Accounting principle

Inventories are comprised of raw materials and consumables, products in progress, finished products and goods for resale.

Inventories are valued at the lowest of acquisition value and net sales value. The acquisition value of inventory is calculated using the first-in, first-out method and includes expenses connected to the acquisition of the stock assets and transportation to their current location and condition. For manufactured goods the acquisition value includes a reasonable share of the indirect costs based on a normal capacity.

The net sales value is the estimated sales price in the current business minus estimated costs for completion and bringing about the sale.