BMW 2006 Annual Report Download - page 109

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108 Group Financial Statements
65 Group Financial Statements
65 Income Statements
66 Balance Sheets
68 Cash Flow Statements
70 Group Statement of
Changes in Equity
71 Statement of Income and
Expenses recognised directly
in Equity
72 Notes
72 – Accounting Principles
and Policies
79 – Notes to the Income Statement
86 – Notes to the Balance Sheet
104 – Other Disclosures
111 – Segment Information
cash flow statement do not therefore agree directly
with the amounts shown in the Group balance
sheet.
Related party relationships
In accordance with IAS 24 (Related Party Disclo-
sures), related individuals or entities which have the
ability to control the BMW Group or which are con-
trolled by the BMW Group, must be disclosed un-
less such parties are not already included in the
consolidated financial statements as consolidated
companies. Control is defined as ownership of more
than one half of the voting power of BMW AG or the
power to direct, by statute or agreement, the finan-
cial and operating policies of the management of
the Group.
In addition, the disclosure requirements of IAS
24 also cover transactions with associates and with
parties which have the ability to exercise significant
influence over the financial and operating policies
of the BMW Group. This also includes close relatives
and intermediaries. Significant influence over the
financial and operating policies of the Group can
arise when a party holds 20 % or more of the shares
of BMW AG or is a member of the Board of Manage-
ment
or Supervisory Board of BMW AG.
For the financial year 2006, the disclosure re-
quirements contained in IAS 24 only affect the BMW
Group with regard to business relationships with
affiliated, non-consolidated entities, joint ventures
and other entities in which an investment is held as
well as with members of the Board of Management
and Supervisory Board of BMW AG.
The cash inflow from operating activities in-
cludes the following cash flows in accordance with
IAS 7 paragraphs 31 and 35:
The BMW Group’s relationships with affiliated,
non-consolidated entities are conducted on the
basis of arm’s length principles. Transactions with
these related parties are small in scale and arise in
the normal course of business.
Transactions of BMW Group companies with
joint ventures and other equity investments – mainly
BMW Brilliance Automotive Ltd., Shenyang (50%)
and TRITEC Motors Ltda., Campo Largo (50%) –
all arise in the normal course of business and are
conducted on the basis of arm’s length principles.
Stefan Quandt is a shareholder and Deputy
Chairman of the Supervisory Board of BMW AG. He
is also sole shareholder and Chairman of the Super-
visory Board of DELTON AG, Bad Homburg v.d.H.,
which, via its subsidiaries, performed logistics serv-
ices for the BMW Group during the financial year
2006. In addition, companies of the DELTON Group
purchased vehicles from the BMW Group. In addi-
tion, SOLARWATT AG, Dresden, in which Stefan
Quandt has a significant investment, supplied solar
modules with a total value of euro 3 million to the
BMW Group in 2006. These service and sale con-
tracts are not material for the BMW Group and are
made, without exception, on the basis of arm’s
length principles.
in euro million 2006 2005
Interest received 391 283
Interest paid 328 240
Dividends received 62 28
Income taxes paid 733 604
[40]