1.3 Significant Accounting and Valuation Principles

Treasury Shares

Treasury shares are recognised at acquisition cost and deducted from shareholders’ equity at the time of acquisition. In the event of resale or allocation in the context of the Group’s equity-settled share-based compensation plans, the gain or loss incurred is allocated or charged to the legal capital reserves.

No dividends or repayments of legal capital reserves are distributed on treasury shares.

Share-based Compensation

Equity-settled share-based compensation transactions are measured at the grant-date fair value of the equity instruments granted. The grant-date fair value is recognised as personnel expense over the vesting period on a straight-line basis with a corresponding increase in liability, based on the number of awards expected to vest. Non-market vesting conditions are reflected by adjusting the number of equity instruments expected to vest, while market conditions are incorporated into the grant-date fair value measurement. Subsequent changes in the market price of the underlying equity instruments do not affect the amount recognised.

The Company is responsible for the administration of the Group’s equity-settled compensation plans and the allocation of shares to plan participants. The related personnel expenses are recharged to the respective subsidiaries on an arm’s-length basis.

Foregoing a Cash Flow Statement and Additional Disclosures in the Notes

As the Company prepared its consolidated financial statements in accordance with a recognised accounting standard (IFRS Accounting Standards), it has decided to forego presentation of additional information on audit fees in the notes or a cash flow statement in accordance with law.