BMW 2012 Annual Report Download - page 104

104
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
Changes in deferred taxes include changes relating to
items recognised either through the income statement
or directly in equity as well as the impact of exchange
rate and first-time consolidations. Net deferred liabili-
ties
decreased overall by € 23 million (2011: € 429 mil-
lion). On the one hand they were increased by € 498 mil-
lion
(2011: decreased by € 274 million) due to the fair
value
measurement of derivative financial instruments
and marketable securities, shown in the summary
above in the line items “Other assets” and “Liabilities”.
They were reduced on the other hand by € 521 mil-
lion (2011: € 155 million) due to changes in actuarial
gains and
losses on defined pension obligations and
plan assets recognised directly in equity. These amounts
are shown in the summary above in the line item “Pro-
visions”.
Deferred taxes are not recognised on retained profits of
€ 24.8 billion (2011: € 20.7 billion) of foreign subsidiaries,
as it is intended to invest these profits to maintain and
expand the business volume of the relevant companies.
A computation was not made of the potential impact
of
income taxes on the grounds of disproportionate
expense.
The tax returns of BMW Group entities are checked
regularly by German and foreign tax authorities. Taking
account of a variety of factors – including existing in-
terpretations, commentaries and legal decisions taken
relating to the various tax jurisdictions and the BMW
Group’s past experience – adequate provision has, as
far as identifiable, been made for potential future tax
obligations.
related deferred tax asset. For entities with tax losses
available for carryforward, a net surplus of deferred tax
assets over deferred tax liabilities is reported at 31 De-
cember 2012 amounting to € 204 million (2011: € 568 mil-
lion). Deferred tax assets are recognised on the basis
of management’s assessment of whether it is probable
that the relevant entities will generate sufficient future
taxable profits, against which deductible temporary
differences can be offset.
Capital losses available for carryforward in the United
Kingdom which do not relate to ongoing operations
amounted to €2.0 billion at the end of the reporting
period, unchanged from one year earlier. As in previous
years, deferred tax assets recognised on these tax losses
– amounting to € 465 million at 31 December 2012 after
tax rate changes in 2012 (2011: € 492 million) – were
fully written down since they can only be utilised against
future capital gains.
“Netting” relates to the offset of deferred tax assets and
liabilities within individual separate entities or tax groups
to the extent that they relate to the same tax authorities.
Deferred taxes recognised directly in equity amounted
to € 1,222 million (2011: € 1,202 million), an increase
of € 20 million (2011: € 446 million) compared to the end
of the previous year. The change in 2012 includes a
reduction in deferred taxes recognised in conjunction
with currency translation amounting to € 3 million (2011:
increase of € 17 million).
Changes in deferred tax assets and liabilities during the
reporting period can be summarised as follows:
in € million 2012 2011
Deferred taxes at 1 January 1,347 2,007
Deferred tax income / expense recognised through income statement – 211 – 392
Change in deferred taxes recognised directly in equity – 23 – 429
Exchange rate impact and other changes1, 2 – 74 161
Deferred taxes at 31 December 1,039 1,347
1 2011: including € 87 million resulting from the purchase of the ICL Group
2 Including impact of first-time consolidations