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|Special Features of Construction Companies|
Clients often make advance payments which temporarily exceed the construction work to be performed within the given period.
From an economic perspective, this interest credit for the average net investment cannot be allocated to financing activities, but to operating earnings since revenues are reduced by this interest component. The average net investment is calculated by deducting inventories and production costs for work orders (accounts receivable and payable from PoC) from interest-bearing funds. Funds include advance payments received from long-term work orders and the balance of accounts payable to and receivable from third parties and joint ventures.