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12. Contract work in progress and progress payments and advances from customers

 31 December 201631 December 2015
Contract work in progress (gross)3,191-
Final losses (positive wip)(40)-
Progress payments and advances from customers(1,084)-
Contract work in progress (net)2,067-
   
Progress payments and advances from customers (gross)4,614-
Contract work in progress(141)-
Final losses (negative wip)471-
Progress payments and advances from customers (net)4,944-
   
Net value(2,877)-

“Contract work in progress” is recognised as an asset net of the relative advances if, based on an analysis carried out on a contract-by-contract basis, the gross amount of work in progress exceeds advances from customers. It is recognised as a liability if advances from customers exceed the relevant work in progress. This offsetting is performed only with regard to work in progress and not to inventories or other assets. If the progress payments and advances from customers have not been collected at the reporting date, the corresponding amount is recognised as a receivable from customers.

Below is a breakdown of the net balance of contract work in progress and progress payments and advances from customers:

 31 December 201631 December 2015
Cost incurred and margins recognised, net of losses3,109-
Advances(5,986)-
Net value(2,877)-