BMW 2014 Annual Report Download - page 122

122
90 GROUP FINANCIAL STATEMENTS
90 Income Statements
90 Statement of
Comprehensive Income
92 Balance Sheets
94 Cash Flow Statements
96 Group Statement of Changes in
Equity
98 Notes
98 Accounting Principles and
Policies
116 Notes to the Income Statement
123 Notes to the Statement
of Comprehensive Income
124
Notes to the Balance Sheet
149 Other Disclosures
165 Segment Information
20
Share-based remuneration
The BMW Group operates three share-based remunera-
tion schemes, namely the Employee Share Programme
(for entitled employees), share-based commitments to
members of the Board of Management and share-based
commitments to senior heads of department.
In the case of the Employee Share Programme, non-
vot-
ing shares of preferred stock in BMW AG were granted
to qualifying employees during the financial year 2014
at favourable conditions (see note 35 for the number
and price of issued shares). The holding period for these
shares is up to 31 December 2017. The BMW Group re-
corded a personnel expense of € 6 million (2013: € 5 mil-
lion)
for the Employee Share Programme in 2014, cor-
responding to the difference between the market price
and the reduced price of the shares of preferred stock
purchased by employees. The Board of Management re-
serves the right to decide anew each year with respect
to an Employee Share Programme.
For financial years beginning after 1 January 2011,
BMW AG has added a share-based remuneration com-
ponent to the existing compensation system for Board
of Management members.
Each Board of Management member is required to
invest 20 % of his / her total bonus (after tax) in shares
of BMW AG common stock, which are recorded in a
Fee expense
The fee expense pursuant to § 314 (1) no. 9 HGB recog-
nised in the financial year 2014 for the Group auditors
The total fee comprises expenses recorded by BMW AG,
Munich, and all consolidated subsidiaries.
The fee expense shown for KPMG AG Wirtschaftsprü-
fungsgesellschaft, Berlin, relates only to services pro-
vided on behalf of BMW AG, Munich, and its German
subsidiaries.
separate custodian account for each member concerned
(annual tranche). Each annual tranche is subject to a
holding period of four years (vesting period). Once the
holding period is fulfilled, BMW AG grants one addi-
tional share of BMW AG common stock for each three
held or, at its discretion, pays the equivalent amount in
cash (share-based remuneration component) provided
that the term of office has not been terminated before
the end of the agreed contract period (except in the case
of death or invalidity).
With effect from the financial year 2012, qualifying de-
partment heads are also entitled to opt for a share-based
remuneration component, which, in most respects, is
comparable to the share-based remuneration arrange-
ments for Board of Management members.
The share-based remuneration component is measured
at its fair value at each balance sheet date between grant
and settlement date, and on the settlement date itself.
The appropriate amounts are recognised as personnel
expense on a straight-line basis over the vesting period
and reported in the balance sheet as a provision.
The cash-settlement obligation for the share-based re-
muneration component is measured at its fair value at
the balance sheet date (based on the closing price of
BMW AG common stock in Xetra trading at 31 Decem-
ber 2014).
amounted to € 23 million (2013: € 26 million) and consists
of the following:
Government grants and government assistance
Income from asset-related and performance-related
grants, amounting to € 30 million ( 2013* : € 25 million)
and € 73 million (2013: € 73 million) respectively, were
recognised in the income statement in 2014.
in € million 2014 2013
Audit of financial statements 15 14
thereof KPMG AG Wirtschaftsprüfungsgesellschaft 3 3
Other attestation services 2 3
thereof KPMG AG Wirtschaftsprüfungsgesellschaft 1 2
Tax advisory services 4 7
thereof KPMG AG Wirtschaftsprüfungsgesellschaft 1 3
Other services 2 2
thereof KPMG AG Wirtschaftsprüfungsgesellschaft 1 1
Fee expense 23 26
thereof KPMG AG Wirtschaftsprüfungsgesellschaft 6 9
* Prior year figures have been adjusted in accordance with IAS 8, see note 9.