BMW 2009 Annual Report Download - page 132

130
74 Group Financial Statements
74 Income Statements
74 Statement of
Comprehensive Income
76 Balance Sheets
78 Cash Flow Statements
80 Group Statement of Changes
in Equity
81 Notes
81 Accounting Principles
and Policies
90 Notes to the Income
Statement
97
Notes to the Statement
of Comprehensive Income
98 Notes to the Balance Sheet
119 Other Disclosures
133 Segment Information
40 Explanatory notes to the cash flow statements
The cash flow statements show how the cash and cash
equivalents of the BMW Group and of the Automobiles
and Financial Services segments have changed in the
course of the year as a result of cash inflows and cash out-
flows. In accordance with IAS 7 (Cash Flow Statements),
cash flows are classified into cash flows from operating, in-
vesting and financing activities. The cash flow statements
of the BMW Group are presented on page 78 et seq.
Cash and cash equivalents included in the cash flow state-
ment comprise cash in hand, cheques, and cash at bank,
to the extent that they are available within three months
and are subject to an insignificant risk of changes in value.
The positive impact of changes
in cash and cash equiva-
lents due to the effect of exchange rate fluctuations in
2009 was euro 40 million (2008: negative impact of euro
44 million).
The cash flows from investing and financing activities are
based on actual payments and receipts. By contrast, the
cash flow from operating activities is derived indirectly
from
the net profit / loss for the year. Under this method,
changes in assets and liabilities relating to operating
activities are adjusted for currency translation effects and
changes in the composition of the Group. The changes
in balance sheet positions shown in the cash flow state-
ment
do not therefore agree directly with the amounts
shown in the Group and segment balance sheets.
Related party relationships
In accordance with IAS 24 (Related Party Disclosures),
related individuals or entities which have the ability to con-
trol the BMW Group or which are controlled by the BMW
Group, must be disclosed unless such parties are not al-
ready included in the consolidated financial statements as
consolidated companies. Control is defined as ownership
of more than one half of the voting power of BMW AG or
the power to direct, by statute or agreement, the financial
and operating policies of the management of the Group.
In addition, the disclosure requirements of IAS 24 also cover
transactions with participations, joint ventures and indivi-
duals that have the ability to exercise significant in fluence
over the financial and operating policies of the BMW Group.
This also includes close relatives and intermediaries. Sig-
nificant influence over the financial and operating policies
of the BMW Group can arise when a party holds 20 % or
If the BMW Group acts as the lessor in a finance lease,
the relevant cash flows are reported in the cash flow state-
ments as part of the cash flow from investing activities.
If the BMW Group acts as the lessee in a finance lease,
the
cash flows are reported as part of the cash flows from
operating and investing activities.
If the BMW Group acts as the lessee in an operating lease,
cash flows are reported as part of the cash flow from in-
vesting activities. In the final case, where the BMW Group
acts as the lessee in an operating lease, cash flows are
reported as part of the cash flow from operating activities.
The entities of the BMW Sauber Group, Hinwil, were sold
to Peter Sauber AG , Pfäffikon, in 2009. The cash inflow in
2009 relating to the sales price amounted to euro 15 mil-
lion and is presented in the Group and Automobiles seg-
ment cash flow statements as part of the cash inflow from
investing activities in the line item “Proceeds from the dis-
posal of investments”.
Cash outflows for taxes on income and cash inflows for
interest are classified as cash flows from operating activi-
ties in accordance with IAS 7.31 and IAS 7.35. Cash out-
flows for interest are presented on a separate line within
cash flows from financing activities.
Cash flows from dividends received amounted to euro 4 mil-
lion
(2008: euro 4 million).
more
of the shares of BMW AG or is a member of the Board
of Management or Supervisory Board of BMW AG.
For the financial year 2009, the disclosure requirements
contained in IAS 24 only affect the BMW Group with re-
gard to business relationships with affiliated, non-consoli-
dated
entities, joint ventures and participations as well as
with members of the Board of
Management and Super-
visory Board of BMW AG.
The BMW Group maintains normal business relationships
with affiliated, non-consolidated entities. Transactions
with these entities are small in scale, arise in the normal
course of business and are conducted on the basis of
arm’s length principles.
Transactions of BMW Group companies with the joint
venture,
BMW Brilliance Automotive Ltd., Shenyang, all
41