BMW 2011 Annual Report Download - page 95

95 GROUP FINANCIAL STATEMENTS
Changes in accounting policies
The BMW Group changed its accounting policy for
leased products in the financial year 2011. Under the
previous method, changes in residual value expecta-
tions resulted directly in changes in the level of impair-
ment losses. Under the new method, scheduled depre-
ciation is adjusted prospectively over the remaining
term of the lease contract. If, however, the recoverable
amount is lower than the residual value, an impairment
loss is recognised for the shortfall. A test is carried out
at each balance sheet date to determine whether an im-
pairment loss recognised in prior years no longer exists
or has decreased. In these cases, the carrying amount
of the asset is increased to the recoverable amount. The
higher carrying amount resulting from the reversal may
not, however, exceed the rolled-forward amortised cost
of the asset. The BMW Group considers that the change
in accounting policy results in a measurement of leased
products that better reflects their value from a business
perspective.
The corresponding comparative figures in the Balance
Sheet, Income Statement, Statement of Comprehensive
Income, Statement of Changes in Equity, Statement
of Cash Flows and Notes to the Group Financial State-
ments have been adjusted accordingly. The change in
accounting policy did not result in any change in the
presentation of segment information by operating seg-
ment.
The change in accounting policy was applied retrospec-
tively and resulted in the following adjustments:
31 December 2010 As originally Change in As reported
reported accounting
in € million policy
Leased products 17,791 1,297 19,088
Non-current assets 65,716 1,297 67,013
Other revenue reserves 23,447 830 24,277
Equity 23,100 830 23,930
Deferred tax liabilities 2,933 467 3,400
Non-current provisions and liabilities 45,633 467 46,100
Balance sheet total 108,867 1,297 110,164
1 January 2010 As originally Change in As reported
reported accounting
in € million policy
Leased products 17,973 1,280 19,253
Non-current assets 62,009 1,280 63,289
Other Revenue reserves 20,426 821 21,247
Equity 19,915 821 20,736
Deferred tax liabilities 2,769 459 3,228
Non-current provisions and liabilities 45,119 459 45,578
Balance sheet total 101,953 1,280 103,233
8
Change in presentation of the Group balance sheet