Investor Presentaiton
12. Inventory
(a) Breakdown
Accounting policy
Presented at the lower of cost and net realizable value. The cost is de-
termined using the weighted average cost method. The costs of finished
products and products in preparation comprise raw materials, direct labor
and other direct and indirect production costs (based on normal operatio-
nal capacity). The raw materials from biological assets (e.g: trees from a
plantation, plants, fruit trees, cattle, etc.) are measured at fair value, less
selling expenses at the point of harvest, when they are transferred from
non-active assets current to the inventory group.
The subsidiaries, at least once a year, carry out the physical inventory of the
goods included in their inventory. Inventory adjustments are recorded under
Cost of goods sold and services provided.
The provision for inventory losses refers substantially to obsolete and low
turnover materials.
Finished products
Semi-finished products
Raw materials
Auxiliary materials and consumables
Imports in transit
Other
Provision for inventory losses
(b) Changes in the estimate of inventory losses
Balance at the beginning
of the year
Addition
Disposal
Reversal
Semi-
Auxiliary
Finished finished
Raw materials and
products products materials consumables
2021
2020
1,609
949
2,021
1,705
1,610
858
1,588
1,249
402
319
415
114
(478)
(470)
7,167
4,724
2021
2020
Other
Total
Total
(17)
(57)
(17)
(51)
(103)
(46)
(246)
(158)
(133) (470) (393)
(34)
(392) (229)
12
17
17
46
52
74
56
142
2
326
219
Effect of subsidiaries
included in consolidation
3
11
26 (15)
25
Exchange variation
(1)
(6)
(6)
(13)
(67)
Balance at the end of the
year
(13)
(64)
(7)
(225)
(169)
(478)
(470)
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