BMW 2013 Annual Report Download - page 158

158
88 GROUP FINANCIAL STATEMENTS
88 Income Statements
88 Statement of
Comprehensive Income
90 Balance Sheets
92 Cash Flow Statements
94 Group Statement of Changes in
Equity
96 Notes
96 Accounting Principles and
Policies
114 Notes to the Income Statement
121 Notes to the Statement
of Comprehensive Income
122
Notes to the Balance Sheet
145 Other Disclosures
161 Segment Information
44
Related party relationships
In accordance with IAS 24 (Related Party Disclosures),
related individuals or entities which have the ability to
control the BMW Group or which are controlled by the
BMW Group, must be disclosed unless such parties are
not already included in the Group Financial Statements
of BMW AG as consolidated companies. Control is
de-
fined 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 BMW Group.
In addition, the disclosure requirements of IAS 24 also
cover transactions with associated companies, joint
ventures and individuals that have the ability to exercise
significant influence over the financial and operating
policies of the BMW Group. This also includes close rela-
tives and intermediary entities. Significant influence
over the financial and operating policies of the BMW
Group is presumed when a party holds 20 % or more of
the voting power of BMW AG. In addition, the require-
ments contained in IAS 24 relating to key management
personnel and close members of their families or
inter-
mediary entities are also applied. In the case of the
BMW Group, this applies to members of the Board of
Management and Supervisory Board.
In the financial year 2013, the disclosure requirements
contained in IAS 24 affect the BMW Group with regard
to business relationships with non-consolidated sub-
sidiaries,
joint ventures and associated companies as
well as with members of the Board of Management and
Supervisory Board of BMW AG.
The BMW Group maintains normal business relation-
ships with non-consolidated subsidiaries. Transactions
with these companies 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., Shen-
yang, all arise in the normal course of business and
are conducted on the basis of arm’s length principles.
Group companies sold goods and services to BMW
Brilliance Automotive Ltd., Shenyang, during 2013
for an amount of € 3,588 million (2012: € 2,962 million).
At 31 December 2013, receivables of Group compa-
nies from BMW Brilliance Automotive Ltd., Shenyang,
totalled € 898 million (2012: € 608 million). Payables
of Group companies to BMW Brilliance Automotive
Ltd., Shenyang, amounted to € 66 million (2012:
€ – million). Group companies received goods and
services from BMW Brilliance Automotive Ltd.,
Shenyang, in 2013 for an amount of € 31 million (2012:
€ 26 million).
All relationships of BMW Group entities with the joint
ventures SGL Automotive Carbon Fibers Verwaltungs
GmbH, Munich, SGL Automotive Carbon Fibers GmbH
the cash flow from operating activities is derived in-
directly from the net profit for the year. Under this
method, changes in assets and liabilities relating to op-
erating 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 statement do not therefore agree directly with
the amounts shown in the Group and segment balance
sheets.
Cash inflows and outflows relating to operating leases,
where the BMW Group is the lessor, are aggregated and
shown on the line “Change in leased products” within
cash flows from operating activities.
The net change in receivables from sales financing
(including finance leases, where the BMW Group is the
lessor) is also reported within cash flows from operating
activities.
Income taxes paid and interest received are classified as
cash flows from operating activities in accordance with
IAS 7.31 and IAS 7.35. Interest paid is presented on a
separate line within cash flows from financing activities.
Dividends received in the financial year 2013 amounted
to € 4 million (2012: € 4 million).
The presentation of cash flows from financing activities
has been changed in the Group Financial Statements
for the year ended 31 December 2013. Previously,
changes in financial liabilities were offset on a single
line in the Cash Flow Statement. Following the change,
cash inflows and outflows for non-current other finan-
cial liabilities are shown separately. The change in cur-
rent other financial liabilities is also shown separately.
The previous year’s figures were restated in the inter-
est
of comparability. Non-current other financial lia-
bilities resulted in the previous year in a cash inflow
of
€ 7,427 million for new debt raised and a cash out-
flow of € 5,498 million for repayments. The change in
current other financial liabilities was a net cash inflow
of € 230 million.