25. Deferred Income for Government Grants

Investment grants from the government are not recognized until there is reasonable assurance that the attached conditions will be met and that the grant will be awarded. Grants are reported separately under liabilities using the gross method. They are released pro rata in line with the depreciation and amortization of the subsidized assets.

The items included in the tables above were deferrals for asset-related grants. The grants of the AUTOMOBILE Division include EUR 1,099 thousand (previous year: EUR 1,151 thousand) for grants from the Federal Railway Authority for replacements and renovations in rail infrastructure. Accruals are reversed in line with the amortization of the subsidized assets. Income from the reversal of accruals of EUR 202 thousand (previous year: EUR 1,103 thousand) was collected in 2024. In addition, EUR 1,067 thousand from a grant paid out in the reporting year was recognized in profit or loss for the already expired term of a right of use.

Further income of EUR 480 thousand was recognized during the year (previous year: EUR 660 thousand), the full amount of which related to grants recognized through profit or loss. EUR 0 thousand (previous year: EUR 23 thousand) of this amount related to reimbursements of social security contributions by the Bundesagentur für Arbeit (Federal Labor Agency) in connection with the rollout of a furlough scheme. These contributions were reported gross under other operating income.