BMW 2005 Annual Report Download - page 80

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IFRS 3 is required to be applied (in conjunction with
the relevant provisions of IAS 36 and IAS 38) for all
business combinations for which the agreement
date is 31 March 2004 or later. All other provisions
of IFRS 3, IAS 36 and IAS 38 have been applied from
1 January 2005 onwards.
The following Interpretations and amendments
to existing Interpretations of the IFRIC have been
applied for the first time:
–IFRIC 1 (Changes in Existing Decommissioning,
Restoration and Similar Liabilities)
–IFRIC 2 (Members’ Shares in Co-operative
Entities and Similar Instruments)
–IFRIC (Amendment to SIC-12: Scope of SIC-12
Consolidation Special Purpose Entities).
(b) New financial reporting rules issued in 2005
The IASB has issued the following new or revised
Standards or amendments to existing Standards in
2005:
–IFRS 7 (Financial Instruments: Disclosures) and
an Amendment to IAS 1 (Presentation of Financial
Statements: Capital Disclosures)
– Amendments to IFRS 1 & IFRS 6 (First-time
Adoption of International Financial Reporting
Standards and Exploration for and Evaluation of
Mineral Resources)
– Amendment to IAS 21 (Effects of Changes in
Foreign Exchange Rates)
– Amendment to IAS 39 (Cash Flow Hedge
Accounting of Forecast Intragroup Transactions)
– Amendment to IAS 39 (The Fair Value Option)
– Amendments to IAS 39 and IFRS 4 (Financial
Guarantee Contracts)
–IFRIC 6 (Liabilities arising from Participating in a
Specific Market – Waste Electrical and Electronic
Equipment)
–IFRIC 7 (Applying the Restatement Approach un-
der IAS 29 Financial Reporting in Hyperinflation-
ary Economics)
IFRS 7 and the corresponding amendments to IAS1
are mandatory from 1 January 2007 onwards. These
new rules will result in a greater scope of disclosures
about financial instruments in the Notes to the
Group financial statements.
The amendments to IFRS 1 and IFRS 6 are only
applicable for first-time adopters. They are therefore
not relevant for the BMW Group financial statements.
The revised version of IAS 21 is mandatory from
1 January 2006 onwards, but will similarly be of little
significance for the BMW Group.
The revised version of IAS 39 relating to the
accounting treatment of intragroup transactions has
been adopted early by the BMW Group and applied
in the 2005 Group financial statements (mandatory
application from 1 January 2006 onwards). The
rules relating to the fair value option become man-
datory from 1 January 2006 onwards. It is not ex-
pected
that there will be any significant cases where
they will need to be applied within the BMW Group.
Changes to IAS 39, relating to financial guarantee
contracts, and to IFRS 4 become applicable from
1 January 2006 onwards. The changes are not
expected to have a significant impact on the Group
financial statements.
IFRIC 6 is mandatory from 1 January 2006 on-
wards, and IFRIC 7 from 1 January 2007 onwards.
These new Interpretations are not material for the
Group financial statements.
The IASB withdrew IFRIC 3 (Emission Rights)
in July 2005. For this reason, emission rights are ac-
counted for in accordance with the underlying rules
contained in IAS 20, 36, 37 and 38.
[8]Changes in the
Group financial
statements at
31 December 2004
(a) IASB Improvement Project
The main changes resulting from the Improvement
Project for the BMW Group relate to the application
of the revised version of IAS 1 (Presentation of
Financial Statements). This Standard requires the
balance sheet to be classified on the basis of the
maturity of assets and liabilities (current/non-current
distinction) and has resulted in a changed presen-
tation of the Group balance sheet. Assets, liabilities,
and provisions are classified as current and non-