Glossary

Payments on account and advance payments

An idea can be gained as to the degree of order financing by comparing the capitalized construction work not yet settled with the payments on account and advance payments already received. The payments on account received for work already performed are deducted from the capitalized construction work not yet settled.

Payments and advance payments made by clients in excess of the construction work reported as of the balance sheet reporting date are reported in the “Progress received” item on the liabilities side of the balance sheet.