BMW 2001 Annual Report Download - page 61

Download and view the complete annual report

Please find page 61 of the 2001 BMW annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 196

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196

60
Assets from sales financing (receivables from
sales financing)
Assets from sales financing under HGB decrease by
Other current assets and prepayments
The treatment of financial instruments (marketable
securities, foreign currency receivables and
payables, derivative instruments) differs significantly
between IAS and HGB at a conceptual level. Under
HGB, financial instruments may not be measured at
an amount above cost (i.e. the acquisition cost prin-
ciple) and they must always be measured at their
most prudent amount (i.e. in accordance with the
imparity principle which requires recognition of unre-
alised losses but not of unrealised gains). Whereas it
is not permitted to recognise unrealised gains, provi-
sions must be recognised for all pending losses on
onerous contracts. By contrast, IAS requires that all
financial derivative instruments are measured at their
fair value, meaning that unrealised gains are also
recognised. The requirement for fair value measure-
euro 496 million (2.8%) under IAS and now only
include, after both reclassifications set out below,
receivables from sales financing:
ment affects the BMW Group particularly in the ac-
counting treatment of forward currency contracts.
For IAS purposes, all positive and negative fair val-
ues arising on derivative instruments must be recog-
nised. Fair value changes arising on cash flow
hedges, to the extent that they are classified as ef-
fective, are recognised directly in equity, thus leading
potentially to a greater risk of volatility in equity as a
result of interest rate and currency fluctuations.
IAS also requires that the surplus on certain ex-
ternal pension funds must be recognised as an as-
set. In the case of the BMW Group, this is an issue
principally affecting the pension fund in Great
Britain.
Other current assets increase by euro 1,423
million (+17,4%) in comparison with HGB:
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
in euro million
Assets from sales financing at 31.12.2000 under HGB 17,578
Reclassification of leased products (HGB amount) 7,206
Reclassification to other positions within current assets 624
Reclassification of operating leases to finance leases +943
Release of allowances on receivables +143
Reversal of asset backed financing transactions previously off-balance sheet +6,248
Receivables from sales financing at 1.1.2001 under IAS 17,082
in euro million
Other current assets and prepayments at 31.12.2000 under HGB 8,184
Reclassification of assets from sales financing +624
Fair value measurement of financial instruments +470
Pension fund surplus +92
Other +237
Other current assets and prepayments at 1.1.2001 under IAS 9,607