BORUSSIA DORTMUNDGmbH & Co. Kommanditgesellschaft auf Aktien, Dortmund Key Audit Matters in the Audit of the Annual the financial year from July 1, 2020, to June 30, Financial Statements 2021. These matters were addressed in the context Key audit matters are those matters that, in our of our audit of the annual financial statements as a professional judgment, were of most significance whole, and in forming our opinion thereon, we do in our audit of the annual financial statements for not provide a separate opinion on these matters. Measurement of player registrations as well as the completeness and measurement of liabilities from transfers We refer to the information in the notes to the OUR AUDIT APPROACH financial statements on accounting policies as well By examining material transfer and agent as to the explanatory notes to the balance sheet agreements for new players, we assessed player (Sections: Intangible assets and Liabilities). registrations in terms of how the acquisition costs and related liabilities were determined. THE FINANCIAL STATEMENT RISK Player registrations in the amount of EUR 203.1 As part of subsequent measurement, we checked million are presented under intangible assets in the material transfer and agent agreements to assess annual financial statements of Borussia Dortmund. whether conditions had occurred in financial year Player registrations decreased to EUR 203.1 million 2020/2021 triggering subsequent acquisition costs in the financial year ended due to additions of and additional liabilities from transfers and whether EUR58.7 million, reclassifications of EUR 0 million, these were recognized accordingly in the financial disposals of EUR 4.1 million, write-downs of statements. EUR99.6 million and reversals of write-downs of EUR 0 million. Trade payables include transfer Furthermore, we examined material contract liabilities of EUR 87.7 million. modifications or contract renewals for subsequent acquisition costs and additional liabilities and The acquisition cost of player registrations is whether the adjustments to useful lives were determined based on individual and complex reasonable. transfer agreements between the transferring and receiving clubs as well as any agreements with OUR OBSERVATIONS players' agents concluded in this context. Due to the Transfer and agent agreements were appropriately heterogeneity and complexity of the contract assessed in terms of measuring player registrations provisions, there is generally the risk that the and measuring the completeness of the related intangible asset and the related transfer liability are transfer liabilities. not measured appropriately on initial recognition in the financial statements. Furthermore, there is generally the risk of inappropriate subsequent measurement of the intangible assets and transfer liabilities, as well as of the completeness of transfer liabilities that may arise if conditional contractual components or contract modifications materialize. 110