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7 Inventories



Dec. 31, 2003 Dec. 31, 2002
€ million € million
Land and equivalent rights excluding buildings 97.5 115.3
Costs in preparation for construction 15.4 10.4
Land and equivalent rights including unfinished buildings 19.9 70.7
Land and equivalent rights including finished buildings 41.2 81.7
Earnings in accordance with the percentage-of-completion method 0.0 2.9
Other work in progress 267.8 260.9
Other inventories 1.2 4.9
443.0 546.8


The other work in progress includes heating costs and operating charges which have yet to be billed and which are offset by advance payments made by the tenants. These advance payments are shown under Other liabilities.

In accordance with the requirements of ARB 43, each project is valued and accounted for using the completed-contract method. The advance payments received are offset against the project costs incurred. After offset of advance payments of € 3.7 million against capitalised project costs of € 6.0 million, other work in progress totalled € 2.3 million. Under the advance payments on the liabilities side, project costs of € 39.3 million are set off against advance payments of € 59.8 million, giving an advance payment surplus on development projects of € 20.5 million.