BMW 2011 Annual Report Download - page 142

142
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
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 State-
ments as consolidated companies. Control is defined as
ownership of more than one half of the voting power
of BMW AG or the power to direct, by statute or
agree-
ment, the financial and operating policies of the manage-
ment of the Group.
In addition, the disclosure requirements of IAS 24 also
cover transactions with participations, joint ventures
and individuals that have the ability to exercise signifi-
cant influence over the financial and operating policies
of the BMW Group. This also includes close relatives
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 requirements
contained in IAS 24 relating to key management per-
sonnel and close members of their families or interme-
diary entities are also applied. In the case of the BMW
Group, this applies to members of the Board of Manage-
ment and Supervisory Board.
For the financial year 2011, the disclosure requirements
contained in IAS 24 only affect the BMW Group with
regard to business relationships with affiliated, non-con-
solidated entities, joint ventures, participations and
members of BMW AG’s Board of Management and Super-
visory
Board.
The BMW Group maintains normal business relation-
ships with affiliated, non-consolidated entities.
Trans-
actions with these entities 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., Shenyang,
all arise in the normal course of business and are con-
ducted on the basis of arm’s length principles. Group
companies sold goods and services to BMW Brilliance
Automotive Ltd., Shenyang, during 2011 for an amount
of € 1,729 million (2010: € 1,046 million). At 31 Decem-
ber 2011 receivables of Group companies from BMW
Brilliance Automotive Ltd., Shenyang, amounted to
€ 381 million (2010: € 260 million). Payables of Group
companies to BMW Brilliance Automotive Ltd., Shen-
yang, at 31 December 2011 amounted to € 89 million
(2010: € – million). Group companies received goods
and services from BMW Brilliance Automotive Ltd.,
Shenyang, during the financial year under report for
an
amount of € 15 million (2010: € – million).
All relationships of BMW Group entities with the joint
ventures SGL Automotive Carbon Fibers GmbH & Co.
KG, Munich, and SGL Automotive Carbon Fibers LLC,
Dover, DE, 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 these
joint ventures totalling € 1 million (2010: € – million). At
31 December 2011 receivables of Group companies
for loans disbursed to the joint ventures amounted to
€ 61 million (2010: € 20 million). Goods and services
received by Group companies from the joint ventures
totalled € 4 million (2010: € – million). At 31 December
2011 payables of Group companies to the joint ventures
amounted to € 1 million (2010: € – million).
All relationships of BMW Group entities with the joint
ventures DriveNow GmbH & Co. KG, Munich, and
DriveNow Verwaltungs GmbH, Munich, are conducted
on the basis of arm’s length principles. Transactions
with these entities arise in the normal course of business
and are small in scale.
Business transactions between BMW Group entities and
participations all arise in the normal course of business
and are conducted on the basis of arm’s length principles.
With the exception of Cirquent GmbH, Munich, busi-
ness relationships with such entities are on a small scale.
In 2011 Group entities purchased services and goods
from Cirquent GmbH, Munich, amounting to € 76 mil-
lion (2010: € 56 million). At 31 December 2011 payables
of Group companies to Cirquent GmbH, Munich,
amounted to € 24 million (2010: € 4 million). As at the
end of the previous financial year, Group entities had no
receivables from Cirquent GmbH, Munich.
Stefan Quandt is a shareholder and Deputy Chairman
of the Supervisory Board of BMW AG. He is also sole
shareholder and Chairman of the Supervisory Board
of DELTON AG, Bad Homburg v.d.H., which, via its
subsidiaries, performed logistics services for the BMW
Group during the financial year 2011. In addition, com-