BMW 2001 Annual Report Download - page 53

001 BMW Group in figures
004 Report of the Supervisory Board
008 Supervisory Board
011 Board of Management
012 Group Management Report
029 BMW Stock
033 Group Financial Statements
098 BMW AG Financial Statements
104 BMW Group Annual Comparison
106 BMW Group Locations
108 Glossary
112 Index
52
In conjunction with the restructuring of investments
in the Softlab sub-group, the following companies
are no longer consolidated: LOT Consulting GmbH,
Villingen/Schwenningen, LOT Systeme- und Service
GmbH, Dresden, LOT Consulting GmbH, Karlsruhe,
and softlab S.A., Paris.
Nexolab GmbH, Munich, which was incorporat-
ed in 2000 and is part of the Softlab sub-group, was
consolidated for the first time in 2001.
Softlab Ltd., Bracknell is no longer consolidated
with effect from 1 April 2001, following the transfer
of part of the activities of this company to Softlab
Ltd., Solihull. This newly incorporated company has
been consolidated with effect from 1 April 2001.
Following agreement on the transfer balance
sheet between BMW (UK) Holdings Ltd., Bracknell
and Techtronic (2000) Ltd., Birmingham (Phoenix
Consortium) in connection with the sale of Rover
Cars, the supply plant Powertrain Ltd., Bracknell,
(excluding gearbox production for the MINI) was
transferred to the Phoenix Consortium with effect
from 31 May 2001 and was deconsolidated at that
date. Gearbox production for the MINI was trans-
ferred to the newly incorporated Midland Gears.
Ltd., Bracknell, which has been consolidated since
1 June 2001.
In the capital consolidation, investments in sub-
sidiaries are set off against the Groups share of the
equity of consolidated subsidiaries at the date of ac-
quisition. In the case of subsidiaries purchased for
consideration, any difference between purchase
cost and the Groups share of the equity, is allocated
initially to the identifiable assets and liabilities of the
subsidiary where the difference results from undis-
closed reserves or liabilities. Any excess of cost over
the amounts allocated to identifiable assets and lia-
bilities is recognised as goodwill and is amortised
over its future estimated useful life (up to a maximum
Following the disposal of the financing business
for Rover Cars and Land Rover vehicles to the
Phoenix Consortium and to Ford Motor Company,
Dearborn, Mich., Rover Financial Services (GB),
Hook, ceased to be a Group company.
BMW Financial Services Holding GmbH, Mu-
nich, is no longer consolidated as a separate compa-
ny after it was merged with BMW AG. British Motor
Heritage Ltd., Gaydon, Rover Pension Services Ltd.,
Bracknell, Rover Property Development Ltd., Brack-
nell, The Austin Motor Company Ltd., Bracknell and
The Rover Group Benefit Trust Ltd., Bracknell, also
ceased to be Group companies.
Hireus Ltd., Bracknell, and APD Industries plc.,
Bracknell, were consolidated for the first time in
2001. Both companies cover the Rolls-Royce activi-
ties of the BMW Group.
The Group reporting entity also changed by the
first-time inclusion of three special purpose funds
and one trust.
The changes in the composition of the Group
do not have a material impact on the assets, liabili-
ties, financial position and earnings of the Group.
of 15 years) on a straight-line basis. Amortisation is
recognised as an expense. Goodwill of euro 91 mil-
lion which arose prior to 1 January 1995 remains
netted against reserves as permitted by IAS 22
(Business Combinations). When a Group company
is deconsolidated, goodwill is removed from the
balance sheet with income statement effect.
Receivables, liabilities, provisions, income and
expenses and profits between consolidated compa-
nies are eliminated.
The same principles are applied in consolidat-
ing associated companies under the equity method.
[4]Consolidation
principles
[3]Changes in the
reporting entity