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’.