BMW 2007 Annual Report Download - page 91

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89
BMW Group
Notes to the Group Financial Statements
Notes to the Income Statement
in euro million 2007 2006
Manufacturing costs 29,536 26,449
Warranty expenditure 1,309 1,081
Cost of sales directly attributable to financial services 8,450 6,612
Interest expense for financial operations 2,045 1,308
Expense for risk provisions and write-downs for financial services business 529 501
Other cost of sales 1,963 1,709
Cost of sales 43,832 37,660
In addition, the following Interpretations were
also issued:
– IFRIC 13 (Customer Loyalty Programmes)
– IFRIC 14 (IAS 19 – The Limit on a Defined Benefit
Asset, Minimum Funding Requirements and their
Interaction)
IFRIC 13 is mandatory for financial years commenc-
ing on or after 1 July 2008 and IFRIC 14 is mandato-
Manufacturing costs include impairment
losses on intangible assets and property, plant and
equipment of euro 17 million (2006: euro 15 million).
Cost of sales include euro 11,024 million (2006:
euro 8,421 million) relating to the 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 pages 132 to 134.
ry for financial years commencing on or after 1 Janu-
ary 2008.
These new financial reporting rules are not
expected to have a significant impact on the BMW
Group. This also applies to financial reporting rules
issued in earlier periods and for which application in
2007 is encouraged but not mandatory.
Revenues
Revenues by activity comprise the following:
[8]
in euro million 2007 2006
Sales of products and related goods 43,297 38,769
Income from lease instalments 5,069 4,141
Sale of products previously leased to customers 4,185 3,107
Interest income on loan financing 2,457 1,925
Other income 1,010 1,057
Revenues 56,018 48,999
[9]