ANNUAL REPORT 2007 | 2008 - Gimv

5.22 Revenue recognition
Revenue is recognized whenever it is probable that the economic
benefi ts will fl ow to the Gimv group and the revenue can
be reliably measured.
With respect to sale of goods, revenue is recognized at the
time that the signifi cant risks and rewards of ownership of the
goods have passed to the buyer. Sales are recognized when
persuasive evidence of an agreement can be presented, delivery
has occurred, the remuneration is fi xed and determinable, and
collectibility is probable.
For work in progress the percentage of completion method is
used, where the outcome of the contract can be assessed with
reasonable certainty.
For the rendering of services, revenue is recognized by reference
to the stage of completion. In the case of government
grants, revenue is recognized as income pari passu with the
depreciation of the underlying fi xed assets.
5.23 Employee benefi ts
Post employment benefi ts comprise pensions, life insurance
and medical care.
Retirement benefi ts under defi ned contribution and defi ned
benefi t plans are provided through separate funds or insurance
plans.
- defi ned contribution plans:
Contributions to defi ned contribution pension plans are recognized
as an expense in the income statement as incurred.
- defi ned benefi t plans:
For defi ned benefi t plans, the amount recognized in the
balance sheet is determined as the present value of the defi
ned benefi t obligation less any past service costs not yet
recognized and the fair value of any plan assets. Where the
calculation results in a net surplus the recognized asset is
limited to the total of all cumulative unrecognized past service
costs and the present value of any refunds from or reductions
in future contributions to the plan.
The recognition of actuarial gains and losses is determined
separately for each defi ned benefi t plan. Actuarial gains and
losses are fully recognized in the income statement in the period
in which they are established.
116 | Gimv Annual Report 2007-2008 | Statutory consolidation
5.24 Share-based payment transactions
As part of the remuneration system and in order to involve employees
more closely in the respective investment portfolios,
options and/or shares are offered to members of staff in the
co-investment companies which have been set up on a business
unit basis. The cost of the options/shares allocated in this
way is calculated based on the fair value of the share options
at the date of allocation. Together with an identical increase in
equity, this amount is taken into the income statement over the
vesting period, ending on the date on which the employees in
question are fully entitled to the allocation.
5.25 Financial liabilities
Interest-bearing loans and borrowings are initially valued at cost
less transaction-related costs. After initial recognition, interestbearing
loans and borrowings are subsequently measured at
amortized cost using the effective interest method. In calculating
the amortized cost, account is taken of any issue costs, and
any redemption discount or premium.
5.26 Dividends
Dividends proposed by the Board of Directors are not recorded
in the fi nancial statements until they have been approved by the
shareholders at the annual General Meeting.
5.27 Earnings per share
The Group calculates both basic and diluted earnings per share
in accordance with IAS 33. Basic earnings per share is computed
using the weighted average number of shares outstanding
during the period. Diluted earnings per share is computed using
the average number of shares outstanding during the period
plus the dilutive effect of warrants and stock options outstanding
during the period.