BMW 2004 Annual Report Download - page 83

82
The Group Statement of Changes in Equity is shown
on page 56.
Number of shares issued
At 31 December 2004, issued BMW AG common
stock was divided, as in the previous year, into
622,227,918 shares with a par-value of one euro.
Issued BMW AG preferred stock was divided into
52,196,162 non-voting shares, unchanged from
the previous year, each with a par-value of one euro.
All of the company’s stock is issued in the form of
bearer shares. Preferred stock bears an advance
profit (additional dividend) of euro 0.02 per share.
895,045 of the shares of preferred stock are only
entitled to receive dividends with effect from the be-
ginning of the financial year 2005.
In the period from February to November 2004,
BMW Group acquired 895,045 of its own (treasury)
preferred stock shares at an average price of euro
24.16 per share; these shares were sold to employees
at a reduced price of euro 14.26 per share in con-
junction with an employee share scheme. As a
result of the repurchase of treasury shares and their
subsequent issue, the company’s share capital re-
mained unchanged at euro 674 million during 2004
(2003: increase of euro 0.7 million in conjunction with
the issue of new shares out of authorised capital).
Capital reserves
The capital reserves comprise additional paid in capi-
tal on the issue of shares and remained unchanged
at euro 1,971 million.
Revenue reserves
Revenue reserves are disclosed in accordance with
the disclosure requirements contained in German
commercial law. They comprise the post-acquisition
and non-distributed earnings of consolidated group
companies. In addition, revenue reserves include both
positive and negative goodwill arising on the consoli-
dation of group companies prior to 31December1994.
Revenue reserves increased during the year by
14.4% to euro 14,501 million. They were increased
in 2004 by the amount of the net profit for the year
of euro 2,222 million und were reduced by the pay-
ment of the dividend for 2003 amounting to euro
392 million.
The unappropriated profit of BMW AG of euro
419 million will be proposed to the Annual General
Meeting for distribution. As in the previous year, the
proposed dividend will not give rise to a tax credit
relating to the corporation tax system applicable until
2001, since, following the enactment of the Tax
Preference Reduction Act on 16 May 2003, the tax
benefit on distributed profits was suspended until
the end of 2005.The tax reduction benefits of euro
133 million, resulting from the previous corporation
tax system, can be realised in specific annual amounts
during the period from 2006 to 2019. As a result of
the maximum amount regulations which apply for
each dividend year, the total amount will not be fully
utilised before 2019.
Accumulated other equity
Accumulated other equity consists of all amounts
recognised directly in equity resulting from the
translation of the financial statements of foreign
subsidiaries. It also includes the effects (net of de-
ferred tax) of recognising changes in the fair value
of financial instruments directly in equity. Accumu-
lated other equity includes deferred tax liabilities
of euro 704 million (2003: euro 1,102 million) which
have been recognised directly in equity.
Minority interest
As a result of the insignificance of the minority share-
holders’ interest in the equity of the group’s sub-
sidiaries, minority interest is not reported separately.
Minority interest in the share capital of sub-
sidiaries amounts to euro 0.312 million (2003: euro
0.297 million). Of this amount, euro 0.311 million
(2003: euro 0.286 million) relates to the minority
shareholder Euro Lloyd Reisebüro GmbH& Co.KG,
Cologne, and euro 0.001 million (2003: euro 0.011
million) to the minority shareholder Norddeutsche
Landesbank Girozentrale, Braunschweig.
Group Financial Statements 50
Income Statements 51
Balance Sheets 52
Cash Flow Statements 54
Group Statement of
Changes in Equity 56
Notes 57
--Accounting Principles
and Policies 57
--Notes to the Income Statement 66
--Notes to the balance sheet 74
--Other Disclosures 93
--Segment Information 100
--Disclosures pursuant to
§292a HGB 104
Auditors’ Report 107
[28]Equity