BMW 2007 Annual Report Download - page 130

128 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
The cash inflow from operating activities includes the following cash flows in accordance with IAS 7.31 and
IAS 7.35:
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 2007, the disclosure require-
ments contained in IAS 24 only affect the BMW Group
with regard to business relationships with affiliated,
non-consolidated entities, joint ventures, other equity
investments as well as with members of the Board of
Management and the Super visory Board of BMW AG.
The BMW Group’s relationships with affiliated,
non-consolidated entities are based on arm’s length
principles. Transactions with these entities are small
in scale and 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 %) –
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 services
for the BMW Group during the financial year 2007.
In addition, companies of the DELTON Group pur-
chased vehicles from the BMW Group. These service
and sale contracts are not material for the BMW
Group and are made, without exception, on the basis
of arm’s length principles.
Susanne Klatten is a shareholder and member
of the Supervisory Board of BMW AG, and also a
shareholder and Deputy Chairman of the Supervisory
Board of Altana AG, Wesel, which purchased vehicles
from the BMW Group during the financial year 2007.
These sale contracts are not material for the BMW
Group and are made, without exception, on the basis
of arm’s length principles.
With the exception of these related party trans-
actions, companies of the BMW Group did not enter
into any significant transactions with members of
the Board of Management or
the Supervisory Board
of BMW AG or with companies in whose representa-
tive bodies those persons are represented. The same
applies to close members of the families of those
persons.
in euro million 2007 2006
Interest received 386 391
Interest paid 389 328
Dividends received 3 62
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