BMW 2011 Annual Report Download - page 120

120
76 GROUP FINANCIAL STATEMENTS
76 Income Statements
76 Statement of
Comprehensive Income
78 Balance Sheets
80 Cash Flow Statements
82 Group Statement of Changes
in Equity
84 Notes
84 Accounting Principles
and Policies
100 Notes to the Income
Statement
107 Notes to the Statement
of Comprehensive Income
108
Notes to the Balance Sheet
129 Other Disclosures
145 Segment Information
computation requires the use of estimates, based on as-
sumptions relating to life expectancy and the parame-
ters stated below that depend on the economic situation
in each particular country. The following weighted aver-
age values have been used for Germany, the United
Kingdom and other countries:
31 December Germany United Kingdom Other
in % 2011 2010 2011 2010 2011 2010
Discount rate 4.75 4.75 4.75 5.30 4.57 5.32
Salary level trend 3.35 3.25 3.65 4.10 3.43 3.89
Pension level trend 2.35 2.25 3.09 3.60 1.59 2.12
The salary level trend refers to the expected rate of
salary increase which is estimated annually depending
on inflation and career development of employees
within the Group.
In the case of externally funded plans, the defined bene-
fit obligation is offset against plan assets measured at
their fair value. Where the plan assets exceed the pen-
sion obligations and the enterprise has a right of reim-
bursement or a right to reduce future contributions, the
surplus amount is recognised as an asset in accordance
with IAS 19 and presented within other financial assets.
In the case of externally funded plans, a liability is recog-
nised under pension provisions where the benefit obli-
gation exceeds fund assets.
Actuarial gains or losses may result from increases or
decreases in either the present value of the defined bene-
fit obligation or the fair value of the plan assets. Causes
of actuarial gains or losses include the effect of changes
in the measurement parameters, changes in estimates
caused by the actual development of risks impacting on
pension obligations and differences between the actual
and expected return on plan assets. Actuarial gains or
losses are recognised directly in revenue re
serves within
equity. Past service cost arises where a
BMW Group
company introduces a defined benefit plan or changes
the benefits payable under an existing plan.
Based on the measurement principles contained in
IAS 19, the following funding status applies to the
Group’s pension plans:
31 December Germany United Kingdom Other To t a l
in € million 2011 2010 2011 2010 2011 2010 2011 2010
Present value of pension benefits covered by
accounting provisions
2 3 – – 93 86 95 89
Present value of funded pension benefits 5,616 5,289 6,676 6,014 825 616 13,117 11,919
Defined benefit obligations 5,618 5,292 6,676 6,014 918 702 13,212 12,008
Fair value of plan assets 5,178 5,207 5,376 4,812 485 436 11,039 10,455
Net obligation 440 85 1,300 1,202 433 266 2,173 1,553
Past service cost not yet recognised – – – – 6 6 6 6
Amount not recognised as an asset because of
the limit in IAS 19.58 – – – – 3 3 3 3
Balance sheet amounts at 31 December 440 85 1,300 1,202 442 275 2,182 1,562
thereof pension provision 440 85 1,300 1,202 443 276 2,183 1,563
thereof pension assets – – – – – 1 – 1 – 1 – 1