BMW 2009 Annual Report Download - page 63

61 Group Management Report
BMW AG Income Statement
in euro million
2009 2008
Revenues 37,980 44,313
Cost of sales – 32,679 – 37,833
Gross profit 5,301 6,480
Sales costs – 3,105 – 3,085
Administrative costs –1,379 –1,366
Research and development costs – 2,451 – 2,646
Other operating income and expenses 1,243 – 641
Result on investments 1,084 1,807
Financial result – 88 –154
Profit from ordinary activities 605 395
Income taxes – 393 3
Other taxes – 10 –14
Net profit 202 384
Transfer to revenue reserves – 5 –187
Unappropriated profit available for distribution 197 197
Revenues from the sale of vehicles to car rental companies
are not recognised when there is an obligation to take
back the vehicles. In accordance with the draft financial
reporting pronouncement “Specific Issues relating to the
Transfer of Beneficial Ownership and Profit Realisation in
accordance with HGB” (IDW ERS HFA 13 revised version
dated 29 November 2006) issued by the German Institute
of Public Accountants (IDW), vehicles remain on the bal-
ance sheet, measured at amortised cost, because, on the
basis of the criteria set out in the pronouncement, benefi-
cial ownership has not been transferred to the car rental
companies.