BMW 2010 Annual Report Download - page 110

108
74 GROUP FINANCIAL STATEMENTS
74 Income Statements
74 Statement of
Comprehensive Income
76 Balance Sheets
78 Cash Flow Statements
80 Group Statement of Changes
in Equity
81 Notes
81 Accounting Principles
and Policies
89 Notes to the Income
Statement
95 Notes to the Statement
of Comprehensive Income
96 Notes to the Balance Sheet
117 Other Disclosures
133 Segment Information
31 December Germany United Kingdom Other To t a l
in euro million 2010 2009 2010 2009 2010 2009 2010 2009
Present value of pension benefits covered by
accounting provisions 3 3 – – 86 70 89 73
Present value of funded pension benefits 5,289 4,616 6,014 5,743 616 499 11,919 10,858
Defined benefit obligations 5,292 4,619 6,014 5,743 702 569 12,008 10,931
Fair value of plan assets 5,207 3,144 4,812 4,487 436 346 10,455 7,977
Net obligation 85 1,475 1,202 1,256 266 223 1,553 2,954
Past service cost not yet recognised – – – – 6 4 6 4
Amount not recognised as an asset because of
the limit in IAS19.58 – – – 3 3 7 3 10
Balance sheet amounts at 31 December 85 1,475 1,202 1,259 275 234 1,562 2,968
thereof pension provision 85 1,475 1,202 1,259 276 238 1,563 2,972
thereof pension assets (–) – – – – –1 – 4 –1 – 4
The salary level trend refers to the expected rate of salary
increase which is estimated annually depending on in-
flation and career development of employees within the
Group.
In the case of externally funded plans, the defined bene-
fit obligation is offset against plan assets measured at
their fair value. Where the plan assets exceed the pension
obligations and the enterprise has a right of reimburse-
ment or a right to reduce future contributions, the surplus
amount is recognised as an asset in accordance with
IAS19 and presented within other financial assets. In the
case of externally funded plans, a liability is recognised
under pension provisions where the benefit obligation
exceeds fund assets.
Pension provisions relating to pension plans in other
countries amounted to euro 276 million (2009: euro
238million). This includes euro 190 million (2009: euro
168 million) relating to externally funded plans.
Actuarial gains or losses may result from increases or
decreases in either the present value of the defined bene-
fit obligation or the fair value of the plan assets. Causes
of actuarial gains or losses include the effect of changes
in the measurement parameters, changes in estimates
caused by the actual development of risks impacting on
pension obligations and differences between the actual
and expected return on plan assets. Past service cost
arises where a BMW Group company introduces a de-
fined benefit plan or changes the benefits payable under
an existing plan.
Based on the measurement principles contained in IAS19,
the following funding status applies to the Group’s pen-
sion plans:
The increase in defined benefit obligations results mainly
from the change in the discount rate used in Germany for
the actuarial computation. The impact of this on pension
provisions was, however, more than offset bya further
transfer of assets to BMW Trust e.V., Munich, in Germany
and by positive fair value changes in fund assets.