Annual Report 2006

54
Notes to the Consolidated Financial
Statements 2006 of the Mikron Group
5.7 Income taxes
CHF 1‘000 2006 2005
Current income tax -119 -400
Deferred income tax -654 4‘317
Total income taxes -773 3‘917
The applicable tax rate of the Group is 20.0% (prior year: 19.8%) and corresponds to the weighted average income tax rates
of the individual Group companies in each jurisdiction. The tax rate can vary greatly from year to year depending on the
contribution to profit delivered by the subsidiaries as well as the impact of tax loss carryforwards.
The following statement shows the reconciliation of the income taxes calculated using the local tax rate and actual income
taxes.
CHF 1‘000 Note 2006 2005
Net earnings before taxes 6‘756 9‘245
Income tax at local tax rates -1‘351 -1‘825
Impact of non-capitalized loss carry forwards 250 789
Capitalization of deferred tax assets 6.11 1‘373 4‘970
Utilization and expiration of deferred tax assets 6.11 -440 1‘418
Other taxable effects -605 -1‘435
Total income taxes -773 3‘917
6. Details of the Consolidated Balance Sheet
6.1 Cash and cash equivalents
CHF 1‘000 31.12.2006 31.12.2005
Bank and post accounts 4‘935 18‘074
Deposits held at call 24‘624 38‘309
Total cash and cash equivalents 29‘559 56‘383
6.2 Accounts receivable
CHF 1‘000 31.12.2006 31.12.2005
Accounts receivable 30‘024 31‘595
Notes receivable 121 146
Allowance for doubtful accounts -466 -830
Total accounts receivable 29‘679 30‘911
thereof contractual retentions 0 0
The allowance for doubtful accounts is established to account for the credit risks related to accounts receivable. In the year
under review write-offs on accounts receivable of CHF 0.2 million (prior year: CHF 0.1 million) were recognized as other operating
expenses. There is only a limited risk from significant concentration of receivables, as the Group has a large number of
single debtors. Open balances of the three largest creditors amount to CHF 4.8 million (prior year: CHF 8.8 million) and are
predominantly not yet due.