Accounting policy
Inventories are stated at the lower of cost and net realizable value. The cost of intermediates, work-in-progress and finished goods includes directly attributable costs and related production overhead expenses.
Net realizable value is determined as the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. Products whose manufacturing cost cannot be calculated because of joint cost components are stated at net realizable value after deduction of a margin for selling and distribution efforts. Allowances for slow-moving and obsolete inventories have been made.
Cost is generally determined using the weighted average cost formula, unless the nature of the inventories warrants the use of the first in, first out (FIFO) method of valuation.
|
|
2023 |
|
2022 |
|---|---|---|---|---|
Raw materials and consumables |
|
1,018 |
|
596 |
Intermediates and finished goods |
|
2,446 |
|
1,809 |
|
|
3,464 |
|
2,405 |
|
|
|
|
|
Adjustments to lower net realizable value |
|
(74) |
|
(66) |
Total |
|
3,390 |
|
2,339 |
|
|
2023 |
|
2022 |
|---|---|---|---|---|
Balance at 1 January |
|
(66) |
|
(82) |
|
|
|
|
|
Additions charged to income statement |
|
(65) |
|
(31) |
Utilization/reversals |
|
109 |
|
20 |
Exchange differences |
|
5 |
|
(2) |
Disposal |
|
27 |
|
15 |
Transfer |
|
(57) |
|
(10) |
Reclassification to held for sale |
|
(27) |
|
24 |
Balance at 31 December |
|
(74) |
|
(66) |