BMW 2010 Annual Report Download - page 94

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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
89 Notes to the Income
Statement
95 Notes to the Statement
of Comprehensive Income
96 Notes to the Balance Sheet
117 Other Disclosures
133 Segment Information
An analysis of deferred taxes tax assets and liabilities by position at 31 December is shown below:
“Netting” relates to the offset of deferred tax assets and
liabilities within individual entities or tax groups.
Deferred tax assets on tax losses available for carryforward
and on capital losses decreased on a net basis. Tax losses
available for carryforward – for the most part usable
without restriction – decreased to euro 2.6 billion (2009:
euro 5.2 billion) mainly as a result of a tax field audit at
the level of BMW AG. A valuation allowance of euro
33million (2009: euro 31 million) was recognised at
31December 2010 on deferred tax assets relating to these
tax losses. In the entities affected, a net surplus of de-
ferred tax assets over deferred tax liabilities is reported
amounting to euro 587 million (2009: euro 618 million).
Capital losses in the United Kingdom were unchanged
at the end of the reporting period at euro 1.9 billion. As
in previous years, deferred tax assets recognised on these
tax losses – amounting to euro 516 million at the end
ofthe reporting period (2009: euro 519 million) – were
fully written down since they can only be utilised against
future capital gains. Capital losses are not connected to
on-going business operations.
Deferred tax assets are recognised on the basis of manage-
ment’s
assessment of whether it is probable that the
relevant entities will generate sufficient taxable profits
against which deductible temporary differences can be
offset.
Deferred taxes recognised directly in equity amounted to
euro 756 million (2009: euro 493 million), an increase of
euro 263 million (2009: euro 190 million) compared to
the previous year. The change also includes a euro 6 mil-
lion (2009: euro 12 million) reduction in deferred taxes
arising on foreign currency translation.
Changes in deferred tax assets and liabilities during the
reporting period can be summarised as follows:
Deferred tax assets Deferred tax liabilities
in euro million 2010 2009 2010 2009
Intangible assets 2 1 1,338 1,490
Property, plant and equipment 33 38 281 410
Leased products 415 443 4,651 4,281
Investments 6 5 3 8
Other current assets 2,672 2,175 4,007 3,559
Tax loss carryforwards 1,453 1,838 – –
Provisions 1,950 1,388 46 47
Liabilities 3,113 3,316 1,613 1,444
Consolidations 1,870 1,564 566 482
11,514 10,768 12,505 11,721
Valuation allowance – 549 – 550 – –
Netting – 9,572 – 8,952 – 9,572 – 8,952
Deferred taxes 1,393 1,266 2,933 2,769
Net 1,540 1,503
in euro million 2010 2009
Deferred taxes at 1 January 1,503 1,891
Deferred tax expenses recognised through income statement 172 –135
Change in deferred taxes recognised directly in equity – 269 – 202
Exchange rate impact and other changes* 134 – 51
Deferred taxes at 31 December 1,540 1,503
* including effect of first-time consolidations