Annual Report 2009/2010 Geschäftsbericht 2009/2010 ... - biolitec AG

104 Annual Financial Statement Konzern-Jahresabschluss
Cost of Sales
Cost of sales are the acquisition and manufacturing costs incurred in sales generated in the reporting
period. They include directly linked personnel and material costs as well as attributable overhead and
depreciation.
Realization of expenses and earnings
Sales revenues and other operating income are realized after a definite contract is concluded, the delivery
or service was provided, the selling price is fixed or fixable and receiving of the economic benefit is
sufficiently probable. Cash discounts, premiums and discounts reduce the earnings.
Operating expenses are affecting net income at the time of their realization. Interest earnings as well as
interest expenses will be included in accordance with the accruals concept.
Government subsidies
Subsidies received from governments are only recognized, according to IAS 20 “Accounting of government
grants and disclosure of government assistance,” if there is reasonable certainty of the company’s
compliance with the related conditions and the subsidies will be granted.
Government subsidies are scheduled and recognized as income for the respective periods related to the
affected expenses that are to be offset by these subsidies. If subsidies are granted for expenses or losses
in the past or for the purpose of immediate financial support without any future costs, they are recognized
as gains for the respective period of the accrued liability.
The company has received public sector funds from various sources for investment in technical equipment
as well as research and development.
Government subsidies for assets are recognized as abatement of the purchase price. Subsidies not relating
to assets are recognized in the income statement as other operating income. This refers to subsidies
for research and development projects.
The subsidies for research projects recognized in the income statement total KEUR 1,254 (preceding
year: KEUR 1,162).
The investment grants and subsidies are partially still subject to review. However, the company has not
identified any risks with regard to repayment requirements.
Distribution costs
Advertising expenses, marketing costs and other distribution costs are immediately recognized.
Research and development costs
Expenditures for research and development will be included directly to the related income statement as
far as they do not meet the requirements for capitalization pursuant to IAS 38.