BMW 2001 Annual Report Download - page 62

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Deferred taxes
Under HGB, there is a requirement to recognise all
deferred tax liabilities but only deferred tax assets
arising from consolidations . There is an option to
recognise other deferred tax assets. Under IAS all
deferred tax assets and liabilities must generally be
recognised. A further difference is that, whereas it is
not permitted under HGB to recognise a deferred tax
asset on tax loss carry forwards, it is a requirement of
IAS to recognise a deferred tax asset on tax loss car-
ry forwards where it is probable that the tax benefit
will be realised.
For IAS purposes, deferred tax assets increase
by euro 922 million after netting deferred tax assets
and liabilities where permitted. This increase relates
mainly to the deferred tax asset recognised on tax
Provisions
The actuarial method used to measure pension
obligations in accordance with IAS differs from that
used under HGB, taking into account future salary
and pension increases. The increase in the provision
remains relatively low however since the BMW
Group was already using a discount rate of 5% for
HGB purposes which led to a higher provision. The
increase is due to the fact that the computation took
account of the career progression of all employees
in Germany.
loss carry forwards and on the surplus of negative
fair values arising from forward currency contracts.
Deferred tax liabilities of euro 199 million are dis-
closed for IAS purposes, whereas for HGB purposes
all deferred tax liabilities could be offset against de-
ferred tax assets.
Liabilities from sales financing
Liabilities from sales financing of euro 16,170 million
under HGB are reclassified for IAS purposes to the
position liabilities and deferred income.
Liabilities and deferred income
This position increases by euro 26,152 million
(+394.1%) under IAS as follows:
Other provisions may only be recognised under
IAS if an enterprise has a present obligation (legal or
constructive) to a third party and outflow of re-
sources is probable (more likely than not). The
recognition of deferred expense provisions, as per-
mitted by HGB, is not allowed under IAS. Provisions
are measured for HGB purposes on the basis of pru-
dent management judgement, for IAS purposes at
their most probable amount. IAS require that long-
term provisions are discounted.
in euro million
Liabilities and deferred income at 31.12.2000 under HGB 6,636
Reclassification of liabilities from sales financing +16,170
Fair value measurement of financial instruments +1,616
Reversal of repayments of asset backed financing transactions +7,282
Reclassification of provisions +881
Other +203
Liabilities and deferred income at 1.1.2001 under IAS 32,788