IFRS PRACTICAL IMPLEMENTATION GUIDE AND WORKBOOK

33

Chapter 4 / Inventories (lAS 2)

Work-in -p rocess and fini shed goods and merchandise are combine d into one item due to the pro– du ction conditions in the ch emical industry. Services-in-process relates primarily to inventory not in – voiced at the balance shee t date. Impairment lo sses on inventory amount to €2.7 million in 2006 and €3.6 million in 2005 . Of the total inventory, € 1,528.7 million in 2006 and € 1,074.3 million in 2005 was valued at net real izable value. Reversals of impa irment losses are made if the re asons for the impairment no longer apply.

Rever sal s amounted to €8.2 million in 2006 and €3 5.4 million in 2005. Inventories were valued using the weighted-average co st method. 11.3 BARLOWORLD

2006 Notes to the Consolidated Annual Financia l Statements for the Year Ended September 30 9. Inventories (In euros millions) Raw materials and components Work-in-progress Finished goods Merchandise Consumable stores Repurchase commitments' 2005 2004 318 311 387 264 392 296 3,266 1,890 2,403 1,581 2,319 1,377 112 149 92 618

_9 _ 9

Other inventories Total inventories

--.l.Q 5.201

'!.121

5Jill

Per business segment: Continuing operations Equipment

2,303

1,811

2,277

948

612

618 916 215 358 402

Industrial distribution Motor Cement

1,452

1,128

224 498 472

223 392 366

Inventory pledged as security for liabilities The secured liabilities are included under trade and other payables (note 18) Amount of write-down of inventory to net realizable value and losses of inventory Amount of reversals of inventory previously written down Coatings Scientific Corporate and other Total continuing operations Discontinued operation-Steel tube Total group The value of inventories has been determined on the following bases: First-in, first-out and specific identification Weighted-average

_ _7 4539

__4 4790 ---..1U 5Jill

----lQ 5.907

254

330

6237

4793

5,206 --.ill. 5.201

4,4 12 --..3.lli 4793

4,669

434

5Jill

86

2

6

12 2

24 8

35 4

* Repurchase commitments that have been assessed as not probable have not been raised on balance sheet after 2004 in terms of lAS 37, Provisions, Contingent Liabilities and Contingent Assets. The gross value ofthe repurchase obligation less the estimated recove rable amount ofthe related asset has been discl osed under contingent liabilities in note 31.