Siemens 2010 Annual Report Download - page 242

6 To our shareholders 21 Corporate Governance 49 Combined management’s discussion and analysis
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 – Other current financial assets
September ,
 
Derivative financial instruments 949 782
Loans receivable 740 786
Other 921 839
2,610 2,407
 – Inventories
September ,
 
Raw materials and supplies 2,420 2,279
Work in process 3,724 3,619
Costs and earnings in excess of billings
on uncompleted contracts 7,538 7,137
Finished goods and products held for resale 2,866 2,945
Advances to suppliers 657 565
17,205 16,545
Advance payments received (2,255) (2,416)
14,950 14,129
Cost of goods sold and services rendered include inventories
recognized as an expense amounting to €, and €,,
respectively, in fiscal  and . Raw materials and sup-
plies, work in process as well as finished goods and products
held for resale are valued at the lower of acquisition / produc-
tion cost and net realizable value. The respective write-downs,
as compared to prior year, increased by € (fiscal  in-
crease by €).
Costs and earnings in excess of billings on uncompleted con-
tracts relates to construction contracts, with net asset balances
where contract costs plus recognized profits less recognized
losses exceed progress billings. Construction contracts, here
and as follows, include service contracts accounted for under
the percentage of completion method. Liabilities from con-
tracts for which progress billings exceed costs and recognized
profits less recognized losses are recognized in Other current
liabilities; see Note .
The aggregate amount of costs incurred and recognized profits
less recognized losses for construction contracts in progress,
as of September ,  and  amounted to €, and
€,, respectively. Advance payments received on construc-
tion contracts in progress were €, and €, as of Sep-
tember ,  and . Revenue from construction con-
tracts amounted to €, and €,, respectively, for fiscal
 and . Retentions in connection with construction
contracts were € and € in fiscal  and . Informa-
tion concerning construction contracts does not include dis-
posal groups.
 – Other current assets
September ,
 
Miscellaneous tax receivables 686 618
Prepaid expenses 296 317
Other 276 256
1,258 1,191