BMW 2008 Annual Report Download - page 87

88
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
BMW Group
Notes to the Group Financial Statements
Notes to the Income Statement
in euro million 2008 2007
Sales of products and related goods 38,652 43,297
Income from lease instalments 5,544 5,069
Sale of products previously leased to customers 4,997 4,185
Interest income on loan financing 2,943 2,457
Other income 1,061 1,010
Revenues 53,197 56,018
in euro million 2008 2007
Manufacturing costs 26,727 29,536
Warranty expenditure 990 1,309
Cost of sales directly attributable to financial services 9,634 8,450
Interest expense relating to financial services business 2,666 2,045
Expense for risk provisions and write-downs for financial services business 1,697 529
Other cost of sales 2,609 1,963
Cost of sales 44,323 43,832
8
9
The IASB also published a revised version of IFRS 
(Business Combinations) and IAS  (Consolidated and
Separate Financial Statements) in . The new rules
come into effect for financial years beginning on or after
 July .
The IASB has also published a collection of amendments
to various IFRSs (“Improvements to IFRSs”). This in-
cludes
amendments to various existing IFRSs. The total
of  amendments to  IFRSs are presented in two parts:
Part I contains amendments that involve accounting
changes for presentation, recognition or measurement
purposes ( improvements). Part II contains  amend-
ments involving terminology or editorial changes with
minimal effect on accounting. Unless otherwise specified,
the amendments are effective for financial years begin-
ning on or after  January .
These new financial reporting rules are not expected to
have a significant impact on the BMW Group.
In addition, the following Interpretations were also issued:
–
IFRIC  (Agreements for the Construction of Real
Estate). This Interpretation is mandatory for the first time
for financial years beginning on or after  January .
– IFRIC  (Hedges of a Net Investment in a Foreign Oper-
ation). This Interpretation is mandatory for financial years
commencing on or after  October , whereby exist-
ing hedging relationships that do not meet the criteria
contained in IFRIC  may be wound up prospectively.
– IFRIC  (Distributions of Non-cash Assets to Owners).
This Interpretation is mandatory for the first time for
reporting periods in financial years beginning on or after
 July .
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  is encouraged but not
mandatory.
Revenues
Revenues by activity comprise the following:
An analysis of revenues by operating segment and geographical region is shown in the segment information on pages
 – .
Cost of sales
Cost of sales comprises: