For loans and receivables which are measured at amortised cost, there are no liquid markets. For current loans and receivables and liabilities recognised at amortised cost, it is assumed that the fair value corresponds to the carrying amount. For all other loans and receivables, the fair value is determined by discounting future expected cash flows. The interest rates applied to the loans are the same as those that would apply to new loans secured with the same risk structure, original currency and maturity.

The fair value of financial instruments is generally determined using stock exchange prices. If stock exchange prices are not available, the fair value is determined using measurement methods customary in the market, based on market parameters specific to the instrument.

Fair value is calculated using the discounted cash flow method, taking into account individual credit standing and other market circumstances in the form of credit and liquidity spreads generally applied in the market.

The fair value of derivative financial instruments is determined as follows: Options are valued by external partners using Black-Scholes pricing models. Futures are measured with recourse to the stock exchange price in the relevant market. All other derivative financial instruments are measured by discounting expected future cash flows using the net present value method. As far as possible, the entry parameters used in these models are relevant observable market prices and interest rates on the balance sheet date, obtained from recognised external sources.

These calculations are based on the following interest curves:

In the 2008 financial year, net gains or net losses arose on financial instruments as follows:

The net gains and losses on financial instruments arise from changes in fair value, the recognition of impairment losses and reversals of impairment losses, eliminations and exchange rate differences.

The net gains and losses correspond to the valuation gains and losses of the financial instruments but exclude interest and dividends.

Freestanding derivatives comprise all those derivatives which are not designated as hedging instruments. They include those derivatives in economic hedging relationships not designated as hedges in respect of which gains and losses arising from the underlying transaction and the hedged item are recognised at the same time in the income statement.

The financial result includes fees and other costs of capital of EUR 5m (2007: EUR 13m) relating to financial instruments not at fair value through profit or loss.

No interest income has been accrued which relates to impaired financial instruments, especially receivables.

Impairment loss on financial assets:

The interest income and interest expense from financial instruments not measured at fair value through profit or loss were as follows:

Not included here are the interest income and expense from derivatives and the interest income and expense from assets and liabilities which are outside the scope of IFRS 7.