BMW 2014 Annual Report Download - page 162

162
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
45
Related party relationships
In accordance with IAS 24 (Related Party Disclosures),
related individuals or entities which have the ability to
control the BMW Group or which are controlled by the
BMW Group, must be disclosed unless such parties are
already included in the Group Financial Statements of
BMW AG as consolidated companies. Under the con-
trol concept established in IFRS 10, an investor controls
another entity when it is exposed to or has rights to
variable returns from its involvement with the investee
and has the ability to affect those returns through its
power over the investee.
In addition, the disclosure requirements of IAS 24 also
cover transactions with associated companies, joint
ventures, joint operations and individuals that have the
ability to exercise significant influence over the finan-
cial and operating policies of the BMW Group. This also
includes close relatives and intermediary entities. Sig-
nificant influence over the financial and operating poli-
cies of the BMW Group is presumed when a party holds
20 % or more of the voting power of BMW AG. In addi-
tion, the requirements contained in IAS 24 relating to
key management personnel and close members of their
families or intermediary entities are also applied. In the
case of the BMW Group, this applies to members of the
Board of Management and Supervisory Board.
In the financial year 2014, the disclosure requirements
contained in IAS 24 affect the BMW Group with re-
gard to business relationships with non-consolidated
subsidiaries, joint ventures, joint operations and asso-
ciated companies as well as with members of the Board
of Management and Supervisory Board of BMW AG.
The BMW Group maintains normal business relation-
ships with non-consolidated subsidiaries. Transactions
with these companies are small in scale, arise in the
normal course of business and are conducted on the
basis of arm’s length principles.
Transactions of BMW Group companies with the joint
venture BMW Brilliance Automotive Ltd., Shenyang,
all arise in the normal course of business and are con-
ducted on the basis of arm’s length principles. Group
companies sold goods and services to BMW Brilliance
Automotive Ltd., Shenyang, during the financial year
under report for an amount of € 4,417 million (2013:
€ 3,588 million). At 31 December 2014, receivables of
Group companies from BMW Brilliance Automotive
Ltd., Shenyang, totalled € 943 million (2013: € 898
mil-
lion). Group companies had no payables to BMW
Brilliance Automotive Ltd., Shenyang, at the end of
the
reporting period (2013: € 66 million). Group compa-
nies received goods and services from BMW Brilliance
Auto
motive Ltd., Shenyang, in 2014 for an amount of
€ 34 million (2013: € 31 million).
All relationships of BMW Group entities with the joint
ventures DriveNow GmbH & Co. KG, Munich, and
DriveNow Verwaltungs GmbH, Munich, are conducted
on the basis of arm’s length principles. Transactions
with these entities arise in the normal course of business
and are small in scale.
Transactions of Group companies with SGL Automotive
Carbon Fibers GmbH & Co. KG, Munich, SGL Auto-
motive Carbon Fibers Verwaltungs GmbH, Munich, and
SGL Automotive Carbon Fibers LLC, Dover, DE, were
reported in their entirety in the Group Financial State-
ments until 1 January 2014. As a result of the first-time
application of IFRS 11 (Joint Arrangements) in the finan-
cial
year 2014, these entities are now consolidated, as
joint operations, on a proportionate basis (49 %) and
The changes in balance sheet positions shown in the
cash flow statement do not therefore agree directly with
the amounts shown in the Group and segment balance
sheets.
Cash inflows and outflows relating to operating leases,
where the BMW Group is the lessor, are aggregated and
shown on the line “Change in leased products” within
cash flows from operating activities.
The net change in receivables from sales financing (in-
cluding finance leases, where the BMW Group is the
lessor) is also reported within cash flows from operating
activities.
Income taxes paid and interest received are classified
as cash flows from operating activities in accordance
with IAS 7.31 and IAS 7.35. Interest paid is presented
on a separate line within cash flows from financing ac-
tivities. Dividends received in the financial year 2014
amounted to € 1 million (2013: € 4 million).