BMW 2006 Annual Report Download - page 74

Consolidated companies
The BMW Group financial statements include, be-
sides BMW AG, all material subsidiaries,17 special
securities funds and 19 trusts (almost all used for
asset backed financing transactions) both in Ger-
many and abroad.
The number of subsidiaries, special purpose
funds and other special purpose entities included
in the Group financial statements changed in 2006
as follows:
73
[2]
[3]
68 subsidiaries (2005: 72), either dormant or
generating a negligible volume of business, are not
included. Their influence on the Group’s earnings,
financial and net assets position is immaterial.
Non-inclusion of operating subsidiaries reduces
total Group revenues by1.5 % (2005:1.7%).
Two joint ventures have been consolidated using
the equity method. With effect from the beginning
of the financial year 2006, F.A.S.T. Gesellschaft für
angewandte Softwaretechnologie mbH, Munich,
became a fully consolidated subsidiary following
the acquisition of the remaining 50 % of the voting
rights. Three equity investments are not consolidated
since they are not material to the Group’s earnings,
financial and net assets position. They are included
in the line “Other investments”,measured at cost less,
where applicable, accumulated impairment losses.
A separate “List of Group Investments” pur-
suant to §313 (4) HGB will be submitted to the oper-
ator of the electronic version of the German Federal
Gazette. This list, along with the “List of Third Party
Companies which are not of Minor Importance for
the Group”, will also be posted on the BMW Group
website.
Germany Foreign Total
Included at 31.12.2005 44 136 180
Included for the first time in 2006 1 12 13
No longer included in 2006 – 4 4
Included at 31.12.2006 45 144 189
Changes in the group reporting entity
BMW Hellas Trade of Cars SA, Athens, Park Lane
Ltd., Bracknell, BMW Portugal Lda., Lisbon, BMW
Holding Malaysia Sdn Bhd, Kuala Lumpur, BMW
Malaysia Sdn Bhd, Kuala Lumpur, BMW Asia Tech-
nology Centre Sdn Bhd, Kuala Lumpur, BMW China
Automotive Trading Ltd., Peking, BMW Leasing
(Thailand) Co., Ltd., Bangkok, BMW Danmark A/S,
Kolding, BMW International Investment B.V., Rijswijk,
and F.A.S.T. Gesellschaft für angewandte Software-
technologie mbH, Munich, were consolidated for the
first time in 2006.
Bavaria Insurance Brokers Limited, Dublin, is no
longer a consolidated company.
The group reporting entity also changed by com-
parison to the previous year as a result of the first-
time consolidation of two special purpose entities
and the deconsolidation of three special purpose
entities.
The changes in the composition of the group
reporting entity do not have a material impact on
the earnings, financial and net assets position of the
Group.
[4]Consolidation principles
The equity of subsidiaries is consolidated in accor-
dance with IFRS 3 (Business Combinations). IFRS 3
requires that all business combinations are accounted
for using the purchase method, whereby identifiable
assets and liabilities acquired are measured initially
at their fair value. The excess of the Group’s interest
in the net fair value of the identifiable assets and lia-
bilities acquired over cost is recognised as goodwill
and is subjected to a regular review for possible
impairment. Goodwill of euro 91 million which arose
prior to 1 January1995 remains netted against