D4. Inventories
AP ACCOUNTING PRINCIPLES
Inventories are measured at the lower of cost and net realizable value. Cost is calculated mainly by applying the first-in, first-out (FIFO) principle or weighted average cost formula. The cost of inventories and work in progress includes raw material costs, direct labor, other direct expenses and production-related overheads, based on a normal capacity utilization.
The net sales price is the calculated sales price received for normal business transactions less calculated sales costs.
Felling rights for standing timber are measured at contract prices, which on average have not exceeded the lower of net realizable value and cost.
SEKm |
2016 |
2015 |
2014 |
Raw materials and consumables |
4,254 |
4,731 |
4,163 |
Spare parts and supplies |
1,906 |
1,734 |
1,812 |
Products in progress |
1,346 |
1,243 |
1,165 |
Finished products |
6,349 |
6,421 |
6,179 |
Felling rights |
489 |
523 |
463 |
Advance payments to suppliers |
3 |
9 |
11 |
BS Total |
14,347 |
14,661 |
13,793 |
Impairment of inventory amounted to SEK 258m (45; 235) during the period. Refer to Note B2 for further information.