BMW 2003 Annual Report Download - page 72

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The main reclassifications related to the fol-
lowing changes in presentation:
Processing fee income generated from financial
services business is now reported in revenues rather
than in other operating income. Corresponding
expenses are reported in cost of sales rather than in
other operating expenses.
The expense for allocations to provisions for
residual value risks, allowances recognised on lease
vehicles for residual value risks and allowances on
receivables from sales financing are now reported
in cost of sales rather than in other operating ex-
penses.
Expenses for freight and insurance for deliveries
to dealers are now reported in costs of sales rather
than in sales costs.
Agency fee cost relating to financial services
business and direct sales are now reported in cost
of sales rather than in sales costs.
In June 2003, the IASB issued IFRS 1 (First-time
Adoption of International Financial Reporting
Standards), which sets out the rules for the first-time
application of standards issued by the IASB and
which becomes effective on1 January 2004. This
standard does not have any impact on the BMW
Group financial statements.
Revised standards were published in December
2003 in conjunction with the IASB Improvement
Project. Mandatory application is required from
1January 2005. Early application is encouraged.
This applies to the following standards:
–IAS 1 (Presentation of Financial Statements)
–IAS 2 (Inventories)
–IAS 8
(Accounting Policies, Changes in Accounting
Estimates and Errors)
–IAS 10 (Events after the Balance Sheet Date)
A number of administrative costs have been
reclassified, mainly from cost of sales and sales
costs, to administrative costs.
Expenditure for motorsport activities are now re-
ported as research and development costs.
Previously they were included in other operating
expenses.
The cost of reversing the discounting of pen-
sion provisions and the income from the expected
return on pension plan assets are reported as part
of the financial result. Previously these costs were
included in functional costs.
A detailed analysis of reclassifications is pro-
vided in the notes to the individual items of the in-
come statement.
–IAS 16 (Property, Plant and Equipment)
–IAS 17 (Leases)
–IAS 21 (The Effect of Changes in Foreign
Exchange Rates)
–IAS 24 (Related Party Disclosures)
–IAS 27 (Consolidated and Separate Financial
Statements)
–IAS 28 (Investments in Associates)
–IAS 31 (Interests in Joint Ventures)
–IAS 32 (Financial Instruments – Disclosures and
Presentation)
–IAS 33 (Earnings per Share)
–IAS 39 (Financial Instruments – Recognition and
Measurement)
–IAS 40 (Investment Property)
The revised standards have not been applied for the
Group financial statements for the financial year 2003.
[8]New accounting
rules