BORUSSIA DORTMUNDGmbH & Co. Kommanditgesellschaft auf Aktien, Dortmund Provisions costs directly attributable to the issue of the financial Provisions must be recognised where a present legal liabilities. Other financial liabilities are subsequently or constructive obligation arises from a past event, measured at amortised cost using the effective which is expected to result in an outflow of resources interest method, where interest expense is and whose amount can be reliably estimated. measured in accordance with the effective interest rate. Please refer to Notes 11, 12, 13, 14 and 26 et The Group applies these accounting procedures seq.for information on the provision of collateral and when recognising provisions for litigation and liability further disclosures on financial liabilities. risks. The Group makes assumptions when determining the probability that liability will arise, Prepaid expenses and deferred income the amount of any claims that could be asserted and Prepaid expenses and deferred income are the duration of any legal proceedings. recognised and apportioned on a straight-line basis over their term to allocate payments made on an The recognition and measurement of provisions for accrual basis. litigation and liability risks entail uncertainty. The outcome of court proceedings in particular is difficult Recognition of income and expenses to predict. Therefore, provisions are measured on the Revenue is measured on the basis of the basis of the best estimate of the liability and are consideration set out in contracts with customers. recognised at the amount that will most likely be The Group recognises revenue when (or as) it needed to settle the obligation as at the reporting date. transfers control over a good or a service to a customer. Financial liabilities Financial liabilities falling under the scope of IFRS 9 Transfer proceeds are recognised as the net gain are allocated to the category "other financial on disposal less any residual carrying amount and liabilities". These include borrowings and are presented separately in the "net transfer income" recognised initially at fair value plus transaction item in the statement of comprehensive income. Type of product/ service Primarily Revenue recognition in accordance with IFRS 15 Match operations Ticket proceeds Revenue is recognised at a point in time (date of match). Advertising Sponsorship Revenue is recognised over time in line with the agreements term of the agreement; performance-based bonuses are recognised at a point in time. TV marketing Centralised Revenue is recognised over time; performance- national/international based bonuses are recognised at a point in time. TV marketing Merchandising Sale of fan merchandi- Revenue from fan merchandise is recognised at a se/granting of licences point in time. Revenue from licences is recognised over time in line with the term of agreement. Conference, catering, Related to match-day Revenue is recognised at a point in time. miscellaneous operations 190