BMW 2015 Annual Report Download - page 112

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In January 2016, the IASB published the new Standard
IFRS 16 (Leases). IFRS 16 supersedes IAS 17 and the
related Interpretations (IFRIC 4 Determining whether
an Arrangement contains a Lease, SIC-15 Operating
Leases – Incentives and SIC-27 Evaluating the Substance
of Transactions involving the Legal Form of a Lease).
The new Standard stipulates a completely new approach
to accounting for leases by lessees. Whereas under IAS 17,
the accounting treatment of a lease was determined on
the basis of the transfer of risks and rewards incidental
to ownership of the relevant asset, in the future, all
lease arrangements will be required as a general rule
to be accounted for by the lessee in a similar way to
finance leases.
By contrast, the accounting requirements for lessors, par-
ticularly
in relation to the requirement to classify leases,
will remain largely unchanged.
The new Standard is mandatory for annual periods be-
ginning on or after 1 January 2019. Early adoption will
be permitted, provided that IFRS 15 is also adopted at
the same time.
Given that the BMW Group is still in a very early phase
of considering the implications of introducing IFRS 16
and the definitive version of the Standard was only pub-
lished at the beginning of 2016, the detailed impact of
the Standard on the IFRS Group Financial Statements
from the perspective of lessees and lessors, cannot be
foreseen at present.
In December 2014, the IASB issued Amendments to
IAS 1 (Presentation of Financial Statements) as part of
its disclosure initiative. The amendments relate pri-
marily to clarifications relating to the presentation of
financial reports.
Firstly, disclosures are only required to be made in the
notes if their inclusion is material for users of the finan-
cial
statements. This also applies when an IFRS Stand-
ard explicitly specifies a minimum list of disclosures.
Secondly, items to be presented in the balance sheet, in-
come statement and comprehensive income can be
aggregated or disaggregated by using subtotals. Thirdly,
it clarifies that an entity’s share of other comprehensive
income of equity-accounted entities is required to be
analysed – within the Statement of Comprehensive
Income – to show “components, which will be subse-
quently reclassified to profit and loss” and “compo-
nents, which will be not subsequently reclassified to
profit and loss”. Fourthly, it is stressed that there is no
standard template for the notes and that the emphasis
should be on structuring the notes based on the rele-
vance for the specific reporting entity.
The Standard is mandatory for the first time for annual
periods beginning on or after 1 January 2016. Applica-
tion of the new rules will not have a material impact on
the Group Financial Statements.
Early adoption of all of the new IFRS requirements is
permitted. As things stand, the BMW Group does not
plan to adopt any of the new requirements early.
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
113 Notes to the Income Statement
121 Notes to the Statement
of Comprehensive Income
122
Notes to the Balance Sheet
147 Other Disclosures
163 Segment Information