Search results

Download center

To generate a PDF, select pages or entire sections by checking a box on the left-hand side.

To download Consolidated financial statements’ tables in Excel format, select tables by checking a box on the right-hand side.

Constructing PDF 0%

Please wait

Cancel

PDF ready

PDF error

Please try selecting the pages you want again and click Generate pdf.

You have selected (0) sections of the Stora Enso Financial Report 2016.

Note 16 Inventories
Accounting principles
Inventories are reported at the lower of cost and net realisable value with cost being determined by the first-in first-out (FIFO) method or, alternatively, weighted average cost where it approximates FIFO. The cost of finished goods and work in progress comprises raw material, direct labour, depreciation, other direct costs and related production overhead but excludes interest expenses. Net realisable value is the estimated selling price in the ordinary course of business, less costs of completion and sale.

Where market conditions result in the manufacturing costs of a product exceeding its net realisable value, a valuation allowance is made. Valuation allowances are also made for old, slow moving and obsolete finished goods and spare parts. Such valuation allowances are deducted from the carrying value of the inventories in the Consolidated statement of financial position.
As at 31 December
EUR million 2016 2015
Materials and supplies 332 343
Work in progress 77 81
Finished goods 651 664
Spare parts and consumables 282 283
Other inventories 15 13
Advance payments and cutting rights 102 108
Obsolescence allowance - spare parts and consumables -98 -106
Obsolescence allowance - finished goods -9 -9
Net realisable value allowance -6 -4
Total 1 346 1 373
EUR 14 (EUR 10) million of inventory write-downs have been recognised as an expense. EUR 7 (EUR 6) million have been recognised as a reversal of previous write-downs.

Dear reader,

The Stora Enso Financial Report is optimised for mobile devices, but for the best experience, we recommend that you use a larger screen size.