BMW 2014 Annual Report Download - page 118

118
90 GROUP FINANCIAL STATEMENTS
90 Income Statements
90 Statement of
Comprehensive Income
92 Balance Sheets
94 Cash Flow Statements
96 Group Statement of Changes in
Equity
98 Notes
98 Accounting Principles and
Policies
116 Notes to the Income Statement
123 Notes to the Statement
of Comprehensive Income
124
Notes to the Balance Sheet
149 Other Disclosures
165 Segment Information
in € million 2014 2013*
Current tax expense 2,774 2,581
Deferred tax expense / income 116 – 17
Income taxes 2,890 2,564
* Prior year figures have been adjusted in accordance with IAS 8, see note 9.
in € million 2014 2013
Income from investments in subsidiaries and participations 3 12
thereof from subsidiaries: € 2 million (2013: € 8 million)
Impairment losses on investments in subsidiaries and participations – 153 – 91
Expenses from investments in subsidiaries – – 2
Result on investments – 150 – 81
Losses and gains relating to financial instruments – 597 – 125
Sundry other financial result – 597 – 125
Other financial result – 747 – 206
17
16
Other financial result
Income taxes
Taxes on income comprise the following:
The result from investments in 2014 was negatively
impacted by an impairment loss on other investments
amounting to € 152 million (2013: € 73 million).
Current tax expense includes € 275 million (2013: € 222 mil-
lion) relating to prior periods.
A deferred tax expense of € 83 million (
2013* : income of
€ 42 million) is attributable to new temporary differences
and the reversal of temporary differences brought for-
ward.
The tax expense was reduced by € 27 million (2013: € 5 mil-
lion) as a result of utilising tax losses / tax credits brought
forward, for which deferred assets had not previously
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
€ 49 million (2013: € 7 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.
A uniform corporation tax rate of 15.0 % plus solidarity
The deterioration in other financial result was primarily
due to the negative impact of currency and commodity
derivatives.
surcharge of 5.5 % applies in Germany, giving a tax rate
of 15.8 %, unchanged from the previous year. After taking
account of an average municipal trade tax multiplier
rate (Hebesatz) of 425.0 % (2013: 420.0 %), the municipal
trade tax rate for German entities is 14.9 % (2013: 14.7 %).
The overall income tax rate in Germany is therefore
30.7 % (2013: 30.5 %). Deferred taxes for non-German
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 % once again in the financial year 2014.
Changes in tax rates resulted in a deferred tax expense
of € 22 million (2013: € 2 million).
The actual tax expense for the financial year 2014 of
€ 2,890 million (2013*: € 2,564 million) is € 217 million
(
2013* : € 157 million) higher than the expected tax ex-
pense of € 2,673 million ( 2013* : € 2,407 million) which
would theoretically arise if the tax rate of 30.7 % (2013:
30.5 %), applicable for German companies, was applied
across the Group.
* Prior year figures have been adjusted in accordance with IAS 8, see note 9.