Other Provisions  Treasury Stock Equity Participation Plans/Management Incentive Program  Recognition of Sales  Royalty and Commission Income Advertising and Promotion Expenses In accordance with IAS 37, other provisions are recorded to account for all risks and obligations vis à vis third parties  that result from past transactions or events where amounts or maturities were uncertain. The provisions are stated at their  settlement amount; they are not set off against positive income. Provisions are also created to account for unfavourable contracts where unavoidable costs exceed the economic benefit expected from the contract. as “Treasury Stocks”; at present it is not planned to call-in the shares.  Treasury stock is stated at the market price valid at the date of acquisition including incidental acquisition costs, and recorded under equity capital. The company keeps the repurchased shares  In 1996 PUMA introduced a Management Incentive Plan for the Board and Management of PUMA AG and its subsidiaries. The share-based remuneration systems encompass convertible bonds, stock options (SOP) and stock appreciation rights (SAR). In accordance with the intrinsic value method, the programs are  recognised at the time of issue or at the balance sheet date, respectively (SAR). Any expense that may arise is recorded as personnel expense and booked against equity (SOP), other pro- visions or other liabilities (SAR), respectively.  Sales are recognized and included in profits at the time of the transfer of risk. Sales are disclosed net of returns, discounts, rebates, and sales-dependent advertising contributions. Royalty income is treated as income in accordance with the invoices to be presented by the licensees. In certain cases,  values must be assessed in order to permit accounting on an  accrual basis. Commission income is invoiced to the extent that the underlying purchase transaction is deemed realized. The company recognizes advertising expenses at the time they originate. Generally, promotion expenditure is spread over the contract term as an expense on an accrual basis.  71 Foreword | Mission | Management Report | Share | Marketing |  Consolidated Financial Statements - IFRS - | Report of Supervisory Board | Board of Management