BMW 2007 Annual Report Download - page 126

124 Group Financial Statements
73 Group Financial Statements
73 Income Statements
74 Balance Sheets
76 Cash Flow Statements
78 Group Statement of Changes
in Equity
79 Statement of Income and
Expenses recognised directly
in Equity
80 Notes
80 – Accounting Principles
and Policies
89 – Notes to the Income
Statement
96 – Notes to the Balance Sheet
117 – Other Disclosures
131 – Segment Information
dergoes a multi-stage process of repossession
and disposal in accordance with the legal situation
prevailing in each relevant market. The assets in-
volved are generally vehicles which can be con-
verted into cash at any time via the dealer organi-
sation.
Impairment losses are recorded as soon as
credit risks are identified on individual financial assets,
using a methodology specifically designed by the
BMW Group. More detailed information regarding
this methodology is provided in the section on ac-
counting policies.
The use of comprehensive rating and scoring
techniques and credit monitoring procedures
ensures the recoverability of the value of receivables
from sales financing which are neither overdue nor
impaired.
The credit risk relating to derivative financial in-
struments is minimised by the fact that the Group
only enters into such contracts with parties of first-
class credit standing. The general credit risk on de-
rivative financial instruments utilised by the BMW
Group is therefore not considered to be significant. A
concentration of credit risk with particular borrowers
or groups of borrowers has not been identified.
Further disclosures relating to credit risk, in par-
ticular impairment losses recognised, are provided in
the notes to the relevant category of receivables on
pages 100 to 105.
Liquidity risk
The following table shows the maturity structure of
contractual cash flows (undiscounted) for financial
liabilities:
31 December 2007
in euro million Maturity Maturity Maturity Total
within between one later than
one year and five years five years
Bonds – 5,947 – 10,627 – 4,920 – 21,494
Liabilities to banks – 4,736 – 1,630 – 551 – 6,917
Liabilities from customer deposits (banking) – 5,193 – 774 – – 5,967
Commercial paper – 5,474 – – – 5,474
Asset backed financing transactions – 1,854 – 5,043 – – 6,897
Interest and currency derivative instruments 63 234 132 429
Bills of exchange payable – – – –
Trade payables – 3,516 – 35 – – 3,551
Other financial liabilities – 497 – 273 – 128 – 898
– 27,154 – 18,148 – 5,467 – 50,769
31 December 2006
in euro million Maturity Maturity Maturity Total
within between one later than
one year and five years five years
Bonds – 5,126 – 9,789 – 4,007 – 18,922
Liabilities to banks – 2,178 – 2,385 – 7 – 4,570
Liabilities from customer deposits (banking) – 5,250 – 699 – – 5,949
Commercial paper – 4,159 – – – 4,159
Asset backed financing transactions – 1,440 – 3,365 – – 4,805
Interest and currency derivative instruments – 127 287 127 287
Bills of exchange payable – 1 – – – 1
Trade payables – 3,624 – 74 – 39 – 3,737
Other financial liabilities – 260 – 235 – 220 – 715
– 22,165 – 16,260 – 4,146 – 42,571