Summary of Significant Accounting and Valuation Methods

The main accounting and valuation methods are summarized in the following overview:


Accounting and Valuation Method






Recognition of sales and income


Sales are recognized on delivery of goods or services and on the transfer of risk to the purchaser.

Expense recognition


Expenses are recognized when incurred or when the service is utilized.



Deferred taxes are recognized for temporary differences, for consolidation measures recognized in income and for tax loss carryforwards whenever their realization is sufficiently probable.

Intangible assets and property, plant and equipment


These are measured at amortized cost. They are generally amortized / depreciated on a straight-line basis.

Government grants


Incentives provided by government bodies either reduce acquisition or production costs, or are recognized in the statement of income.



These are measured at amortized cost using the average cost method.

Receivables and other assets


These are measured at amortized cost. Risks are accounted for through valuation allowances.

Provisions for pensions and similar obligations


These are determined using the projected unit credit method. Actuarial gains and losses are recognized in equity under other equity items. The return on plan assets is calculated using the discount rate.

Financial instruments


On initial recognition, financial instruments (financial assets and financial liabilities) are measured at fair value.