Chapters
Annual Report 2019

15. Inventories

Accounting Policy
Inventories are stated at the lower of cost and net realizable value. Cost is determined by the weighted average cost method. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale. Costs of inventories include gains/losses on qualifying cash flow hedges transferred from equity at the moment of inventories purchases.

The composition of the inventories is as follows:

in thousands of EUR

31 December 2019

31 December 2018

Finished goods

378,482

348,141

Provision for obsolete inventory

- 22,223

- 17,639

356,259

330,502

An amount of €15,881 (2018: €10,960) has been recognized in the consolidated Income Statement relating to obsolete inventories in ’Cost of sales and directly related costs’.