BMW 2008 Annual Report Download - page 86

87 Group Financial Statements
motive sector and the general business environment.
Estimates and underlying assumptions are checked regu-
larly. Actual amounts could differ from those assumptions
and estimates if business conditions develop differently
New financial reporting rules
(a) Financial reporting rules applied for the first time in
the financial year 
The following Standards and Revised Standards were ap-
plied for the first time in the financial year :
On  October  the IASB published amendments to
IAS  Financial Instruments: Recognition and Measure-
ment and IFRS  Financial Instruments: Disclosures
(Reclassification of Financial Assets) permitting the re-
classification of certain financial instruments. Due to
the necessity to be able to apply these amendments
with immediate effect in the light of the deterioration of
the financial market crisis during the third quarter ,
the IASB’s usual due process was suspended. The re-
classification amendments can be applied retrospec-
tively from  July . On  November , the IASB
published an update of these amendments (Reclassi-
fication of Financial Assets – Effective Date and Transi-
tion) in order to clarify the effective dates of the amend-
ments.
Reclassifications of the kind referred to in the amendments
are not made by the BMW Group.
IFRS  (Operating Segments) was applied by the BMW
Group for the first time in the financial year , resulting
in changes in the preparation and presentation of seg-
ment information.
The following Interpretations were also applied early for
the
first time:
– IFRIC 
(IFRS  Group and Treasury Share Trans-
actions
)
– IFRIC  (Service Concession Arrangements), not
yet endorsed by the EU
– IFRIC 
(IAS  The Limit on a Defined Benefit
Asset,
Minimum Funding Requirements and their
Interaction)
Interpretations applied for the first time in  did not
have
a significant impact on the BMW Group.
to the Group’s expectations at the end of the reporting
period. Where new information comes to light, differences
are reflected in the income statement and assumptions
changed accordingly.
(b) New financial reporting rules issued in 
The IASB revised the following Standards in :
– Amendments to IAS  Financial Instruments: Recogni-
tion and Measurement and IFRS  Financial Instru-
ments: Disclosures (Reclassification of Financial Assets
and Reclassification of Financial Assets: Effective Date
and Transition)
– Amendments to IFRS  First-time Adoption of Interna-
tional Financial Reporting Standards and IAS  Con-
solidated and Separate Financial Statements (Cost of
an Investment in a Subsidiary, Jointly Controlled Entity
or Associate)
–
IFRS  First-time Adoption of International Financial
Reporting Standards (revised version)
– Amendment to IFRS  (Vesting Conditions and Cancel-
lations)
– Amendments to IAS  Financial Instruments: Presen-
tation and IAS  Presentation of Financial Statements
(Puttable Financial Instruments and Obligations Arising
on Liquidation)
– Amendment to IAS  Financial Instruments: Recogni-
tion and Measurement (Eligible Hedged Items).
The Amendments to IAS  Financial Instruments: Recog-
nition and Measurement and IFRS  Financial Instruments:
Disclosures (Reclassification of Financial Assets and Re-
classification of Financial Assets: Effective Date and Tran-
sition) are mandatory from  July .
The amended IFRS  (revised version) replaces the current
IFRS  and must be applied by entities drawing up IFRS
financial statements after  July .
The amendments to IAS  Financial Instruments: Rec-
ognition
and Measurement (Eligible Hedged Items) are
mandatory for the first time for financial years beginning on
or after  July . The revised IAS  is required to be
applied retrospectively.
All other amendments referred to above are mandatory for
the first time for financial years commencing on or after
 January .
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