Bmw Report

BMW Report

Intermediate Accounting II

Table of Contents

Introduction 3

Report 3

Property and Equipment 3

Components of Property and Equipment 4

Intangible Assets 4

Goodwill 5

Depreciation Methods 5

Impairment 6

Current Liabilities 6

Long term Liabilities 7

Bonds Payable 7

Capital Lease 7

References 9

Introduction

Bayerische Motoren Werke AG (BMW) is one of the leading manufacturing companies related to automobile industry. It was founded in the year 1917 and is headquartered at Munich, Germany. Shares of the company are traded in the Frankfurt Stock Exchange with the ticker symbol “BMW”. It manufactures some of the premium branded cars like BMW, Rolls-Royce, etc. The company is also strongly placed in the market related to motorcycle business. The company is mainly focused in generating profitable growth through manufacturing of premium branded cars and marketing them worldwide (Innovation Leaders, 2012).

Report

Property and Equipment

The plant, property and equipment for the company amounted to € 11,685 million and € 11,427 million in the years 2011 and 2010 respectively. The depreciation expenses that have been charged on the property, plant and equipment of the company amounted to € 2,324 million in the year 2011. The depreciation expenses have increased by € 23 million from the 2010 figure which was € 2,301 million (BMW Group, 2012, p.57).

If we look at the cash flow statement of the BMW group as presented in its recent annual report for the year 2011, the following details could be found regarding the depreciation expenses, sales and purchase of property by the company and gains from the sale of property and equipment by the company for the year 2011:

Depreciation and amortization of other intangible, tangible and investment assets amounted to € 3,654 million. There was no gain / loss of tangible and intangible assets and marketable securities as observed in the cash flow statement. Investment in intangible assets and property, plant and equipment amounted to € 3,679 million. Proceeds from the disposal of intangible assets and property, plant and equipment amounted to € 53 million.

The ratio of capital expenditure of the company to its generated