BMW 2006 Annual Report Download - page 80

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in euro million 2006 2005
Manufacturing costs 26,449 25,598
Warranty expenditure 1,081 1,553
Cost of sales directly attributable to financial services 6,612 5,586
Interest expense for financial operations 1,308 1,033
Expense for risk provisions and write-downs for financial services business 501 541
Other cost of sales 1,709 1,681
Cost of sales 37,660 35,992
79
The financial reporting rules applied for the first time
in 2006 did not have a significant impact on the
BMW Group.
(b) New financial reporting rules issued in 2006
The IASB issued IFRS 8 (Operating Segments) in
2006. IFRS 8 will replace IAS 14 (Segment Reporting)
and is mandatory for financial periods commencing
after 1 January 2009.
In addition, the following Interpretations were
issued:
–IFRIC 8 (Scope of IFRS 2)
–IFRIC 9 (Reassessment of Embedded Derivatives)
Expense for risk provisions and write-downs in-
cludes write-downs of euro 211 million (2005: euro
248 million) on receivables from financial services.
Cost of sales include euro 8,421 million (2005:
euro:7,160 million) relating to financial services
business.
Cost of sales
Cost of sales comprises:
An analysis of revenues by business segment and geographical region is shown in the segment information
on pages111 to 114.
–IFRIC 10 (Interim Financial Reporting and
Impairment)
–IFRIC 11 (IFRS 2 – Group and Treasury Share
Transactions)
IFRIC 8 is mandatory for financial years commencing
on or after 1 May 2006. IFRIC 9 is mandatory for
financial years commencing on or after 1 June
2006. IFRIC 10 takes effect for financial years com-
mencing after 1 November 2006. IFRIC 11 applies
to financial years commencing on or after 1 March
2007. The financial reporting rules issued in 2006
will not have a significant impact on the BMW Group.
Revenues
Revenues by activity comprise the following:
[8]
BMW Group
Notes to the Group Financial Statements
Notes to the Income Statement
in euro million 2006 2005
Sales of products and related goods 38,769 38,042
Income from lease instalments 4,141 3,322
Sale of products previously leased to customers 3,107 2,759
Interest income on loan financing 1,925 1,632
Other income 1,057 901
Revenues 48,999 46,656
[9]