Annual report 20108.31 MB - Boskalis

Financial statements 20103.20 RevenueRevenue of the operational segments Dredging &Earthmoving and Maritime Infrastructure mainlyconsists of the cost price of the work done duringthe reporting period, plus a part of the expectedresults upon completion of the project in proportionto the progress made during the reporting period,and including and/or deducting the provisionsrecognized and/or used and released during thereporting period for expected losses. The applied“percentage-of-completion” method is, by itsnature, based on an estimation process. Revenuealso includes services rendered to third partiesduring the reporting period. The revenue fromservices relates in particular to hire personneland equipment and is recognized in the incomestatement in proportion to the stage of completionof the work performed at the reporting date.The stage of completion is determined based onassessments of the work performed.Revenue from salvage work that is completed atthe balance sheet date, but for which the proceedsare not finally determined between parties, isrecognized at expected proceeds taking intoaccount the estimation uncertainty.Revenue does not include any direct taxes. When itis uncertain whether the economic benefits of workdone or services rendered will flow to the Group,the relevant revenue is not recognized.3.21 Other incomeOther income mainly consists of book profits fromdisposals of and insurance results on property,plant and equipment.3.22 Raw materials, consumables and servicesRaw materials, consumables and services consist ofthe cost price of the work done during the reportingperiod, excluding personnel expenses, amortizationand depreciation. Raw materials, consumables andservices also include equipment utilization costs,cost of operational leases, general overhead costs,external costs for research and development wherenot capitalized, currency translation differences ontransactions in foreign currency and other results/late results. The limited costs for research anddevelopment are by their nature directly charged tothe income statement.3.23 Personnel expensesPersonnel expenses consist of wages and salariesfor own personnel and the related social securitycharges and pension costs, including paidand accrued contributions for defined pensioncontribution plans and the movement in the assetsand liabilities from defined benefit plans, excludingactuarial gains and losses and the limitation on netpension plan assets added or charged directly togroup equity.3.24 Lease paymentsPayments made under operating leases arerecognised in profit or loss on a straight-linebasis over the term of the lease. Lease incentivesreceived are recognised as an integral part of thetotal lease expense, over the term of the lease.Minimum lease payments made under financeleases are apportioned between the financeexpense and the reduction of the outstandingliability. The finance expense is allocated to eachperiod during the lease term so as to produce aconstant periodic rate of interest on the remainingbalance of the liability. Contingent lease paymentsare accounted for by revising the minimum leasepayments over the remaining term of the lease whenthe lease adjustment is confirmed.3.25 Finance income and expensesFinance income comprises interest received andreceivable from third parties, positive changes infair value of financial assets at fair value with fairvalue adjustments through the income statementand gains on financial instruments to hedge interestrate risks through the income statement. Interestincome is recognized in the income statement as itaccrues, using the effective interest rate method.Finance costs include interest paid and payableto third parties, which are allocated to reportingusing the effective interest rate method, negativechanges in fair value of financial assets at fair valuewith fair value adjustments through the incomestatement, arrangement fees and losses on financialinstruments to hedge interest rate risks through theincome statement.Borrowing costs not directly attributable to theacquisition, construction or production of aqualifying asset are recognized in the incomestatement using the effective interest rate method.82 Annual Report 2010