BMW 2012 Annual Report Download - page 96

96
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
(b) Financial reporting pronouncements issued
by the IASB, but not yet applied
The following Standards, Revised Standards and Amend-
ments issued by the IASB during previous accounting
periods, were not mandatory for the period under report
and were not applied in the financial year 2012:
Standard / Interpretation Date of Date of Date of Expected impact
issue by IASB mandatory mandatory on BMW Group
application application
IASB EU
IFRS 1 Amendments with Respect to Fixed
Transition Dates and Severe Inflation
20. 12. 2010 1. 7. 2011 1. 1. 2013 None
Amendments relating to Government
Loans at a Below Market Rate of Interest
13. 3. 2012 1. 1. 2013 No None
7
New financial reporting rules
(a) Financial reporting rules applied for the first time in the financial year 2012
The following revised Standard was applied for the first time in the financial year 2012.
Standard Date of Date of Endorsed Expected impact
issue by IASB mandatory by the EU on BMW Group
application
IASB
IFRS 7 Disclosure Requirements in the Event of
the Transfer of Financial Assets
7. 10. 2010 1. 7. 2011* 1. 7. 2011* Insignificant
* Mandatory application in annual periods beginning on or after 1 July 2011.
for litigation and liability risks are recognised when an
outflow of resources is probable and a reliable estimate
can be made of the amount of the obligation. Manage-
ment is required to make assumptions with respect to
the probability of occurrence, the amount involved and
the duration of the legal dispute. For these reasons,
the recognition and measurement of provisions for litiga-
tion
and liability risks are subject to uncertainty. Fur-
ther information is provided in note 35.
The calculation of pension provisions requires assump-
tions to be made with regard to discount factors, salary
trends, employee fluctuation, the life expectancy of
employees and the expected rate of return on plan assets.
Discount factors are determined annually by reference
to market yields at the end of the reporting period on
high quality corporate bonds. A company-specific default
risk is not taken into account. The salary level trend re-
fers to the expected rate of salary increase which is
esti-
mated annually depending on inflation and the career
development of employees within the Group. The ex-
pected rate of return on plan assets is based on market
expectations prevailing at the beginning of the report-
ing period for investment income over the remaining
period of the obligation and is determined for the
relevant asset classes in which plan assets are invested,
taking account of costs and unplanned risks. Further
information is provided in note 34.
The calculation of deferred tax assets requires
assump-
tions to be made with regard to the level of future
taxable income and the timing of recovery of deferred
tax assets. These assumptions take account of forecast
operating results and the impact on earnings of the
reversal of taxable temporary differences. Since future
business developments cannot be predicted with cer-
tainty and to some extent cannot be influenced by the
BMW Group, the measurement of deferred tax assets
is subject to uncertainty. Further information is pro-
vided in note 15.