Annual Report 2006

4. Significant Assumptions used in presenting the
Consolidated Financial Statements
In applying the entity’s accounting policies, which are
described in note 2, management has made assumptions
and estimates. The key assumptions concerning valuation of
assets and liabilities are based on recoverability and probability
of occurrence.
If the actual results deviate from the assumptions and estimates
made by management, this would have a material
impact on the annual financial statements, particularly in the
areas described below.
4.1 Construction contracts The valuation and reporting
of construction contracts for machining and assembly
systems are material to the Group. Individual projects are
accounted for by the percentage-of-completion method. The
main assumptions are disclosed in note 6.4, along with the
carrying value of the balance sheet assets and liabilities.
4.2 Employee benefits There are a number of employee
benefit plans and pension funds in existence within the
Mikron Group. The majority of staff members are covered
by the employee benefit plans of the Mikron pension
fund in Switzerland. The significant assumptions and the
carrying value on the balance sheet of the pension assets are
disclosed in note 6.10.
Notes to the Consolidated Financial
Statements 2006 of the Mikron Group
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