33.18. Inventories

Inventories are stated at the lower of cost and net realizable value. The Group provides allowance for slow-moving or obsolete inventories based on inventory turnover ratios and current marketing plans. Change in allowance is presented in the consolidated income statement in “External purchases”.

Cost corresponds to purchase or production cost determined by the weighted average cost method. Net realizable value is the estimated selling price in the ordinary course of business, less selling expenses.