BMW 2009 Annual Report Download - page 86

84
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
Closing rate Average rate
31.12. 2009 31.12. 2008 2009 2008
US Dollar 1.43 1.40 1.39 1.47
British Pound 0.89 0.95 0.89 0.80
Chinese Renminbi 9.78 9.54 9.52 10.23
Japanese Yen 133.17 126.74 130.37 152.29
The exchange rates of those currencies which have a material impact on the Group Financial Statements were as follows:
Accounting principles
The financial statements of BMW AG and of its subsidiaries
in Germany and elsewhere have been prepared for con-
solidation purposes using uniform accounting policies in
accordance with IAS 27.
Revenues from the sale of products are recognised when
the risks and rewards of ownership of the goods are
transferred to the customer, the sales price is agreed or
determinable and receipt of payment can be assumed.
Revenues are stated net of discounts, allowances, settle-
ment
discount and rebates. Revenues also include lease
rentals and interest income from financial services.
If the sale of products includes a determinable amount for
subsequent services (multiple-component contracts),
the related revenues are deferred and recognised as in-
come
over the period of the contract. Amounts are nor-
mally recognised as income by reference to the pattern of
related expenditure.
Profits arising on the sale of vehicles for which a Group
company retains a repurchase commitment (buy-back
contracts) are not recognised until such profits have been
realised. The vehicles are included in inventories and
stated at cost.
Cost of sales comprises the cost of products sold and the
acquisition cost of purchased goods sold. In addition to
directly attributable material and production costs, it also
includes research costs and development costs not
recognised as assets, the amortisation of capitalised de-
velopment costs as well as overheads (including deprecia-
tion of property, plant and equipment and amortisation of
other intangible assets relating to production) and write-
downs on inventories. Cost of sales also includes freight
and insurance costs relating to deliveries to dealers and
agency fees on direct sales. Expenses which are directly
attributable to financial services business and interest
expense from refinancing the entire financial services busi-
ness,
including the expense of risk provisions and write-
downs, are reported in cost of sales.
In accordance with IAS 20 (Accounting for Government
Grants and Disclosure of Government Assistance), public
sector grants are not recognised until there is reasonable
assurance that the conditions attaching to them have been
complied with and the grants will be received. They are
recognised as income over the periods necessary to match
them with the related costs which they are intended to
compensate.
Basic earnings per share are computed in accordance with
IAS 33 (Earnings per Share). Undiluted earnings per share
are calculated for common and preferred stock by dividing
the net profit after minority interests, as attributable to each
category of stock, by the average number of outstanding
shares. The net profit is accordingly allocated to the differ-
ent categories of stock. The portion of the Group net profit
for the year which is not being distributed is allocated to
each category of stock based on the number of outstand-
ing shares. Profits available for distribution are determined
directly on the basis of the dividend resolutions passed for
common and preferred stock. Diluted earnings per share
would have to be disclosed separately.
Purchased and internally-generated intangible assets are
recognised as assets in accordance with IAS 38 (Intangible
Assets), where it is probable that the use of the asset will
generate future economic benefits and where the costs
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