2 Cost of sales
Cost of sales includes interest expenses of €1,948 million (previous year: €2,577 million) attributable to the financial services business. This item also includes impairment losses on intangible assets, property, plant and equipment, and leasing and rental assets in the amount of €346 million (previous year: €210 million). Impairment losses are based on updated impairment tests and reflect market and exchange rate risks in particular, as well as amended sales forecasts and reduced product life cycles.
Government grants related to income amounted to €307 million in the fiscal year (previous year: €225 million) and were generally allocated to the functions.
The prior-year figures were adjusted to reflect the application of IAS 19R.