Investor Presentaiton
CONSOLIDATED FINANCIAL STATEMENTS | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS | NET WORKING CAPITAL
3.1 INVENTORIES
Inventories, MEUR
Raw materials, supplies and finished goods
Work in progress
Advance payments
Total
Dec 31, 2022
409.9
Dec 31, 2021
326.6
411.1
22.6
351.9
39.2
843.6
717.8
Accounting principles
Inventories
Inventories are valued at the lower of cost or net realizable
value. Raw materials and supplies are valued based on
weighted average cost method or at standard cost. Semi-
manufactures are valued at production costs.
Work in progress includes direct labor and material costs
as of the consolidated statement of financial position date
with a proportion of indirect costs related to manufacturing
and installation allocated to the firm customer order when
control has not yet transferred to the customer. Firm
customer orders are mainly fixed price contracts with
customers for the sale of new equipment or for the
modernization of old equipment.
An allowance is recorded for obsolete items based on
management's estimate of expected net realizable value.
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