Siemens 2012 Annual Report Download - page 256

1 A. To our Shareholders 49 C. Combined Management Report 21 B. Corporate Governance
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  Other current financial assets
September ,
(in millions of €)  
Derivative financial instruments 530 598
Loans receivable 1,197 869
Other 1,174 1,161
2,901 2,628
  Inventories
September ,
(in millions of €)  
Raw materials and supplies 2,629 2,650
Work in process 3,496 3,711
Costs and earnings in excess of billings
on uncompleted contracts 8,005 7,849
Finished goods and products held for resale 2,643 2,317
Advances to suppliers 953 831
17,726 17,358
Advance payments received (2,047) (2,215)
15,679 15,143
Cost of goods sold and services rendered include inventories
recognized as expense amounting to €, million and
€, million, respectively, in fiscal  and . Raw mate-
rials and supplies, work in process as well as finished goods and
products held for resale are valued at the lower of acquisition /
production cost and net realizable value. The respective write-
downs, as compared to prior year, increased (decreased) by €
million and €() million as of September ,  and .
Item Costs and earnings in excess of billings on uncompleted
contracts relates to construction contracts, with net asset bal-
ances where contract costs plus recognized profits less recog-
nized losses exceed progress billings. Construction contracts,
here and as follows, include service contracts accounted for
under the percentage of completion method. Liabilities from
contracts for which progress billings exceed costs and recog-
nized profits less recognized losses are recognized in line item
Other current liabilities.
The aggregate amount of costs incurred and recognized profits
less recognized losses for construction contracts in progress,
as of September ,  and  amounted to €, mil-
lion and €, million, respectively. Revenue from construc-
tion contracts amounted to €, million and €, mil-
lion, respectively, for fiscal  and .
Advance payments received on construction contracts in prog-
ress were €, million and €, million as of September ,
 and . Retentions in connection with construction con-
tracts were € million and € million in fiscal  and .
In the fourth quarter of fiscal , Siemens revised its credit
risk assessment for Iran. In accordance with project account-
ing principles, Siemens therefore revised project calculations
for the affected contracts. The change in credit risk assess-
ment resulted in an earnings impact of € million.
  Other current assets
September ,
(in millions of €)  
Miscellaneous tax receivables 668 732
Prepaid expenses 262 250
Other 346 282
1,277 1,264
  Goodwill
Year ended September ,
(in millions of €)  
Cost
Balance at beginning of year 17,252 17,436
Translation differences and other 599 104
Acquisitions and purchase
accounting adjustments 913 209
Dispositions and reclassifications
to assets classified as held for disposal (246) (497)
Balance at year-end 18,517 17,252
Accumulated impairment losses
and other changes
Balance at beginning of year 1,546 1,673
Translation differences and other 59 (26)
Impairment losses recognized
during the period –2641
Dispositions and reclassifications
to assets classified as held for disposal (157) (365)
Balance at year-end 1,448 1,546
Carrying amount
Balance at beginning of year 15,706 15,763
Balance at year-end 17,069 15,706
1 Impairment losses recognized in fiscal  relate to activities classified as
discontinued operations. Impacts on the Consolidated Statements of Income
are presented in discontinued operations for all years presented.