BMW 2011 Annual Report Download - page 99

99 GROUP FINANCIAL STATEMENTS
significant impact since the BMW Group accounts
for joint ventures using the equity method. The BMW
Group does not intend to adopt the amendments early.
In May 2011 the IASB published IFRS 13 (Fair Value
Measurement). IFRS 13 defines the term fair value, sets
out the requirements for measuring fair value where
another IFRS prescribes fair value measurement (or fair
value disclosure) and stipulates uniform disclosure
requirements with respect to fair value measurement.
IFRS 13 is mandatory for financial years beginning on
or after 1 January 2013. The Standard is required to
be applied prospectively. Early adoption is permitted.
The BMW Group is currently investigating the impact of
IFRS 13. The BMW Group does not intend to adopt the
Standard early.
The IASB published IAS 1 (Presentation of Financial
Statements) in June 2011. The amendments to IAS 1 re-
quire that items reported in other comprehensive in-
come (OCI) are sub-divided into elements that will be
“recycled” in the income statement and those which
will not. Tax associated with items presented before
tax
are also required to be shown separately for each of
the two groups of OCI items. The recognition of these
items is regulated in separate Standards. The amend-
ments to IAS 1 are mandatory for annual periods be-
ginning on or after 1 July 2012. The amendments are re-
quired to be applied retrospectively. Early adoption is
permitted but will not be applied by the BMW Group. It
is not expected that the change in presentation of items
in OCI will have a significant impact on the Group
Financial Statements.
In June the IASB published amendments to IAS 19
(Employee Benefits), in particular in relation to post-
retirement benefits and pensions. The main amend-
ments involve the removal of the option to defer actuar-
ial gains and losses (the so-called “corridor method”)
and the requirement to recognise actuarial gains and
losses in OCI. The amended IAS 19 also requires plan
assets to be discounted using the same rate that is
applied to discount pension obligations. It also results
in changes in the treatment of termination benefits
and expands disclosure requirements compared to the
previous IAS 19. The amended IAS 19 is mandatory for
annual periods beginning on or after 1 January 2013.
Early adoption is permitted. The amendments are
required to be applied retrospectively. The BMW Group
does not expect that the amendments to IAS 19 will
have a significant impact on the Group Financial State-
ments, since the BMW Group does not apply the corri-
dor method and actuarial gains and losses are already
recognised in OCI. The BMW Group does not intend to
adopt the Standard early.
The IASB has published various other Standards and
Interpretations. None of these, whether adopted or not
yet adopted by the BMW Group, will have a significant
impact on the Group Financial Statements.