If there is an active market for a financial instrument (e.g. stock exchange), the fair value is expressed by the market or quoted exchange price at the balance sheet date. If there is no active market, the fair value is determined by an established valuation technique (e.g. present-value method, option pricing models). The valuation techniques used incorporate the major factors establishing a fair value for the financial instruments using valuation parameters which are derived from the market conditions at the balance sheet date. The cash flows used under the present value method are based on the contractual data of the financial instruments. The fair values of other non-current receivables and financial investments held to maturity with remaining maturities of more than one year equal the present values of the payments related to the assets, taking into account the current interest rate parameters which reflect market- and partner-related changes in the conditions and expectations.

Most of cash and cash equivalents, trade receivables and other receivables have short remaining maturities. Thus, their carrying amounts at the reporting date are largely equivalent to their fair values. Trade payables and other liabilities generally have short remaining maturities; the amounts carried in the balance sheet are similar to their fair values.

The financial assets classified as available for sale include shares in partnerships and corporations in the amount of €301 million (previous year €336 million) for which a fair value cannot be determined reliably. The shares in these companies are not quoted on an active market; they are therefore recognised at cost. There are no plans to sell a material number of shares in the near future. Shares measured at cost in the amount of €68 million (previous year: €83 million) were sold, however, in the financial year at a disposal loss of €3 million (previous year: €14 million).

The Group is allowed only to reclassify financial instruments out of the category “available for sale” into the category “held to maturity”. No assets were reclassified in financial years 2007 and 2006.

The net gains and losses from financial instruments classified in accordance with the measurement categories of IAS 39 and the total interest income and expense of financial instruments not included in profit or loss at fair value are composed as follows:

The net gains and losses mainly account for the effects of fair-value measurement, valuation allowances and disposals (disposal gains/losses). No dividends or interest are taken into account in the financial instruments recognised in profit or loss at fair value. Details of net gains or losses on the financial assets available for sale can be found in Note 36.

Income and expense from interest and commission agreements of the financial instruments not measured at fair value through profit or loss are explained in the income statement disclosures.