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...diluted earnings per share are calculated for ordinary and preferred stock shares by dividing the net profit attributable to each category of stock – net of minority interests – by the average number of outstanding shares. The net profit is accordingly allocated to the different categories of shares. The portion of the group net profit for the year which is not being distributed is allocated to each category of stock based on the number of outstanding shares. Net profit available for distribution is allocated in accordance with the actual payment. Diluted earnings per share would have to be disclosed separately. Purchased and internally generated intangible assets are recognised as assets in accordance with IAS 38 (Intangible Assets), where it is probable that the use of the asset will generate future economic benefits and where the costs of the asset can be determined reliably. Such assets are measured at acquisition and manufacturing cost and amortised on a straight-line basis over their estimated useful lives. With the exception of goodwill and capitalised development costs, intangible assets are generally amortised over their estimated useful lives of between three and five years. Development costs for vehicle and engine projects are capitalised at production cost, to the extent that the costs can be allocated reliably and the technical feasibility and marketing are assured. It must also be probable that development expenditure will generate future economic benefits. Capitalised development costs comprise all expenditure that can be attributed directly to the development process and an appropriate proportion of developmentrelated overheads. Capitalised development costs are amortised on a systematic basis following the commencement of production over the estimated product life which is generally seven years. All items of property, plant and equipment are considered to have finite useful lives. They are stated at acquisition or manufacturing cost less systematic depreciation based on the estimated useful lives of the assets. Depreciation on property, plant and equipment reflects the pattern of their usage and is generally computed using the straightline method. For machinery used in multiple-shift operations, depreciation rates are increased to account for the additional utilisation. The cost of internally constructed plant and equipment comprises all costs which are directly attributable to the manufacturing process and an appropriate portion of production-related overheads. This includes production-related depreciation and an appropriate proportion of administrative and social costs. Financing costs are not included in acquisition or manufacturing cost. Non-current assets also include assets relating to leases. The BMW Group uses property, plant and equipment as the lessee and also leases assets, mainly vehicles manufactured by the Group, as lessor. IAS 17 (Leases) contains rules for determining, on the basis of the ri...