BMW 2002 Annual Report Download - page 73

001 BMW Group in figures
004 Report of the Supervisory Board
008 Supervisory Board
011 Board of Management
012 Group Management Report
031 BMW Stock
034 Corporate Governance
042 Group Financial Statements
106 BMW AG Financial Statements
112 BMW Group Annual Comparison
114 BMW Group Locations
116 Glossary
120 Index
72
The carrying value of deferred tax assets is re-
duced
when recoverability is uncertain. In determin-
ing the level of the write-downs, all positive and
negative factors concerning the likely existence of
sufficient taxable profit in the future are taken into
account. These estimates can change depending
on the actual developments. Write-downs include
euro 293 million (2001: euro 425 million) on tax loss
carryforwards and euro 489 million (2001: euro 523
million) on losses on disposals (so called capital
losses) in Great Britain, which can only be set off
against capital gains, but not against trading profits.
In addition, there is a write-down of euro 523 million
(2001: euro 653 million) on deferred tax assets re-
lating to capital allowances in Great Britain which is
shown above in intangible assets and property, plant
and equipment. There are no longer any write-downs
of deferred tax assets arising on consolidation proce-
dures (2001: euro 40 million). Of the euro 336 mil-
lion reduction in write-downs, euro 99 million is
attributable to exchange rate changes.
Equity is reduced at the balance sheet date by
deferred tax liabilities of euro 1,042 million (2001:
euro 44 million) recognised directly in equity. This
was the result of the positive market value changes
of derivative financial instruments.
The actual tax expense for the financial year
2002 of euro1,277 million (2001: euro 1,376 million)
is euro 6 million lower (2001: euro 115 million higher)
than the expected tax expense of euro 1,283 million
(2001: euro 1,261 million) which would theoretically
arise if the tax rate of 38.9% (2001: 38.9%), appli-
cable for German companies, was applied across
the Group.The difference between the expected
and actual tax expense is attributable to the following:
in euro million 2002 2001
Expected tax expense 1,283 1,261
Variances due to different tax rates  98 94
Ta x reductions ()/tax increases (+) as a result of non-taxable income and
non-deductible expenses 65 82
Ta x expense (+)/benefits () for prior periods 32 24
Other variances 5 103
Actual tax expense 1,277 1,376
Other variances in the previous year related mainly to write-downs on deferred tax assets.
The minority interest in profit amounting to euro 0.201 million (2001: euro 0.211 million) relates to Euro Lloyd
Reisebüro GmbH, Cologne.
[15]Minority interest