systems and their practical effects.
At the meetings in July and December, the Supervisory Board and the Board of
Management discussed the subject of corporate governance, specifically, manage-
ment
based on principles of good corporate governance.The new framework
and recommendations provided by the German Corporate Governance Code were
analysed. Amongst other matters, the Supervisory Board laid down rules for the
scope of information to be reported by the Board of Management and defined
certain major transactions which require the approval of the Supervisory Board.
In addition, the Supervisory Board set up an Audit Committee (Bilanzausschuss).