Notes to the Consolidated Financial Statements

21. Provisions

Changes in provisions during 2013:

€ 000

Restructuring provision

Unprofitable agreements

Total

1.1.2013

727

538

1,264

Increase in provisions

371

78

 449

Provisions used

-652

-341

-993

Reversals of unused provisions

-

-

 -

31.12.2013

446

 275

 721

       


Changes in provisions during 2012:

€ 000

Restructuring provision

Unprofitable agreements

Total

1.1.2012

1,967

382

2,349

Increase in provisions

1,312

482

1,793

Provisions used

-2,552

 -326

-2,878

Reversals of unused provisions

-

-

-

31.12.2012

 727

538

1,264

       


Restructuring provision

The restructuring provisions relate to organisational changes carried out during the year. They are included on the Balance Sheet under ‘Accruals’.


Unprofitable agreements

A loss provision is created for fixed-price projects if it becomes apparent that the completion of the project will require significantly more work input than has been estimated in connection with selling the project and can be invoiced from the customer on the basis of the agreement.

On the balance sheet date of 31 December 2013, there were four fixed-price projects for which loss provisions had been recorded on the basis of remaining work.