BMW 2008 Annual Report Download - page 125

126
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
41 Related party relationships
In accordance with IAS  (Related Party Disclosures),
related individuals or entities which have the ability to con-
trol the BMW Group or which are controlled by the BMW
Group, must be disclosed unless such parties are not al-
ready 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 financial
and operating policies of the management of the Group.
In addition, the disclosure requirements of IAS  also
cover transactions with participations, joint ventures 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 inter-
mediaries. Significant influence over the financial and
operating policies of the BMW Group can arise when a
party holds   or more of the shares of BMW AG or is a
member of the Board of Management or Supervisory
Board of BMW AG.
For the financial year , the disclosure requirements
contained in IAS  only affect the BMW Group with re-
gard to business relationships with non-consolidated sub-
sidiaries, joint ventures and participations as well as with
members of the Board of Management and Supervisory
Board of BMW AG.
The BMW Group maintains normal business relationships
with non-consolidated subsidiaries. Transactions with
these entities are small in scale, arise in the normal course
of business and are conducted on the basis of arm’s length
principles.
Transactions of BMW Group companies with the joint ven-
ture, BMW Brilliance Automotive Ltd., Shenyang, all arise
in the normal course
of business and are conducted on
the basis of arm’s
length principles. Group companies
sold goods and services to BMW Brilliance Automotive
Ltd., Shenyang, during  for an amount of euro  mil-
lion (: euro  million). At  December , receiva-
bles of Group companies
from BMW Brilliance Automotive
Ltd., Shenyang, amounted
to euro  million (: euro
 million). As in the previous year there were no payables
from Group companies to BMW Brilliance Automotive Ltd.,
Shenyang, at the end of the reporting period.
Business transactions of the BMW Group with participa-
tions
all arise in the normal course of business and are
conducted on the basis of arm’s length principles. With
the exception of Cirquent GmbH, Munich, business rela-
tionships with such entities are on a small scale. Group
companies did not provide any services to Cirquent GmbH,
Munich, during the fourth quarter . During the final
three months of  Group entities purchased services
and goods from Cirquent GmbH, Munich, for euro  mil-
lion. At  December , receivables of Group compa-
nies from Cirquent GmbH, Munich, totalled euro  million.
Payables of Group companies to Cirquent GmbH, Munich,
amounted to euro  million.
Stefan Quandt is a shareholder and Deputy Chairman
of the Supervisory Board of BMW AG. He is also sole
shareholder and Chairman of the Supervisory Board of
DELTON AG, Bad Homburg v. d. H., which, via its sub-
sidiaries,
performed logistics services for the BMW Group
during the financial year . In addition, companies of
the DELTON Group purchased vehicles from the BMW
Group. These service and sales contracts are not material
for the BMW Group, arise in the course of ordinary activi-
ties and are made, without exception, on the basis of arm’s
length principles.
Susanne Klatten is a shareholder and member of the Su-
pervisory 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 . These sale contracts are
not material for the BMW Group, arise in the course of
ordinary activities and are made, without exception, on the
basis of arm’s length principles.
With the exception of these related party transactions,
BMW Group companies did not enter into any significant
contracts with members of the Board of Management or
Supervisory Board of BMW AG. The same applies to close
members of the families of those persons.