BMW 2005 Annual Report Download - page 55

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Revenues generated with car rental companies
involving a repurchase commitment are derecog-
nised. Based on the draft Pronouncement issued
on 1 July 2004 by the German Institute of Public
Accountants (IDW) relating to “Specific Issues in
connection with Transfer of Ownership and Profit
Realisation in accordance with HGB“ (IDW ERS HFA
13), the vehicles involved are presented within
current assets, measured at amortised cost, since
economic ownership has not been transferred to
the car rental companies.
Group Management Report 8
A Review of the Financial Year 8
The General Economic Environment 11
Review of operations 15
BMW Stock in 2005 38
Financial Analysis 41
--Internal Management System 41
--Earnings performance 42
--Financial position 45
--Net assets position 46
--Subsequent events report 49
--Value added statement 49
--Key performance figures 51
--Comments on BMW AG 52
Risk Management 56
Outlook 60
BMW AG 2005 2004
Income Statement in euro million
Revenues 41,801 40,597
Cost of sales – 36,379 – 34,842
Gross profit 5,422 5,755
Sales costs – 2,731 – 2,685
Administrative costs – 904 – 876
Research and development costs – 2,917 – 2,666
Other operating income and expenses 893 993
Result on investments 647 636
Net interest expense –23 –83
Profit from ordinary activities 387 1,074
Income taxes 50 – 326
Other taxes –13 –1
Net profit 424 747
Transfer to revenue reserves – – 328
Unappropriated profit available for distribution 424 419