BMW 2008 Annual Report Download - page 103

104
72 Group Financial Statements
72 Income Statements
74 Balance Sheets
76 Cash Flow Statements
78 Statement of Income and
Expenses recognised
in Equity
79 Notes
79 Accounting Principles
and Policies
88 Notes to the Income
Statement
94
Notes to the Balance Sheet
1 1 5 Other Disclosures
1 2 9 Segment Information
Number of shares issued
At  December , common stock issued by BMW AG
was divided into ,, shares with a par-value of
one euro. Preferred stock issued by BMW AG was divided
into ,, shares with a par-value of one euro, also
unchanged from the previous year. Unlike the common
stock, no voting rights are attached to the preferred stock.
All of the Company’s stock is issued to bearer. Preferred
stock bears an additional dividend of euro . per share.
During the financial year , BMW AG acquired ,
treasury shares of preferred stock at an average price of
euro . per share. , of these shares were issued
to employees at a reduced price of euro . per share
in conjunction with an employee share scheme. These
shares are entitled to receive dividends for the financial
year . The remaining , shares of preferred stock
were held by BMW AG as treasury shares at  December
. As a result of the buy-back of shares of preferred
stock and their subsequent issue, the preferred stock por-
tion of share capital remained unchanged at euro  million.
The effect of applying IFRS  (Share-Based Payments)
to the employee share scheme was not material for the
Group.
At the Annual General Meeting of BMW AG on  May ,
the shareholders again authorised the Board of Manage-
ment to acquire treasury shares via the stock exchange,
up to a maximum of   of the share capital in place at the
date of the resolution and to withdraw those shares from
circulation without any further resolution by the Annual
General Meeting. At the same time, the authorisation from
 May  to acquire treasury shares was rescinded. The
authorisation from  May  is valid until  November
. The authorisation was not exercised in . It has
not yet been decided whether or the extent to which the
authorisation will be used in the future.
Capital reserves
Capital reserves include premiums arising from the issue
of shares and were unchanged at euro , million.
Revenues reserves
Revenue reserves comprise the post-acquisition and non-
distributed earnings of consolidated companies. In addi-
tion, revenue reserves include both positive and negative
goodwill arising on the consolidation of Group companies
prior to  December .
Revenue reserves decreased marginally to euro , mil-
lion during the year under report. They were increased in
 by the amount of the net profit attributable to share-
holders of BMW AG amounting to euro  million and
were reduced by the payment of the dividend for 
amounting to euro  million.
The unappropriated profit of BMW AG of euro  million
for  will be proposed to the Annual General Meeting
for distribution. The proposed distribution must be au-
thorised by the shareholders at the Annual General Meeting
of BMW AG. It is therefore not recognised as a liability in
the Group Financial Statements.
Accumulated other equity
Accumulated other equity consists of all amounts rec-
ognised directly in equity resulting from the translation
of the financial statements of foreign subsidiaries, the
effects of recognising changes in the fair value of de-
rivative financial instruments and marketable securities
directly in equity, actuarial gains and losses relating to
defined benefit pension plans and similar obligations and
deferred taxes.
Minority interest
Equity attributable to minority interests amounted to euro
 million (: euro  million). This includes a minority
interest of euro  million (: euro  million) in the results
for the year.
Capital management disclosures
The BMW Group’s objectives when managing capital are
to safeguard the Group’s ability to continue as a going
concern in the long-term and to provide an adequate return
to shareholders.
The BMW Group manages the capital structure and
makes adjustments to it in the light of changes in eco-
nomic conditions and the risk profile of the underlying
assets.
In order to manage its capital structure, the BMW Group
uses various instruments including the amount of divi-
dends
paid to shareholders and share buy-backs.
The BMW Group manages the structure of debt capital
on the basis of a target debt ratio. An important aspect of
the selection of financial instruments is the objective to
achieve matching maturities for the Group’s financing
requirements. In order to reduce non-systematic risk, the
BMW Group uses a variety of financial instruments avail-
able on the world’s capital markets to achieve optimal di-
versification.