SOMFY_ANNUAL_FINANCIAL_REPORT_2017
07 CONSOLIDATED FINANCIAL STATEMENTS
INVENTORIES NOTE 4.4
Inventories are valued at their procurement cost, determined using the weighted average cost method. In particular, inventory cost measurement takes into account the following items: the gross value of raw materials and supplies includes the purchase price and ancillary expenses; – expenses incurred to bring inventories to the place they are located, and in the condition they are in, are integrated in inventory – procurement cost; manufactured products are measured at production cost, which includes consumables, direct and indirect production expenses and – depreciation charges of assets used in the manufacturing process; intragroup profits included in inventories are eliminated; – borrowing costs are not included in the cost of inventory. – The value of inventories and work in progress is impaired when their net realisable value is lower than their book value. Net realisable value is the estimated selling price under normal business conditions, after deducting estimated completion costs and estimated selling expenses.
€ thousands
31/12/17
31/12/16
Gross value Raw materials and other supplies Finished goods and merchandise
65,562 131,127 196,689 –11,982 184,707
56,059 125,143 181,202 –11,458 169,744
Total
Provisions NET VALUES
Value 31/12/16
Net charges
Exchange rate movement
Value 31/12/17
€ thousands
–11,982
Inventory provisions
–11,458
–799
274
TRADE RECEIVABLES NOTE 4.5
Trade receivables are recorded at their nominal value and a provision for writedown is established when receivables are unlikely to be collected.
€ thousands Gross value
31/12/17 188,104 –14,623 173,482
31/12/16 178,360 –15,926 162,433
Provision
NET VALUE
Value 31/12/16
Charges Reversals used
Reversals unused
Exchange rate movement
Value 31/12/17
€ thousands
–14,623
Provision for bad debts
–15,926
–2,527
2,239
955
637
At 31 December 2017, the maturity profile of trade receivables was as follows:
Overdue between
Not overdue
Total
0 to 3 months
3 to 6 months
6 to 9 months
More than 9 months
€ thousands
Trade receivables 188,104 Credit insurance contracts, both in France and internationally, mitigate the consequences of customer default. Approximately 80% of sales are covered by such contracts. It is appropriate to note that the current method for determining provisions for trade receivables complies with the requirements of IFRS 9 – Financial Instruments. 142,041 25,790 5,964 2,566 11,743
85
SOMFY – ANNUAL FINANCIAL REPORT 2017
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