BMW 2007 Annual Report Download - page 62

60 Group Management Report
10 Group Management Report
10 A Review of the Financial Year
13 General Economic Environment
17 Review of Operations
41 BMW Stock and Bonds
44 Disclosures relating to Takeover
Regulations and Explanatory Report
47 Financial Analysis
47 – Internal Management System
49 – Earnings Performance
51 – Financial Position
52 – Net Assets Position
55 – Subsequent Events Report
55 – Value Added Statement
57 – Key Performance Figures
58 – Comments on BMW AG
62 Risk Management
68 Outlook
Revenues from the sale of vehicles to car rental
companies are not recognised when there is an
obligation to take back the vehicles. In accordance
with the draft financial reporting pronouncement
Specific Issues relating to the Transfer of Beneficial
Ownership and Profit Realisation in accordance
with HGB (IDW ERS HFA 13 revised version dated
29 November 2006) issued by the German Institute
of Public Accountants (IDW), vehicles remain on
the balance sheet, measured at amortised cost,
because, on the basis of the criteria set out in the
pronouncement, beneficial ownership has not been
transferred to the car rental companies.
BMW AG 2007 2006
Income Statement in euro million
Revenues 48,310 42,417
Cost of sales – 41,448 – 36,364
Gross profit 6,862 6,053
Sales costs – 2,786 – 2,560
Administrative costs – 881 – 917
Research and development costs – 2,828 – 2,966
Other operating income and expenses 731 654
Result on investments 255 304
Net interest result – 38 – 8
Profit from ordinary activities 1,315 560
Income taxes – 115 – 60
Other taxes – 16 – 15
Net profit 1,184 485
Profit carried over from previous year 1 4
Transfer to revenue reserves – 491 – 31
Unappropriated profit available for distribution 694 458