BMW 2012 Annual Report Download - page 102

102
78 GROUP FINANCIAL STATEMENTS
78 Income Statements
78 Statement of
Comprehensive Income
80 Balance Sheets
82 Cash Flow Statements
84 Group Statement of Changes
in Equity
86 Notes
86 Accounting Principles
and Policies
100 Notes to the Income
Statement
107 Notes to the Statement
of Comprehensive Income
108 Notes to the Balance Sheet
129 Other Disclosures
145 Segment Information
in € million 2012 2011
Current tax expense 2,908 2,868
Deferred tax income – 211 – 392
Income taxes 2,697 2,476
in € million 2012 2011
Income from investments 5 1
thereof from subsidiaries: € 1 million (2011: € 1 million)
Impairment losses on investments in subsidiaries and participations – 175 – 8
Income from reversal of impairment losses on investments in subsidiaries and participations – –
Result on investments – 170 – 7
Losses and gains relating to financial instruments – 422 – 610
Sundry other financial result – 422 – 610
Other financial result – 592 – 617
15
14
Other financial result
Income taxes
Taxes on income comprise the following:
The result on investments in 2012 was negatively
impacted by an impairment loss recognised on invest-
ments
amounting to € 166 million.
Current tax expense includes € 128 million (2011:
€ 201 million) relating to prior periods.
Deferred tax income of € 724 million (2011: income of
€ 352 million) is attributable to new temporary dif-
ferences arising in 2012 and the reversal of temporary
differences brought forward.
Tax expense was reduced by € 5 million (2011: € 12
mil-
lion) as a result of utilising tax losses / tax credits
brought forward for which deferred assets had not pre-
viously been recognised.
The change in the valuation allowance on deferred tax
assets relating to tax losses available for carryforward
and temporary differences resulted in a tax expense of
€ 3 million (2011: expense of € 6 million).
Deferred taxes are computed using enacted or planned
tax rates which are expected to apply in the relevant
national jurisdictions when the amounts are recovered.
The negative sundry other financial result was largely
attributable to net fair value losses on stand-alone
commodity and currency derivatives.
A uniform corporation tax rate of 15.0 % plus solidarity
surcharge of 5.5 % applies in Germany, giving a tax
rate of 15.8 %. After taking account of an average mu-
nicipal trade tax multiplier rate (Hebesatz) of 420.0 %,
the municipal trade tax rate for German entities is
14.7 %. The overall income tax rate in Germany is there-
fore 30.5 %. All of these German tax rates are unchanged
from the previous year. Deferred taxes for non-Ger-
man
entities are calculated on the basis of the relevant
country-specific tax rates and remained in a range
of between 12.5 % and 46.9 % in the financial year 2012.
Changes in tax rates resulted in a deferred tax expense
of € 21 million in 2012 (2011: € 36 million).
The actual tax expense for the financial year 2012 of
€ 2,697 million (2011: € 2,476 million) is € 312 million
(2011: € 224 million) higher than the expected tax ex-
pense of € 2,385 million (2011: € 2,252 million) which
would theoretically arise if the tax rate of 30.5 %, appli-
cable for German companies, was applied across the
Group.