Government Grants

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 (Glossary)  and amortization in subsequent periods. In fiscal 2008/2009, €968k were recognized as reductions of costs. 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 €595k (2007/2008: €881k) and are reported in principle in the Group income statement under functional costs (cost of sales, research and development expenses and selling, general and administration expenses).