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Chapter
4 /
Inventories (lAS 2)
33
Work-in -p rocess and fini shed goods and merchandise are combine d into one item due to the pro–
du ction conditions in the ch emical industry. Services-in-process relates primarily to inventory not in –
voiced at the balance shee t date.
Impairment lo sses on inventory amount to €2.7 million in 2006 and €3.6 million in 2005 . Of the
total inventory, € 1,528.7 million in 2006 and € 1,074.3 million in 2005 was valued at net real izable
value. Reversals of impa irment losses are made if the re asons for the impairment no longer apply.
Rever sal s amounted to €8.2 million in 2006 and €3 5.4 million in 2005.
Inventories were valued using the weighted-average co st method.
11.3 BARLOWORLD
35
4
24
8
12
2
2006
2005
2004
318
387
392
311
264
296
3,266
2,403
2,319
1,890
1,581
1,377
112
149
92
618
--.l.Q
_9 _ 9
5.201
'!.121
5Jill
2,303
1,811
2,277
948
612
618
1,452
1,128
916
224
223
215
498
392
358
472
366
402
----lQ
_ _7
__4
5.907
4539
4790
330
254
---..1U
6237
4793
5Jill
5,206
4,4 12
4,669
--.ill.
--..3.lli
434
5.201
4793
5Jill
86
2
6
Inventory pledged as security for liabilities
The secured liabilities are included under trade and other payables
(note 18)
Amount of write-down of inventory to net realizable value and
losses of inventory
Amount of reversals of inventory previously written down
Notes to the Consolidated Annual Financia l Statements for the Year Ended September 30
9. Inventories
(In euros millions)
Raw materials and components
Work-in-progress
Finished goods
Merchandise
Consumable stores
Repurchase commitments'
Other inventories
Total inventories
Per business segment:
Continuing operations
Equipment
Industrial distribution
Motor
Cement
Coatings
Scientific
Corporate and other
Total continuing operations
Discontinued operation-Steel tube
Total group
The value of inventories has been determined on the following
bases:
First-in, first-out and specific identification
Weighted-average
*
Repurchase commitments that have been assessed as not probable have not been raised on balance sheet after 2004
in terms of
lAS
37,
Provisions, Contingent Liabilities and Contingent Assets. The gross value
ofthe
repurchase
obligation less the estimated recove rable amount
ofthe
related asset has been discl osed under contingent liabilities
in note
31.