Special Features of Construction Companies' Financial Statements

Volume of Total Securities Requirement

The securities to be provided by construction companies are not stated separately in the balance sheet. Nevertheless, the respective volume can be inferred from the annual accounts. The securities for advance payment are determined by the volume of advances received which are stated on the liabilities side of the balance sheet. The securities for contract performance can be roughly estimated on the basis of the value of uncompleted work in hand. For the required securities for defects liabilities, the revenues of past years serve as a basis for calculation.