Sales are recognized net of sales-related taxes as well as sales deductions. They are recognized once the goods have been delivered or the services have been rendered, the significant risks and rewards of ownership have been transferred to the purchaser, the amount of revenue can be measured reliably, and it is probable that the economic benefits will flow to the entity. When sales are recognized, estimated amounts are taken into account for expected sales deductions, for example rebates, discounts and returns.
In addition to revenue from the sale of goods, sales also include revenue from services, but the volume involved is insignificant. Long-term, customer-specific manufacturing contracts do not exist.
Depending on the substance of the relevant agreements, royalty, license and commission income is recognized either immediately or is recognized when the contractual obligation is fulfilled.
Dividend income is recognized when the shareholders’ right to receive the dividend is established. This is normally the date of the dividend resolution. Interest income is recognized in the period in which it is earned.
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