Annual Report 2006

6.3 Inventories
Notes to the Consolidated Financial
Statements 2006 of the Mikron Group
CHF 1‘000 31.12.2006 31.12.2005
Raw, auxiliary and operating materials 8‘640 7‘891
Work in progress 9‘919 12‘143
Finished and trading goods 20‘716 19‘623
Prepayments to suppliers 2‘405 1‘931
Prepayments from customers -1‘397 -1‘351
Total inventories 40‘283 40‘237
Book value of inventories carried at net realizable value 0 0
Fire insurance value inventories and construction contracts 130‘381 117‘372
Inventories comprise particularly of standard and special tools, subsystems purchased but not yet recognized on a specific
customer contract and spare-parts. The small increase in the year under review is reported in the income statement as change
of work in process/finished goods.
6.4 Construction contracts
CHF 1‘000 31.12.2006 31.12.2005
Projects in progress - costs incurred 108‘531 46‘297
Recognised profits less recognised losses 22‘625 13‘525
Prepayments from customers -94‘338 -43‘529
Total net assets from customer projects 36‘818 16‘293
Projects in progress - costs incurred -25‘178 -60‘023
Recognised profits less recognised losses -4‘443 -4‘688
Prepayments from customers 42‘308 86‘232
Total net liabilities from customer projects 12‘687 21‘521
Construction contracts for machining and assembly systems are accounted for using the stage of completion. The stage
of completion, determined by individually measuring the costs incurred to date compared to the total estimated costs, at
December 31, 2006 is approximately 73% (prior year: 60%). As at December 31, 2006, the Mikron Group had 143 projects
in progress (prior year: 124 projects) with an average volume of CHF 1.6 million (prior year: CHF 1.7 million). The material
valuation risks lie in estimating the overall costs as well as the contractual obligation toward the customer to complete the
project by a certain deadline at a fixed price.
6.5 Other receivables and prepaid expenses
CHF 1‘000 Note 31.12.2006 31.12.2005
Other receivables 4‘383 4‘313
Derivative financial instruments 7.2 0 0
Prepaid expenses 2‘757 2‘341
Total other receivables and prepaid expenses 7‘140 6‘654
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