G18 Inventories
|
2021 |
2022 |
|---|---|---|
Raw materials and consumables |
7,395 |
7,952 |
Work in progress |
5,763 |
5,906 |
Finished goods |
16,753 |
21,161 |
Total |
29,910 |
35,019 |
Cost of goods and services sold includes impairment of inventories of SEK 660 million (300). This year’s impairment of inventories are mainly related to the wind-down of operations in Russia. There were no significant reversals of impairment losses during 2022 and 2021.
Accounting principles
Inventories are stated at the lowest end of cost and net realizable value, with due consideration of obsolescence. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.
Cost is either based on the first-in/first-out (FIFO) principle and includes expenditure incurred in acquiring the inventories and bringing them to their existing location and condition or the weighted average cost formula. All inventories having a similar nature are valued with the same formula. In the case of manufactured inventories and work in progress, cost includes an appropriate share of overheads based on normal operating capacity.