BMW 2015 Annual Report Download - page 160

160
44
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. Control is
de-
fined as ownership of more than one half of the voting
power of BMW AG or the power to direct, by statute or
agreement, the financial and operating policies of the
management of the BMW Group. In addition, the dis-
closure requirements of IAS 24 also cover transactions
with associated companies, joint ventures and indi-
viduals that have the ability to exercise significant
in-
fluence over the financial and operating policies of
the
BMW Group. This also includes close relatives and
intermediary entities. Significant influence over the
finan cial and operating policies of the BMW Group is
presumed when a party holds 20 % or more of the voting
power of BMW AG. In addition, the requirements con-
tained 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 2015, the disclosure requirements
contained in IAS 24 affect the BMW Group with regard
to business relationships with non-consolidated sub-
sidiaries,
joint ventures and associated 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 ba-
sis 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 conducted
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 € 4,815 million (2014: € 4,417 million).
At 31 December 2015, receivables of Group companies
from BMW Brilliance Automotive Ltd., Shenyang, to-
talled € 892 million (2014: € 943 million). Trade and finan-
cial
payables of Group companies to BMW Brilliance
Automotive Ltd., Shenyang, amounted to € 107 million
(2014: € – million). Group companies received goods
and services from BMW Brilliance Automotive Ltd.,
Shenyang, in 2015 for an amount of € 43 million (2014:
€ 34 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 BMW Group companies with the asso-
ciated company THERE Holding B. V., Amsterdam, and
that entity’s subsidiaries, all arise in the normal course
of business and are conducted on the basis of arm’s
length principles. The BMW Group did not sell any goods
or services to THERE Holding B. V., Amsterdam, or its
subsidiaries during the period from 4 to 31 December
2015. Goods or services totalling € 7 million were pur-
chased by BMW Group entities from THERE Holding
B. V., Amsterdam, during the period from 4 to 31 De-
cember 2015. At 31 December 2015, payables of BMW
Group entities to THERE Holding B. V., Amsterdam,
and that entity’s subsidiaries totalled € 3 million.
Business transactions between BMW Group entities and
other associated companies are small in scale, arise in
the normal course of business and are conducted on the
basis of arm’s length principles.
Stefan Quandt is a shareholder and Deputy Chairman of
the Supervisory Board of BMW AG. He is also the sole
shareholder and Chairman of the Supervisory Board of
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
(including 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
activities. Dividends received in the financial year 2015
amounted to € 1 million (2014: € 1 million).
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