BMW 2007 Annual Report Download - page 108

106 Group Financial Statements
73 Group Financial Statements
73 Income Statements
74 Balance Sheets
76 Cash Flow Statements
78 Group Statement of Changes
in Equity
79 Statement of Income and
Expenses recognised directly
in Equity
80 Notes
80 – Accounting Principles
and Policies
89 – Notes to the Income
Statement
96 – Notes to the Balance Sheet
117 – Other Disclosures
131 – Segment Information
Equity
The Group Statement of Changes in Equity is shown
on page 78.
Number of shares issued
At 31 December 2007, common stock issued by
BMW AG was divided into 601,995,196 shares with
a par-value of one euro. Preferred stock issued by
BMW AG was divided into 52,196,162 shares with a
par-value of one euro, unchanged from the previous
year. Unlike the common stock, no voting rights are
attached to the preferred stock. All of the company’s
stock is issued to bearer. Preferred stock bears an
additional dividend of euro 0.02 per share. 660,305
of the shares of preferred stock are only entitled to
receive dividends with effect from the beginning of
the financial year 2008.
During the financial year 2007, BMW AG ac-
quired 660,305 treasury shares of preferred stock at
an average price of euro 45.48 per share. These
shares were issued to employees at a reduced price
of euro 26.42 per share in conjunction with an em-
ployee share scheme. As a result of the repurchase
of shares of preferred stock and their sub sequent
issue, the preferred stock portion of share capital
remained unchanged at euro 52 million. The effect
of applying IFRS 2 (Share-Based Payments) to the
employee share scheme was not material for the
Group.
At the Annual General Meeting of BMW AG on
15 May 2007, the shareholders again authorised
the Board of Management to acquire treasury shares
via the stock exchange, up to a maximum of 10 %
of the share capital in place at the date of the resolu-
tion and to withdraw those shares from circulation
without any further resolution by the Annual General
Meeting. At the same time, the authorisation from
16 May 2006 to acquire treasury shares was re-
scinded. The authorisation from 15 May 2007 is
valid until 14 November 2008. The authorisation
was not exercised in 2007. It has not yet been de-
cided whether or the extent to which the authorisa-
tion will be used in the future.
Capital reserves
Capital reserves include premiums arising from
the issue of shares and were unchanged at euro
1,911 million.
Revenue reserves
Revenue reserves comprise the post-acquisition
and non-distributed earnings of consolidated Group
companies. In addition, revenue reserves include
both positive and negative goodwill arising on the
consolidation of Group companies prior to 31 De-
cember 1994.
Revenue reserves stood at euro 20,789 million
at 31 December 2007, 14.7 % higher than one year
earlier. They were increased in 2007 by the amount
of the net profit attributable to shareholders of
BMW AG (euro 3,126 million) and were reduced by
the payment of the dividend for 2006 (euro 458 mil-
lion).
The unappropriated profit of BMW AG of euro
694 million for 2007 will be proposed to the Annual
General Meeting for distribution. The proposed
distribution must be authorised by the shareholders
at the Annual General Meeting of BMW AG. It is
therefore not recognised as a liability in the Group
financial statements.
Accumulated other equity
Accumulated other equity consists of all amounts
recognised directly in equity resulting from the trans-
lation of the financial statements of foreign sub-
sidiaries, the effects of recognising changes in the
fair value of derivative financial instruments and
securities directly in equity, and actuarial gains and
losses relating to defined benefit pension plans and
similar obligations. Accumulated other equity was
increased by deferred taxes amounting to euro 116
million (2006: euro 512 million) recognised directly
in equity.
Minority interest
Equity attributable to minority interests was a posi-
tive amount of euro 11 million (2006: euro 4 mil-
Cash and cash equivalents
Cash and cash equivalents of euro 2,393 million
(2006: euro 1,336 million) comprise cash on hand
and at bank, all with a maturity of under three
months.
[29]
[30]