Government grants are recognized only if there is a reasonable assurance that the associated conditions will be met and the grants will be received. Grants related to assets are reported as a reduction of cost of the assets concerned with a corresponding reduction of depreciation and amortization in subsequent periods. Grants related to income are stated as a reduction of the corresponding expenses in the periods in which the expenses the grant is intended to compensate are incurred. During the year, government grants related to income came to €881k (2006/2007: €851k) and are reported in the Group income statement under functional costs (cost of sales, research and development expenses and selling, general and administration expenses).