Accruals and provisions

Prudent provision must be made for all foreseeable financial risks. Expenses
already incurred must be accrued. Provisions for a loss in the value of assets are
deducted from the assets themselves; provisions for claims and other expenses
are shown on the liabilities side of the balance sheet.

Long-term provisions (those not expected to be utilised during the coming
twelve months) are discounted over the expected period of reversal at the
average market rate of interest during the past seven years. Average interest
rates for this purpose are published monthly by the Bundesbank. For pensions
an average reversal period of fifteen years may be assumed.