Deferred tax assets and liabilities relate to the following items:

Deferred tax recognised directly in equity:

Changes in deferred taxes are mostly recognised in profit or loss, but a portion is recognised directly in equity. Further information is provided in Note 13, Income Tax.

Deferred tax assets are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits. The Management Board considers it probable that the recognised deferred tax assets will be utilised.

The Group has tax loss carryforwards as follows:

Losses can be carried forward indefinitely in Germany. Of the foreign loss carryforwards, EUR 9,501,000 (2007/2008: EUR 9,395,000) expire in the next five years and EUR 5,001,000 (2007/2008: EUR 5,321,000) in more than five years. The utilisation of tax loss carryforwards is limited by minimum taxation in certain jurisdictions.

Analysis of deferred tax assets recognised for tax loss carryforwards by period: